World's highest volume markets that you don't trade
Posted: Fri Mar 28, 2008 6:48 am
I just received the March/April 2008 issue of "Futures Industry" magazine and enjoyed an
article by Galen Burghardt, "Global Futures and Options Trading Rises 28% in 2007" (link to article).
It included a table of the Top 50 Exchange-Tradede Derivatives Contracts Worldwide
which I found quite helpful. It made me realize there are a lot of very liquid contracts around
the world that I still don't trade. Since I enjoy trying to smooth out my Suites' equity curves by
means of diversification, these new (to me) markets represent new opportunities to reduce
variance via noncorrelation. And since reduced variance means increased Sharpe Ratio,
(and since I generally prefer systems whose equity curves produce higher Sharpe Ratios),
diversification begets noncorrelation begets lower variance begets higher Sharpe Ratio begets
greater pleasure for me
I'll bet a large number of Roundtable members trade #46 on this list. But how many trade
#6 or #14 or #33 or #47? They might be "foreign" to you but they are a lot more liquid than
some of the old familiar markets like Cotton, Soybean Oil, COMEX Gold, Canadian Dollar,
and so forth.
article by Galen Burghardt, "Global Futures and Options Trading Rises 28% in 2007" (link to article).
It included a table of the Top 50 Exchange-Tradede Derivatives Contracts Worldwide
which I found quite helpful. It made me realize there are a lot of very liquid contracts around
the world that I still don't trade. Since I enjoy trying to smooth out my Suites' equity curves by
means of diversification, these new (to me) markets represent new opportunities to reduce
variance via noncorrelation. And since reduced variance means increased Sharpe Ratio,
(and since I generally prefer systems whose equity curves produce higher Sharpe Ratios),
diversification begets noncorrelation begets lower variance begets higher Sharpe Ratio begets
greater pleasure for me
I'll bet a large number of Roundtable members trade #46 on this list. But how many trade
#6 or #14 or #33 or #47? They might be "foreign" to you but they are a lot more liquid than
some of the old familiar markets like Cotton, Soybean Oil, COMEX Gold, Canadian Dollar,
and so forth.