Scalping U.S. index futures from U.K?

Oct 4, 2005
2
1
13
San Diego
#1
Can anyone tell me if there is any discernable time lag in realtime futures quotes originating from the states? CME, CBOT, etc? I am exploring the idea of an extended stay in the U.K and continuing to trade the U.S. futures markets. As a scalper, however, I require fast, accurate data using broadband and eSignal. Any ideas?
 
Dec 28, 2005
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#3
alsamont said:
Can anyone tell me if there is any discernable time lag in realtime futures quotes originating from the states? CME, CBOT, etc? I am exploring the idea of an extended stay in the U.K and continuing to trade the U.S. futures markets. As a scalper, however, I require fast, accurate data using broadband and eSignal. Any ideas?
I scalp/daytrade CME from the UK and have no problems, how many round terns you do a day and what futures do you trade. I myself trade FX Futures the big contract
 
Oct 4, 2005
2
1
13
San Diego
#4
indexgold said:
I scalp/daytrade CME from the UK and have no problems, how many round terns you do a day and what futures do you trade. I myself trade FX Futures the big contract
I primarily trade the ES contract, but watch all markets intraday. I love trading the ES and find that it is great for scalping a half point to one full point fairly easy. Even two points. As anyone knows, the volatility makes it hard to hang on to profits without wide stops (5+). Trading off good S/R and breakout reversals is key, keeping a hawk's eye on TRIN, TICK, STOCHs, etc. It also helps to know the trade bias for the day (i.e. bullish, bearish, neutral). For me, 5 contracts seems optimal while choosing trades carefully. Too trigger happy and commissions will eat you alive. The greatest danger in scalping is to lose focus and decide to switch from scalping to swing. I can't begin to say how often I handed back 2-3 points trying to swing trade intraday in today's narrow range market. Or thinking that you can squeeze an extra point or two only to lose it all when a player decides to get cute. Scalping front end software helps with this--set your entry, profit target, and stop and wait for your next opportunity. If you want a point, just set your trigger one tick out. I didn't mean to go on so long here, but I'd like to add one thing: I'm often amused when reading on these boards that it's impossible to make money scalping--and for most this might be true. For this trader, it requires intense focus/concentration and the ability to sit still for three to six hours and enter a ZEN like state. Those who do, will know what I mean; those who don't or can't will think I'm crackers. Everone is wired differently.
 
Likes: rols
Dec 28, 2005
117
0
26
#5
alsamont said:
I primarily trade the ES contract, but watch all markets intraday. I love trading the ES and find that it is great for scalping a half point to one full point fairly easy. Even two points. As anyone knows, the volatility makes it hard to hang on to profits without wide stops (5+). Trading off good S/R and breakout reversals is key, keeping a hawk's eye on TRIN, TICK, STOCHs, etc. It also helps to know the trade bias for the day (i.e. bullish, bearish, neutral). For me, 5 contracts seems optimal while choosing trades carefully. Too trigger happy and commissions will eat you alive. The greatest danger in scalping is to lose focus and decide to switch from scalping to swing. I can't begin to say how often I handed back 2-3 points trying to swing trade intraday in today's narrow range market. Or thinking that you can squeeze an extra point or two only to lose it all when a player decides to get cute. Scalping front end software helps with this--set your entry, profit target, and stop and wait for your next opportunity. If you want a point, just set your trigger one tick out. I didn't mean to go on so long here, but I'd like to add one thing: I'm often amused when reading on these boards that it's impossible to make money scalping--and for most this might be true. For this trader, it requires intense focus/concentration and the ability to sit still for three to six hours and enter a ZEN like state. Those who do, will know what I mean; those who don't or can't will think I'm crackers. Everone is wired differently.
Agree with you. I have traded the s&p and YM I used to look for my clues on the TICK Transports and IBM. I trade price action. But I now trade the FX Futures for 2 to 6 pips avr about 3.5 pips ...I set a stop about 7 to 10 pips for emergency's but I try to not to get the stop hit I usually pull the trade before the stop gets hit. I can trade between 8 and 20 R/T in a day. and I always try to buy the bid for longs and sell the offer for shorts.

