Futures (Cedar Falls, IA)

A monthly trade magazine that presents news, analysis and strategies to inform and educate traders in futures, options and derivatives markets. Provides analysis of global markets and information on price movement, volatility, and future trends. Articles

Articles from Vol. 36, No. 3, February

2007: A Slow Year for Fed Watchers?
This could prove to be a pretty boring year for monetary policy for those who like a lot of central bank rate action, but that might not be such a bad thing. The Fed has shown no eagerness to change policy in either direction. After raising the...
Are You Ready to Trade Mechanically?
Although there is a huge public awareness of mechanical trading that barely existed 30 years ago, there are still widespread misconceptions about the methodology. One of the biggest disconnects lies in what mechanical hopefuls imagine can be imparted....
Beyond Elliott Wave
It takes at least two things to succeed with Elliot wave analysis: practice - to recognize the patterns as they occur and not just in hindsight, and flexibility to know how to react if and when something doesn't unfold by the book.R.N. Elliott introduced...
Beyond Elliott Wave; It Takes at Least Two Things to Succeed with Elliot Wave Analysis: Practice-To Recognize the Patterns as They Occur and Not Just in Hindsight, and Flexibility-To Know How to React If and When Something Doesn't Unfold by the Book
R.N. Elliott introduced the concept of counting waves in 1938 after a stomach condition kept him bedridden most of the previous decade. An accountant and railroad executive who was forced into early retirement, Elliott studied the historical movement...
Commodities Create the Right Mix
Most investors want to improve the overall return/risk profile of their portfolios. They want lower volatility, smoother returns and to decrease the possibility of large losses. Modern portfolio theory holds that risk can be reduced significantly by...
Commodities Create the Right Mix: Most Investors Want to Improve the Overall Return/risk Profile of Their Portfolios. They Want Lower Volatility, Smoother Returns and to Decrease the Possibility of Large Losses. Modern Portfolio Theory Holds That Risk Can Be Reduced Significantly by Diversification among Noncorrelated Assets
Investors would prefer not to sacrifice returns to lessen risk through asset diversification and so they look for uncorrelated assets with a positive return. That is why many have come to invest in tangible commodities. Tangible commodities belong...
Crude Oil: It Is All in the Numbers
When crude hit record levels in 2006 many analysts complained that the supply/demand fundamentals did not justify the price. Will crude prices continue to defy supply fundamentals in the coming year and what impact will weather and geopolitical events...
Crude Oil: It Is All in the Numbers; When Crude Hit Record Levels in 2006 Many Analysts Complained That the Supply/demand Fundamentals Did Not Justify the Price. Will Crude Prices Continue to Defy Supply Fundamentals in the Coming Year and What Impact Will Weather and Geopolitical Events Have on Prices in 2007?
$78.40 is a fetching price tag for one barrel of the light, sweet crude oil that trades on the New York Mercantile Exchange (Nymex). Not only is that price a milestone because it is the all-time (front month) intra-day high hit July 14, 2006, but it's...
Does CME/CBOT Deal Dissolve Rights?
IT'S A FAMILY AFFAIRFor CBOE and its leader William J. Brodsky the issue is simple. Once there are no longer shares of CBOT, the former shareholders won't own CBOE exercise right privileges (ERP). The ERP can be activated by CBOT members who hold their...
European CTAs: Out of the Muddle?
Ask a semi-savvy European investor if he's got money in managed futures, and he'll likely look at you as if your third head were screwed on sideways. Ask him if he's in hedge funds, and he'll give you a Cheshire grin. Little does he know they're often...
Exits Are Where the Money Is
Exits are a critical part of a profitable trading system. But, many traders overlook exits in favor of finding profitable entries. We look at how exits affect system performance even when entry criteria is kept constant.The exit strategy for your trading...
Exits Are Where the Money Is: Exits Are a Critical Part of a Profitable Trading System. but, Many Traders Overlook Exits in Favor of Finding Profitable Entries. We Look at How Exits Affect System Performance Even When Entry Criteria Is Kept Constant
The exit strategy for your trading method--not the entry signal--determines whether you make money. Finding the right exit strategy is where traders should spend most of their design effort, rather than searching for the elusive "perfect" entry signal,...
Finally: SEC Expands Portfolio Margining
After years of fighting for it, and six years after a form of it was mandated by the Commodity Futures Modernization Act, equity traders will be eligible for portfolio margining. In late December, at the request of the New York Stock Exchange (NYSE)...
Fueling the Fires
There's been some debate in the corridors of Futures magazine as to where the price of crude oil will be headed in 2007. Some people have said it should continue down, as there seems to be ample supply, especially in the United States. And with the...
Futures & Options for Dummies
Futures & Options for Dummies By Joe Duarte, MD. Wiley Publishing Inc., April 2006 365 pages, $21.99 Like other books in the Dummies series, this one is very easy to read and the illustrations are entertaining. Dr. Duarte has written...
International News
CCORP. SELLS MINORITY STAKEThe Clearing Corporation (CCorp.) has sold a minority ownership stake to GFI Group Inc. and ICAP plc, and with their help developed joint clearing services for OTC derivatives products, including credit and interest rate derivatives."With...
It's a Family Affair: Does CME/CBOT Deal Dissolve Rights?
For CBOE and its leader William J. Brodsky the issue is simple. Once there are no longer shares of CBOT, the former shareholders won't own CBOE exercise right privileges (ERP). The ERP can be activated by CBOT members who hold their CBOT trading right...
Manhattan Melodrama
