Noob FTSE questions

[arzoo]

I am looking into trading the FTSE (daytrades or intraday trades, no overnight positions), and was hoping that those who have experience in this instrument could lend their insights, like:

1. how fast/volatile is the ftse? (in comparison with movements in maybe the ER2, DAX or mini S&Ps, YMs, etc)

2. how many contracts can one move before there are partial fills or slippage occurs? (looking at the volume it looks quite liquid, though only guys who've traded it can really tell)

3. which type of trading style fits the ftse better? (a trend-follower/buy on pullbacks, breakouts, or using overbought/oversold indicators, etc).

4. what times of the day are best trading times and times to avoid.

thanks.

 

[lurkerlurker]

I am looking into trading the FTSE (daytrades or intraday trades, no overnight positions), and was hoping that those who have experience in this instrument could lend their insights, like:

I used to spreadbet the FTSE, so I might be of some limited help.

1. how fast/volatile is the ftse? (in comparison with movements in maybe the ER2, DAX or mini S&Ps, YMs, etc)

You might get bored with the FTSE if you trade the ES and YM. Average true range is tiny in comparison to the Russell, Dax, Dow, and S&P.

2. how many contracts can one move before there are partial fills or slippage occurs? (looking at the volume it looks quite liquid, though only guys who've traded it can really tell)

No idea - the Z future at LIFFE is £10pp and very liquid, but I've no idea what size you could do in one go on that...sorry.

3. which type of trading style fits the ftse better? (a trend-follower/buy on pullbacks, breakouts, or using overbought/oversold indicators, etc).

I'm really not equal to that question. It depends on the trader, and the phase of the market.

4. what times of the day are best trading times and times to avoid.

thanks.

I wouldn't bother trading over the US open. FTSE is moved by Dax in morning, Dow in afternoon. Note that it is heavily weighted to banks and chemicals, and isn't as much of a pure (in terms of how it responds to classical charting / TA) market as say the Dax or Dow. My advice would be to consider the Dax for the euro session.

Hope this helps to some extent.