[cybernick]

Hi, I'm a budding Bond Futures Trader (Bunds & Treasuries).

Any advice for me or specifics about the bonds market structure that I should take note?

[TheNegotiator]

What are you looking for? Some tips that'll make you money? Bond futures are much like any other product from a technical point of view that they trade via an auction. They have things which probably effect them more than other products though. Bond auctions, POMO, interest rates/inflation, curve plays. Lots of things. Know what's happening in the news. Understand which timetabled events are going to effect your markets and learn what you find works best for you from a technical standpoint. If you have any specific questions, ask them and maybe someone will be able to help.

[phantom]

So, CyberNick, why are you choosing bonds as your trading vehicle? Do you plan on holding your positions overnight or just day trading them? The bonds and notes can move very slowly at times, almost like molasses. So get used to that; be patient. But, come financial report day, they move very fast. So, don't get caught in a position before the release unless you have some equity built into the trade.

Make sure you know what the big picture looks like, i.e. weekly highs and lows. Trade around those numbers. Don't trade counter-trend without keeping a close eye on your position. Best to stay with the trend at all times if you're a beginning trader in that market.

The bonds and notes LOVE Fibonacci numbers, especially .618, so learn what that means and use accordingly.

Anyway, good luck (or better yet, good skill).

Luv,
Phantom

[cybernick]

Thanks for the tip on fibonacci numbers, heard that from someone too.
I'm day trading the Bunds & T-notes.

Any other specifics to note?
E.g. For support & resistance levels, use purely horizontal lines & fibo lines? Are trend channels/moving averages useful?
Also anything to note on the DOM/ charts?

[Jaap]

The Bund future (FGBL) is very nice to daytrade. Very volatile and liquid.
ADR(10) = 1,60 and daily volume around 900 k. Tick value 10 euro.

Jaap

[phantom]

Originally Posted by cybernick »

Thanks for the tip on fibonacci numbers, heard that from someone too.
I'm day trading the Bunds & T-notes.

Any other specifics to note?
E.g. For support & resistance levels, use purely horizontal lines & fibo lines? Are trend channels/moving averages useful?
Also anything to note on the DOM/ charts?

What I do is to draw a line between last week's high and low and then look at the fib retracement ratios in price and in time. When the time "node" is hit, look for some kind of reaction in the market. If the time node just happens to align with the price level fib node, look for a turning point in the market.

I could write a book about support and resistance in the bond/notes markets. (I have volumes of charts I've made notes on over the years) and maybe I'll post something later. But the above tip ought to get you started.


Luv,
Phantom

[cybernick]

fibonacci in time? haven't use that before. How do you draw that?

[cybernick]

Also any strong correlations with other markets?