5% - 10% profit per day trading
- Thread starter spanish89
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Why would 38.25 be the max for the march contract?
On another note, I really wished crude had a quarterly calendar like ES. These monthly roll overs are pain the ass and completely pointless.
I saw you writing somewhere that you were investing in USO.
I guess that is a ETF for CL. Is that correct? Are there any other ETFs for crude? What margin and leverage do they offer and are they liquid enough? Trading hours and exchange please?
I would highly appreciate if you could guide me towards any document/website for understanding ETFs
yes, monday is holiday for US mkts so we have only 4 days left for the contract .
I do not predict peak points etc.. I am more fundamental analysis guy. next week there may be an ocational 20 minute spikes to 39.0 ( i seriously doubt ) , other than that the base line solid base price will be less than 38 for next week 4 days.
here is low risk trade
short MARch contract
buy APRIL contract
do it as pair , same time , wait for next friday you make $1500 at least with lowest risk
short MARch contract
buy APRIL contract
do it as pair , same time , wait for next friday you make $1500 at least with lowest risk
by the way I did it
you see april conract did not goup today
as MArch contract expires next friday the price difference will be $5.5 at least so you make above profit ...
if you follow my yesterday spread trade today profit for that spread trade is > $2500 , that needs to be closed now
yeah I bought 1300 USO @ 28.06 in my long-term account. I am down $3300 so far though, but still holding.
Yep, USO is ETF for CL, but its a little more complicated than a straight CL long, because 1) the ETF manager will be rolling over contracts at near expiration and 2) ETF mgmt fees eats into the fund. So USO tends to under perform CL but its good for long term holding because you don't have to worry about futures roll over, stops, margins, etc
USO trades at NYSE, so its standard new york trading time.
I had several good bookmarks but can't find them right now. When I find it, I'll send it to you.
One warning though: Don't trade 2x or 3x ETFS like (DXO) unless you think there is a going to be a long consistent trend, otherwise, you will lose money even if the ETF is up in your direction, but the market was choppy
Nice! Do you trade spreads a lot?
I've been wanting to trade spreads for a long time. As matter fact, I was looking into trading the crack spread, but my broker (IB) doesn't support inner-market spreads.
But they do support same market calendar spreads, which I might start doing
I recently bought the book: "The Encyclopedia of Commodity and Financial spreads" :
http://www.amazon.com/Encyclopedia-Commodity-Financial-Spreads-Trading/dp/0471716006
and have been scouring the net trying to learn as much as I can about trading spreads.
I think at some point, I'll find a futures broker that supports inner-market spreads.
Do you ever trade the crack spread?
Can you explain the rationale please?
Because right now there are net short positions in the march contract which have to be covered i.e. rate for march contract is expected to go/stay up.
After covering shorts in March contract traders would obviously short the April contract. What we end up with here is
1)March contract going up/staying the same
2)April contract going down
Moreover contango is expected to get narrower as OPEC supply cut becomes more visible. (Your trade implies contago widening from the current $6 mark)
And then, dont you think rather than shorting and buying different contracts it would be simple and more profitable just trading the spread with much less margin?
Quote from lemeeeplay:
Nice! Do you trade spreads a lot?
I've been wanting to trade spreads for a long time. As matter fact, I was looking into trading the crack spread, but my broker (IB) doesn't support inner-market spreads.
But they do support same market calendar spreads, which I might start doing
I recently bought the book: "The Encyclopedia of Commodity and Financial spreads" :
http://www.amazon.com/Encyclopedia-Commodity-Financial-Spreads-Trading/dp/0471716006
and have been scouring the net trying to learn as much as I can about trading spreads.
I think at some point, I'll find a futures broker that supports inner-market spreads.
Do you ever trade the crack spread?
Crack spread is used mainly for hedging and I dont think traders like us can find an edge in it due to lack of knowledge and understanding.
Btw calender spreads and inner market spreads are the same thing
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