Brent/WTI Spread

I'm looking to move on from Interactive Brokers, because I would like to start trading the ICE Brent-WTI spread contract which IB don't support.
I'm considering moving to Advantage Futures with CQG Trader or CTS T4.

A couple of questions for the experts:
Will the platforms I'm considering support trading the ICE Brent-WTI spread contract?
Are calendar spreads on the ICE Brent-WTI spread tradable?
 
Quote from bone:

With all deference and respect I simply must call bullshit, you fade a 20 period SMA - especially in that spread and you will get absolutely CRUSHED. You can't trade many/most commodity spreads these days on mean reversion back to what you perceive to be "fair value". Please note within the article that the strategy has a shelf life of circa 2004. That is indeed a highly profitable spread, but your referenced strategy is bassackwards and incredibly painful. I have clients with cash rack pricing in Cushing, and Platt's North Sea platform unloading basis info that won't fade that beast. Too many financial players with deep pockets ( open interest volume ) and the physical contract fungibility is too modest for a decent basis model from our experience as well.

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Hello bone, I like the way you have explained it, especially in graphical format.
 
Quote from Oktogon:

I'm looking to move on from Interactive Brokers, because I would like to start trading the ICE Brent-WTI spread contract which IB don't support.
I'm considering moving to Advantage Futures with CQG Trader or CTS T4.

A couple of questions for the experts:
Will the platforms I'm considering support trading the ICE Brent-WTI spread contract?
Are calendar spreads on the ICE Brent-WTI spread tradable?
More...

i am using CTS T4 for spreads trading. ICE Brent/WTI is a intra contract spread traded on ICE. (WTI is light sweet crude traded on ICE, CL is light sweet crude on NYMEX)
you will see prices like -18.48/ -18.44 in the ladder. Bids/offers are continually updated by autospreaders so it is pretty tradable.
Obviously CTS T4 also supports calendar spreads and crack spreads.
FYI, wti/brent spread margin is about 3k (second month)
 
this may sound a little foolish but i'd rather ask than stay ignorant.


Can you daytrade spreads?
Are they tradeable through TT? Do i have to manually make a spread?
 
Quote from amsterdam:

this may sound a little foolish but i'd rather ask than stay ignorant.


Can you daytrade spreads?
Are they tradeable through TT? Do i have to manually make a spread?
More...


Day trading is possible however a bit wild nowadays.
Didn't trade any intra commodity spread in X_trader before but traded calendars. It must be possible in ICE exchange as a exchange traded spread. (afterall x_trader is the ferrari of trading platforms)
I don't think there will be need for manual spread definition (and x_trader pro)


also note that spread is defined as WTI/brent on ICE (has big negative values nowadays)
 
Quote from amsterdam:

this may sound a little foolish but i'd rather ask than stay ignorant.

Can you daytrade spreads?
Are they tradeable through TT? Do i have to manually make a spread?
More...

TT supports the exchange-supported spreads, which in MDTrader appear as a single price ladder. You can also use TT software to automatically leg custom spread configurations that you build into AutoSpreader or AutoTrader. Be very careful about exchange message-to-fill ratio policies if you are frequently quoting and changing prices along with the market fluctuations.

You do not have to manually trade a spread if an exchange offers an exchange-supported spread - in other words, the exchange has in internal order-matching algorithm that does it for you.

You can daytrade spreads. You can swing trade spreads. There is alot of flexibility here. Much more than with trading singular instruments due to the number of combinations and permutations and actual construction of the spread product you create.
 
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