Bund, bobl, schatz - trade at same time

[SanMiguel]

Does anyone look at all 3 charts or just trade 1?
The bund seems to be the most popular and they all move in roughly the same direction but sometimes you will see a better setup on one of the instruments...

 

[Martinghoul]

They're three completely different instruments...

 

[SanMiguel]

They're three completely different instruments...

Yes, but the correlation between them is incredibly high.

 

[Martinghoul]

Yes, but the correlation between them is incredibly high.

Erm, this is a bit misguided, sire... It is true that the direction component of the price movement is dominant, hence the correlation. However, there's a whole lot of interesting and varied dynamics in the behavior of the curve that goes beyond simple direction. So the fact that the prices of these instruments are highly correlated is neither here nor there, given their different durations.

 

[SanMiguel]

Erm, this is a bit misguided, sire... It is true that the direction component of the price movement is dominant, hence the correlation. However, there's a whole lot of interesting and varied dynamics in the behavior of the curve that goes beyond simple direction. So the fact that the prices of these instruments are highly correlated is neither here nor there, given their different durations.

True but intraday, it's very close. For example, you might see the bund hitting resistance, which might be confirmed by another signal on the Bobl...or perhaps the Bobl has a better entry than the bund at that time...

 

[scose-no-doubt]

gallery art vs graffiti

*watches with interest*

 

[arabianights]

of course they do... not to mention curve trades, which are incredibly important and popular

 

[Martinghoul]

True but intraday, it's very close. For example, you might see the bund hitting resistance, which might be confirmed by another signal on the Bobl...or perhaps the Bobl has a better entry than the bund at that time...

Sure, if you swing that way... I would never do smth like that myself, but to each their own.

 

[scose-no-doubt]

epic anti climax