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Post by ferrari458 on Feb 9, 2014 19:48:05 GMT
Hey there,
My goal is to trade Equity Index futures (eg. S&P500 E-minis) either at one of the big investment banks or at a hedge fund (the hedge fund would be prop trading). There is an info overload on the internet on trading methods and wanted to know from you guys which ones are actually used by institutional traders to figure out optimal price entry/exit points.
Have come across these methods, please let me know which ones you use so I can streamline my learning curve and not waste time learning about irrelevant stuff.
Methods:
Market/Volume Profile
Standard technical analysis (Chart patterns, moving averages, indicators)
Algorithmic based signals
Stats based trading
Anything I’ve missed?
Thanks for the help!
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Post by Admin on Feb 12, 2014 19:05:06 GMT
Not to burst any bubbles, but at investment banks there is almost no one who just prop trades S&P futures , although most traders and hedge funds will use them for either prop trading on the side or hedging purposes. I think it would be quite hard to sell a hedge fund that just prop trades broad based index futures. I would say stuff I do is Relative Value/finding misallocations between various similar assets.
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Post by ferrari458 on Feb 15, 2014 16:26:07 GMT
Thanks for the clarification - had come across some stuff online from futures traders at a couple of institutions, but they were vague about what exactly they were doing so probably part of broader hedging or macro strategies. Will probably look into the normal equity/equity derivs sales & trading routes instead.
Your trading style sounds interesting and will look into that approach too. Are any of the above mentioned methods still worth looking at in my spare time?
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Post by Admin on Feb 18, 2014 7:55:54 GMT
I would say its good to be aware of any potential methods someone might be using, but personally i have never really looked much into the technical/chart based trading methods. That isnt to say it cant work, I think any method can work, and if i was forced to trade an account in stocks or FX only PA then I would probably try to develop a systematic signals based system. But with derivatives and the stuff i have been involved in its much more about finding scenario's that you think are mispriced.
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Post by ferrari458 on Feb 18, 2014 17:34:43 GMT
Cool, thanks for the info mate
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