Eurodollar Spread Campaign 2008

Quote from jimbohanna:

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?
More...

The theory would be to spread the risk somewhat, as multiple positions in multiple spreads would spread the risk somewhat - though of course the shape of the curve still is what's important.
 
Quote from youngtrader:
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!
More...
Thanks! The signals are super-simple trend-following, and not based upon fundamental opinions/research. Also, not much money management here.
 
Just wanted to share that I've put on a seasonal trade in Eurodollars that's not part of my seasonal spread campaign as such - just sharing:

Entered M8/U8 @ -0.250

If any of you want to hop in with me, I still doubt you're going to move the market much in my favour :)
 
Yesterday I had three more signals when the site was down, here are the transactions:

Bought 1 Mar 08 / Dec 08 spread @ -0.775
Bought 1 Jun 08 / Dec 08 spread @ -0.315
Bought 1 Jun 08 / Mar 09 spread @ -0.310

Current Position:

H8 - M8 - U8 - Z8 - H9
2 __ 2 __ -1 _ -2 _ -1
 
I have had two more signals, so I've made the following trades:

Bought 1 Jun 08 / Dec 08 spread @ -0.245
Bought 1 Jun 08 / Mar 09 spread @ -0.230

Current Position:

H8 - M8 - U8 - Z8 - H9
2 __ 4 __ -1 _ -3 _ -2
 
Added this morning:

Bought 1 Mar 08 / Sep 08 spread @ -0.615
Bought 1 Mar 08 / Dec 08 spread @ -0.660

Current Position:

H8 - M8 - U8 - Z8 - H9
4 __ 4 __ -2 _ -4 _ -2
 
Quote from hrokling:

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

Signal generation is not disclosed.
More...

hrokling - I'm enjoying your threads : thanks.

Care to write some more about your overall Eurodollar strategy - rather than signal generation method - it might make it easier to follow & appreciate this journal ?

J,
 
The idea is to capture the larger trends in the spreads. I'm also focusing on the two near (quarterly) months vs the next few months out, with the thinking being that this is where you'll see the most movement. I am however wondering whether the other leg should be slightly further out - 3 to 6 months more, but I'll stick with this for now.

After giving back the early gains, Fed's action today was a huge winner for these positions. In one way, the Fed is very predictable. On the other hand, you're just shaking your head at what they're doing.
 
Could you please explain why you trade the spreads that are only 6 or 9 months apart? Is that where most of the volume is done in eurodollar spreads? If not could you please tell me what are the highest volume spreads (ex. front month and etc?). I have started to dabble in trading the euribor intra day along with trading the bund. I believe the euribor is europe's eurodollar. I am currently just scalping the front month but would like to get into trading the euribor spreads also.

Any info is appreciated

YT
 
You must log in or register to reply here.
Back
Top