Finding spread trading opportunities
- Thread starter Gambit
- Start date
Good stuff. This chart illustrates how the current year can behave quite differently from the seasonal averages.
As noted by autospreader (the blogger/trader), Aikens and bone, combining spreads can result in lower variance. This is a eurodollar butterfly compared to another eurodollar butterfly. It is possible to spread one butterfly against another. Aikens has a thorough introduction to it in his book but it is a dense subject. There might close to an infinite number of butterfly combo permutations.
Didn't catch that. Important to note. Thanks Trader13. Are you using any of these sites? Did you find anything better? It seems like all of them have some drawbacks.
A book recommendation. http://www.amazon.com/Eurodollar-Fu...dp_top_cm_cr_acr_txt?ie=UTF8&showViewpoints=1
Based on recommendations from Wilmott, Nuclear Phynance and Amazon, this is a thorough treatise on Eurodollars. It covers a lot of the material in Aiken while adding more theory. The material may help understand why the product moves the way it does and some of those concepts may transfer to other markets. Options strategies are also covered.
It is not light beach reading but more of an investment in one's education. Purchased and placed on my reading list.
Based on recommendations from Wilmott, Nuclear Phynance and Amazon, this is a thorough treatise on Eurodollars. It covers a lot of the material in Aiken while adding more theory. The material may help understand why the product moves the way it does and some of those concepts may transfer to other markets. Options strategies are also covered.
It is not light beach reading but more of an investment in one's education. Purchased and placed on my reading list.
I'm not using any of these sites (I use eSignal for charts).
I don't trade based on seasonals, but from what I understand seasonal traders are most effective when they have a strong grasp of the fundamentals of the markets under study. Looking at the ags, for example, you need to analyze the planting/harvest/storage statistics and have an outlook on weather. This involves a lot more than reviewing historical seasonal patterns on charts. Seasonals are not my bag, but I respect those who can do it.