MrGecko

I trade Bunds (I trade the stoxx too, but only recently) - but having never traded the ES I'm afraid I can't offer any tangible comparisons. Yes, bunds trend well - like any contract it has its own idiosyncrasies, a culmination of the different participants in the market. It used to be a popular contract for locals, but the volumes have fallen away (they are picking up, but still the market is thin sometimes - look at what happened this week). Given the proportion of prop / local traders that are (or were) trading it, you need to keep that in mind when approaching your trades - for example, what might be a perfectly well placed stop in one market is screaming for someone to hi/low tick you in the bunds. Some use the DOM and read the tape, along with the spoofing and the flipping... I have to say I consider negotiating my way through the orderbook and other locals the "coal face" of trading, it can be a very tough market. Market Profile is suited to Bunds and the levels can work well - can't really explain why (perhaps because of the well defined opening hours). It does have its little habits - for example, it likes to start off heading one way, only to reverse at some level and put in a move in the opposite direction (yesterday is an excellent example if this); and getting in on a gap closure trade can be some of the easiest money. Combining these two will usually get you a good trade. In the afternoon, of course, the ZN is something to keep an eye on - but the stocks / bonds relationship has fallen away somewhat... you might like to use it for a bit of colour or context, but its best to keep the Stocks trades in the Stocks markets, and the Bond trades in the Bond markets. You wouldn't want to buy bunds because you thought the stoxx was likely to fall away. Good Luck, I'll be looking for you and your stop