Anyone play the CAC!

[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]

hedge the equity exposure to TURKCELL

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