Best intruments to short term trade: Looking at the spreads.Howdi fearless gamblers.
Today/Tonight/Yesterday I want to post about spreads. I have spend some time calculating them, so I thought, why not share?
It does not cost me anything and it has value to you.
In what is best to short term trade, this is what you must look at (correct me if I am wrong):
- The volatility: if it does not move you are not going to get anything out of it.
- When are we open? Does it fit your time schedule?
- Your personal preference.
- The spreads: if you aim for 1% moves and 0.3% is going to the broker, you won't get very far...
Of course, this is not very important for anyone holding trades over periods of several days or weeks.
So this is what I have:
Currencies
All calculated with FXCM, it is around the same everywhere (decent).
*** USD pairs ***
--- Tier 1 ---
EURUSD => 0,010%
USDJPY => 0,010%
GBPUSD => 0,011%
--- Tier 2 ---
USDCAD => 0,017%
USDCHF => 0,017%
USDMXN => 0,017%
--- Tier 3 ---
AUDUSD => 0,023%
--- Tier no thank you ---
NZDUSD => 0,027%
USDSEK => 0,031%
--- God Tier ---
USDCNH => < 0,0075%
*** Cross pairs ***
--- Tier 2 ---
EURJPY => 0,016%
GBPJPY => 0,018%
EURCAD => 0,018%
EURNZD => 0,020%
EURAUD => 0,015%
EURCHF => 0,019%
--- Tier 3 ---
GBPAUD => 0,022%
GBPCAD => 0,022%
--- Tier no thank you ---
AUDCAD => 0,027%
GBPNZD => 0,025%
EURGBP => 0,024%
AUDJPY => 0,026%
AUDNZD => 0,032%
CHFJPY => 0,022%
GBPCHF => 0,027%
--- Tier lol dis a joke man? ---
NZDCAD => > 0,045%
The Forex moves I look at that happen in a few hours to maybe 2 days are 0.30% 0.50% 0.75% 1%. A spread of 0.03% is 10% of that 0.30% move.
Futures
--- Tier 1 ---
Gold => 0,03% Moves twice as much as FX
--- Tier 2 ---
Copper => 0,11% Moves 3 times as much as gold, 6 times FX.
Oil => 0,07% Moves a little more than gold I think? Maybe 1,5-twice as much.
--- Tier lol dis a joke man? ---
Silver => 0,30% TOO DAMN HIGH
NatGas => 0,33% Moves alot, but still too high.
Cryptocurrencies
The volatility at the time is non existant for crypto but it will change so I am looking at it anyway, for the day this changes (I get spammed with alerts every day for FX and see moves over and over and over, crypto? Something I might see 30 times a month with FX I might see once a time with crypto. Just look at the charts.)
So usually the commissions are the same for all, on Binance without BNB it is 0.1%. Crypto moves are 3% 5% 7.5% 10% etc (with bigger risk thought).
On Kraken it is going to be more or less the same as Binance, it depends on your volume. On Bittrex Polo etc it is higher (unless it changed).
If you are taker you got higher fees + a little spread.
So if it moves 10 times as much as FX (when it moves I mean), you dive 1% by 10, BUT remember you will pay it twice (go long and take profit).
So 0.2% / 10 = 0.02%
Which places Crypto between Tier 2 and Tier 3. Same as a GBP pair or Copper. Copper moves as much as Bitcoin too or almost as. Pretty much you can trade either and have the same experience minus the sideways and armies of bagholders telling you what a fool you are for not accumulating with Copper.
Indices
I do not have the values with me but alot are super low, with DAX the lowest and NASDAQ second, maybe the euro thing too.
The big indices are tier 1. UK and French ones I think are tier 1 too.
The surprise for alot of people would be that Dollar vs Yuan is the one with the lowest spread.
Every one is talking about how many pounds per pip and how many pips they take because they are obssessed with how much money they will make and really bad at math.
That is not what matters.
What matters is USDCNH has the lowest spread and is the most profitable thing to trade in the whole universe if everything else is equal.
* It depends WHEN you look at USDCNH thought...
At the time, I am fully focussed on trading FX perfectly before I move back to anything else.
I only trade the tier 1 to 3 as well of course, as the mighty USDYUAN.
So this is my watchlist and what I am trading at the moment, 16 of them:
FX:EURUSD,FX:USDJPY,FX:AUDUSD,FX:USDCAD,FX:GBPUSD,FX:USDCHF,FX:USDMXN,FX:USDCNH,FX:EURJPY,FX:GBPJPY,FX:EURCAD,FX:GBPAUD,FX:GBPCAD,FX:EURNZD,FX:EURAUD,FX:EURCHF
I really want to trade gold and copper again, but for now I am focussed on perfecting a new strategy (I already had one before but I wanted to master a new one... I cannot help it I am too competitive...).
Then I will add Futures again, and then go look at crypto, which might have stopped being unbearably pointless by then. I think we get a mighty dump in the next weeks, but that will not mean the volatility is back, just a mighty dump a sharp bounce, and then back to boredom for months or even years.
I am not interested in looking at stocks. Open a few hours a day with only the first and last hours being worth spending time on? Haha no than you!
I would rather do macro economics and trade indices. I cannot be bothered with the latest FOMO news and this mighty stock that will make idiots millionaires GUARENTEED.
