Thursday, June 08, 2006

How do you decide, which markets to trade

I use a simple approach I was introduced to about a year ago. I have a basket of futures I follow regularily. On the weekend I look at the average daily range of these futures for the last 2 and 4 weeks. Do I see an increase or decrease in the daily ranges, which futures provide the best bang for the buck. Knowing this and knowing the futures in the basket, I decide which futures to trade in the week ahead.