Wednesday, 28 March 2012

Making Money

Being a trader means going to the market and getting a payday every day. This means aligning my operations to the context in which I'm trading.

The environment we are in is one of generally falling volumes in futures. Options on the other hand seem to be increasing in volume.

As I was making my transition from the floor back to "upstairs", I spent a few months on a DTB terminal (that used to be the only way of trading what is now Eurex futures markets) in my clearing firm's office. The DEUTSCHE TERMINAL BOURSE as EUREX then was, required that terminals be only placed in specific places and remote trading was only a hope. Another LIFFE local that I knew, started PATS to overcome this issue.

Anyway, in that clearer's office was another guy I knew who had moved upstairs as he had not succeeded on the floor. He was day trading OEX options through TimberHill (now part of what is Interactivebrokers). He was almost swing day trading these options, quite successfully. I have copied this idea using my own EL methodologies that you have all seen. In times when the volumes and/or volatility is such as it is, trading options on this basis may be worthwhile exploring if you are an ES trader having issues with this current environment, maybe not OEX now but perhaps SPX options.

The ES started with a very narrow range. The DAX on the other hand was like the EverReady bunny, just keeping on.


  1. Hi EL,

    On your chart shown today, are you entering on the close of the candles that have the arrows above them?

  2. Anon 06.05am, On close or before depending on how sure I am where the candle will close.