Index Futures Pairs Trading

[moka2]

Couple of questions about Futures Pair trading
With positive or negative co related futures pairs trading as a strategy
1) What is the best pair
ES- NQ?
ES- Russells 2000
Gold/ Euro dollar
Which pair offers best margin offset?

2) Can you day trade such a spread? worth it?

3) Also what co efficient would you consider +0.5 - +1 ( or i case of negative -0.5/ -1.0) to enter a trade?

4) What is the relevance of teh Relative Strength Index indicator for this strategy ( somebody mentioned it on a video)

Is there any free charting software which will chart this in real time?
All help appreciated

 

[Martinghoul]

My Z$2c...

1) No such thing as "best" pair, you can trade them all. You need to ask your broker about the margins, as they're the only people who can answer this.
2) Yes, you can daytrade these spreads. No, it's probably not worth it.
3) It depends on the particular spread. You can do all sorts.

 

[moka2]

My Z$2c...


2) Yes, you can daytrade these spreads. No, it's probably not worth it.

Do you mean
- The ROI could be very low (Margin money used and 4 x comms)
- Not many opportunity presents in a day?

 

[kimo'sabby]

Couple of questions about Futures Pair trading
With positive or negative co related futures pairs trading as a strategy
1) What is the best pair
ES- NQ?
ES- Russells 2000
Gold/ Euro dollar
Which pair offers best margin offset?

2) Can you day trade such a spread? worth it?

3) Also what co efficient would you consider +0.5 - +1 ( or i case of negative -0.5/ -1.0) to enter a trade?

4) What is the relevance of teh Relative Strength Index indicator for this strategy ( somebody mentioned it on a video)

Is there any free charting software which will chart this in real time?
All help appreciated

Two words, NO and CHANCE. Reminds me of a syndicate that hedged, arbed and paired 40k into a zero amount over a period of 18 months. Funny, unless it happens to you.

 

[moka2]

Two words, NO and CHANCE. Reminds me of a syndicate that hedged, arbed and paired 40k into a zero amount over a period of 18 months. Funny, unless it happens to you.

Sorry could you please elaborate? not sure I understand 100%

 

[Martinghoul]

My Z$2c...


2) Yes, you can daytrade these spreads. No, it's probably not worth it.

Do you mean
- The ROI could be very low (Margin money used and 4 x comms)
- Not many opportunity presents in a day?

It's a combination of both, IMHO. But that's just my view...

 

[kimo'sabby]

Sorry could you please elaborate? not sure I understand 100%

What don't you understand, mucker?