Andy's Spread Trading Journal

agtrader777,

I do not have any preferences about it. I like them all. The only difference is, I normally give the inter-market spreads less time because they are usually more volatile then intra-market spreads.

Andy
 
Trade

Finaly I got out of my LHG6 - LHZ5 trade on my time stop on Friday 11/04 at 4.0.

Hyp. profit on this trade is $720 - commission of -$200 = $520.

Hyp. account is at $41,832.
 
Hi Guys,

I am feeling kind of tired these days. Maybe I am already in a Christmas mood :-)

I also have to travel next week and I will visit my parents over Christmas in Germany (will go there from mid December till beginning of January).

I am not sure if I will enter any new position but I will definitely stay in contact with you and let you know what's going on.

Happy trading,

Andy

PS You will get some more posts for me over the next few weeks.
 
Summary 2005

You might think "this guy is really fast in taking his christmas vacation" but the reason to come up with the 2005 summary is, that I am going to fly to Germany in the week of the 13th. I did try to find anything to enter this week but it didn't work out. Now it's getting to late. I just don't want to hold a position when I am traveling.

Ok, let's see what we got so far.

We did start with an hyp. account of $20k and did end up around $41k this means around 100%.

Now you will ask. Are these numbers a fake? Did this happened to your account as well?

The answer is ... no! I did take a 8% risk on each trade on the hyp. account. When you trade $20k or smaller you will have to risk between 6% - 8% on each trade. Otherwise you will not find many trades. I am trading several accounts for my clients and I can guarantee you the max. risk is much lower. When trading accounts higher then $100k I normally do not accept a risk higher then 5%.

As always in trading, profit is related to risk. Sometimes I get ask if I can make 100% on an account for a new client. Well, of course I can but also the risk is very high. The average numbers I have seen so far are...risking 5% you should try to get 50% - 60% a year... risking 3% you might get 30% - 36% a year. I think these numbers come really close in the average.

I know, spread trading is not for every one. For many trader it is to boring. It was to boring for me as well. Now I like it a lot because I do not have to hang in front of the computer all day long.

We only did 31 trades. I am probably not the favorite customer in making commission for my broker. But I am in the spread game now for over 4 years. Most day trader are gone after 6 month. Because of this, me and my broker are still friends. ;-)

Take care everyone...

Andy Jordan
 
Happy 2006 to all of you!

This year I am going to trade a hypothetical margin account of $50k. The risk will be a max of 5% of the margin account. I will post the numbers for the entries/exits as I get them on my real trades. Sometimes I will use an average if I get different fills for the accounts (managed accounts) I am trading. But normally the entries/exits are pretty much the same.

Again I have to post the trades with some delay (especially the entries). Of course you can say "it's easy to find the right entry with a delay of a few days" and all I can say is "you are right"! But keep in mind I do not have any motivation to give you wrong numbers. (At least my clients know the numbers are correct :-).

Anyway, have all a good trading year whatever you trade.

Happy trading

Andy Jordan
 
Trade

Here it comes, my first trades this year:

5 x MWH6 - WH6 on 01/10 at 53 3/4, risk $500, correlation trade.

I took already profit yesterday 01/12 at 61. The market was moving a lot because of the reports that came out yesterday morning. I sold 3 contracts.

Hyp. profit $1,088 - 150 commission = +$938

2 x LCM6 - FCH6 on 01/10 at $21,600, risk $1000, seasonal trade.

I also took first profit on 01/11 at -21,125 as the spread shoot up on one contract.

Hyp. profit $475 - $50 commission = +$425.

Hyp. account now at $51,363.

Happy trading

Andy
 
Update

Both spreads did move up nicely yesterday 01/18.

I am watching a few other spreads for an entry...I let you know.

Happy trading

Andy Jordan
 
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