Eurodollar market no good for simple directional trading?

[Adamus]

I'm putting together my plans for trading my shiny new system, and the Eurodollar is one of the markets I'm aiming to trade it in.

But the problem is that the market just seems badly suited to my system. The profits and losses I make in the Eurodollar are more or less wiped out by the commission.

In every other market I'm looking at (about 20 of them), the commission and slippage I build into my analysis is obviously a factor, but it doesn't kill the thing off.

If I could trade the Eurodollar without much slippage, maybe my system would work on it, paying commission of $5 RT.

But can anyone tell me what the bid-ask and the slippage is like in this market?

Should I be looking at any other interest rate future instead? TNotes or short sterling or BOBLs for instance?

I know I asked a question a bit like this a while back, but not quite so well focused. Sorry if I'm repeating myself.

 

[AeroZ]

I've been trading E$ for awhile and unless you're trading with some size, you should never expect to get filled unless it trades through you. It's just the CME rules for E$.

 

[Rhody Trader]

Should I be looking at any other interest rate future instead? TNotes or short sterling or BOBLs for instance?

Generally speaking, the longer the duration of the instrument in question (which usually means the longer the length to maturity) the more movement you'll see. Depending on the foundational basis of your system, you may indeed find something like Notes more worthwhile.

 

[Adamus]

AeroZ

thanks for the input. Can you tell me what the usual bid - ask spread is?

 

[AeroZ]

Well, the spread is usually a half tick, it's a pretty liquid market.

 

[Directional]

it's a pretty liquid market.

make that massively liquid... its one of the most liquid futures contracts in the world, with over 8M contracts in open interest.

The front month future however, is not very rangey. Better to look at 4-6 quarterly expiries forward z9, h9 and m9 if you want a bit more motion.

 

[tar]

Anyone tried trading EURODOLLAR options ?I am new to this contract and i am very intrested in this market , can anyone give me any rules or opinions in trading STIRs ? Thanks in advance ...