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Transitioning to markets available in Australia's time zone

Discussion in 'Trading Strategies/Systems' started by CanOz, Apr 15, 2016.

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  1. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Trading from Australia was always going to be different than trading the European Index Futures. I knew that the SPI had limited liquidity and went dead from lunch until the close. I didn't know how i would cope with that. For me, i like fast markets, the activity forces me to focus, its just who i am. I need activity, otherwise i just cannot maintain the intense focus required. Some people like EOD, i like Intra-day.

    The SPI is ok for the first 2 hours, its got enough liquidity that you can see in the order book and make decisions with. There's a couple of swings, but really only one or two opportunities and then its over if your not already involved. After lunch it goes to sleep most days. Even when the other markets are moving, it could be just sitting there...then all of the sudden a heap of order sweep the book. At least with equities you might get several trades on during the AM session, a few might stick for the rest of the day. The HKFE just doesn't have the longer term data available for me to do the kind of in depth analysis i like to to in order to develop trade ideas. It might, later with TT.

    I'm going to try and get data for the OSE NK mini contract, which is supposed to be Asia's most liquid futures contract, AMP just offered that last night.

    So now i am seriously researching the switch to ASX Equities with an intra-day focus.

    There are guys doing this successfully now, such as Bryce Edwards (Chat with Traders Interview). Propex also have equity desks setup and as far as i know, these are the bulk of their outright trading activities, the rest are mainly spreads. I've actually applied to Propex for their Gold Coast office equity training program. Hopefully i'll at least get an interview.

    There's going to be a learning curve here. Anyone who is already trading intra-day stocks for a living, i would be very grateful for any advice.

    I've downloaded a trial of Spark and i am setting Amibroker for IB's API.

    I need to discover how to build a list of stocks to watch, this will require some early morning research.

    I'll post my progress here, i'll spend a few days deciding if i want to go further with this or not.

    Cheers,


    CanOz
     
  2. VSntchr

    VSntchr

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    Re: A transition to ASX Intraday Equity trading

    Not sure I can offer any advice, but happy to join in on any commentary/thread discussion.
    I mainly trade pairs, and a few momentum strategies...but also do actively day-trade ASX equities.

    Although soon I will be faced with the same challange as you, as I attempt to switch to FTSE equities.

    FWIW, I actually went back and forth with Bryce over email after that podcast - nice guy and he'll happily respond to any brief questions you have.
     
  3. Gringotts Bank

    Gringotts Bank

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    Re: A transition to ASX Intraday Equity trading

    Can, use Spark to track high turnover speccy runners.

    Enter asap and hold as the top 3 buy lines are newly refreshing (short order age, shows bright green). Sell when the sell side starts to show new orders comig in (bright red). Older orders will draw the price towards them.
     
  4. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Thanks VS, are you moving to the UK or just looking for more opportunities?

    If i were in Europe i'd definitely look at futures, outrights and spreads.

    Very interested in how to build the 'stocks in play list' and i may start a new thread on that to list my research for the day, if i get that far with this. At the moment i'm still on the fence, but if i can see a glimmer of hope for a decent trading plan i'll carry on.

    GB, thanks for the idea for the play, how do you determine if the stock is in play on the day? Is the theme based on what stocks are hot due to a commodity or a chat room buzz?
     
  5. Roller_1

    Roller_1

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    Re: A transition to ASX Intraday Equity trading

    Hi CanOz

    I will be following along with this thread, can i ask what you will be using Amibroker for? are you taking a systematic approach?

    Trent
     
  6. ggkfc

    ggkfc

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    Re: A transition to ASX Intraday Equity trading

    Good luck, keep us updated!
     
  7. VSntchr

    VSntchr

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    Re: A transition to ASX Intraday Equity trading

    Moving to Spain, so figured FTSE equities are probably my best bet. Either that or US equities depending on how I go with time.

    Interesting re: futures etc. Something I know little of, but would be open to learning. Especially if I have trouble with equities.

    As for building a stocks-in-play list. My process is basically as follows: I review a few news sources (AFR etc), watch the flow of announcements each morning, have a few technical setups, have stocks from previous days that will be in-play. Then also check what's moving most within the Mid-large end of the market.
     
  8. Gringotts Bank

    Gringotts Bank

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    Re: A transition to ASX Intraday Equity trading

    You need to scan the whole market. Spark will show you top gainers with volume. Its in play if it ranks high on the 5/10 min % change list. Hover your mouse to view the depth characteristics.
     
  9. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Nah, just charting with some volume at price.
     
  10. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Ahh well good luck. Assuming one is already profitable with their trading method, then it should be just rinse/repeat with a few nuances wouldn't it? I wish i could say the same with futures in Australia's time zone.

    How long does it take you to do you research? I'm thinking i'm going to need to get up much earlier....:eek:
     
  11. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Yeah i like these scanners...fast too. Gradually getting the hang of it, but certainly a really fast platform.
     
