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Cubs: "I don't know the first thing about spread trading." That would make you a newbie to me, at least! Different mindset and approach to the market - also has some excellent tradecraft applicability to scalping a market as well.

1. React to the market, don't sit in a position waiting for the market to confirm your bias - you stand a 50% chance of capitulation even if the market eventually proves your bet. 2. Don't fade alone. If for example you want to fade a 2 sigma move, fine. Rather than hold up your arms and...

Arjun: Good work. That's too bad, because she's not bad looking, and you can marry more money in 5 minutes than you can make in a lifetime.

Yes, if we can use the Health Care Overhaul as an indicator, this administration will be the most open in history in terms of withstanding the daylight of scrutiny. Too bad that $50B bailout fund didn't make it in the financial overhaul legislation.

Agreed - and price action accounts for producer bias. Promise.

Risktaker: where were you just a few years back when a Deutsche Bank grad trainee flushed the DAX on Eurex for huge and then managed to bust the trade and bankrupt all the locals who took the other side? Eurex is in Franfurt if I'm not mistaken, and Deutsche Bank is a German Bank. And why...

In power trading there is an entire subset OTC market for delivery called FTR, or Financial Transmission Rights. Tower Research Capital thought they'd dabble in it for shits and giggles, and lost like $80M in one trade which bankrupted the shell company LLC Tower was using. Same same with...

Bone says individuals should be prevented from trading Berkshire Hathaway.

FEMbot, not TradeBot. Are you guys buying that? BS. All of these boxers are fading one and two sigma moves every five seconds of the day - they stopped trading because maybe they got a bit loaded up, perhaps? It's quiet.... too quiet.

I took a body count amongst clients - especially the equity pairs traders; they actually made some money. Maybe just dumb luck without PG or MMM signals. Since we trade divergence and not convergence, if there was any lead time (say ten or fifteen minutes) at all with the price action of the...

PIMCO uses monster CME eurodollar strips as a synthetic proxy in many of their funds. They have been doing it with great effect for close to 20 years now. As I recall several years ago, at one point in time they over 50K open interest in the ED futures.

I'll put it to you this way: a successful stat arb trade requires a statistically fit spread combination with incredibly tight mean reversion. Uh,................... that's pretty tough to find these days.

Yep - lots of universal aingst. I've just taken on some work for a high frequency stat arb fund in NYC... it seems that the entry signals are much easier than the exit signals, and that's where the tradecraft comes in, which of course keeps me in business. Again, no matter what career...

Trader56: "Sounds like perhaps it depends upon what the spread itself is doing, not the hedging considerarions a producer would have" Bingo! It's not that I don't care what the producers are doing, but price is price, and I get paid on price.

Here's a link for a relatively current list, but since I know most of these firms I can report to you that their business models have changed dramatically: http://www.cmegroup.com/education/files/CME-248_PropFirmDirect_HIres.pdf Essentially, they have thrown out many of their existing...

1. The Cracks I am referring to are Nymex futures products involving the RBOB Gasoline vs. WTI Crude Oil contract, and the Heating Oil vs. WTI Crude Oil contract. Myself and my clients almost always trade the exchange-support implied futures spread as one product instead of legging the...

I have used WebICE for years. Past six years I have spread Gas/Oil Cracks and PJM-W heat rates using the Trading Technologies Pro License. WebICE is great to see the block trades and LCH-cleared swap trade prints. Most FCMs use a risk product like SunGard in conjunction with something like...

MS: I absolutely love it. Perfection. Prop firms would want you to leverage your strategy, but be flat at the end of the day. You'll be asked: can't you just keep a much smaller core portfolio overnight? [ Which of course defeats the purpose of your strategy ]. Oh, and you'll get paid...

He and Soros are little peas in a pod. Advocates for democratic socialism now that they got theirs performing the exact same behaviors they now rail against. Same goes for their advocacy for more taxation. Do as I say, not as I do.

Tycoonman: Honestly, in a twisted way, the less you think you 'know' the better. I will turn away every person who contacts me and proclaims that he is close to ruin, and that I am his last hope. I also like to gauge what kind of 'baggage' the prospect is carrying in terms of...