Help for FDAX Trading

[jazz 10]

Hello there,

 

I stumbled on the forum as I was googling FDAX trading. I started daytrading full time about 2 months ago. I trade mostly US equities and occasionally options. However, I'm interested in trading futures particularly FDAX.

 

I have a few questions. If anyone gives me some advice, I'd be grateful. Does anyone have any recommendation on good resources (websites, books, etc) for futures trading (especially on DAX and Euro Stoxx 50)? I guess I need to learn some basic futures trading (i.e. contract rollover). How about recommendation on futures brokerage companies? I use NinjaTrader for charting. I'm checking out Mirus Futures. Does anyone have any experience with them?

 

Thanks for your help.

 

Jasmine

[pipbanker 10]

I am with Mirus.

Pretty satisfied.

If you are only starting to explore futures, FDAX is not the best to start, it is a pretty wild beast. However, if you know what you doing dax can make you tonns of money. I am done trading dax in about 1-1,5 h after open. However if the opportunities are there I would not mind taking it later too.

You might wanna check 6E or ES as a beginner. CL would be a good one if u know what you doing.

Just open demo with mirus and click buttons, it cost you nothing. Enjoy

for more Qs write in PM

[TheNegotiator 13]

Jasmine, you can be absolutely battered in the DAX unless you really know what you are doing and have a solid trade plan. It moves aggressively and the tick size is quite big compared to other products. Take a look at it by all means, but just be very careful. Also, I'd say that if you are in Europe it's going to be easier to trade it. If you're not, the latency issues with it could be a problem depending on how you trade. Good luck.

[jazz 10]

Awesome! I have a demo account with them and been papertrading the first 1.5-2 hours once DAX opens. Thanks for your help. You will see PMs from in the near future.

 

Thanks,

 

Jazz

[jazz 10]

Hi TheNegotiator,

 

I absolutely agree with you. I've been papertrading FDAX. FDAX moves a few 10s points in a heart beat. I must be disciplined. I appreciate your advice. I'm gonna explore other Eurex.

 

Thanks,

 

Jazz

[TheNegotiator 13]

Maybe if you want to take a look at Eurex, try Euro stoxx.

[jazz 10]

That's my plan this Monday. Thanks. Have a good weekend.

 

Jazz

[pipbanker 10]

This is the trade from today FDAX

735 usd in 10 min

[jazz 10]

Hi Vlad,

 

Good job. I don't normally trade for first 10-15 min of trading hours. I use tick charts (200, 600, & 1800). I got in at 5646 at around 23:55 (PST) and got out at 5724 at around 00:24 (PST) this morning. All papertrade though... I guess I could have stayed. It ran up nicely.

 

I wonder how do you prepare your trade daily. I'm in USA and never traded European market before. I read Eurex newsletters and check out economic calendar. I'm still fine tuning my trading method.

 

Cheer,

 

Jazz

[pipbanker 10]

I never prepare day before. I never prepare on weekends. I just come check the chart if the trade is there I will take it or wait for the price to get where I will take the trade. I never care about news and the content. I don't care what the media says. They all lie or talk crap. I also don't care what analysts say or think. They are analysts, they cannot trade.

I only care about the news when they show up cause it adds volatility.

You dont need to be a bright person to be successful in trading. Trading is very simple and boring profession. Just get rid off all junk (news, opinions, indicators) that surrounds you and you will see more on your chart.

[TheNegotiator 13]

So tell us Vlad, what is it that you look for? Remember this is a community website for sharing ideas.

[pipbanker 10]

So tell us Vlad, what is it that you look for? Remember this is a community website for sharing ideas.

 

When I open my charts I look for support and resistance levels only, nothing else. I either trade bounce of that level or a break out.

Sometimes I use trendlines for entries too. I like when S&R correspond to a trendline.

Hope this helps.

[TheNegotiator 13]

Vlad, if someone could trade based on what you have said alone, everyone who trades would be a gazillionaire. Just coming into a forum and posting a chart saying to paraphrase:- "Trading is simple and easy. Just buy low and sell high" is neither very useful, nor is it appropriate.

[pipbanker 10]

Vlad, if someone could trade based on what you have said alone, everyone who trades would be a gazillionaire. Just coming into a forum and posting a chart saying to paraphrase:- "Trading is simple and easy. Just buy low and sell high" is neither very useful, nor is it appropriate.

 

Ok, I see now that you did not get my message. Let me fix it.

All I am saying that you need to get rid off anything that clutters your chart and stop listening to others opinions if you want to change your trading. I dont think anyone will become gazillionaire with any method. However, that is a different topic which does not relate to DAX.

Let me ask you a question? What is that that you expect people will post in the thread of FDAX trading? Would you expect some say: "Now buy here and then sell there"? Or unveil all secrets of trading here in few sentences?

If you give a profitable method to 100 traders 90-95 of them will still fail. Have you thought why is that?

[TheNegotiator 13]

Ok, I see now that you did not get my message. Let me fix it.

All I am saying that you need to get rid off anything that clutters your chart and stop listening to others opinions if you want to change your trading. I dont think anyone will become gazillionaire with any method. However, that is a different topic which does not relate to DAX.

Let me ask you a question? What is that that you expect people will post in the thread of FDAX trading? Would you expect some say: "Now buy here and then sell there"? Or unveil all secrets of trading here in few sentences?

If you give a profitable method to 100 traders 90-95 of them will still fail. Have you thought why is that?

 

No Vlad I have never thought of any of those points you have just made. Thankyou for enlightening me.

[Goldfish 10]

Hi Jazz

 

with regards brokers & data providers, I use Mirus and NinjaTrader for platform, but I pay for data through Kinetick instead of getting it for free using Zenfire.

