Talking with a Prop Trader (from January)

Been meaning to update this blog for a while now. I have not been trading the last few weeks so no trade videos to post - but here is a podcast I did earlier in the year with a prop trading friend. I thought I would dig this up as I am currently editing the next Podcast where I talk with none other than Mr Sir John Grady.

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Bund Order Flow - 18th Sept

Massive Size In Treasuries At Settlement

Someone pointed out to me this unheard of action on the close.  Oddly size did NOT move the market.  40000 contracts trade in the Tnote in one minute across a few ticks only during settlement at the 9pm mark local time, dwarfing the entire days action.  Over these few minutes its the same volume as after the recent FOMC where it moved a full point.  Massive size across all markets. There is a 100000 offer in the 2 year.. crazy.  This was the last settlement before debt deadline too so maybe somethings up with that. Its a bit jumpy as is replay data.

EDIT: I asked some prop traders what the deal is here - This is end of month volume occurring at the close. Prop traders look for this to occur, which is all the funds closing out their positions for the sake of accounting, then immediately reopening the position.  As funds are doing this on the long and short side it occurs in a very tight range, on massive volume.  Some traders look for this end of month trading to get out of balance and trade the breakout.  They look for the same thing at end of quarter and annually, with more extreme volume on these occasions.  

Scalping The Bund Action

The first minute is fast forwarding for overview of the action.  

From 1 minute on watch the games start to play out with a big order chasing the Bund up which turns out to be real and a bunch of size trades up in the area of the Open.

Around minute 3  you can see the orders thicken up in the Bobl when its over as obvious as can be. 

Wish I was not poking about and hit in.

Bids Pumping Bund / Bobl / Schatz

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I was reviewing some trades from just before I stepped aside for the holidays and thought this was a great example to study in the Bund / Bobl / Schatz.  What was probably a level, was forming where a lot of traders were looking for a break up The bids looked solid but were actually trying to push orders into the offers. Once it starts falling (around the 4 minute mark) bids pumping all the way down trying to hold it up, or more likely lure traders into hitting into what they already have on the offer.  I fell for it, taking just 3 ticks when the bids pumped, but reviewing this will help me hold on next time in this scenario

Aug 08 - Trade 5 Good Reading OK Execution in Bund

Select 1080 HD or Original.  A nice trade to get me back to even for the day.

Aug 08 - Trade 4 Lessons Relearned in Bund

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