Suggestions for futures to trade

comagnum said:
What about the softs like Cocoa, Coffee, Sugar, & Cotton?
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Those are really only tradeable on ICE, which OP doesn't want to trade because of their high fees.

..."Don't bother suggesting something that's on an exchange I don't trade - there's probably a good reason. For example, the data fees for ICE are prohibitive.
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If you search you will find that all of the below recommended markets are available via IB. I have at some stage traded all of them so well aware that some do have liquidity challenges but none more so than your inclusion of the SGX Straits Times Index!! In addition it’s important to look at more than just Volume/Open Interest as some market such as Rotterdam Coal may have low volume but the average retail trader will rarely trade more than 1-lot at a time due to the size and volatility of the contract.


So let’s get started …


EUREX European Equity Sector Indices

For those unfamiliar with these markets there are two broad groupings: EURO STOXX indices and STOXX Europe 600 indices.

EURO STOXX indices are a subset of markets contained within the corresponding STOXX Europe 600 indices and as such they tend to be highly correlated. In all cases the EURO STOXX indices are less liquid (with wider bid/ask spreads) than the corresponding STOXX Europe 600 indices. As such I have in the past found no benefit to including EURO STOXX indices in my own trading.

So with this in mind there are a few STOXX Europe 600 indices that are not currently in your portfolio:

· STOXX Europe 600 Banks

· STOXX Europe 600 Financial SVC

· STOXX Europe 600 Industrial Goods

· STOXX Europe 600 Telecom


Other EUREX Stock Indices

· Euro STOXX 50 Dividend

· MDAX

· MSCI Emerging Markets

· MSCI Europe

· MSCI Japan

· MSCI Russia (current times excepted)

· RDX USD (current times excepted)

· SLI

· STOXX Europe 600

· STOXX Europe 600 ESG-X

· TecDAX


CME US Equity Sector Indices

Unfortunately most of these indices are not available within IB due to some obscure tax ruling which no-one at IB has been able to explain to me. That said there are a few that have slipped through the net and are available to trade:

· E-mini Nasdaq-100 Biotechnology

· E-mini S&P 500 ESG

· E-Mini S&P Consumer Discretionary

· E-Mini S&P Consumer Staples

· E-Mini S&P Health Care

· E-Mini S&P Industrial

· E-Mini S&P Technology

· E-Mini S&P Utilities


CME US Stirs

· 30 Day Federal Funds

· One-Month SOFR

· Three-Month SOFR


Montréal Exchange

· BAX

· Canad. Govt Bond (10Yr)

· Canad. Govt Bond (5Yr)

· S&P Canada 60


Korean Won KSE

I note that you are trading other KSE markets but choose to trade the Won on CME. THE KSE contract is vastly superior in terms of liquidity


CME Currencies

· Australian Dollar/Japanese Yen

· British Pound /Swiss Franc

· Euro/Australian Dollar

· Euro/Canadian Dollar

· Polish Zloty/Euro

· South African Rand


Other CME markets

· Dry Whey

· E-mini Russell 1000

· Goldman Sachs Cmdty Indx

· iBoxx iShares $ High Yield Corporate Bond

· iBoxx iShares $ Investment Grade Corporate Bond

· Milk Non-fat Dry

· U.S. Midwest Domestic Hot-Rolled Coil Steel

· USD-Denominated Ibovespa


Misccellaneous

· Euro-BONO - EUREX

· Rubber TSR 20 -SGX



You mentioned that you have concerns with some of the data fees being prohibitive, but here are a few fairly cheap ones that I feel are worth including …


Hong Kong Derivatives HKD 27/mth

· Hang Seng

· Hang Seng TECH

· H-Shares


Mexican Derivatives $6/mth

Mainly talking the IPC here


ASX AUD 21.5/mth

· Australian Bank Bills

· Australian Govt Bond (10Yr)

· Australian Govt Bond (3Yr)

· SPI 200


Euronext Commodities EUR 19.50/mth

· Corn - MATIF

· European Rapeseed

· London Wheat

· Sugar #5 (White)

· Wheat – Milling


Various other European Stock Indices (minor data fees)

· FTSE EPRA/NAREIT Developed Europe

· IBEX 35

· MIB

· OBX

· OMXS30


LME Metals

While you cannot trade directly on the LME with IB, they have recently launched their own OTC contracts. Liquidity is little thin so you are definitely better off trading Copper and possibly Aluminum on COMEX, but for those metals not available IB is an option worth considering in the case of Nickel. Zinc, Lead and Tin.

