What futures are offering the best trading opportunities?

System Trading

Jul 02

The futures day trader may naturally want to know: what markets are offering the best opportunities? One option is to look at the daily range in dollars and total volume of the popular futures contracts. Another option is to look at the markets that the best performing trading systems are trading well. Striker Securities and ISystems offer third-party auditing and tracking of trading systems. One may want to look at two specific criteria: risk adjusted return and recent performance. A single system doing well in a particular market may not be indicative of much: however, if several of the top performing systems are trading the same markets then that may suggest greater opportunity for profit.

Some of the markets that may be offering better opportunity given either of these two criteria are: TF, FDAX, GC, CL, EMD, RB, and ES. Given the recent tech weakness, it is somewhat surprising that the NQ did not show up.

But, if you are a futures day trader or system developer and desire to seek opportunity in a new product then those markets may be worth consideration.


About the Author

The author is passionate about markets. He has developed top ranked futures strategies. His core focus is (1) applying machine learning and developing systematic strategies, and (2) solving the toughest problems of discretionary trading by applying quantitative tools, machine learning, and performance discipline. You can contact the author at curtis@beyondbacktesting.com.