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It can vary depending upon your charting platform.

Quick and Dirty: take on-the-run 30 day trading range for each leg and then monetize each leg's value. For example, take the last 30 days of trading range for Silver, monetize it, do the same for Gold, then calculate your hedge ratio for Gold versus Silver accordingly. You have to be very...

They are all monster spread traders. Even the Desks that make OTC markets are laying it off (hedging is spread trading).

There are, quite literally, tens of thousands of exchange recognized spread combinations at every futures exchange. And of course, there are esoteric inter market spread opportunities involving swaps, futures, options, cash, OTC physical, etc. etc. This is quite literally a trading strategy...

You are correct - there's not much information out there about spread trading, but it is the dominant strategy used by prop firms, bank desks, and hedge fund desks. Quite the paradox. You won't find too many hedge fund or bank desk traders with a mouse in their hand scalping ES using a MACD...

Newtonian Physics has absolutely nothing to do with markets. Markets cannot sell off without buyers. In fact, trading exchanges will literally suspend trading at prescribed limits until sufficient counter parties enter the marketplace.

The Stop is for money management, pure and simple. You can ultimately be "right", but run out of capital long before you realize the fruits of your bias.

Trade your own funds, then. IMO the only reason to go with a prop firm is to trade stupid, ridiculous size. You have to, because they're going to deduct all kinds of desk fees and commission haircuts and you'll get paid on a W-2 which means you'll get ordinary tax treatment. In reality...

The traders that I have seen through my career that did really well for themselves tended to be very humble when it came to their powers of prognostication. In retrospect, I think that having a clean mental slate without a bias enabled them to very cleanly and quickly take a trade opportunity...

The 50% profit split is fair provided that none of your personal funds are at risk. There is a regulatory non-compliance history from the SEC/CFTC with so-called "prop" firms in the past that took client funds in which the client meant for funding a trading account and which the firm took as...

Yeah, all the big swinging dick prop traders, bank desk traders, and HF types are all trading some type of spread relationship Why on Earth anybody thinks that a prop firm or bank desk takes flat price outright risk amazes me

No, just because you decide to bid to buy or offer to sell at some particular point because it suits your circumstances- even when you improve the price, doesn’t make you a legit market maker per se. You have to do it as your core strategy. Under your hypothesis anyone who speculates is a MM...

You don’t want to show up at DRW or TransMarket asking that question :banghead: Futures and Swaps are derivatives

Just as an informational note, there is the futures prop trading firm business model, but you are going to have to live in the Chicago or NYC area for that. Futures prop firms that are registered with the CME and ICE are not allowed to risk employee funds - only the firm's capital. Point...

Just as an informational note, there is the futures prop trading firm business model, but you are going to have to live in the Chicago or NYC area for that. Futures prop firms that are registered with the CME and ICE are not allowed to risk employee funds - only the firm's capital. Point...

There is the futures prop trading firm business model, but you are going to have to live in the Chicago or NYC area for that. Futures prop firms that are registered with the CME and ICE are not allowed to risk employee funds - only the firm's capital. Point being, there are distinct...

Failed “Market Top” Thread #2,387. And counting...

Is it possible that you don't know what a market maker is? It's quite a different matter than news or events or technicals.

If you were using longer term "overbought" technical indicators like RSI or MACD as a basis for shorting the market for the past decade you got crushed. Obliterated. Many times over.

Investors who buy and hold like 401K participants who buy every two weeks and average in have done brilliantly.