A couple of disclaimers here. Firstly, these are OTC so you need to consider your counter-party risk with IB. Secondly these are Forwards not Futures … traps for young players here so do your homework


Intercontinental Exchange

globalarbtrader said:
It's $250 per month for financials and commodities, through IB. No non-pro discount.

That's 0.6% of my account value per year. A rule of thumb I have, is that a return increase should at least be three times the value of any cost. Would I expect my CAGR to increase from ~20% say to 21.8% through adding these ICE markets? Probably not. GAT
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Fully appreciate that this is account size dependent, but I strongly encourage you to reconsider your “probably not” comment. Outside of the CME and the Chinese excanges, ICE contains the highest number of significant portfolio diversifiers. Just a few examples …

· API2 Rotterdam Coal

· Bakkt Bitcoin

· Canola

· Cocoa

· Coffee Arabica

· Coffee Robusta

· Cotton

· ECX CFI

· Euro Swiss Franc

· FTSE 100

· FTSE 250

· Gas Oil

· London Cocoa

· Long Gilt

· MICRO NYSE FANG+

· MSCI EAFE

· Natural Gas UK

· Newcastle Coal

· Orange Juice

· Sugar

· Three Month SONIA

· US Dollar Index


Your consideration solely of “a return increase” ignores the significant increase in risk-adjusted return that the addition of these type of markets will provide. Don’t believe me … throw them into your various back tests and see what happens!


This is a rather lengthy post so I’ll end here, except to add that imo IB offers a great range of markets but for those not confined to trading with IB please keep in mind that there are of course many other futures available via competing brokers.
 
KCOJ said:
If you search you will find that all of the below recommended markets are available via IB. I have at some stage traded all of them so well aware that some do have liquidity challenges but none more so than your inclusion of the SGX Straits Times Index!! In addition it’s important to look at more than just Volume/Open Interest as some market such as Rotterdam Coal may have low volume but the average retail trader will rarely trade more than 1-lot at a time due to the size and volatility of the contract.


So let’s get started …


EUREX European Equity Sector Indices

For those unfamiliar with these markets there are two broad groupings: EURO STOXX indices and STOXX Europe 600 indices.

EURO STOXX indices are a subset of markets contained within the corresponding STOXX Europe 600 indices and as such they tend to be highly correlated. In all cases the EURO STOXX indices are less liquid (with wider bid/ask spreads) than the corresponding STOXX Europe 600 indices. As such I have in the past found no benefit to including EURO STOXX indices in my own trading.

So with this in mind there are a few STOXX Europe 600 indices that are not currently in your portfolio:

· STOXX Europe 600 Banks

· STOXX Europe 600 Financial SVC

· STOXX Europe 600 Industrial Goods

· STOXX Europe 600 Telecom


Other EUREX Stock Indices

· Euro STOXX 50 Dividend

· MDAX

· MSCI Emerging Markets

· MSCI Europe

· MSCI Japan

· MSCI Russia (current times excepted)

· RDX USD (current times excepted)

· SLI

· STOXX Europe 600

· STOXX Europe 600 ESG-X

· TecDAX


CME US Equity Sector Indices

Unfortunately most of these indices are not available within IB due to some obscure tax ruling which no-one at IB has been able to explain to me. That said there are a few that have slipped through the net and are available to trade:

· E-mini Nasdaq-100 Biotechnology

· E-mini S&P 500 ESG

· E-Mini S&P Consumer Discretionary

· E-Mini S&P Consumer Staples

· E-Mini S&P Health Care

· E-Mini S&P Industrial

· E-Mini S&P Technology

· E-Mini S&P Utilities


CME US Stirs

· 30 Day Federal Funds

· One-Month SOFR

· Three-Month SOFR


Montréal Exchange

· BAX

· Canad. Govt Bond (10Yr)

· Canad. Govt Bond (5Yr)

· S&P Canada 60


Korean Won KSE

I note that you are trading other KSE markets but choose to trade the Won on CME. THE KSE contract is vastly superior in terms of liquidity


