follow the leader extreme scalping

I take it you mean the French are slow to respond in this instance and not always?
An example of what I mean, Peugeot and Renault release crap sales figs.
CAC leads decline, DAX and FTSE take figs as potential pointers to weakening
new car sales for the qtr so they are in catch up mode.
Index weighting in this instance will also play a part, FTSE has pretty much SFA,
whilst DAX will reflect quality end (Bimmers and merc which the chinese and everyone else love)
So may prove more resilient.

If thats what you mean, yeah, makes sense.
I'd be wary of expecting one index to always be the lagging one though.
Although I certainly wouldn't rule it out, exchange IT infrastructure may play a part...
Personally I'd want to do a sh1tload of correlation and backtesting first.
 
Liquid validity said:
I take it you mean the French are slow to respond in this instance and not always?
Click to expand...

yeah exactly, sometimes DAX lags, sometimes FTSE just depends on what is going on at the time. The hypothesis is that if 2 of them break new fractal swing highs/lows at the same time the 3rd is likely to follow.

Liquid validity said:
exchange IT infrastructure may play a part...
Click to expand...

i dont think so in this case, exchange latency is more a millisecond or lower factor. These relative strength differences seem to exist for a few seconds or more. i.e. there is plenty of time to get a fill, as long as I get filled within 0.5 of a second cant see it being a problem on that front.
 
ChocolateDigestive said:
yeah exactly, sometimes DAX lags, sometimes FTSE just depends on what is going on at the time. The hypothesis is that if 2 of them break new fractal swing highs/lows at the same time the 3rd is likely to follow.
Click to expand...

Thought thats what you meant, yeah makes perfect sense :)
 
Mr O said:
Leaders and laggers are basic inter market relationships. For example I trade the emini s&p 500 so what the USD is doing is of importance to me. Before Europe closes, the Euro and the pound normally lead U.S equities because they strengthen as the USD weakens. A weak USD is good for U.S equities as it makes U.S products cheaper for foreign buyers which increases demand.

Crude oil is also another leader of U.S equities. If crude starts going through the roof then equities will normally follow as a weak USD drives up demand for crude oil which is priced in USD.

Then within the equities indexes, the emini nasdaq tends to lead the mini dow and emini s&p, then ontop of that you have the flight of quality effect with equities and fixed income products.
Click to expand...

hey Gang

this kinda correlation conundrum will drive you insane ......I guarantee :eek:

I have been doing it for a while now and have now managed to become superbike Emperor of France....:cool:

N
 

Attachments

  • superbike emperor of france.jpg
    superbike emperor of france.jpg
    29.1 KB · Views: 305
ChocolateDigestive said:
i dont think so in this case, exchange latency is more a millisecond or lower factor. These relative strength differences seem to exist for a few seconds or more. i.e. there is plenty of time to get a fill, as long as I get filled within 0.5 of a second cant see it being a problem on that front.
Click to expand...

Yeah agree on server latency, hardware is pretty much the same.
Bit of a brainfart comment by me really :LOL:
Spose I was wondering if it could be news feed related or something.

Net Index by Ookla - All Countries
UK 21
Germany 25
France 37

France has worst average consumer speeds.
That would suggest overall french internet infrastructure is slower
across the board even at hub level.

Maybe something in it?
Probably bo11ocks though :whistling
 
just gave XOM a spanking watching crude oil and spoos. have it.

XOM lagging nicely behind CL
 
Last edited:
here's a nice set up. guess what happened next, CL oil spiked up to 93, bought XOM 87.92, XOM naturally followed didn't make a new high but made a few c's

6 trades on XOM so far

+0c
+1c
+3c
+1c
+9c
+1c

I should really throw in the occasional loser but there hasn't been one yet.:LOL:
 

Attachments

  • Untitled.png
    Untitled.png
    135.7 KB · Views: 245
DionysusToast said:
There's a man whose cup is half full...
Click to expand...

yeah I count scratches as a 'positive' , it's a psychological thing, I am annoyed at the 10c looser, those need to be kept to 5c max, as soon as you are 5c you should cut, don't think just cut it. still it made an entertaining couple of hours trying out a new strat. no averaging/layering in which always makes me a bit uncomfortable.
 
ChocolateDigestive said:
yeah I count scratches as a 'positive' , it's a psychological thing,
Click to expand...

ChocolateDigestive said:
someone once said, it's not what you win it's wont you don't lose.
Click to expand...

There's something in this.

The first thing, look at ES/NQ/YM this week. That's a week where a lot of traders are going to get chopped up.

I lost no money this week and I'm happy. Both because it's the best I could expect in a market like that, and because I followed my method, which meant no trades.

So it's been a very successful week.

The second thing, well it's pretty perfect in my view. I guess it might sound trite to some, but to me it's one of those things that I tried to make instinctive.

When I started, I thought about I might make when I looked at entering. Now I think about what I might lose (loose). It makes quite a difference.
 
You must log in or register to reply here.

Similar threads

DaxDestroyer
FDAX/FTSE/FESX/FGBL CHATROOM anybody???
Replies
11
Views
3K
BSD
BSD
M
FDAX Slippage
Replies
1
Views
2K
kingsparkle
K
S
Looking for an arcade for a remote trader
Replies
2
Views
2K
Sheen
S
H
Spreading in different currencies
Replies
6
Views
2K
hrokling
H
S
Extreme basics
Replies
4
Views
3K
soosta
S
Top