Trading the Hang Seng Index

[theman 10]

Hi

 

I am new to the Hang Seng Index, I have a few questions

 

1. Can you trade the Hang Seng Index ?

2. What is it like to trade i.e. is there a lot of volumn, or just to slow

3. Compared to other markets like ES/DOW, is it choppy?

4. What platform supports this i.e. viewing the data in a chart

 

thanks for all your help

[Kiwi 16]

You trade hang seng index futures or mini hang seng indefutures (hsi and mhi).

 

Both are available with interactivebrokers (.com)

 

There is not a lot of volume but there is nothing slow about it.

No.

I use IB as my broker and Sierra Chart to view the data and manage the trades (sc does chart trading and dom trading).

[theman 10]

Thanks for that, is trading the Hang Seng Index Futures or the Mini OK for new traders?

 

Also, how should on prepare to trade it? i.e. When trading ES or DOW etc, I can get News times and make sure I don't trade 5 min/5 after. But for the Hang Seng Future/Mini Index there is no news. Also they have a 2 hr lunch break, normally that time, would you expect a big gap (down/up)

 

thanks

[TheDude 10]

Dont want to change the subject too much, but it looks like good money can also be made in the S&P/TSX contract that trades on Montreal/TMX. The futures are not as liquid as say ES, but the underlying is very liquid which means the futures get out of line easily, so easy money is made as arbs come in. This is going to be my focus for next year I think (something new....)

[Kiwi 16]

No news is good news .... very occasionally something happens in China or recently Korea that impacts the markets but just trade what is happening to price.

 

The lunch break move is unpredictable and likely to follow what happens to the Nikkei/SPI/ES over that period but not always. I trade very short term and don't hold through lunch. If I was trading daily trend then I might.

 

Anything is both Ok and not Ok for new traders. All have their differences obviously.

 

 

Thanks for that, is trading the Hang Seng Index Futures or the Mini OK for new traders?

 

Also, how should on prepare to trade it? i.e. When trading ES or DOW etc, I can get News times and make sure I don't trade 5 min/5 after. But for the Hang Seng Future/Mini Index there is no news. Also they have a 2 hr lunch break, normally that time, would you expect a big gap (down/up)

 

thanks

[jackb 10]

HSI futures are very thinly traded and as such, when volatility picks up, you'll see wicked moves that drop/pop 50 to 100 ticks (points) in less than 10 seconds...a real gamblers paradise. IMO, it's got to be toward the bottom of any futures list of recommended beginner's markets. If you insist on trading it, at least consider trading the mini.

[Kiwi 16]

50 tick moves in under 10 seconds are rare except at the beginning of either session.

 

But the advice to look at the mini (about $1 per tick) is sound as a starting point. Another thing to look at is treating the mini as though it trades in 5 tick increments. This will take its daily range into the zone most are likely to be used to; improve the tick to commission ratio and the tick to slippage ratio; and let you treat each trade as "slower." The fact that you can enter and exit within the 5 tick range is just a nice opportunity for profit improvement on entry or exit.

 

One of the nice things about HSI is that I sometimes get positive slippage on stop outs. Typical slippage is 1 or 2 ticks although 4 or 5 ticks happens with reasonable regularity. Bigger slippage would suggest that you are fading breakouts that were supported by trend - not sensible with HSI which almost trends better than forex.

[theman 10]

50 tick moves in under 10 seconds are rare except at the beginning of either session.

 

But the advice to look at the mini (about $1 per tick) is sound as a starting point. Another thing to look at is treating the mini as though it trades in 5 tick increments. This will take its daily range into the zone most are likely to be used to; improve the tick to commission ratio and the tick to slippage ratio; and let you treat each trade as "slower." The fact that you can enter and exit within the 5 tick range is just a nice opportunity for profit improvement on entry or exit.

 

One of the nice things about HSI is that I sometimes get positive slippage on stop outs. Typical slippage is 1 or 2 ticks although 4 or 5 ticks happens with reasonable regularity. Bigger slippage would suggest that you are fading breakouts that were supported by trend - not sensible with HSI which almost trends better than forex.

 

Do you get slippage even if you enter as a limit order?

 

thanks

[Kiwi 16]

No. Slippage is on stop market orders only. Limit and Stop Limit are slippage free.

[Kiwi 16]

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