looking at trading some of this myself, trade bund bobl and schatz and think that this spread has something to offer. using eurostoxx as an anchor leg looking for spikes in the dax. definitely not a spread to fade for too long as it just keeps trending though. i think a ratio of 3*2 on the charts. any opinions?
thanks man, was thinking maybe simply 4*1. dax is worth 3.6 times as much as eurostoxx, simply taking levels and then multiplying by tick values, but looks like dax is more volatile, and calcing 4*1 in your head is easier in the heat of the moment
any tips for trading this intraday greatly appreciated
any tips for trading this intraday greatly appreciated
i have traded these spreads for three years now and to be honest until volatility picks up you are better trading the outright of levels ...........when vol was high thirties it was fantastic(sorry, but true)but now forget it- there is alot of competion and people are doing some really complex multi-legged index spreads - esxvdax is very mature now and has many computers in there which are quicker than legging it manually unless you leg it with direction. So not to put anyone off but from experience try the outright ......until we see some real volatility
RATIO OF EUROSTOXX-DAX, OUTRIGHT TRADING
ON OUTRIGHTS: i dont know about this comment above. computers have been trading bond spreads for ages. the dax opened at 4110 and closed around 4200 the other day: no volatility???!!! and think about it...if you are trading bobl bund, the fact that there is a multi legged strategy of the fly or even euribor spreads against bond spreads, AND you can still trade. i hear that the "flipper" is getting involved in this market at the moment. hence, people would be well advised not to give too much away to anyone on this site about how they trade and what they do. i could imagine putting people off the spread will keep the liquidity low and therefore enable someone to keep on manhandling the outrights. spreaders take a little more money every day from the market, making a near certain profit. outright guys burn like shooting stars at the risk of hitting traders ruin. dont get me wrong, if you can make consistent money outright, its the way to head, but spreading enables you to enter the outright market later without having gone bust first.
RATIO QUESTION: is anyone trading something more like 4*1, as it seems that 3.5*1 is too dax heavy and is more a dax trade than a spread? ie dax bid=spread offered, dax offered=spread bid with 3.5*1. from a simple calc of level of index*tick value you get a ratio of about 3.6*1, but this doesnt account for volatility differences of the respective indices. however, i have been warned that the euro stoxx can really get a move on some times, and have only been trading this a little to date and have only seen the dax moving it.
good luck on non farms today
yours bigballs.
ON OUTRIGHTS: i dont know about this comment above. computers have been trading bond spreads for ages. the dax opened at 4110 and closed around 4200 the other day: no volatility???!!! and think about it...if you are trading bobl bund, the fact that there is a multi legged strategy of the fly or even euribor spreads against bond spreads, AND you can still trade. i hear that the "flipper" is getting involved in this market at the moment. hence, people would be well advised not to give too much away to anyone on this site about how they trade and what they do. i could imagine putting people off the spread will keep the liquidity low and therefore enable someone to keep on manhandling the outrights. spreaders take a little more money every day from the market, making a near certain profit. outright guys burn like shooting stars at the risk of hitting traders ruin. dont get me wrong, if you can make consistent money outright, its the way to head, but spreading enables you to enter the outright market later without having gone bust first.
RATIO QUESTION: is anyone trading something more like 4*1, as it seems that 3.5*1 is too dax heavy and is more a dax trade than a spread? ie dax bid=spread offered, dax offered=spread bid with 3.5*1. from a simple calc of level of index*tick value you get a ratio of about 3.6*1, but this doesnt account for volatility differences of the respective indices. however, i have been warned that the euro stoxx can really get a move on some times, and have only been trading this a little to date and have only seen the dax moving it.
good luck on non farms today
yours bigballs.
Anyone spread this still? If so what's the best way to chart it? I'm using something like dax-4*eurostoxx? I'm using around a 4 or 5 to 1 ratio, what sorts of ratios you guys use? I was thinking the ES-Stoxx would be a decent spread too, both thick markets so legging in and out wouldn't be too much of an issue.