Scalping STIRs - Help needed!

[minimal]

Hello All,

I have a few questions which I would really appreciate if you could help me with. I know there are a few STIR traders on here and I would appreciate your input. I am interested in scalping STIR futures, focusing on the 3 LIFFE STIRs. I currently trade the ES/UST10 but for certain reasons I am looking to trade within the UK time zone and STIRs take my fancy. I have traded FI products before for a firm although it was the bund which I understand is quite different, as for starters, it is a lot more volatile. Although new to STIRs I have done a lot of research and read through 'Trading STIR Futures' by Stephen Aikin and have a basic of understanding. I now need to build up my knowledge through trading the actual STIR market. I am looking to trade them outright. The book is absolutely great but it focuses a lot on trading spreads so I have a few answered questions:

1. Is scalping STIRs (trading outright) a viable option? Someone I know said that trading spreads can be very boring at times, more action in scalping. Personally, to suit my style, I would much prefer to scalp rather than trade the spread.

2. Is it best to scalp for one tick? or can you 'hold' your trade for a few more ticks? What do most of you do and what size stops on average do you generally have?

3. What contracts do you trade if scalping? Front month only, all of the white strip contracts, H contract of the red strip etc.

4. Does Market Profile work well with STIRs? I am personally a big user of MP.

I would like it if some of you STIR traders let me know how you trade them and give your opinions.

I look forward to hearing from you. If any of the above questions seem ludicrous, feel free to put me straight.

Cheers,
Minimal

 

[amnonco]

Hello All,

I have a few questions which I would really appreciate if you could help me with. I know there are a few STIR traders on here and I would appreciate your input. I am interested in scalping STIR futures, focusing on the 3 LIFFE STIRs. I currently trade the ES/UST10 but for certain reasons I am looking to trade within the UK time zone and STIRs take my fancy. I have traded FI products before for a firm although it was the bund which I understand is quite different, as for starters, it is a lot more volatile. Although new to STIRs I have done a lot of research and read through 'Trading STIR Futures' by Stephen Aikin and have a basic of understanding. I now need to build up my knowledge through trading the actual STIR market. I am looking to trade them outright. The book is absolutely great but it focuses a lot on trading spreads so I have a few answered questions:

1. Is scalping STIRs (trading outright) a viable option? Someone I know said that trading spreads can be very boring at times, more action in scalping. Personally, to suit my style, I would much prefer to scalp rather than trade the spread.

2. Is it best to scalp for one tick? or can you 'hold' your trade for a few more ticks? What do most of you do and what size stops on average do you generally have?

3. What contracts do you trade if scalping? Front month only, all of the white strip contracts, H contract of the red strip etc.

4. Does Market Profile work well with STIRs? I am personally a big user of MP.

I would like it if some of you STIR traders let me know how you trade them and give your opinions.

I look forward to hearing from you. If any of the above questions seem ludicrous, feel free to put me straight.

Cheers,
Minimal

I used to trade STIR in LIFFE a couple of years back.
I can't answer all your Qs, but,
1. yes you can. however you can combine outright and spreading (to take advantage of margin), you see, the sep10-sep12 spread will move exactly like the sep12 itself, cause front month rarely moves. so it's almost the same with less margin.
2. depends on your method.
3. the front month does not move at all so you can't scalp it. more volatile contracts are 24-36 months ahead.
4. sorry, no idea.

one more thing to note, the fill algorithm of LIFFE is very strange (size matters more than time i.e), so you have to learn how to use that in your advantage.

 

[minimal]

Amnonco,

Thanks for your help.

I thought that might be the case with what contract strips to trade as front month seem to have little impetus.

Cheers,
Minimal

 

[arabianights]

front month is a waste of time mate... do trade it but just for pocket money... not certain whether market profile per se works but total volume traded at each level works nicely if you know how to interpret it.

personally I scalp whites and near reds, tbh am having to move further down strip as we enter zero interest environment...