 

Through experience, I have found Zenfire data was often behind the market and unreliable, so after months of persevering, finally changed over and was glad I did. Heaps better...

 

I trade mainly the YM and agree with others, Dax can be wild and very damaging...as a beginner you absolutely should not go there, until you have lots of experience.

 

IMO only .... Good luck.

[jazz 10]

Hi Goldfish,

 

Thanks! I noticed the delay data feeds when using Zen-Fire and Kinetick together. I told Mirus futures about that, but doesn't seem to get it. I should talk to NinjaTrader rather...

 

I just opened an account with Mirus futures. I've been paper-trading ES after hours. I agree that FDAX is definitely not for beginners.

 

Thanks,

 

Jazz

[Goldfish 10]

Hmmm, now why doesn't that surprise me??

 

Mirus have never responded to my questions about data delay - instead they blamed my internet provider, the type of computer I use, etc without even asking me the details of those.

 

That's why I gave up on using Zenfire. It can work well for months and then go weird...I have been up to 20 minutes behind the market at times!

 

I am really happy with Kinetick ...haven't had a single issue with it, & $50 a month wont break me.

 

I love the FDax for its moves, good luck in trading it.

[jazz 10]

Yes, they made me feel like I don't know what I'm talking about. I only use Zen-Fire after US market close when I trade futures markets. I'm going to send an email to NinjaTrader about that and will let you know if I find any solutions.

 

Happy trading!

 

Jazz

[StevenSJC 10]

I trade FDAX on a daily basis in the US session. European market hours don't work for me -wish they did but have found ways to have it be quite effective in US.

 

I have found that starting trade at 10am EST instead of the US open at 9:30am EST I do far better. Why? Not sure - that's just my results telling me so. I give it 2 hours from there - but quite after 1 win and positive results. I keep going if first trade doesn't win. Maximum trades I'll take is 3 however - so I end 1-0, 2-1, 1-2 or 0-3. Obviously I'm pulling for 1-0 or 2-1 and thankfully hit that most days - of course not all.

 

I like to use range bars. Those are my favorites. However, you need to take a percentage of the daily ATR to come up with the right size range bar -- this way you keep your system dynamic as trading ranges expand and contract. Not sure I'm ready to give away my exact percentage but that's what I do.

 

For tick bars I would use 233 Tick - that would be my choice if I couldn't trade range bars.

 

On big news days -- when there is a "red rated" report in the US at 10am EST I wait a minimum of 2 minutes up to 5 minutes - once trade looks like it's orderly I go -- this filters out some sucker punches right at the release.

 

Like others have mentioned you need to be capitalized for this market -- $25,000 probably my minimum suggestion if you want to keep that risk to 2% or less.

 

I use Ninjatrader to place my orders through Interactive Brokers. I use Tradestation for their charting since it's just what I'm used to but if I wasn't lazy I would get used to Ninja charting but old habits die hard.

 

As for EuroStoxx never found it as good for me.

 

Good trading....

Edited January 21, 2012 by StevenSJC
added comment

[jazz 10]

Hi Steven,

 

Awesome! Thanks for sharing your experience with us.

 

When I trade FDAX, I trade 1 contract. Since it's volatile and its ATR is above 130, I found 1 contract is enough for me. I think that one can make a living trading 1 FDAX contract. I normally trade up to first 2 hours. I haven't tried trading European futures during the US market hours. Maybe I should try that.

 

As for time frame, I use 3 tick charts: 100, 300, and 900 tick charts. I tried 200, 600, and 1800 tick charts, but former tick chart set works better for me. I use some of common indicators: MA, MACD, BB, & Stoch. My charts signaled a pull up last Friday, so I will be a short seller on any strength given that there's any significant news as news triumphs the technical analysis.

 

I also trade FESX if charts set up nicely. I normally trade 8 contracts at a time, but trading FDAX is cost effective. Since FESX has more volume, I use 200, 600, and 1800 tick charts.

 

Due to the latency, trading European futures market is hard for me. I'm in California. I've been trading 6A and 6E after US market closes as someone suggested on the forum.

 

Cheers,

 

Jazz

[avir4tg 10]

Definitely agree with comments regarding the volatility of FDAX. I love trading this instrument just for that reason. However, please proceed with caution. A few of the folks I work with prefer it as the pre-market contract of choice.

 

I would also like to suggest that you don't ignore good books on the "trading psychology" required to be successful. At the end of the day your indicators are probably less than 20% of your trading results.

 

My favorite recommendations are: The Daily Trading Coach by Brett N. Steenbarger, and Trading in the Zone by Mark Douglas. Another good read is Millionaire Traders by Kathy Lein. It interviews very successful traders and walks you thru their failures and success.

 

Good luck!

 

BTW, you can't go wrong with Mirus and Ninja Trader. I've been with them for a long time and have no complaints. I would recommend them to anyone.

[jazz 10]

Hi avir4tg,

 

Thanks for the comment. I was looking for trading books to read. I will definitely check out your recommendation.

 

Thanks!

 

Jazz

[Goldfish 10]

Hi Jazz

 

Brett Steenbarger has some great articles available free but I would also direct you to Al Brooks work, on this forum, for excellent help on learning to trade price action (without reliance on indicators).

 

I've been trading for many years, but his work is opening my mind up to new opportunities & has influenced my trading just in the last week or so - I notice I take higher probability trades and let the small ones go by.

 

Check it out....I also like Steve Nison's work & have learnt from Dan Gramza as well, if you are into reading the candles. The higher time frame candles especially can be deadly for market turns.

 

best trading

Goldfish

[jazz 10]

Hi Goldfish,

 

I will check those out. I agree candle sticks are formed better on min charts than tick charts. I often look at 5 min charts as well as my 3 tick charts.

 

Thanks,

 

Jazz