CME Currencies

· Australian Dollar/Japanese Yen

· British Pound /Swiss Franc

· Euro/Australian Dollar

· Euro/Canadian Dollar

· Polish Zloty/Euro

· South African Rand


Other CME markets

· Dry Whey

· E-mini Russell 1000

· Goldman Sachs Cmdty Indx

· iBoxx iShares $ High Yield Corporate Bond

· iBoxx iShares $ Investment Grade Corporate Bond

· Milk Non-fat Dry

· U.S. Midwest Domestic Hot-Rolled Coil Steel

· USD-Denominated Ibovespa


Misccellaneous

· Euro-BONO - EUREX

· Rubber TSR 20 -SGX



You mentioned that you have concerns with some of the data fees being prohibitive, but here are a few fairly cheap ones that I feel are worth including …


Hong Kong Derivatives HKD 27/mth

· Hang Seng

· Hang Seng TECH

· H-Shares


Mexican Derivatives $6/mth

Mainly talking the IPC here


ASX AUD 21.5/mth

· Australian Bank Bills

· Australian Govt Bond (10Yr)

· Australian Govt Bond (3Yr)

· SPI 200


Euronext Commodities EUR 19.50/mth

· Corn - MATIF

· European Rapeseed

· London Wheat

· Sugar #5 (White)

· Wheat – Milling


Various other European Stock Indices (minor data fees)

· FTSE EPRA/NAREIT Developed Europe

· IBEX 35

· MIB

· OBX

· OMXS30


LME Metals

While you cannot trade directly on the LME with IB, they have recently launched their own OTC contracts. Liquidity is little thin so you are definitely better off trading Copper and possibly Aluminum on COMEX, but for those metals not available IB is an option worth considering in the case of Nickel. Zinc, Lead and Tin.

A couple of disclaimers here. Firstly, these are OTC so you need to consider your counter-party risk with IB. Secondly these are Forwards not Futures … traps for young players here so do your homework


Intercontinental Exchange




Fully appreciate that this is account size dependent, but I strongly encourage you to reconsider your “probably not” comment. Outside of the CME and the Chinese excanges, ICE contains the highest number of significant portfolio diversifiers. Just a few examples …

· API2 Rotterdam Coal

· Bakkt Bitcoin

· Canola

· Cocoa

· Coffee Arabica

· Coffee Robusta

· Cotton

· ECX CFI

· Euro Swiss Franc

· FTSE 100

· FTSE 250

· Gas Oil

· London Cocoa

· Long Gilt

· MICRO NYSE FANG+

· MSCI EAFE

· Natural Gas UK

· Newcastle Coal

· Orange Juice

· Sugar

· Three Month SONIA

· US Dollar Index


Your consideration solely of “a return increase” ignores the significant increase in risk-adjusted return that the addition of these type of markets will provide. Don’t believe me … throw them into your various back tests and see what happens!


This is a rather lengthy post so I’ll end here, except to add that imo IB offers a great range of markets but for those not confined to trading with IB please keep in mind that there are of course many other futures available via competing brokers.
More...

This is absolutely superb and exactly what I was hoping for when I posted. One like isn't enough!

GAT
 
treeman said:
You can call whatever you want to. Others are doing it. Jerry Parker runs Chesapeake Capitol, and is otherwise famous anyhow for being a turtle trader. I believe he does over 160 markets. 100% rules based. 3 time frames for each. Great returns. Nothing manual. Nothing crazy complicated other than not deviating. Since none of it is a secret per se, it’s not without imitators who are also successful.
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Different markets behavor differently. It is not about rules based or not.
The one who makes 20% annual profit on 160 markets , can make 200% annual profit if he focus on one or two markets.
 
KCOJ said:
If you search you will find that all of the below recommended markets are available via IB. I have at some stage traded all of them so well aware that some do have liquidity challenges but none more so than your inclusion of the SGX Straits Times Index!! In addition it’s important to look at more than just Volume/Open Interest as some market such as Rotterdam Coal may have low volume but the average retail trader will rarely trade more than 1-lot at a time due to the size and volatility of the contract.


So let’s get started …
More...

ET should have an option to add a post like this to a list of favourites for future use. Maybe it has ... but I can't find it. Thanks for taking the time to do this.

KH
 
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