automated trading FX Futures on TS/ Spot Forex vs FX Futures

[christhlo2]

What should you choose, Spot Forex or FX Futures.

Do anyone has any experience with automated trading FX Futures using TS?

Thanks!

Chris

[michal.kreslik]

As far as I know, aspTrader is promoting FX futs trading over spot FOREX. I am not sure what the leverage is on FX futs, but certainly it's not up to 400:1 as in a spot cash FX market

Obviously, trading with 400:1 is a kamikaze, but trading at 100:1 or 150:1 with a sound money management, one can make a nice return on capital with spot FX. I'm trading spot FX only.

Michal

[Ali Son]

What sort of MM do you use on Forex?

[michal.kreslik]

I did use CMS, but it turned out they restrict trading during news, so I am switching to EFX. We'll see whether they'll be better.

By the way, you can find a nice comparison table of FX brokers/MMs here:

http://www.goforex.net/forex-broker-comparison.htm

Michal

[eudamonia]

Michal,

My experience with EFX so far (been using them for about 1 month) has been excellent. I trade news events such as this morning's Retail Sales and haven't had any restrictions on when/how I can place trades. You can expect some slippage on market orders during major events and I've found this amount is similar to Oanda's. Of course if you don't use market orders you won't have this problem.

Also I like the flexibility that their minilots give (for example I can increase my position sizing in a smoother fashion). Lastly, I really appreciate the fact that I can place limit/stop orders between the bid and the ask. This is a great feature.

Edward

[michal.kreslik]

Ed,

thanks for the feedback, it's much appreciated. I'm now in the process of automating Neo with EFX fully.

[aspTrader]

What should you choose, Spot Forex or FX Futures.

Do anyone has any experience with automated trading FX Futures using TS?

In the first place, ready or not, IT is coming...

The CME will be providing a platform for Forex Spot trading.

http://www.fxmarketspace.com/index.html

I won't recount the benefits here... You can read about them at the link.

2007... Be sure to mark your calendar.

But even now, I think the best answer, hands down, is CME currency futures...

• Michal always brings up the 125:1 vs. 400:1 leverage issue. And that's certainly an interesting point. Frankly, I don't see that issue outweighing the benefit of REALLY being able to grow your account at the CME and still have an insured account. If trading is about Risk, why take the Risk that your broker coughs it up and you can't get your money out quickly. People used to say, "Well, FX brokers don't go broke..." After Refco, no one says that anymore.
  
• Narrow and measurable bid/ask spread over history using NeoTicker.
  
• Unbeatable view of the Depth of Market.

See the following thread on pages 15 and 16 for comments I made on this issue earlier. It's funny that no Forex trader appeared to answer my question last time I looked at that thread.

http://www2.oanda.com/cgi-bin/msgboard/ ... 04161;p=15

[christhlo2]

How about safety of funds/capital between the two markets ? Would it be more secure for futures traders ?

Besides that, I am also concerned on the liquidity of the futures market during Asian hours, as the lack of activities during Asian hours might cause automated strategy using hourlies timeframe to whipsaw a lot . Although, it seems that if there were market events during Asian hours, the futures market do reacted with increased activities and trading volume.

Any views?

Thanks!

Chris

[michal.kreslik]

I'd say one of the most imporant features of FOREX over the curency futures is the almost inexhaustable liquidity of the FOREX market.

For me that means that when I will trade $20 mln for clients, I will have no troubles getting in and out of the positions quickly = execution matters.

Michal Kreslik