Eurodollar Spread Campaign 2008

H

hrokling

During my journey with seasonal spreads, one of the most interesting markets I've come across is the Eurodollar market.

I believe this market has incredible profit making opportunities, and although my available time is already limited I have decided to create a journal of my planned Eurodollar Spread Campaign for 2008. Seasonality will not be included in this journal. It's also not intended for interest rate discussions. I will be posting trades as they happen, and then round up the results at the end of 2008.

Start equity is 10.000 USD. Equity per spread is 1.000 USD.

The system is trend following, and always in the market

Markets are the closest two quarterly Eurodollar-contracts spread six and nine months out. Market change on the first trading day of expiration month - positions are then opened and closed.

Positions are reversed when opposite signal is received.

No Profit Targets and Stop Losses

Total number of continous positions is 8.

Signal generation is not disclosed.

Position size is increased for every 8.000 USD earned - starting at 16.000 USD. If the account goes bust, so be it.
 
I've taken positions today just to get started - but it's not until January 1st that the calculation of P&L starts.

The current positions are:

GE Mar 08 Short 4
GE Jun 08 Short 4
GE Sep 08 Long 2
GE Dec 08 Long 4
GE Mar 09 Long 2
 
I've changed my mind about how to open on Jan 1st, and have closed all the positions with a small loss. After Jan 1st I'll open positions as I receive entry signals.

It is amazing, but even after trading for ten years you still make mistakes. Opening a position mid-trade is certain to generate a loss, since this system for the most part gives back some profits before reversing the position. And I don't like losing money deliberately!

So, see you in the New Year!
 
Interesting - any particular reason for the wide spread, as opposed to just, say, spreading 8 GEH8 against 8 GEH9? Does that smooth the action out?
 
hrokling sounds like an interesting journal you have going here. I enjoyed your seasonal journal and I hope this one is just as good. A few quick questions though. As you know im mainly into physical commodities so I don't know much about financial futures and such. Are you basing your trades off of just technicals or are you incorporating fundamentals and interest rate decisions into your trades? I can believe there are plenty of opportunities in this type of trading and I wish you the best!
 
Guys, I haven't forgotten :)

No positions yet and it might take a while if the spreads continue to head downwards. Positions won't be taken until (if?) things turn around.

I'll try to answer questions/comments one of the next few days.
 
Bought 1 Mar 08 / Sep 08 spread @ -0.700

New Position:

H8 - M8 - U8 - Z8 - H9
1 0 1 0 0

Hmm... the formatting doesn't quite work, but I hope you get the idea :) - will try to make it work next time.
 
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