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This has been going on since Franklin Roosevelt signed the Agricultural Adjustment Act in 1933. And you'd be very hard pressed to find an advanced economy that doesn't provide elaborate price supports and subsidies for agriculture. You also need to understand that quite a few of the food...

Since Wall Street and the Financial Industry contributed $200M to Joe Biden's campaign, you'll be seeing platitudes and lip service to the left but no substantive changes. Joe has always taken care of his top tier contributors - just ask the credit card companies like MBNA and the predatory...

I cannot speak for equities, but in the futures universe the CME registered prop firms are NOT allowed to risk employee funds. In other words, you are an employee paid on a W-2 and the risk capital is the firm's capital. DRW, TransMarket, Peak 6 are examples.

The hypothetical answer is as useless as the hypothetical question. :rolleyes:

The entire point of that first ES calendar spread was to illustrate that for that particular spread, it makes no sense to speculate with it. The purpose for that particular spread is to roll your position. The other spreads trend and model well and make fantastic speculative Instruments...

Well, spread trading is really misunderstood and downright dismissed on this website - and yet it’s the bread and butter for the big proprietary trading groups like DRW and TransMarket and Peak6 and a shit ton of hedge fund and bank desks.

That's funny because I just chewed out a client for trading something so illiquid :D

Any name with decent liquidity will have very good exchange supported spread volume. TBH, I tell my clients not to trade names like Platinum and Paladium or Oats. I keep them away from the thin markets as a rule. I give them minimum volume thresholds. I do have a few clients who just...

Not at the CME or ICE or Eurex. The best bid and best offer in the exchange supported spread will almost always be more liquid than the outright flat price contract.

I trade futures and to be more specific a shit ton of futures spreads. But I started swing trading in earnest in 2006 and I've refined an approach since then. 1. I think that it is very difficult for many mortals to swing trade and scalp simultaneously. There's a real temptation to...

This also could have happened to you if you were trading outrights in May '20 Crude Oil or June '11 Cotton. The fact that you were in a spread probably had very little to do with your circumstance - it was more about your choice of market and expiry. I provide my clients with rules regarding...

Just to expand a bit on the exchange supported spreads. In terms of liquidity - when comparing best bid and best offer there is always more volume on the intra market exchange supported futures spread than there is in the outright market. It's true for Corn, it's true for Eurodollars, it's true...

2020 was a really good year for trading commodity futures spreads. We are swing trading exchange supported spreads. We are not legging spreads manually and we are not buying bids and selling offers in an arbitrage or day trading scenario. We are taking advantage of cheap overnight margins, and...

There is so much disinformation in this thread that I will start a new thread in this forum addressing recent commodity futures spread opportunities. It was a very good year for commodity futures spread trading.

2020 was a really good year for trading commodity futures spreads. We are swing trading exchange supported spreads. We are not legging spreads manually and we are not buying bids and selling offers in an arbitrage or day trading scenario. We are taking advantage of cheap overnight margins...

It was a very good year for fixed income futures spread traders. Opportunities abounded throughout the curve. My clients took a multitude of different swing trades over the course of 2020.

You're talking about some really different subject matters there. For an index spread like ES or YM or NQ, the first to second month expiry (currently March 21 to June 21) is an incredibly narrow trading range and it's valuation is dictated by the convenience yield (finance) and the open...

I tend to shy away from generalities when it comes to trading, as everyone is different and everyone's trading system and style is different. If someone has a trading system that is consistent over a protracted period of time and it works for them, I would be the last person to tell them to...

One of three things gets me out of a trade: 1. I hit my profit target, 2. I hit my stop-loss level, 3. My Indicator Package reverses from the trade entry profile (thus my reasons for entering the trade are no longer valid). YMMV, I wish everyone good fortune !