SOFTS MARKET HARDBALLWhen the Intercontinental Exchange (ICE) got the blessing from New York Board of Trade members to purchase the softs exchange, those markets, often the least liquid of U. S. markets, suddenly heated up. Upon the announcement, the...
Mark Coe: Carrying Profits
Mark Coe started out his trading career as a successful discretionary trader for proprietary trading firm Blackwood Securities in 1999. As his trading evolved he focused on foreign exchange and system development. After leaving Blackwood, in 2002 Coe...
Measuring Currency Strength
How strong is a currency? This question is fundamental to the forex trader. Because trading is the act of buying or selling one currency against another, traders usually think about the currency pair and not the currency itself. When a trader makes...
Refco FX Clients Left with Little in Account
UNWINDS AND WINDEDForex Capital Markets (FXCM) and 300 former Refco FX Associates LLC customers have lost a constructive trust case they brought against the company in an effort to reclaim $10.6 million dollars tied up in the bankruptcy since October...
SEC at It Again
The Securities and Exchange Commission (SEC) at the end of the year proposed two new rules for hedge funds and pooled investment vehicles, one of which could dramatically affect the number of people qualified to invest in hedge funds. The SEC has...
SEC Expands Portfolio Margining
FINALLYAfter years of fighting for it, and six years after a form of it was mandated by the Commodity Futures Modernization Act, equity traders will be eligible for portfolio margining. In late December, at the request of the New York Stock Exchange...
Softs Market Hardball: Manhattan Melodrama
When the Intercontinental Exchange (ICE) got the blessing from New York Board of Trade members to purchase the softs exchange, those markets, often the least liquid of U. S. markets, suddenly heated up. Upon the announcement, the New York Mercantile...
Swept Up in the Tide
The best profit opportunities occur when trade signals are confirmed by multiple indicators across multiple time frames. Synergies like that are great but rare.When the fundamentals, or economics, line up with the technicals or chart patterns, in a particular...
Swept Up in the Tide: The Best Profit Opportunities Occur When Trade Signals Are Confirmed by Multiple Indicators across Multiple Time Frames. Synergies like That Are Great but Rare
When the fundamentals, or economics, line up with the technicals or chart patterns, in a particular market the situation possesses synergy that can give the trader more confidence than when trading on just one alone. Instilled with greater conviction,...
Tech Talk: How Low Will WTI Go?
Another unseasonably warm winter coupled with weakening technicals is pushing Nymex Spot WTI crude oil back to the lower end of the trading channel that has been in place since October 2006 (see "Oil gets serious"). The market began to break down...
The Great Leap Forward
Despite the inevitable march towards electronic trading, traders in certain niche markets have been able to blithely live in the past. But now that agricultural markets are trading electronically during the day, there is a new urgency for late adopters...
The Great Leap Forward: Despite the Inevitable March towards Electronic Trading, Traders in Certain Niche Markets Have Been Able to Blithely Live in the Past. but Now That Agricultural Markets Are Trading Electronically during the Day, There Is a New Urgency for Late Adopters to Get Up to Speed
If you have managed to avoid the electronic trading revolution because your markets of choice are in the old line commodities, it's time to put down the phone and pick up a mouse. Grains, energies, metals and even meats are now all trading electronically...
Today's Top 10 Trading Systems: Markets Change with Time-That Is What Makes Them Markets after All. but Prices Also Experience Significant Shifts in Their Relationships with Macroeconomic Forces, Not to Mention Other Markets. It's These Massive Shifts That Make It Critical to Constantly Re-Evaluate the Systems That Have Performed the Best through Time
Since the last report on the top 10 trading systems in the February 2006 issue, systematic traders have suffered through one of the most difficult periods in many years. These non-system-friendly markets have been around for nearly three years now...
Tops & Bottoms of 2006
It was another watershed year for the futures industry in 2006. The much anticipated consolidation of exchanges moved from a series of rumors to several real deals, outlying markets finally made the leap to electronic trading and the industry saw record...
Trade Navigator Platinum V. 3.01
Trade Navigator Platinum V. 3.01. Genesis Financial Technologies 425 Windchime Place Colorado Springs, CO 80919 E-mail: hmartinez@genesisft.com (800) 808-3882 OVERALL RATING: Good LEVEL: Beginner SYSTEM REQUIREMENTS: Windows...
Understanding Asset Allocation
Understanding Asset Allocation By Victor Canto Prentice Hall, 2006 336 pages, $34.99REVIEWED BY: NELSON FREEBURGHow does a portfolio manager achieve superior returns while methodically reducing risk? Consider the theoretical precepts and empirical findings...
Unwinds and Winded: Refco FX Clients Left with Little in Account
Forex Capital Markets (FXCM) and 300 former Refco FX Associates LLC customers have lost a constructive trust case they brought against the company in an effort to reclaim $10.6 million dollars tied up in the bankruptcy since October 2005. Lawyers...
What System Traders Are Afraid to Ask
Although you are always tempted to dive right into the meat of system development, there are some hard issues you need to face first. In this installment of our series on building modern trading systems, we will address some of these difficult and sometimes...
What System Traders Are Afraid to Ask: Although You Are Always Tempted to Dive Right into the Meat of System Development, There Are Some Hard Issues You Need to Face First. in This Installment of Our Series on Building Modern Trading Systems, We Will Address Some of These Difficult and Sometimes Controversial Topics
When you set out to build a trading system, there are some fundamental questions that you must ask before you get to the step of entry rule development. If these fundamental questions aren't answered clearly and definitively, then you are sure to have...