Trading Instruments Comparable To, but Not Correlated With, ES

[jonbig04 10]

I've had this idea bouncing around my head for a while now. That is, looking for the same set up on different instruments. It seems possible, but only if you actually are familiar with the other instruments. Just plugging your strategy into another instrument with different volatility etc seems a recipe for failure.

 

With that in mind I would like to start becoming familiar with other instruments. I trade ES, day and night. I'm looking for suggestions on which instruments may be similar in terms of volatility (seems like the biggest variable in moving from one instrument to the next, but I could be wrong).

 

I would like to stick to an actual future, but if there's nothing great out there I will look into FX pairs.

 

What am I talking about, any and all suggestions are welcome!

 

Good trading fellas.

[sep34 10]

Try Euro EC or

Euro stoxx50 (you will find this to be very similar to ES ).

If you want more voaltiltiy try the DAX stock index.

or if you want to go Asian try the HSI stock index.

 

Worth while to look at the Grains Corn, Soy, Wheat.

The grains work really well for US index trader because one can potentially get positioned within the 1st hour of trading (RTH) and then look for potential trades in the Grains as they open a little later then the index futures.

 

The word volatiltiy is used in so many different ways that im not sure exactly in what context you ar eusing it, however the above instruments I find to be good trading vehicles.

[DugDug 10]

I would imagine that if the setup is good, then you just need to adjust you position sizes for varying volatility levels.

Clearly though an individual grain or stock is much more likely to be more volatile than an index.

I would strongly suggest you have a good look. Not all instruments trend well, some just will not suit you style.

Euro Stoxx 50 is good for shot term and long term trading - lots of volatility and volume but it tracks the SP500.

I also look at Sugar occasionally. Agree with the grains - but i dont trade them short term.

NG also very volatile - but can also get very thin and whippy.

FX is interesting as while the individual instruments may move 1% a day, they generally only trend 10-20% a year. So for short term trading FX is potentially very viable (assuming you get it right)

If you are after uncorrelated instruments then the world is your oyster - unless we are in 2008 again.

[electroniclocal 10]

If you are looking for a non ES correllated but high volume future then the Bund on Eurex is worth looking at. I have attched a screenshot using my favorite range bars.

[brownsfan019 17]

GRAINS

 

OIL & GOLD

 

BONDS

 

And currencies (I like the Euro).

[jonbig04 10]

Thanks guy.

 

I will be pulling up charts of all kinds tonight to see if I can't find something I want to start following.