How many R/T do you play a day and what stops do you use. based on your targets for trading the s&p

Regards

G
 

gc1

Active member
Jun 17, 2005
273
5
28
#6
As far as delay you'll probably "see" prices change around 50 to 75 milliseconds later than USA located traders and market orders (if you use them) will take an extra 50 to 75 milliseconds to reach the exchange compared to USA located traders. So it shouldn't make much difference.

Use a good quality ISP who has good peering & transit interconnections to avoid any packet loss problems.
 

charliechan

Well-known member
Jun 18, 2005
1,009
120
73
UK
#7
id say it depends on your order entry method.

if you are entering orders in advance then you shouldnt have issues.

if you are a liquidity provider/price maker - aiming to get price advantage with a limit order and for big size then you may want to think things out some more. by the sounds of it - going for a point or 2 in es i would say is intra-day swing trading - average day trader stuff, not true scalping where people go for a tick or 2 only.

cme have a hub in london so you may be better off sitting in an arcade if you really do need this kind of direct connectivity. ecbot matching engine was actually based in london until recently, so you would have been better of in london if micro seconds are an issue for you - but i would imagine they too now have a london hub.

my guess is that a standard domestic broadband connection will be fine for you.
 
Dec 28, 2004
29
0
11
Grand Cayman
#8
charliechan said:
id say it depends on your order entry method.

if you are entering orders in advance then you shouldnt have issues.

if you are a liquidity provider/price maker - aiming to get price advantage with a limit order and for big size then you may want to think things out some more. by the sounds of it - going for a point or 2 in es i would say is intra-day swing trading - average day trader stuff, not true scalping where people go for a tick or 2 only.

cme have a hub in london so you may be better off sitting in an arcade if you really do need this kind of direct connectivity. ecbot matching engine was actually based in london until recently, so you would have been better of in london if micro seconds are an issue for you - but i would imagine they too now have a london hub.

my guess is that a standard domestic broadband connection will be fine for you.



along the same lines I am looking to return to the UK and trade es. Intra day swing trading is what I'll be doing using 1 3,5 min and constant volume charts. At times I will want to exit or enter at market as rapidly as possible. At the moment I am entering orders through interactive brokers from Cayman which works OK but I wonder if trading technologies x-trader through say gni touch would get me better prices at key times. also on whether you'd need a t1 or equivalent internet connection to get the benefit out of xtrader or whether say 2mb connection will be ok. Any thoughts appreciated.
 

gc1

Active member
Jun 17, 2005
273
5
28
#9
An ordinary domestic DSL connection is fine for clients like xtrader or jtrader. Even a modest speed connection (0.5 Mbps or 1Mbps) works fine. Time delays are due to distance rather than data queuing.
 

charliechan

Well-known member
Jun 18, 2005
1,009
120
73
UK
#10
jcwonder8 said:
along the same lines I am looking to return to the UK and trade es. Intra day swing trading is what I'll be doing using 1 3,5 min and constant volume charts. At times I will want to exit or enter at market as rapidly as possible. At the moment I am entering orders through interactive brokers from Cayman which works OK but I wonder if trading technologies x-trader through say gni touch would get me better prices at key times. also on whether you'd need a t1 or equivalent internet connection to get the benefit out of xtrader or whether say 2mb connection will be ok. Any thoughts appreciated.

staying with ib over here will be fine.

gni can be expensive unless you are doing very big size - they are geared more towards the liquidity providers/clearing services than retail customers imo. i have never heard anything bad about them though (unlike ib)
 
Dec 28, 2004
29
0
11
Grand Cayman
#11
charliechan said:
staying with ib over here will be fine.

gni can be expensive unless you are doing very big size - they are geared more towards the liquidity providers/clearing services than retail customers imo. i have never heard anything bad about them though (unlike ib)
thanks all thats exactly the info I wanted.