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Hi Walt, my spread traders are mainly based on seasonality together with chart reading. Regards, Andy

Even if trading can drive you insane, I am just answering questions I get asked via email. This way I avoid to get asked over and over again the same stuff. Happy trading, Andy

Andy, what does “optimized” entry or exit mean? Is it part of spread trading only, or is it also used in outright futures trading? Optimized entry or exit is part of seasonal patterns. For example: the spread X–Y shows a strong seasonal up move in July with an optimized entry date on...

Andy, nowadays almost all markets are electronic. Do you use the electronic or the open outcry market when you trade spreads and how do you enter/exit your spread trades. I am using mainly electronic markets when I trade spreads. There are only a few markets where the volume in the pit...

Andy, in your opinion, what are the advantages of spread trading. I think there are quite a few advantages of spread trading. Besides the ones you can read on our web site (www.spread-scan.com), I will name a two more: Spread trading is long term trading: In my opinion trading becomes more...

Andy, how much volume do I need to trade without the risk of really bad fills? Without having the details about your trading, I will not be in a position to give you a concrete answer. It depend on the following factors: - How many contracts are you trading? Are you trading 2 contracts or...

Hi Walt, all you can do in such a situation is to trade your spread regarding your initial plan. You never know what will happen. I don't think it is a major event whenever a spread goes into backwardation. It is important what will happen then. Will it move even deeper into backwardation...

Please let me know the spread, Walt! Andy

Trading Idea KWN8 - WN8: After moving up to 49 on 06/19, the spread fell back down to 37 3/4 and is now at 39 1/2 (06/24). I would close the position with a small gain. First Notice day for both contracts is 06/30. Happy trading, Andy

I will try to post some trading ideas again from time to time. The following spread KWN8 - WN8 has been trading in a range since March 08. It looks like the spread doesn't want to move lower and seasonality (6/4 - 6/30) should help to move the spread higher...

Andy, I have seen statistics from highly successful seasonal spreads, showing an optimized entry and exit date. Some spreads show to be profitable over 90% of the time just by entering and exiting on specific days of the year. Why do I have to look at the charts? Andy: The problem is in the...

Andy, I have heard spread trading is less risky than outright futures trading. Is this true? Yes and no — it depends on what kinds of spreads we are talking about. Maybe we should put them into different categories: High-risk, chaotic spreads: Spreads with each side in a different...

Andy, in the first quarter of 2008 I gave back around 30% of my profits from 2007. Now the trading is getting better again, and I have had a few good profitable trades lately. Anything I can do prevent the “up and down” (especially the down) of my equity curve? Andy: To be quite honest...

Andy, lately I've been thinking a LOT about my exits. I analyzed previous trades, did some back testing with my computer. And I thought and thought and thought. I'm in a huge conflict when it comes to scaling out or when to take profits. Any comments about it? The problem you are facing at...

Hi Walt, yes...received and answered! I would love to do more with the journal but trading keeps me really busy at the moment (besides other things). I am just posting FAQ's once a week but don't give any "Trade Examples" or "Trading Ideas" anymore. This way, I want to keep the journal...

Walt, the ROI discussion is not an easy one. What Joe is talking about is mainly the profits comparing to the required margin. And in this case he is right. With many spreads (not with all of them) you can make nice money comparing to the money you have to put on the table regarding margin...

Hi Walt, you know, it is difficult to name any numbers. It is always related to the risk you are willing to take. I am very conservative, not risking more then 2% - 3% of my account on each trade. With this number you should be able to get 30% - 50% a year on average. Spread trading is...

Andy, what do you think about paper trading? Does it fit into professional trading somehow? Yes, I personally think it does. Paper trading cannot replace real trading for many (mainly emotionally based) reasons, but it can be an important part of the process of finding and trading a new...

Hi Andy, can I place spread orders at the e-CBOT or any other electronic market? I don’t know if this is true for all electronic markets, but I will try to explain the basic information for spread orders in electronic side-by-side markets. Intra-market spreads (i.e. W - W or ED - ED)...

Andy, nowadays all the markets become electronic. Should I take my trades based on the open outcry hours or based on the electronic hours? Andy: It is not easy to give you a general answer. Let’s have a look at the different markets. Currencies and metals: All liquid currencies and...