Index King's Trading Opportunities

Indexking: Enjoying your posts. I gave up trading pairs of indices
because of poor consistency with profits. However you have renewed my interest so back to the drawing board. If I read one of your post correctly you recommend equal bets, rather than a ratio, when placing trades. Not sure of your reasoning on this one. Example if one of your chosen indices is opposite the DOW which has a greater intra trading range & hence volatility you are reliant on your trade on the DOW being always right to be profitable. True the second index is a partial hedge but nevertheless if you get the DOW direction wrong you are at risk of taking a big hit. Enjoy your break in Espania. Good Luck
 
Reply to Zig Zag

Hello

You are quite correct in that an index with larger intra day trading range is most reliant on correct move to profit. However once condition is met then end of day outcome is inevitable. I have seen big indexes like the dow rise up over 200 points but sell off to negative territory by close of trading day at 9pm, whilst the FTSE has remained positive until it closes at 430pm. Next day FTSE open down so you see importance of close price !!

Similarly I often trade the Dow and the Ibex which as you know have huge ranges betwen them for the day and so have high margin requirement. These two can make for heart stopping trading days but as long as condition is met then outcome is assured, even though as you watch it may not seem so !

Although I say to take closing prices, if you feel you've made enough points you can of course close out at any time, its just that I find a full day will give maximum points.
I shall be posting another trade this evening for Monday.

Thank you for your post and have a nice Sunday

IK
 
Hi IndexKing,
Looks interesting...I've a couple of Quick questions if you don't mind -
I use CFDs which use local index currency. Are you matching the stakes? ie GBP5.00/point on FTSE and EUR7.00/point on DAX ?
Or do Spreadbet co.s use only GBP ?
If you do the FTSE/NASDAQ for example and the range is correct at open of the FTSE, will you place the NASDAQ bet at same time (in out-of-hours trading) or will you wait till the US officially opens?

Cheers, M
 
Indexking - Is the difference (i.e. FTSE/DAX 888) what the spread companies quote you or does the trade go ahead when the actual indices are below/above the required difference. I ask this because the spread companies bias is often quite a way off the actual indices.
 
Sorry Indexking - another question.
Do you use daily futures, daily cash, monthy futures or quarterly futures.
Or, does it matter as long as the opposing trades are from the same.
It seems to me, as a novice, that the dailies would automatically close out (I think :eek: )
 
Hello

My trades rely on placing bets when prices meet certain difference. If the FTSE and NASDAQ can be got on together for example then fine. If FTSE NASDQ correct but NASDAQ closed then must wait for NASDAQ to open unless a futures price is given. Either way bets go on at the same time only . Alll bets close at official close price even if one index carry on on its own. Stakes must be equal for buy and sell. My spread firm use GBP only so its easier. You could place one bet in £ and other in Euro so long as the have same value in £/euro...Very important ! You can take advantage of one index carrying on by itself if it moves beyond against my difference by increasing bet. Overal method is good but can be tweaked as trade progresses.

Hope this helps

IK
 
Reply to orchard

Hello

My trades are strictly rolling cash (daily futures). Trade is for 1 trade day only for each index i say. Can get into big trouble if bets are left on overnight. Market on Close is essential unless you have perfect timing !
My SB firm will not close out at end of day unless you tell them to or cancel it yourself.

Hope this helps

IK
 
Trading Opportunity For Monday 23 June 2003

The Index King has identified one trading opportunity for Monday 23 June 2003

At anytime during the day when both of the following indexes are trading and the difference is greater than 1698. (Both orders must go on at same time !!)

Place a SELL order on the Swiss 30 (SMI)
Place a BUY order on the German 30 (DAX)

Make these 'Market On Close' (MOC) orders if possible otherwise close out just before the official close of trade for each index.This will mean DAX carry on by itself ! If you use Deal 4 Free then you have to phone in and say its a Market On Close order(s)


After you close out the difference will be less than 1698. You will make profit !


NB Buy and Sell orders must be equal in bet amount !!!!

Have a nice day !
Index King
 
IK, When you say Monday morning is there a specific time from which you are referring on Monday? Spread betting companies
allow you to trade most hours.

Regards,

Imran
 
IndexKing

I have been looking at some of your trades that you have posted and like an abritrage bet once the criteria is met you cannot loose.

Its a shame that you can't tell us how the criteria is derived.

It would solve many of our problems- especially the loosing runs.
 
Hello ImranQ

If you can get a before hours price on European indices please let me know your spread/cfd firm !
I am aware that the US and FTSE can be traded 24 hours a day for the week but I'm not aware of out of hours prices for indices like Swiss 30, MIB, Ibex etc.

IK
 
Hello rglenn

Thanks for your comment. My method answers most questions faced by traders. ie Do I buy or sell
When to get in
When to get out
Should I wait or quit,Can I make more or will i lose..etc etc

Most systems are good for entry point but fail for exit point. So traditional systems cannot be reliable. To trade you must know the exact point to enter and exit otherwise you are at the mercy of market.
My calculations are based over a single trading day, so that is duration of trade. I could move the goal posts and calculate for 2 days, a week, month etc but this would mean margin calls since market swings over more than one day can be heart stopping ! If you look at my Ibex bet you will see that I said to sell it on the day then quit. That day was right to sell but next day Ibex move up 178 points !.
As you can see one days trading is enough. I aim to make between 5 and 150 points a day but I don't know the final point profit until its occurred. Sometimes point profit is small and SB firm's spreads make it into a few points loss. I cannot do anything about that !

I hope you enjoy my opportunities.

IK
 
IK, I was asking generally about your method. If I do come
across any I will let you know. I use deal4Free.

Imran
 
This strategy is good in theory,but IndexKing hasnt mentioned anything about MaxDraw Down and at what point you should look to exit the trade if it goes against you because this determines how much money you need in your account for margin purposes.
 
This is why I asked IK much earlier about drawdowns which
he didnt answer ;). I'd suspect there might be huge drawdowns
on certain days.
 
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