Canadian Dollar -any futures traders out there??

[Atlantic Trader]

Anyone trade the CD futures on the globex or pit and can we start up a discussion as to its market behaviour?

Any opinions on this subject ie: what have been your experiences with volatility, trend characteristics etc etc.

 

[Moneycat]

Sorry, I don't but I would like to. Where would you suggest me to start from? I trade futures, and sometime spot FOREX.

 

[Atlantic Trader]

Moneycat:

I primarily trade the Canadian Dollar symbol CD on the Chicago Merchantile Exchange Globex (electronic trading) they also offer the pit traded Canadian dollar as well. They have a good web site. I trade it through "xpresstrade " a web basaed electronic platform.

I prefer the Globex its has higher volume and there are some overnight opportunities.

The GLOBEX trades from 1700 hrs to 1600 hrs with the pit trade running during this time from 07:20 hrs to 14:00 hrs Chicago time.

The margin is quite reasonable.

The front month is still December and it runs about 25000 to 35000 contracts traded per day.

The CD trends well and has a tendancy to follow crude and gold as Canada is a resource based economy with a strong interest from a supply perspective in these commodities. The CD will track inversly to the US dollar in the futures and will react nicely to economic reports.

Overall I have followed it for some time and I like trading it.

Iam sure I could fill you in more if you have any specific questions, Iam sure Iam missing something here?

Hope this helps

 

[Moneycat]

Thanks for your reply.

I have just downloaded futures and cash data for CD and I have to agree with you that it has trended well for most of 2005. However, if you look at the period between december 2004 and june 2005 it has not been so...

How do you trade it? Daytrading, position trading?

Are you making money out of it? And if you are, would you mind telling me how? Ok, just kidding...

Are you tradign it on technical analysis?

 

[Moneycat]

I have just downloaded futures and cash data for CD and I have to agree with you that it has trended well for most of 2005. However, if you look at the period between december 2004 and june 2005 it has not been so...

BTW I have just noticed the same has happened previously: in 1989/90, 1990/91, 1993/94, 1995/96, 1996/97, 1998/99, 2001/02.

During winter/spring period it seems that the CD is less trending. Might it have somethign to do with gold or oil? A seasonal pattern?

Also, noticed on intraday that whenever a trend begins during european trading shift, as soon as trading resumes in USA/Canada it hasa chance to spike. See what happened monday and is happening today. Ok, I don't have enough intraday data to make a thorough study of this pattern.

 

[Moneycat]

How to trade it from now onwards?

I'd say the logical target would be 0.90 or as close as 1990's high, however I don't see it coming soon.

Let's say december contract has just made new highs but volume is not providing support; also price action since october is sideways.

All in all, uptrend to go ahead, but not before a retracement to (say) 85.

 

[Atlantic Trader]

Moneycat:

I started out trying to trade it positionally but found that I didn't know enough about its tendencies and how it reacted to economic news, etc etc.

I now primarily day trade it basically scalping and looking for reversal or pull backs and breakouts. I have been making money at it intraday 150-200-300 per day. On a good day for me two Fridays ago 900 after 5 trades clear?

I mostly use price action wity Fib retracement using candlesticks to indicate potentials for reversals.

Never really noticed the winter/spring pattern ? But I will start to look at that.

"Also, noticed on intraday that whenever a trend begins during european trading shift, as soon as trading resumes in USA/Canada it hasa chance to spike." - This is one of what I call the overnight opportunities.

I have noticed as well a geat 9:00 am GMT movement when the U.K and Western Europe come on line. I haven't noticed the same for the Far East ??

Any way it is worth watching and I will update you if you wish on my progress with it?

Today I entered long from .8635 and thinking that when Europe came in that things would move up as it did the previous day especially with gold up and crude holding and 1/4 interest rate hike here in Canada but go figure things went south> I was able to get out with a small profit after a long run back up .

I will look at it again tonight usually for me the action doesn't get going until around 13:00 GMT?

 

[Moneycat]

I am based in Italy, GMT +1, so I could trade the whole day between 8 AM (GMT) to 6 PM (GMT) or later... But I find myself unable to do it without less than a break, also family demands time...

Are you trading during European daytime? What time zone are you in? Same as New York City?

We had yesterday most action during European shift (8.30 GMT to 15.30 GMT), but we saw volume only after 13.00 GMT. Is it worth to trade the CD during European shift?

 

[Atlantic Trader]

Iam in Atlatic Standaerd time one hour later than New York,

Most of the action was in European time and I agree that the biggest volume comes from North American traders most likely probable due to logistics and familiarity?

As if I traded the Bund which up to about 6 months ago I didn't know much about what it even was??

I probably will not trade it today I have to work Iam on the road today?

I also have to try and watch the March Sugar futures which Iam short in and it is going against me? Decicion day for that one?

 

[Moneycat]

I find it difficult to pick a logic within intraday price action, however I might find it later...

On the other hand, CD seems to be a good trading vehicle for longer commitment: on a daily chart I am still expecting a retracement towards 85.

Let's keep this thread alive!

 

[Moneycat]

I was a bit early in my call, but correction is taking place. Or has it already? :?:

 

[josephforex]

usd/cad forex?

moneycat, does your spike theory apply to the usd/cad forex market by any chance?

if so can you give more detail on this method?

 

[Moneycat]

moneycat, does your spike theory apply to the usd/cad forex market by any chance?

if so can you give more detail on this method?

Method? Theory? No, no, it's just a chart with 2 simple moving averages (25 and 40 bars) and plain Bollinger Band.

No rocket science, just basic technical analysis.

BTW USD/CAD is just the oppposite of the future, isn't it? So just look at the chart turning it upside down! :cheesy:

 

[jefftheripper]

just found this old thread, ya'll should get it going again. I've gone back through 6 pages of trading logs. If I would have traded the Canadian $ only and avoided all other trades...I would have a good profit. I intend to start watching it much more closely. I shorted it Friday then lost my internet connection due to a freak 14" snow here in Dallas, TX. When I finally got logged back on, I saw it had went my way for $490 profit but was back up now. Currently sitting at -$160. I'll see what happens when the far east opens.