Day Trading & Forex Forum

cd173

Bonjour my english chums!

Does anyone play the 10 euro CAC futures index? I'd be interested to know about it's liquidity, fills etc on an intraday basis. At a glance, it looks somewhat more rewarding than the Stoxx50 on a 5min chart due to the bigger range!

All comments and opinions welcomed!

Merci
C

ddunne82

Bonjour,

I have traded intra-day the CAC future but you gotta be prepared to put in some reasonably large stops (if you use them) as the price swings can beq quite 'violent'. Thus i prefer the ESX50 as a 5 point stop works golden and when it moves it moves in a big way. I have the same feelings towards the dax on a n intra-day basis.

However, these are both better market on which to swing trade due to the afore mentioned larger ranges. Fills, liquidity on the CAC are pretty good.

Au revoir

cd173

Hi ddunne82

I find the DAX is good for range intra-day, but for me the Stoxx is too quiet for this. At a glance the CAC seems to have almost as good a range as the DAX, hence strategies could apply well to both. I'm looking at a 5min chart for the CAC with stochastics swing.
May I ask what kind of strategy you go for? (understand if you wish to keep it quiet)

Cheers
Chris

ddunne82

Chris,

My strategy is one based on playing gaps and squeezes. Theres nothing clever or particularly complex about it but let me give you a quick description.

For ET:

1) dont play the gaps as premarket trading information is difficult to get
2) I use a 5 min chart and work off two ideas - when bollinger bands get inside the keltner channels, the market is squeeing. I then look for the bollinger bands to break out of the keltner channels and go in the direction of the momentum oscillator. Using a 5 point stop on et. Not gonna make you a fortune but a good staring point.

For YM:

1) Trade opening gaps greater than 20 points - use premarket trade info to assess the likelikhood of the gap filling - this will decide whether or not i fade the gap.
2) same squeeze play but with a 10 point stop - have been using 10 but think 20 might give me that bit more breathing room. Thats why i like the YM - its the same risk as for the et but the reward is greater.

I actually prefer trading YM as using TRIN/TRINQ/TICK/TIKI/PUTCALL RATIO acts like a real heads up as to whats is happening.

Results wise, i average around 40 points a week on ET and 120 on YM - assuming 2 lots. It doesnt sound much but when ure doing 20/50/100 lots, it soon adds up with limited risk.

Personally i dont like having too wide a stop and trading the DAX/CAC requires that. thats just me though - cant hack the big swings!

Regards

David

cd173

Thanks for that David

Fully understand the squeeze of the Bollinger bands as I find it tends to point to a sort of breakout move. I've never gotten use to keltner channels though as I find them a bit tricky to read real time.
Gaps (>75c) also very tradable on most US stocks with a breakout play at 10am EST, but that's another story!!

Cheers
C

U312534

which is the best way (high correl, and high liquidity) to hedge the equity exposure to TURKCELL (turkish stock: please note that short selling it is almost impossible)


many thanks