Thursday, October 30, 2008

Thursday Notes - My First FESX Trade

4:15pm Interesting day today in that the entire day session traded inside of the range set in the last 30 minutes of yesterday's trade. Of course that was a 50 point range given the false GE earnings rumor just before Wednesday's close.

'Twas essentially a choppy session, and I did a pretty decent job navigating it by trading the 1 minute chart (trends and contra trend extreme fades), although I got nicked a bit midday as I got cute going for one more extension on the 1:45pm drop. Made most of it back in the afternoon though.

On the plus side I stayed completely out of the final 45 minute whip-o-matic, kept sizes under control, and carved out an acceptable +$15K chip gain. I also made my first trade of the EuroStoxx 50 (FESX) for +640 Euros (thanks Eric ... we'd discussed this in the PalTalk lounge last night and I attached proof to the right!) and am going to begin keeping an eye on that, both in terms of trading it and using it as a confirming indicator for the DAX. It will likely take some time to fully understand how the two markets interact, and I look forward to some new learning in that area. So much to learn in this business, so little time in our lives.

I expect to trade Friday lightly to lock up and score the month's chips, before sitting down at the final table on Monday. For more on that, see today's earlier post below.

Have a pleasant evening.

1 comment:

Eric D said...

Don - good to hear that the stoxx treated you well...too bad I cant collect a finder's fee from Eurex for introducing the two of you :) My car needs a new set of tires ha.

Based on your comments that you used the dow to trade the ES based off of relationships, I suspect that you'll do very well once you get the hang of the dax/stoxx relationship.

If nothing else, you can probably use the stoxx as a hedge against the ES if your connection to CME goes down. I bet it would be pretty close if you just factored in the exchange rate.

I spent the majority of the day doing prep work for some software I am getting built by a remote freelancer to help me out with some data analysis.

One of the items I am working on is downloading the DOM every few seconds to see how much size one could move throughout the day & how much slippage they would incur in trading that size. This could be used to compare markets such as the Dax, Stoxx & ES in a way that I have not seen before. I'm not sure how useful it would be, but you never know until you try.

Regards,
Eric