  12. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    GB, whats the best way to get this application onto more screens? Is there an undock sort of feature or just spread it out, drawing it over the other screens?
     
  13. ThingyMajiggy

    ThingyMajiggy

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    Re: A transition to ASX Intraday Equity trading

    You mean trading FROM Australia in your OP or trading Australian instruments? Otherwise why can't you just keep trading Eurex etc. from here?

    I remember checking out the KOSPI back in the day, was/is like an Asian ES, if you have an IB account should be able to access all the Asian index futs?
     
  14. fiftyeight

    fiftyeight

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    Re: A transition to ASX Intraday Equity trading

    I will also be following along.

    With a change of roster I will be changing what time zone I can trade.

    Very interested to see peoples thoughts on this
     
  15. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Its a lifestyle choice. I've been working off shifts and days/6-7 days a week for 25 years. I want a day job and i'm sharper in the morning.

    I want to work from early in the morning until dinner time, no more unless its after bath/bedtime (family). Worst case i can trade Eurex products again, its familiar to me and i realized success after many years of screen time, but it means i'm not available at critical family times. I need to find a product that suits my preference for activity, but also my preference for time of day.

    As for the futures, the data really annoys me. IB's data drives me crazy. You don't actually know if its hit the bid or offer, doesn't work too well with a DOM or bookmap like Auction Vista. These tools are super handy with all the algo activity now. Plus no long term continuous historical charts is the show stopper. I use the long term composite profiles to frame up the technical context and identify my key levels. I'm still hoping TT will have something soon that does everything i want including spreads, but in the meantime i want to see if the ASX has something to offer in the way of opportunities.
     
  16. VSntchr

    VSntchr

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    Re: A transition to ASX Intraday Equity trading

    The problem is that my trading performance has improved markedly once I have gotten to know the stocks better and how they trade. This takes a long time, but is turbo charged by the pairs strategy which can be a nice way to dip your toe into new sectors and start learning about new stocks. I guess there will be alot of transfer but also alot of "relearning" about local companies.

    When there is no daylight saving it's easy for me, I generally like to have about 2 hours before the open - but can get away with 1hr if I'm pressed. Because I work from home I can literally start work 5 mins after I wake up :D
    Obviously the more time you get, the more stuff you can get done and the deeper you can go. When there is daylight savings Id be waking up at 630-715am latest and pretty much straight into it.

    It also depends on your strategies and the time of year - for example reporting season is super high demand and if you really want to maximise your opportunities you could be getting up at 4am just to cover some of the previous days reports etc... So I think it really is to each his own and you will figure it out along the way.
     
  17. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Good point, every issue is a new market....

    Are there any resources that you use, other than the papers? I'm trying to configure IB for news scans as well.

    For futures i had a very regimented routine to complete each day. I had this memorised after a while. I'm trying to figure that out as well. I've got to some up with a list of what i consider 'stocks in play' first, then after that i can start to get screen time to accumulate some plays...
     
  18. peter2

    peter2

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    Re: A transition to ASX Intraday Equity trading

    All the best, but you're going to have to work your butt off finding an edge in the ASX equity intra-day arena.

    You've got Bella's books, pour over them and create a process to find a few "stocks in play" each day. As you know US stocks are much more liquid than ASX. You must trade with very high volume stocks or be prepared to be stranded.

    ASX stocks will move with the index or move with their own stock specific news. IMO it's important to have an idea what's likely to move the stocks you're interested in.

    You'll probably end up with a small list (10) of favourites that move with the index and a few small caps that are "hot" at the time.

    You'll have to create and apply a new skill-set that is completely different to what you've been doing. I don't envy your task.

    I know you know enough now to do it (believe it). However you'll be challenged to ditch a few of your current beliefs. Let the market guide you rather than force your beliefs onto the market. Your emphasis must be on what works, rather than what the textbooks say should work.

    Remember the trading basics, AW, AL and W%. You've got to create a winning set of numbers consistently.

    Enjoy the work, enjoy the journey. :xyxthumbs
     
  19. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Couldn't have summed it up better and the size of this challenge isn't lost on me. Appreciate the advice.

    I'm very fortunate to have time on my side, an intense passion to succeed,a very understanding wife and a quiet spot to focus for hours at a time...As well i like to 'systemise' processes like this. Not in an algorithmic way, but establishing a set routine of tasks in preparation and execution of an idea or strategy.

    We'll see how we go, if i don't like the liquidity, pace or number of opportunities that i can generate, I've got the futures to go back to...
     
  20. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: A transition to ASX Intraday Equity trading

    Does anyone use interactive brokers to execute trades intra-day on ASX stocks? If so, which method is quickest? You can actually use book trade, which is easiest for me because i'm used to using it, any other fast methods?
     
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