Point & Figure Bonds Trading

[pnf-trader]

Bund Futures trading using Point & Figure Charts

I have been trading Forex, stocks, indices, commodities and metals so far - but most of the time I traded Forex.

A trader colleague of mine, who is a successful Bund trader, told me about trading bonds and from then on, I followed the Bund Future* closely.

What I like the most about the Bund is

• Trading time vom 8 am to 10 pm (I am from Europe, Germany). With Forex I often had the feeling to miss something, during asia session
• Low volatility compared to Forex. What Bund makes in ticks on a whole day, some pairs make within minutes sometimes.
• It seems to fit very well to my trading approach.

My goal is to make 10 ticks per day. I will try to catch moves with a tight inital stop loss and let it run until i got at least 10 ticks. But if I have a bad feeling about a trade, I don't hesitate to close it with 7, 5 or even 2 ticks profit.

My approach is to watch the Bund on a Point & Figure chart with a box size of 2 ticks and a reversal amount of 2 boxes. Beside that, I also watch charts with boxsize 5, 10 and 25 ticks to have an overall view about the current market.

Feel free to post any comments!

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* I am not trading the Bund Future directly, but only a CFD with the Bund Future as underlying instrument.

 

[pnf-trader]

21st of May 2009

Today was a great trading day. All in all, I have made 26 ticks - but it could and should have been more.

What I have to learn is to let my profits run. I could have easily made more than 60 ticks... but well, this is easy to say afterwards. :whistling

I made some ticks while Bund oscilated between support level 1 @120.42 and pivot level @120.61. Then it went high and broke pivot, resistance 1 @120.98 and resistance 2 @121.17. During this rise, I could also make some ticks. But I entered the market a few times instead of letting my profits ride all the way up.

This is something I really have to make better in my next trading sessions. Cutting losses short is easier than letting profits run...

After the Bund rallied up half of the day, it lost everything it has made so far in the afternoon. Sadly, I have missed this move. But nonetheless, I have reached my 10 tick goal for today.

 

[naivetrader]

Hi, I am interested in P&F. do you use it in FTSE / DOW as well? Sorry, for the naivity in my question. 'Hope you would not mind. cheers.

 

[pnf-trader]

Hi, I am interested in P&F. do you use it in FTSE / DOW as well? Sorry, for the naivity in my question. 'Hope you would not mind. cheers.

I have used it for all kind of markets. Dow, Ger30, commodities... But only on occasion. Most of the time I am using it for Forex and now also on Bund.