eurodollar system?

[Yamato]

I am talking about this eurodollar future:
http://www.cmegroup.com/trading/interest-rates/stir/eurodollar_contract_specifications.html
http://stockcharts.com/h-sc/ui?s=$XED
http://futuresource.quote.com/quotes/chart.action?symbol=QED+1%21&compareTo=&topsyms=QED&month=1%21&year=2011&chartAggregation=D&chartStyle=BAR&chartSize=745x550&chartDensity=LOW&userStudies=&x=39&y=6

I don't know anything about how the CME eurodollar future moves and I would like to ask you if you think I can build a profitable system on it or if it is too sensitive to fundamental information that i don't have. I know how to build trading systems on currencies, stock indexes, and other futures. I haven't heard anyone talking about trading systems on the eurodollar - that's why I am asking.

 

[Martinghoul]

What sort of system?

 

[Yamato]

Well, the type of systems I build make trades that last from 1 hour to 48 hours. The timeframe I back-test and automate on is 15-minute timeframe. The frequency of trading is from one trade per month to one trade per day. As I said, my question is because I read that it's not a usual future, and because I haven't read about systems traded on it. But I have seen the great liquidity and was wondering if I shouldn't build a system on it as well.

 

[Martinghoul]

I don't know who can possibly answer this question... Personally, I wouldn't dream of it, but then I wouldn't dream of building systems for other assets.

 

[Yamato]

I've built systems on other assets and they work. So the question is if technical analysis can be applied profitably to the Eurodollar. It doesn't seem to move a lot and, as i said, I am worried that it might be too sensitive to fundamentals that I ignore.

 

[Yamato]

Latest news: I've dropped the idea of building any systems on the eurodollar because it is too close to the ZN (10 year treasury, which I've already built systems on) to waste efforts on it. No diversification would derive from building additional systems on it. I wrote more about it here:
http://www.trade2win.com/boards/trading-journals/85510-my-journal-2-a-220.html#post1496944

 

[arabianights]

you can't trade a 1 hour strategy on dollars!

might I recommend, if you were to do this, that you should do it in dollar spreads? They trend beautifully.

 

[Yamato]

Thanks for the advice. This ("dollar spreads") will take longer and will have to wait another year, because I don't have enough knowledge about this subject yet.

 

[tripleogstar]

lol

 

[Tantalos]

many thanks for all your helps


Pedro