Steveoswing,
I do not know if the answer is published anywhere but would very much doubt it. Why would anyone want to share this information with the general public? The only reason that I have been willing to share it is that I would have thought that it is quite simple to work out and very easy to spot.
Although the US markets close at 9pm (UK time) the S&P and DOW futures continue to trade and that is why the spread betting firms continue to adjust their quotes. During this time the FTSE will move directly inline with the DOW (have a look for yourself for a few days).
Once the FTSE closes the spread becomes 4 points and the DOW has a 4 point spread; so no disadvantage there. If you trade the DOW you are competing with the other market participants who have better information and deeper pockets, get it wrong and your stops get blown out of the water. On the other hand, by trading the FTSE you are trading against a computer module which does not have a human sitting there adjusting the prices every minute or so. You are simply making a value judgement in the first instance and secondly watching to see when the FTSE updates much slower than the DOW in the direction that you are following.
It is a very simple and profitable strategy to employ, without checking the exact figures I can safely say that my strike rate in this particular type of trade is in excess of 90% and I do not think that I have placed alosing one so far this year.
The reasons most people will not trade in this manner are (1) Too simple; (2) No fancy charts; (3) The foolish belief that the spread betting company will "hunt" their stops (I am not daft enough to have a stop of 5 points) and (4) A lack of imagination and ability to look for the simple things in life that nobody seems to watch.
On a different note; if you happen to trade UK shares, make a list of those that CMC trade after 4.30pm and watch their prices move relative to their closing prices and the rise/fall of the DOW. About 3 or 4 times a week they will hand you trades that can be closed for a profit at the market open the following morning. It is all a case of being patient and I am not the only one here that does this, problem is why hand out free information and in the main receive insults as reward.
I do not know if the answer is published anywhere but would very much doubt it. Why would anyone want to share this information with the general public? The only reason that I have been willing to share it is that I would have thought that it is quite simple to work out and very easy to spot.
Although the US markets close at 9pm (UK time) the S&P and DOW futures continue to trade and that is why the spread betting firms continue to adjust their quotes. During this time the FTSE will move directly inline with the DOW (have a look for yourself for a few days).
Once the FTSE closes the spread becomes 4 points and the DOW has a 4 point spread; so no disadvantage there. If you trade the DOW you are competing with the other market participants who have better information and deeper pockets, get it wrong and your stops get blown out of the water. On the other hand, by trading the FTSE you are trading against a computer module which does not have a human sitting there adjusting the prices every minute or so. You are simply making a value judgement in the first instance and secondly watching to see when the FTSE updates much slower than the DOW in the direction that you are following.
It is a very simple and profitable strategy to employ, without checking the exact figures I can safely say that my strike rate in this particular type of trade is in excess of 90% and I do not think that I have placed alosing one so far this year.
The reasons most people will not trade in this manner are (1) Too simple; (2) No fancy charts; (3) The foolish belief that the spread betting company will "hunt" their stops (I am not daft enough to have a stop of 5 points) and (4) A lack of imagination and ability to look for the simple things in life that nobody seems to watch.
On a different note; if you happen to trade UK shares, make a list of those that CMC trade after 4.30pm and watch their prices move relative to their closing prices and the rise/fall of the DOW. About 3 or 4 times a week they will hand you trades that can be closed for a profit at the market open the following morning. It is all a case of being patient and I am not the only one here that does this, problem is why hand out free information and in the main receive insults as reward.
