Dax/EuroStoxx Stop losses?

[cd173]

Hi everyone

I'm currently practising scalping on the Dax and Eurostoxx futures and I'm wondering what a sensible stoploss level would be on the various time frames.
Using stochastics for reversals on a 1,2,5 or even 10 min chart is 4 ticks on the Stoxx enough or too tight? Dax is a bit of a different ballgame even though they trend the same.

Would be very interested to hear people's views on this?

Many thanks
Chris

 

[youwho]

Hi cd173

This would all depend upon what kind of fiscal pressure you can take. Essentialy, as I am sure you already know, when you tade the Dax against the Eurostoxx your position in the Dax determines which way you would like the market to move. Largely because the Dax outperforms in 95% of cases. This is largely because of several factors such as the Dax is dominated by technology (volatile) and devoid of oils stocks (generally less volatile), whereas the eurostoxx is heavily weighted with oils. The things that tends to skew the performance is that the actual mathematics and weightings of the Dax lends itself to performance over the Eurostoxx.

First you need to decide upon how you are going to execute, what kind of financial pressure you can handle and how many units you are comfortable holding (if you need to average in, etc).

 

[cd173]

Hi Youwho

Thanks for the info. Had a first attempt playing the Stoxx last week and lost on both days. Played the Dax Friday afternoon and made everything back plus profit? IMHO it's somewhat of an easier market to play, if alot faster!
Still not quite sure about stop loss. Stoxx can safely have a 2 to 3 tick stop, but the Dax moves around alot. Maybe 5 ticks is enough?

Cheers

 

[Van88Guy]

Does anyone know of a good site on the EUROSTOXX50?

I've combed through the Eurex site, but the info is fairly generic.

Thanks, in advance

 

[Helenqu]

I think 6 points is much safer with ESTX, even if you are just holding trades for under an hour as I do. I did experiment with 4 but IMHO it's too tight.

I used to run a website specifically for ESTX50 trading (eurostoxx50.co.uk but unfortunately I had to remove it because it breached the STOXX trademark ).
There was loads of stuff on there but unfortunately it's long gone. I've got a board for it over on the tradepit though but there's not a lot there except daily/weekly pivots and economic data times.

http://www.thetradepit.com/forum/viewforum.php?f=3

HTH

 

[apples10]

Does anyone know of a good site on the EUROSTOXX50?

I've combed through the Eurex site, but the info is fairly generic.

Thanks, in advance

Go to the stoxx site, www.stoxx.com

everything you ever wanted to know on there.

rgds

 

[apples10]

Hi cd173

The things that tends to skew the performance is that the actual mathematics and weightings of the Dax lends itself to performance over the Eurostoxx.

).

What youwho means is that the DAX is a performance index and the EuroStoxx is a normal mkt cap index. The DAX therefore doesn't fall on dividend ex-dates whereas the EuroStoxx does.

 

[zoo]

Does anyone have any further thoughts on scalping stop losses for Dax & Eurostoxx50?

 

[Tickdoc]

I've always used a very simplistic but effective 3:1 ratio Dax:Eurostoxx. ie, 3 points on the DAX usually corresponds to 1 on the Eurostoxx. Has served me well as a guideline...

 

[AZBO]

I disagree, I find 5:1 guides me better :cheesy:

 

[zoo]

I disagree, I find 5:1 guides me better :cheesy:

What stops + profit target might you apply?

 

[AZBO]

It is hard to define as it is part of an Algo system, which essentially means that the PC screams at me to place or close a position.
The basis is on technical indicators and general market behaviour. Of course, like everything, it needs to be refined and readjusted regularly with an ever changing market......and that's the time consuming part! *Sigh*