Markets of choice for serious day traders

T

takef486

Hi, I'm coming back to day trading after several years of systematic trading and market making on FX. Fifteen years ago, my market of choice was EURUSD, but now, this market has insufficient intraday volatility relative to the noise level to be traded actively every day. You get 2-3 decent days in a month, rest of the time you can only position trade it or try to fade it all day, which is not the game I am looking for. I wonder, which are the markets of choice for people looking to trade minor intraday swings, perhaps making between 5-20 round turns in a normal day. The ideal market would have at least 100 TPO ( time price opportunities) a day (ATR/spread), liquidity able to absorb positions up to USD 5 mios without altering the basic spread, and reasonable signal/noise ratio. Otherwise, if there are none, are all day traders dead, or where are you making your millions guys?
 
The Dax, certainly ... and NQ futures, for me (I also used to trade EUR/USD).

I can't get anything like 20 round turns out of NQ, admittedly, but wouldn't want that many - more like 5-8.
 
I agree with Zela on the NQ. I believe I keep a shorter leash on both ends than her but I average from 8-14 on that market.
 
Crude Oil. Might be a little tight on liquidity though. More than 10 contracts at a time (equivalent to $1 million EUR/USD) will incur slippage.

Have you tried the more volatile FX pairs, like EURJPY or GBPJPY. EURAUD has been pretty perky lately too.
 
GBPJPY is interesting, it has a better ATR and the spread is not very wide, but the patterns just do not hold up too well, with both of the primary markets being somewhat noisy by nature. Same applies for AUDJPY and EURAUD, plus these have substantially higher execution costs. Will check up DAX and NQ, thanks,
 
takef486 said:
GBPJPY is interesting, it has a better ATR and the spread is not very wide, but the patterns just do not hold up too well, with both of the primary markets being somewhat noisy by nature. Same applies for AUDJPY and EURAUD, plus these have substantially higher execution costs. Will check up DAX and NQ, thanks,
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Neither DAX or NQ or CL have very thick order books compared to EUR/USD, ES or Eurostoxx 50 futures or government bond futures.
If the OP wants well over 5mill per side there arent that many choices.
 
takef486 said:
Hi, I'm coming back to day trading after several years of systematic trading and market making on FX.

are all day traders dead, or where are you making your millions guys?
More...

Forget everything else...time the broad market's major day's trend, in just one trade or two -- kind of like this guy:

Japanese Day Trader Made $34M During Selloff
o_O o_O
Doing this with Options is Plutonium.
 
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