Please tell me I'm mad.


Active member
I'm thinking of EOD swing trading the FTSE with the aim of making a couple of hundred points for a successful trade. Currently considering doing so in a nice informal way by working off of a chart of the actual index (rather than futures) and spreadbets.

Firstly, I just want to check that Sharescope has a straight FTSE100 graph.

Secondly I want someone to tell me (well actually I don't :) that the idea of doing this via the cash charts is mad. I'm just thinking, that my understanding of the futures charts is that you are much more likely to see head fakes etc. as the traders try to guess the future direction of the market whereas the cash chart is likely to be easier to read (this will clearly depend on what I think after looking in detail).

I am assuming that the futures don't drift too far from the cash (as otherwise you would get arbitrage) and so if you had a sufficiently high expectation per trade this could be written off (along with excessive spreadbet spreads) as relatively minor slippage. i.e. if I was making 150 points per trade average I wouldn't mind giving up 20 points either way by the futures being a different value to the cash and 10 points of spread as that would still be only 1/3 as opposed to 40% tax and what I think could be decreased accuracy.

Trading off of the cash prices is definitely easier for me as I can set up e-mail notifications from Comdirect and then phone up D4F to place the bet (I wouldn't be entering on D4F prices as this would really be madness if I was trading off of cash charts and would want a hard stop placed well outside my desired stop).

Comments anyone? Also does anyone know of anyone who will give you e-mail notification of futures?

I think Comdirect alerts are 10 to 15 min delayed, and liquid indices can move a long way in that amount of time. ADVFN is real time, unfortunately only the stock alerts work and their free indices are delayed anyway.

If you know about any other free real time text or email alerts please let me know.

I don't know whether it is best to base your trades on cash or futures, however I expect by the time the cash has broke resistance the futures may be well ahead, or at least the deal4free price will be, so you trade at a less attractive price. You don't get something for nothing.
Hi Wysinawyg.

Your mad - there you go I said it ;)

Nothing wrong with your idea. What your doing is really position trading an index, which is what Spreadbetting companies were designed for.

I don't think it makes a difference between futures and cash. On a 150 point profit target, it won't matter an awful lot.