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Here is a synthetic spread chart constructed from the individual futures leg components: Here is the actual true exchange spread market:

The problem with synthetically quoting each individual leg and combining those prints as a 'spread' is the latency. This won't be a problem with liquid products like CL M2 and CL N2 - the individual futures legs will track the way the spread trades reasonably well. The real problem is with...

Wouldn't the better question featured strategy ? Profitability is entirely dependent upon successful strategy and implementation of that strategy. The money is really just a natural consequence of that.

One of my clients informed me that TradeStation does NOT distribute exchange traded spread data.

No, that is an eSignal chart of the exchange traded spread. CQG, Bloomberg, and I believe TradeStation ( and I am sure there are more data vendors ) all distribute the exchange traded spread data. In terms of execution platforms, I know from personal experience that TT and CTS and CQG-Net...

My clients who come to me clearing IB almost always have to switch clearing firms for that very reason.

I have posted your IB chart below as compared to the exchange supported spread: I do not have an IB account, and I am not sure if the IB market you are looking at is the actual exchange supported implied market data feed or some sort of IB derivation using TWS or whatever.

Well, there is no way on God's green green earth that locals would have made a market for 215K contracts within a tic of the quoted 'bid-ask' spread at the time. The locals would have raced the order and tried to make the broker representing the liquidity taker pay up more.

I have custom technical studies designed exclusively for spread trading, and those studies are loaded into common charting platforms provided they have certain study capabilities required. Many of my clients use eSignal, there are also Trade Station, CQG, and Bloomberg subscribers who use my...

I agree about the mean reversion aspect, but if you can get multiple timeframe confirmation on a fresh trend development that would certainly be superior to calling a 'top' or a 'bottom' as it were. In other words, let the deeper pockets do the heavy lifting and turn the market.

For many commercial companies, the hedging person or group typically falls into the org chart for the CFO - which means they are stuck with the bean counters. And there has been much industry blow-back with how impractical and unworkable and untenable FASB 133 truly is or was. Revisions have...

That is certainly one methodology, but we find that we consider market sector and market cap in addition to statistical fitness - the performance and consistency in modeling is so much better.

I know that I am more trustworthy than a car salesman, that's for sure.

I have a few clients who use inter and intra-market correlations for lead-lag scalping strategies - both manual and automated. I personally think that it can be a big edge, and I have many clients who hire me to teach that niche specialty.

From my experience as a commercial energy trader, the biggest hurdle in the past at least was or is the accounting means testing for FASB 133 compliance. In the past, the CL contract did not have a high enough positive correlation to Jet Fuel for an Airline to use it as a JP A or A-1 or JP B...

More likely scenario is that they were under-hedged or not hedged given the current cost of fuel and the timing of the announcement.

Go ahead and Google NHTSA safety test on the Volt - you know, the car whose battery pack caught on fire post crash-test while it was sitting in a government storage facility. But reinforcing the battery pack and and making a change to the On-Star warning system is supposed to fix it. Then...

His problem is definitely with his broker. I can do anything with a spread order that I can do with an outright single instrument order using TT or CTS and clearing any major Chicago FCM. He is using a retail oriented introducing broker who gives up orders to an FCM - and they are certainly...

Well, one thing I would never do with a client is to make things personal. I would welcome any client criticisms where he stated facts which were contrary to what I knew or believed to be fact.

1. Selling under 3K units hardly meets GM's original goals. 2. Obama hiked the Federal Subsidy for the Chevy Volt up to $10K. That's right, the American taxpayer is bribing wealthy liberals to buy a car that catches on fire, among other foibles. Some States, like Colorado, have additional...