DAX Futures Sept 2019

As I wrote on my early morning chart, 730 dwon to 690 zone, could be a possible base.....but it must hold!

703 added now

I have 4FDXM long 715,5

730 and 731 now:closed 2FDXM 715,5

+15 pips x 2FDXM=+30 pips FDXM

I have only 2FDXM long 715,5.

A couple additional buy orders 69..68..zone.

730 zone again will act as resistance, we'll see

741 in this moment:closed another FDXM long from 715,5

+25,5 pips FDXM

I have only 1FDXM long 715,5.
Stop placed now at be 715, current price 735....
Deleted all other additional orders.
Almost done my day and probably my week.

739 closed now last position from 715,5

+23,5 pips FDXM

FLAT

NO NEED TO RISK ANYMORE in this dangerous scenario.
I've got what I wanted and after the huge rollercoaster week I have 10 days ago, I need a stable profits to go ahead.

Hot summer is here to stay..at least until mid August

When in England it's time for Premier League rt a new season.....

So done my day:+20+14+20+30+25,5+23,5=TOTAL +133 pips FDXM.

Last chart for this week, update 10CET: early morning levels held so far...we'll see later

And done my week:
mon +277,5
tue +77
yd +52
today:+133
TOTAL:+539 pips FDXM.

Good luck and good weekend to all traders here!

Hi Brixen, late reply as I am not actually in Auckland right now, just spent 10 days in Provence region, France and now in the UK for a while - so I have been experiencing the heat as well!

I assumed you must have a 2nd account to be able to go long and short the same contract/instrument at the same time.
I have actually explored this a bit as a hedging strategy. I am not sure what the Eurex rule book says, but the CME does not permit you to be long and short the same instrument at the same time (even via two accounts). Well, what it actually means apparently is the CME's view is you must have a position in the market, so it appears there is scope to go long and short at the same time (via two accounts) as long as both legs are not entered simultaneously ie you did have a position in the market and the 2nd leg was only entered as a hedging strategy at a later point.

So my broker did open a sub account for me and said what I proposed to do would be fine. Of course now days there are other options to going long and short the same instrument. On the CME you could go say long 1x ES mini contract and then hedge it with 10x ES micro contracts. With oil you could go long 1x front month CL contract and then short 1x following month CL contract. On Eurex you could go long on the DAX and hedge it short on the mini Dax.

The benefit of hedging with a different contract (eg ES mini vs ES micro) is you can do it all within the one account which means you get the benefit of the margin offset. As an example my broker requires a US$400 day margin for the ES mini and US$40 for the ES micro, but when you go long/short this combo as a hedge the net margin required is only US$3. However if you did the hedge in two seperate accounts you would require $800 of margin to be allocated.

I was looking at this hedging as part of a risk management strategy if utilising a trading style such as yours ie where you average in to a trade as it is going against you. My plan was to put in place a hedge in lieu of a stop when the initial trade moved x amount against me so at that point I had capped my potential loss (note it is an unrealised loss at this point). When price action indicated it was moving back in the direction of the original trade I was close out the hedge and enter another contract in the direction of the initial trade (ie averaging in). If price action then turned and went against me again I would put in place another hedge (this time for two contracts) and again I have capped my maximum loss (unrealised still). Rinse and repeat until the averaging in produces the results just like you achieve with averaging in. Of course if price was not to recover after averaging in to a maximum pain point, I could close out the trades (original and the hedge) for a known amount that I was comfortable with a s a maximum pain point.

Anyway, thanks for your response and confirmation and enjoy your long weekend.

Never give up - Nate Diaz

On the CME you could go say long 1x ES mini contract and then hedge it with 10x ES micro contracts.

My Broker says this trick (hedging) is not allowed on CME products by market regulators.

If you go long with 1 E-MINI cntrt, and you want to go short (hedge) with E-MINI MICRO's, you close in fact your 1 E-MINI cntrt partial, every time you open an E-MINI MICRO short. After taking the last 10th E-MINI MICRO your 1 E-MINI position is flat.

So I trade on CFDs for Swing trades and use Futures for Daily trading and I can trade them in a different direction (hedge) then the CFD trades if I want/need.

Brixen - relatively easy win for Liverpool last night (as expected) but their defence looked a bit shaky.