Light Sweet & Brent Crude at ICE

Quote from dhpar:

interesting that somebody who wants to trade atlantic arb does not know where to execute trades.... :confused:

atl arb despite being a popular trade by energy trading outlets is actually quite an advanced startegy which depends on many variables - like shipping costs, refinery demands, asia vs us aggregate demand etc.

good luck with that.
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I agree with what you're saying if he's trying to trade from a fundamental view, but the spread can also be traded technically -- in fact I've read an academic paper all about trading this spread technically -- some successful methods being quite quantitative, but one successful way studied was using a simple MACD... IM me if you'd like the link.
Thoughts on that?
 
Quote from day4night:

I agree with what you're saying if he's trying to trade from a fundamental view, but the spread can also be traded technically -- in fact I've read an academic paper all about trading this spread technically -- some successful methods being quite quantitative, but one successful way studied was using a simple MACD... IM me if you'd like the link.
Thoughts on that?
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everything can be traded technically - of course. but one should still have an idea what he is trading and some fundamental backdrop imo.
 
Quote from dhpar:

everything can be traded technically - of course. but one should still have an idea what he is trading and some fundamental backdrop imo.
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There is sense to that; I hear you.
 
Day4night,

you seem to have a lot of experience and I can tell by your knowledge that you are quite successful ..

it can be intimidating to think that your taking the other side of the trade!

well, the trading strategy is quite simple. I trade off of prices more than anything.. Big move day's in oil seem to work best for me..

But I do take a quick look at the charts using esignal. avoiding trading near expiration is what I've learn from the past to up the % profitable day's..

During expiration week, it seems that everything is thrown out of sync. Maybe having your views or added dimensions to the strategy would make that trade able ..

I don't have much information about this spread, as that may be the fall of this strategy..
 
Well, thanks for the compliment. Believe me, I still have libraries worth of learning to do.

Anyway good luck on it on the spread. Is Dorman working out?
 
After about 10 weeks of testing and tweeking my strategy, I have remain profitable.

Other than a few mistakes of days not to trade this spread ie before and after the contract rollover or on days of the Oil inventory number, I still have hopes of consistency .. I got careless the past 2 days and scalped the Light Sweet contract.. Not a good idea, won't be doing that anymore! Sucks watching my p&l tick lower after each breath of air!

Dorman has done the job. I use the webtrader on my mobile and it does the trick.
 
I would be interested in looking at links that you suggested about sharing?

I look at no news at all other than the price of oil.. Maybe it would help to know if one will be more volatile than the other

But to me it's just noise and makes it difficult to trade off of..
 
I am not trading any crude oil spreads with November this week - I'm waiting for November to go completely off the board.

All technicals and fundamentals are tossed out the door when an ETF or a Gulf Coast oil refinery complex has to roll 30K contracts.
 
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