Systematic trend followers: what's the most exotic instrument you trade?

R

RJ123

Just listened to Doug Greenig on the Flirting with Models podcast emphasising the value of trend following in exotic/alternative markets (excellent episode btw).

I currently trade only on IBKR, which provides solid/cheap coverage of the typical markets in a trend follower's portfolio. But I'm interested in adding more diversifying instruments, and expanding to different brokers if need be.

  • What's the most exotic instrument you trade?
Or alternatively:
  • Which instrument is most diversifying to your portfolio?
I'll start: ICE EUA on ENDEX (emissions).
 
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Exotic - I presume you mean something very different/unique/special/rare
and not many people trade those things.

I posted some exotic futures from HKFE and Eurex, Europe.
Note that the volume is very very low, or zero.


There are millions of such exotic things in this world.
So you should be very happy to trade those exotic things.
But you have to top up your trading account continuously.
 
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More exotic things from the US for your trading pleasure.

But do note that you might be the only one in this world trading those
exotic things.

Happy Exotic Trading.
 
maxinger said:
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There are millions of such exotic things in this world.
So you should be very happy to trade those exotic things.
But you have to top up your trading account continuously.
More...

Ok, I should have been clearer!

By exotic I mean instruments that are rarely traded in typical trend following portfolios and have low correlation to interest rates/equities/energy/metals etc. But I'm obviously only interested in instruments which are liquid enough to trade. Let's say >$100m ADV notional.

E.g. stuff like shipping rates, palm oil, power, tere acid.... There are liquid but difficult to access markets for these instruments. Does anyone here trade them?
 
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RJ123 said:
Ok, I should have been clearer!

By exotic I mean instruments that are rarely traded in typical trend following portfolios and have low correlation to interest rates/equities/energy/metals. But I'm obviously only interested in instruments which are liquid enough to trade. Let's say >$100m ADV notional.

E.g. stuff like shipping rates, palm oil, power, tere acid.... There are liquid but difficult to access markets for these instruments. Does anyone here trade them?
More...


OK. Talk about palm oil futures.
It is liquid.

You can trade it from

Dalian Commodity Exchange, China,
Singapore Exchange,
Bursa Malaysia Derivatives Exchange,
Indonesia Exchange (it is launching palm oil futures soon)
etc

Again there are many exotic things (based on your definition) in this world.


Happy Exotic Trading.
 
RJ123 said:
Ok, you seem to know a lot about palm oil.

Do you trade palm oil? Which broker do you use?
More...


I traded CPO futures before.

Palm oil is mainly produced in South East Asia.
So definitely physical trading, derivative trading, and the brokers
are mainly in that region.
So you have to look for brokers in China, Singapore, Malaysia, Indonesia ...
 
maxinger said:
OK. Talk about palm oil futures.
It is liquid.

You can trade it from

Dalian Commodity Exchange, China,
Singapore Exchange,
Bursa Malaysia Derivatives Exchange,
Indonesia Exchange (it is launching palm oil futures soon)
etc

Again there are many exotic things (based on your definition) in this world.
More...

Indeed, I am aware these instruments exist.

I'm finding getting access difficult, which is why I'm asking if and how anyone here has managed to do so. Looking at exchange product lists is the easy part!
 
%%
ALL kinds of metals;
some of which are not mentioned much .
NOT really related to interest rates;
but that's true of many businesses + service businesses .
Most likely not as much volume as palm oil $65 billion ,2022.
Assume one is interested in it enough ;
most any additional income stream must be good.
 
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