Hi, I was wondering if anyone has traded the Mini-Nikkei 225 I hear it has the same volatility if not more than the /ES What strategy do you think it best suited for this index I am in the process of putting together a battle plan. I would appreciate any experience you had Thank you
I have traded it since it was listed. The best strategy is not one that someone else has developed. I think you would do better by studying the product and developing your very own strategy based on your knowledge, ability etc.
I agree with you. I just wanted to know your experiences. Do you see enough volatility in the mini Nikkei ? I am in the process of developing a style of trading that works for me. Thanks for your reply
I have traded it for years- it has a lot more volatility at times than the ES. The NK is a break out market. It is great contract for technical trading! Noise free, patterns just like in the old books that actually seem to work out more often than expected. Always use a stop!! - a surprise BOJ move after hours sent it up about 1,000 points in a split second. The NK is in a tight consolidation right now - its day range in terms of contract $ (1 ATR x point value) is $1,400. When it is in break out mode it can range over $5,000 on the day. Good luck. What strategy works: Being properly capitalized and having strong risk management skills. With that its only a matter of time until the money flows in.
Any thoughts on why it has been so dull the last month? I started trading it as well recently and it's nothing like previous few months. Do you also look at the Yen? It sometimes seem like they influence each other.
It may go without saying but don't hold overnight as it almost always gaps according to N.Y. or the yen. Also, BOJ meeting results (next one on the 21st) almost always produce wide swings no matter what the announcement contains. The BOJ announcement usually comes out between 11:30 and 13:00 Most economic news (if you pay attention to such). is not viewed to the same extent as that in the U.S.(less or no reaction to it). Most local economic data is released at 08:50. If you use volume is your analysis, be aware that some brokers and trading software providers mix rollover volume with that of normal auction trades. So it ruins your charts for a week. IB and eSignal filter the rollover volume, so no problem there. Stocks close for lunch between 11:30 and 12:30. Trading the Nikkei 10 or so minutes before and after these times can often be dicey.
I imagine you've found that the Mini has contracts for every month. but only Mar.,June,Sept. and Dec are actively traded. Sometimes surprising economic data from China, usually released between 10:00 and 11:00, can cause spikes in the Nikkei. And this being Japan, make sure your Earthquake Prediction Device is on at all times.
As a swing trader I hold over night - sometimes for weeks at a time -one time for over 2 months. I would not hold without having a decent profit and a stop loss. Its not that wild of a ride. The day I am afraid to hold overnight is the day I should quit trading. Gaps? There last one was June 2015 - no worse than our ES.