2/10 – Update: Heavy focus on futures trading in recent sessions

Just a quick update.

It’s been a heavy week thus far.  In fact, I have not made any progress on the planned K7 testing that I talked about last weekend.

Instead, I spent nearly the entire week (including a couple of 12-hour sessions at the office) on developing an automated futures trading strategy together with a team based in Australia.  This is making good progress but it is very tiring. It’s a great privilege to work with some highly skilled programmers and other industry-experienced staff in this context.

The experience is rather tremendous – I am forced to look at minute details of the trading in the two financial instruments we are looking at – that being the S&P500 index, and the US 10-Year treasury (or government) bond.  It’s also a great learning experience to articulate my thought processes of when I want to enter, how I manage an open position and where I want to exit – so that the programmer can go ahead and turn my thought processes into an automated trading program.  We will see how that one progresses.

It also looks as if I will be able to trade these two markets manually for my own account in the near future.  This is a very nice opportunity given that I will be trading directly on the CME with low exchange fees and without going through a broker.  There will be a lot of cross-benefits to my K7 trading on DAX and Cable.  Naturally there is a lot of correlation between the S&P500 and the DAX (the German stock index), given that there are both leading and very liquid stock indices; but also the constant review & analysis I am doing on the futures is also helping me to think about how to trade Cable and the DAX.

 

Anyways, I just thought I give a quick update on what I have been doing.

I got into this situation through a friend of mine, who knew that I was working as an independent trader.

 

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