How to deal with volatile markets?

[Josephwyr]

Hi guys, im new to trading.
currently trading futures on a simulator in the US ten year Tnote.
This market is selected by the prop firm that im training under.

While trying to scalp the market, getting small 1 ticks from the ranging market, I will run into situations when theres a clash between the bear and the bull, and momentum can go both ways, 1 ticks, 2 ticks, pretty fast.
Thinking that there is momentum and there will be a break going up, if im short, i will sell/buy to market and get long. and vice versa if im long initiaally.

But it doesnt happen like i thought, got killed a few times and lost all my small ticks grab from scalping this way.

What kind of strategy/thoughts should I have in these kind of situation??

have attached screenshot of how the situation was like , at 14:45 and 16:35+++, those timings are where my situation refers to.

 

[Jason Rogers]

Hi Josephwyr,

Does your prop firm allow you to trade other Treasury contracts in addition to the 10-year? If so, you should consider trading the spread between the 5-year note and the 10-year note , or between the 10-year and the long bond.

For example, you can go long 3 contracts of the 5-year note, for every 2 contracts you are short in the 10-year. That way you would be simultaneously scalping the 5-year and the 10-year but in opposite directions. The advantage of this approach is that it hedges out much of your directional risk if the market breaks out of its trading range, because the 5-year and the 10-year are highly correlated.

Jason

 

[timsk]

Hi Joseph,
Welcome to T2W.

Given that you say you're being trained by a prop firm - what's their answer to your question?
Tim.

 

[imlarge]

Hi Joseph,

I'm guessing we're being trained by the same firm. I guess this is an exercise more than focusing on pnl? I would suggest reading the order flow on the DOM. And maybe don't try this from an hour before the US cash equity opens till an hour after most US data releases are done as the movements could be quite intimidatingly fast. Practice on the European opening hours first to get a hang of it.

Justin

 

[Jason Rogers]

Hi Joseph,

I'm guessing we're being trained by the same firm. I guess this is an exercise more than focusing on pnl? I would suggest reading the order flow on the DOM. And maybe don't try this from an hour before the US cash equity opens till an hour after most US data releases are done as the movements could be quite intimidatingly fast. Practice on the European opening hours first to get a hang of it.

Justin

Hi Justin,

Does your prop desk also trade Bund, Bobl, and Schatz or only Treasuries?

Jason

 

[imlarge]

I'm pretty new too so I'm also not too familiar with what is everyone trading at the office. But I believe there are a few trading the eurostoxx, bunds, and maybe even the dax. These guys use CQG to trade them. The rest of us use X trader. I'm only talking about the Singapore office.

 

[Jason Rogers]

I'm pretty new too so I'm also not too familiar with what is everyone trading at the office. But I believe there are a few trading the eurostoxx, bunds, and maybe even the dax. These guys use CQG to trade them. The rest of us use X trader. I'm only talking about the Singapore office.

I'm a fan of X trader for how it displays market depth, and placing bids and offers on the platform is very intuitive. I also like CQG for charting.

I didn't realize there are prop desks in Singapore trading Treasury futures. The firms I'm familiar with are all located in Chicago, New York and London. I've visited Singapore several times as I have family there and have always enjoyed it.

My favorite is the crocodile farm, since I'm fascinated by crocs and how they have been on the planet in some form since the time of the dinosaurs. That's what I call a robust trading strategy! 👍

 

[imlarge]

I'm a fan of X trader for how it displays market depth, and placing bids and offers on the platform is very intuitive. I also like CQG for charting.

I didn't realize there are prop desks in Singapore trading Treasury futures. The firms I'm familiar with are all located in Chicago, New York and London. I've visited Singapore several times as I have family there and have always enjoyed it.

My favorite is the crocodile farm, since I'm fascinated by crocs and how they have been on the planet in some form since the time of the dinosaurs. That's what I call a robust trading strategy! 👍

Our HQ is in Sydney. Are you related to Jim Rogers by any chance? I haven't been to the croc farm since what... 15 years ago? You'll definitely find more of them in Australia.

 

[Jason Rogers]

Our HQ is in Sydney. Are you related to Jim Rogers by any chance? I haven't been to the croc farm since what... 15 years ago? You'll definitely find more of them in Australia.

No relation, unfortunately. Otherwise, I'd be riding my motorcycle across China spending Uncle Jim's money.

I visited Sydney a couple of years ago, but I didnt' see any crocs or kangaroos for that matter. But I did eat some 😈