Tuesday, January 13, 2009

New market: OMXS30

Last year, actually it was in December I was tempted to join a different broker, who was offering me 500$ margin on the ES. I test drove his platform, making huge demo profits in the ES by taking extraordinary risks of course.

Trading 10 or 20 or even 40 cars, when you come from 2 to maximum 4 cars makes a huge difference. I did decide not to go that route knowing in real trading I would most likely blow my account in a matter of days by being just once stubborn. I have been stubborn at times and will be stubborn again. I know myself.

None the less, I know I need to increase my trading size if I want to make a living from trading. And that means I need to get used to the swings involved.

That's when I found the Swedish OMXS30 market futures. They move very similar to the ES, they trade in 0.25 increments and the range is comparable. But the tickvalue is different: Each tick in the OMXS30 is worth 25 SEK, the exchange rate being around 0.11 USD, which means the tickvalue of the OMXS30 futures is 2.75 US$. That's quite a difference to 12.50 US$ for the ES and that makes it an ideal vehicle to trade size without losing your shirt.

The contract has good volume and I currently trade it in increments of 4 cars, with a maximum size of 20 cars. Profits and Losses are shown on my platform in the currency the contract trades which means I see the profits jumping in the 100ths, but in US$, that's approximately just 1/10ths. Real cool to get used to bigger numbers.

Globetrader_00

Marketdata subscription for the Stockholm Derivatives Exchange on IB is 1 Euro, margin is 950/760 USD. The market trades from 9:00 CET to 17:30 CET which is 2am EST to 11:30am EST.

13 comments:

Rene Nederhand said...

This looks like a good alternative for the ES. A good suggestion.

I am wondering what a "car" is. Is it just a futures contract?

Anonymous said...

Hey Chris, are you profitable yet? Just wondering.

I used to trade with you way back on paltalk. I ran into your site linked from the Bolze B.S. ( always knew he was crooked )

Globetrader said...

Hi rene,
yes a car is 1 contract.
Anonymous if we traded together, then a name would be nice. Otherwise, yes I'm profitable, of course it could always be better.
best regards,

Chris

Anonymous said...

I've been trading the YM (Dow Futures) during my learning phase. It's $5.00 usd per tick. I watch the ES for my trading decisions then trade the Dow. because of the smaller Spread. Anyway, I found your articles on the Double ETF's and the Forex very enlightening.
John

Anonymous said...

hi Chris,

I have a quick question: if this Swedish contract trades at roughly 1/5th the value of the ES contract; and you trade it in lots up to 20 in number, as compared to lots of up to 4 ES before, how are you better off given that you have that many more commissions to pay as compared to trading ES contracts?

If you have the time, kindly clarify your thinking please.

All the best,

david_uk

Globetrader said...

Hi David,
you are absolutly right, that trading 20 OMXS30 contracts is comparable to trading 4 ES contracts. But your P/L is displayed in swedish krona, not in USD, which means your P/L will jump 500 SWK per tick if you trade a 20 lot. And believe me, you can tell yourself what you want -5000 looks different to -500 on a P&L display. And once you increase size on the ES, you need to get used to the numbers.

Also you can try different strategies with 20 contracts compared to 4 contracts. Say you enter the initial with 8 contracts, add 6 at 4 ticks profit, 4 at 8 ticks and 2 at 12 ticks profit. Or you use a 4 point stop and enter initial 4, add 4 contracts at -4 ticks, add 4 at -8 ticks and 8 at -12 ticks. The stop remains at -16 ticks from the initial at all times. It makes a big difference playing with 20 contracts compared to 4 contracts.

And the commissions are no argument, as 1 tick pays the commissions for the OMXS30 contract as it does for the ES contract, which means I don't care. A breakeven trade is as usual a trade showing me a 1 tick profit.
Hope this explains my arguing for the OMXS30 a bit.
Best regards,

Chris

Anonymous said...

Chris,

Sorry to change the subject of this thread, but did you hear about Dennis Bolze being a complete fraud, running a Ponzi scheme?

No joke. Check out the thread on him on elitetrader (search for "Bolze").

Also, you can look at:

www.mytradersparadise.com

Globetrader said...

Hi,
yes I heard about Dennis. It's really a shame, that someone you thought to be a profitable trader seems to be just another fraud. I won't comment on it, as I have no way to distinguish between hearsay and fact.

Just one thing: Do it yourself

There is no way around it, it seems.

Anonymous said...

Hi Globetrade,
I would like to try out Swedish Index futures. I use ensign software too. What is the symbol for OMXS30? I was trying with OMXS30 #F and also OMXS30 F9-OMS.
I am wondering if DTN(from Ensign) provides the backfill and refresh.

thx

Globetrader said...

Hi,
the current front month is February, so the symbol is OMXS30 G8-OMS. DTNIQ has no backfill as far as I can see, but will have to recheck
http://www.dtniq.com/template.cfm?navgroup=supportlist&urlcode=323&view=1
Best regards,

Chris

Quentin said...

Chris,

You are right. We have to do it ourselves. It's one thing to lose our money on bad/sloppy trades we may make. It's another to lose it trusting others who simply rip us off. In the long run we become better traders when we do it ourselves.

Best trading to you and the readers

"Q"

Ingo said...

Thanks for the suggestion, Chris.

I'm looking for a cheaper nicely swinging instrument.

One question: How much historical backfill does IB provide? I believe Sierra does not provide some for this exotic symbols.

Thanks...

Globetrader said...

Hi,
the IB backfill depends on the timeframe you are interested in. Minute and above has upto a year, tickcharts are 24h. Using Ensign software you get 100.000 ticks or 5 and more years (minute charts) backfill, if the market is available on DTNIQ.
Best regards,

Chris