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GoldTrader already posted an excellent list of resources and Dos and don'ts in another threat: http://www.elitetrader.com/vb/showthread.php?s=&threadid=16982 There's not much to add, but here are my 2 cents: I read only 3 books about spread trading: Joe Ross: Trading Spreads and...

Wavetrader, there are 3 different kinds of spreads: Intramarket Spreads Officially, Intramarket spreads are created only as calendar spreads. You are long and short futures in the same market, but in different months. An example of an Intramarket spread is that you are Long July Corn...

Do you remember the Soybean-Trade I posted last week? Today it closed at 14.25 and I had to exit, because tomorrow is FND for SX2. That's a nice profit of $750 per contract using less than $500 margin per contract. Could you have made that money when trading outright futures in soybeans...

Profitseer, Crush and Crack spreads can indeed produce nice profits, but most probably you have to explain your broker, what it is :) Have you ever traded the "Cattle-Crush" (or however it is named)? Long Feeder Cattle and Corn and Short Live Cattle. I can't remember the ratio, but I...

You can enter a spread in 2 ways: 1. You place a spread-order (see previous post) or 2. you buy both futures contracts separately. A spread consists of two "legs": Each side of the trade constitutes one leg. Long futures is one leg and short futures the other leg. When you choose the 2nd...

Hi ADX, let me try to answer your questions: You can enter a spread by buying one future and sell the other as you trade outrights OR you could place a spread-order. E.g. if you want to buy 6 contracts of the spread SX2-SN3 @ 7 limit, you would call your broker and tell him: "Buy 6 Nov...

J-Law, yes, you are right: the wider the time between the contracts months the more volatitily. I am loooking for a minimum volume of 2,000 in each of the underlying future contracts, i.e. min. 2,000 in the front month and 1,500-2,000 in the back month. Just a short wrap up of this...

J-Law, here are my criterions for choosing spreads: 1. Margin requirements One of the main advantages of spread-trading is the reduced margin requirement. Therefore I am just choosing spreads, that are recognized by the exchanges. That limits the amount of possible spreads significantly...

I am not diversifying as I would do when trading stocks, i.e. if grain-spreads start trending, I would enter several grain-spreads. If there's nothing to trade in the livestock, I do not enter any positions. Therefore it can happen, that all my open positions are e.g. just grain spreads...

Hi Whatsinmyfuture, thanks for the hint. I'll look at that software. Here are the spreads I am watching today for a possible entry (charts are attached): TYZ2-USZ2 (entry @ 144 stop) SMZ2-SMK3 (entry @ 0.8 stop) and if I would have missed the Soybean-Spread: SX2-SN3 (entry @ 4.0...

Hi Dan, I found NY-markets too thin in the backmonths to trade them as spreads. But I will watch them in order to indentify good trades. Thanks for the hint. Actually the spreads I mentioned are providing good opportunities for making money. Remember the Soybean-Spread I entered yesterday...

Guys, are we discussing biographies in this forum or trading ideas and concepts? I really don't care, if Joe Ross has 10 or 40 years of experience. I read the books and they helped me a lot in my trading. Having read dozen of books about "magic indicators" and "100% reliable trading...

J-Law, I am using Nextrend, because it used to be very inexpensive and reliable. Unfortunately they filed for bankruptcy court protection last week. Hopefully they will continue... If you want, take a look at www.nextrend.com. I heard from another spread-trader, that he uses e-signal and...

Dan, look at the volume of July Cotton and you know, why Jesse shot himself. :-) 273 contracts! Well, according to my experience that's way too thin to trade. Usually I am looking for spreads trading at least 2000 contracts/day in the underlying futures. Markus

Hi dojibear, usually I do not hold my spread positions longer than a few days (5-8), so I will be out on the FND. The back months are still traded very thin. It'll change next week, when we get closer to FND for Nov. However, if the spread still raises at this time, I would sell SX and...

I pay $18 RT incl. commissions and fees for pit traded contracts. Maybe that's not the cheapest rate, but I receive good fills and I do not have to explain my broker, what a spread is. :) I don't know, if you usually do any broker recommendations in this forum, therefore please e-mail me and...

J-Law, I started a new threat about spread trading: http://www.elitetrader.com/vb/showthread.php?s=&threadid=10113 CU, Markus

J-Law, MRCI is great; it is full of information. I use the information to confirm my entry signals. There were times, when you could almost blindly follow the seasonal patterns. Unfortunately that's not the case any longer, as markets change. Here's the list of spreads I am watching...

Yes, I recently signed up for all chapters, but I haven't received any so far (except that introduction). I am currently waiting for the next chapters. Markus

I am trading the grains, the meat-markets and some interest rates as spreads. I am looking for a daily volume of about 2000 contracts in the outright futures to consider them trading as a spread. All in all I am watching about 16 different spreads. If you want, I can post a list of spreads I am...