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Any futures quants?

nick normandin

nick normandin

Joined
5/5/10
Messages
6
Points
11
Hello,
I'm a graduate student in a finance/mathematics program. If anyone involved (either currently or formerly) in futures trading could possibly spare 2-3 minutes answering the following questions as part of a class assignment, I would be extremely grateful. Thanks in advance!
-Nick

In your opinion:

1. What separates a successful futures trader from an unsuccessful one?
2. How important is it to continually monitor news financial news sources?
3. How much do you rely on quantitative analysis and modeling techniques as opposed to “hunches” and heuristics?
4. What factors/characteristics distinguish a futures trader from traders of other asset classes (equities, options, bonds)?
5. To what extent do you utilize forward curves?
6. Do you use any time-series analysis or forecasting techniques?
7. What would your advice be to someone just beginning to trade commodity futures?
 
1. Know the technicals, know the contract specs, know what the locals are up to.
2. Very
3. I wasa fundamentals guy, but you need to know what the chart guys are thinking.
4. Futures are very liquid
5. You have to for FI
6. Good to know for ex-post analysys, but I don't know anyone who's made money from them
7. Know the underliers.
 
1. Research and technicals. Read the outlooks banks publish
2.Very important. If you are trading agriculture (Grains/soft/livestock) then you will also need to keep up with the weather. I'm interning at a place that trades Agriculture and they have meteorologists on the team.
3.Some of the best traders here are able to look at a chart and make a trade and when asked why they made the trade they can't explain it. I think gut instinct is a very important to being successful.
4. Alot of the futures traders in energy come from big oil companies or have worked in the industry they trade in.
5. For FI
6.
7.Learn the basics, contract specs, delivery dates, carry costs.
 
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