Why Trade the FTSE ?

Flightcry

Newbie
I can see your point Neil, why trade the FTSE when swings in the Dax are more extreme then the FTSE and the profit/loss potential is greater. The Dax is made up of 30 German companies as oppose to the FTSE 100 and earnings by individual companies / sector wide news has a greater impact on the Dax then the FTSE. Also Dax moves rapidly compared to the FTSE 100 when movements in the DOW/S&P futures take place. I trade both the FTSE and Dax and often find the FTSE is sometimes lagging its European counterparts which give extra confidence when placing orders either long or short. I could not say that the Dax is better then the FTSE (that’s not really point) you have to look at each index for its own merits / drawbacks and you can successfully trade them both.
 

Roberto

Experienced member
I've been daytrading both for 4 years now, and I completely agree with everything in the post above. I'd add that over the last year, in particular, I've been finding the FTSE more difficult and less reliable than before, but haven't (yet) had the same problems with the Dax.
 

tomorton

Legendary member
There's no dispute over the technical behaviour of the Dax as against the FTSE (or the Dow for that matter). If you trade on TA signals alone, the exact instrument isn't too important.

But should we not remember that its not just the behaviour of the index that is a factor here, its also how the SB companies move their quotes. Its not unusual to find e.g. finspreads quoting the FTSE monthly bets 10 or 20 points adrift from the actual value of the index. That's one heck of a bias if you get direction wrong.

But is there an instrument that the SB companies don't price so aggressively? One they ignore a little, allowing us an edge? Have members found an area we can "hit them where they ain't"?
 

sutton630

Newbie
tomorton said:
There's no dispute over the technical behaviour of the Dax as against the FTSE (or the Dow for that matter). If you trade on TA signals alone, the exact instrument isn't too important.

But should we not remember that its not just the behaviour of the index that is a factor here, its also how the SB companies move their quotes. Its not unusual to find e.g. finspreads quoting the FTSE monthly bets 10 or 20 points adrift from the actual value of the index. That's one heck of a bias if you get direction wrong.

But is there an instrument that the SB companies don't price so aggressively? One they ignore a little, allowing us an edge? Have members found an area we can "hit them where they ain't"?

So I'm ignorant - but ... What are TA signals? I presume the A is average but the T could be anything.
 

axthree

Active member
TA is "Technical Analysis".
All those neat looking charts with a thousand apparently confusing lines on them.
You will find a glossary of terms on the begginers thread on these boards. It's well worth becoming familiar with all the terms used.
It can be nearly as clear as a knitting pattern.:)
 

Tubbs

Well-known member
I've got to say that after doing years of research with the FTSE as my primary market of interest I came to the conclusion that TA was useless. Then it struck me - it the FTSE that is useless. It is pulled in morning trade by what happened in America last night - then looking to what America is going to do at the open - then what America is actually doing for a short time. That split personality is very bad for trading and just gives mixed signals for most forms of TA (wipsaws etc). I have made the decision to trade the S&P - you might as well. The states affects all the other markets anyway.
 

Roberto

Experienced member
Tubbs said:
I have made the decision to trade the S&P - you might as well.

I'm very nearly there. I find myself looking more and more at the S&P and the Dax every day, and less and less at the FTSE.
 

pb

Active member
Yes, I am almost through with FTSE, just waiting for the last few trades to expire/close. I will then explore DAX/CAC or even GBP/USD for that matter.

So, no supporters of FTSE here then?
 

FetteredChinos

Veteren member
pratbh. bit of a late one last night?? :eek:

contrary to other views on this thread, i do actually like the FTSE, as it does offer more profitable counter-trend trades (on a daily basis) than the other major indices. indeed, if you have a strategy for the dow that is next to useless, try transposing it onto FTSE data - you may be surprised at it. i guess the main problem is that in comparison to the DOW for example, the FTSE meanders along weakly for a lot longer than the others, and then makes its moves in short...sharp...bursts...

you can use this "meandering weakly" to fade breakouts etc, and fade "stop-running" moves. the key is not getting damaged by the big moves..

just my 5 pence.

FC
 

Glenn

Experienced member
"So, no supporters of FTSE here then?"

Yes
I'm used to it.
If it ain't broke, don't fix it.

Glenn
 

Davros

Junior member
The FTSE ( and I assume you mean the Futures) is very good at the open and into the morning. The afternoon is a little unpredicable.

In my opinion the cash index is untradable on its own. You may be able to trade it off the futures, but CFDs and spread-betting spreads make this an unprofitable business.

I'm currently trading between 8am and 9am to test my ability to change careers :eek: At 9, I pop on my bike and go to work :!: I'm very pleased with the results and after all these years can now see how people can make a living from this.
 

Hooya

Experienced member
FTSE is better for TA imo, DAX tracks US futures more so might as well trade them. FTSE likes to close gaps, FTSE spread on CMC is better than dax % wise. FTSE hours are better than US indices hours. FTSE average daily range % wise is the same as the dow. Ulimately it makes no difference. Its what ever suits you.
 

Tubbs

Well-known member
my point was that the ftse is bashed around by the American indices & therefore is not tradeable for TA reasons. All my TA work is useless on the FTSE - on the S&P it's a different matter.
 
 
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