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Agree, please start a journal as this will get messy in a hurry. BTW, weekly supply figures, HDD forecasts, and the BTU spread are going to influence Natural Gas prices orders of magnitude more than the ethanol crack.

In terms of the full-size Comex contracts, as of today's close the correct hedge ratio for currency-adjustment is 1 Gold versus 1.3 Silver. In terms of volatility weighting, 1:1 is just about spot-on correct. As far as spreads go in the metals space there are much better ones that are more...

Depends upon if the oil price climb was due to economic activity strength (demand) or physical supply contraints.

You know, if you just re-labeled the strategy 'price improvement' instead of 'averaging down' then all of the animosity would disappear. Consider this another problem solved!

Definitely check with your accountant, but do not be shocked if the tax treatment is for 'ordinary income'. (i.e., no capital gains) Also do not be surprised if you get scolded for not paying estimated quarterly taxes since partnerships typically don't issue W-2s. NOTE: definitely get a...

"Bone I was curious what kind of "scalable" are you talking about?" Great question. Several of my clients started my instruction trading their own very modest accounts and over a period of several months or more landed proprietary trading positions in Chicago, NYC, and London. I am pleased...

The Chicago prop business model usually involves futures and options, member rates, a defined P&L split, and no up front investment by the incoming trader. The equity prop model that is typically referred to on ET is available almost anywhere and involves trading equity shares (stocks) and an...

Excellent score on the Slate article. Now I really despise him.

The big disclaimer in bold red type in his listed 'source': Please note that our interpretations are provided as entertainment only. IMO not very entertaining either. Since I'm an engineer and a technical guy and a technical trader I would want to see the data this graphical...

We're getting a bit ahead of ourselves with the maps and the rents. Employment first. As a Chicago resident for 25 years I'm still fixated on this concept of a 'chop shop' in Chicago. 'OTCkrak': please explain your vision and define what exactly a 'chop shop' in Chicago would be and what...

"Based on your statement the only true trend traders would be those buying higher highs in uptrends or selling lower lows in downtrends." It is all a matter of your timeframe perspective. I absolutely love to buy new highs or sell new lows. For size. Because the odds that you bought the...

I know a few equity and index options market makers at Ronin and Prime. Tough place to be right now. Very efficient markets, very very small edge, not much left after the capital (financing) and exchange costs are factored.

So, I have a great story. Had my two daughters look at a crude oil futures chart one evening and tell me if it was going up or down. I sat them in my lap, set my machine limits to one lot max, and told them to fire away on the TT. This was about 7 pm. Long story short, of course, they...

In other words, you are delta Crude Oil no matter what you do. Defeats the purpose of arbitrage and spread trading, because you are directional crude whether you intend to be or not.

It seems good on the surface, and indeed the 2-year correlation for daily closing marks is 94.1%. And Joy Behar and Jessica Simposon are both white females. But the intraday cointegration will erode your stomach lining and peptic acid will leak onto your other internal organs. The...

Individual futures transactions are not a matter of public record. They can and are audited by regulatory agencies.

We are just not taking many Crude Oil calendar spread trades past several months. Much more action in the crack spreads. The daily trading ranges just blow. Basically, it has become much more of a swing trade - still models very well, but it just doesn't justify the slippage to get into and...

I was down on the CBOT financial floor for a couple of years trading my own account, and to me the floor was basically a few "haves" and a multitude of "have nots" in terms of access to order flow. All of that propaganda about floor brokers 'dual trading' for the greater good of market...

The days of getting hired with a pulse and the ability to make a CQG chart are long over here in Chicago. Based upon what DRW and Traditum have done this year it looks like hiring fresh college grads and training them internally is rapidly disappearing as well. They are looking for very...

Well, the bottom line is the bottom line. There are thousands of IB clients here on ET; someone name a better alternative where everybody can message to their heart's content with a similar commission structure so they can move their accounts.