Twin Success day trading the FTSE & DAX

[Adester]

Heah Guys,

I wanted to get some perspective on a somewhat obvious observation I have made.

I have been spreadbetting the FTSE 100 rolling, and make consistent profits on a daily basis (there are ofcourse some losses, but I have a strict risk:account size ratio that I stick to) for the last 2 months.

I noticed that the Dax follows a similiar path to that of the FTSE, and on the face of it, there is no reason why I cannot apply the same methodology. Aside from the fact that I could increase my Bet size, diversifying into another market may make greater sense with regards to risk.

Does anyone already trade both the DAX and the FTSE?

Your insights and wisdom is appreciated.

Adester.

Boldness has genius, power and magic in it.
Begin it now.

 

[damianoakley]

Hi Adester,

Many of the main market indices move in correlation in the medium-term.

Generally, I would say that by trading correlated markets, you are essentially just making one big bet and therfore increasing your overall risk.

As a stock trader, I never hold positions in more than one stock in any particular market sector because to me that wouldn't make sense. If I bought 8 stocks all in the same industry, I may as well just trade one of these stocks and take 8 times the risk.

I would say that when trading different markets, it is best to trade non-correlated markets.


Thanks


Damian

 

[Directional]

the DAX moves like the FTSE on steroids, though general trends are similar-ish.

maybe look at an uncorrelated market? a commodity or a bond perhaps?