mini HSI 1 point=10HKD (1,27usd) and for HSI its 1 point =50HKD (6,38USD)
Why is HSI the best future?
- Thread starter TTT
- Start date
The HHI is the proxy for the HSI. It's like trading 1/2 of an HSI.
For all of the HSI's volatility, you don't have to risk more than 20-30 ticks on a 1 min chart to have a winning system. Go look at every red bar in an uptrend, every green bar in a downtrend and measure the MAE's if those were your entry points. The reward to risk ratios are outstanding. It's not just that. It's also that almost every one of these entries will have a 2:1 reward to risk ratio or far, far better. So recognize you are in a trend in real-time 40-50% of the time and the entry is fairly trivial (this is the whole crux of being a successful trend trader)
Traders who don't like this level of volatility lean more towards high winning pct systems with lower reward to risk ratios. You don't trade the HSI looking for 1:1 RR at 70% winners. You make your net gains primarily off of either the winning pct at close to 1:1 RR or far better RRs with less favorable odds of winning.
The main problem with failing traders that I've seen for decades now is that they can't resolve their emotions with the acceptance of the INVERSE relationship avg winning pct has to avg gain / avg loss.
For all of the HSI's volatility, you don't have to risk more than 20-30 ticks on a 1 min chart to have a winning system. Go look at every red bar in an uptrend, every green bar in a downtrend and measure the MAE's if those were your entry points. The reward to risk ratios are outstanding. It's not just that. It's also that almost every one of these entries will have a 2:1 reward to risk ratio or far, far better. So recognize you are in a trend in real-time 40-50% of the time and the entry is fairly trivial (this is the whole crux of being a successful trend trader)
Traders who don't like this level of volatility lean more towards high winning pct systems with lower reward to risk ratios. You don't trade the HSI looking for 1:1 RR at 70% winners. You make your net gains primarily off of either the winning pct at close to 1:1 RR or far better RRs with less favorable odds of winning.
The main problem with failing traders that I've seen for decades now is that they can't resolve their emotions with the acceptance of the INVERSE relationship avg winning pct has to avg gain / avg loss.
Hi Steve, can you clarify what MAE stands for?
MAE == Maximum Adverse Excursion as opposed to Maximum Favourable Excursion. So they are nice records of how far price moved from your entry to combine with you exit price when considering your trading action.
I was talking to another guy whos traded HSI for while now and discovered I've just exceeded 20 years with HSI as my main contract. I would still recommend it, even for a newbie. MHI gives you about $1 a tick vs $6.50 a tick for HSI. It moves well during the Asian day giving plenty of opportunity to make or lose money.
So a West coast, Hawaiian, Kiwi or Aussie trader will find trading in their timeframes.
Develop your own strategy but FWIW I tend a a simple price only (no volume, no mas) strategy. I use 15 minutes for my long term view and include a vwap and yesterdays vpoc on that chart as part of my longer term support and resistance. I use 5m for my primary signals and 1m to seek price improvement after the signal, refine qualification of my signals and decide on exit targets.
IB and AMP are both good brokers for HSI/MHI/HHI futures.
Best of luck (work on your method & discipline if you want it)!
I was talking to another guy whos traded HSI for while now and discovered I've just exceeded 20 years with HSI as my main contract. I would still recommend it, even for a newbie. MHI gives you about $1 a tick vs $6.50 a tick for HSI. It moves well during the Asian day giving plenty of opportunity to make or lose money.
So a West coast, Hawaiian, Kiwi or Aussie trader will find trading in their timeframes.
Develop your own strategy but FWIW I tend a a simple price only (no volume, no mas) strategy. I use 15 minutes for my long term view and include a vwap and yesterdays vpoc on that chart as part of my longer term support and resistance. I use 5m for my primary signals and 1m to seek price improvement after the signal, refine qualification of my signals and decide on exit targets.
IB and AMP are both good brokers for HSI/MHI/HHI futures.
Best of luck (work on your method & discipline if you want it)!