trading the eurodollar


Over the last several years, I've traded (with very little success) the 30-Year Treasury Bond, then the Ten-Year Note, then settling on the EuroDollar. I went with the EuroDollar because of its liquidity and it seems to be less volatile than the two other instruments. In my mind, it was comparatively like shooting fish in a barrel. That being said, I still wasn't successful trading it. My strategy was to begin trading at 0400 hours EST and observe the following items: the current price and the price that had accumulated the highest amount of volume traded at that time. If the current price was the SAME price as the price that had the highest volume traded, I would sit back and wait for it to reach either side of that price. If the current price was below the price of the highest volume traded, I would go long. If it was above the price of the highest volume traded, I would go short. In my research, the scenario panned out with a very high accuracy, but research isn't the real world. I had found many times that when my target price was reached and I initiated a trade, my position wouldn't get offset even if it remained at the price for AT LEAST an hour or more. I was guessing that maybe (since my account was so small and I had at the most three contracts to trade at any moment) I didn't have enough contracts to generate interest to offset my position. Any wisdom someone can dispense regarding this?