I trade DAX for the following reasons:

It is actively traded contract. It is based on German DAX 30 index that is based on 30 companies. In trading nature, it is like NASDAQ.

Its volatility is such that it allows big trade (i.e. over 50 points per trade) even when intra-day trading. One point of DAX future contract is valued - Euro 25.

It has sufficient liquidity which allows for gearing up trading size as trading compounds. The number of contracts traded grows very fast.

The margin required (approx. £10000) is not too high to start trading. It also helps to build up, from trading profits, contracts traded.

It is only traded electronically i.e. no pit trading. Therefore, everyone has the same information and equal opportunity in trading. In the markets that are pit traded, there is clearly advantage to those trading in the pit.

It also makes available the traded volume information that is identifiable separately as buy or sell volume. Therefore, a reliable supply and demand model is created in SMARTrader.

It has suitable working time for European traders. It has a one continuous trading session (14 hrs). It opens at 7:00 and closes at 21:00 UK time. The underlying cash market opens fro 8:00 till 16:30.  It is only during this period the futures contract is very active. Therefore, I primarily focus my trading activity to this period.  On most days, there are very clear two trading durations. One in the morning that accounts for the European information. Second in the afternoon when US data announcement comes and/or US market opens. It allows for increased trading opportunities for intra-day trading.

On more general point of trading – it is very clear that all markets go up or down at the same time. In principle, one can trade which ever market one chooses. However, after several years of observing/trading futures markets, I have concluded that a trader is better served if he/she selects particular market for the trading system. Mathematical trading systems such as SMARTrader include variables that are particular to each market. Therefore, if one uses the same model for every market, the performance declines. In my view this is new finding. It is a contradiction to the views unanimously reported in technical trading books.

Dr N S Dhallu