The trading dead zone
It doesn’t happen often, but now and again all things conspire to produce a dead zone in the markets. Some are worse than others, but we are in a dead zone at the moment.
First off, this relates to the racing markets. Racing markets are seasonal and peak and trough around major meetings. The last was, obviously, Ascot. So you can get a trough before a major meeting, but you almost certainly get one after it.
Summer racing can be a bit weak as there are more meetings and the markets can thin out a bit as volume is spread across the various ‘opportunities’. When Wimbledon is on and a high profile match is under way, that can send additional volume away from Racing. It’s interesting to note actually, that Tennis is inversely proportional to Football / Soccer. So when there is good liquidity if football there is less in Tennis and vice versa. Last year the world cup was on so that was a double whammy for the racing. That is not on this year, but the Ashes (Cricket) has just started.
So if you don’t like the racing markets at the moment, that’s probably the reason. Unfortunately there is nothing you can do about it. But take the time to experiment in other sports or test and refine what you are doing the existing markets. Normal service will be resumed at some point. Newmarket gives us some quality over the next few days, so there is some light relief for people who don’t want to trade anything else. But given the improvements we just made to the Tennis features, you should look at that while it’s so liquid.
Category: Trading strategies
