Metals Spreads
- Thread starter bone
- Start date
I know that you're full of sh*t but it's okay since you are a paying sponsor. I know that there is no quality information you can offer on metal spread trading aside from what is already out there. And yes, I do actually deal with metal spreads, but we will leave that aside.
The reality is that if you had some sort of trading knowledge & edge worth something, you would be trading, not selling. But maybe you are just a generous vendor, like I said. And if you can show proof of your amazing success (as you claim on your website), as well as your clients that are "killing it", you never know, maybe I will plop down $6500 for your esoteric knowledge.
I'd have issues with such vast differences in liquidity, but it's an interesting idea. The platform I use now currently builds bars based on the the last trade, not the best bid or ask. So testing strategies where there is always someone quoting but not a lot of volume tends to be difficult to test [at the moment, until I can program a custom solution.]
I will look at it though, as a research problem.
What I meant earlier about HFT was: what is the real difference between LME and CME for metals, and why is this difference something that's tradeable? I honestly do not know the difference or why something like this could be traded as a spread. (Read: please educate me.) Usually, the markets are smart enough to close something off that's gold vs gold or something. What makes up the noise that allows you to trade it? i.e., why is it so wide that it is not restricted to HFT participants?
Traditionally, with stocks, HFT participants close down all the arbs because they know the factor involved with the spread will mean-revert. But in this case, you clearly insist there is a reverting signal you can profit from, -and- that it's something like gold vs. gold. I'm just trying to understand what it is about this spread that allows it to be wide enough for your retail clients to exploit it.
I don't trade the stat-arb HF convergence model by intention and design. I try to take advantage with the road less traveled and a little longer timeframe bias.
HF can't trade many of these spreads effectively because of their divergence. Just because an automation strategy like stat arb trades alot of volume by no means suggests that all exploitable inefficiencies are somehow magically scooped up in the markets. Far from it. You should study up on relative value trading strategies to get a better perspective on spread trading.
I started this thread to alert members that the metals spreads are really hot right now, and I put out an ETF equivalent [PPLTY vs. (GLD * 1.5)] as a proxy for one of the hottest: Nymex Platinum Futures vs. Comex Gold Futures. No, this is not original information, and I'm sure that there are plenty of other people doing the trade - but does that make it somehow less effective or unworthy of mention? Does anybody really think that what they are doing in the regulated market space is somehow unique and original? (coming from someone with several patents)
Anaconda: yes, I am soliciting for clients because I have several who signed up in the late fall whose six month terms are due to expire, so I could rotate in a few 'newbies'. And yes, I have several LME trades which I will not discuss on this board. And I still trade and do it very well, thank you. If you are so fortunate as to have had 18 consecutive positive years trading, have a large family, and decide to spend two days of your week with private clients or in your boat or on the golf course well then, congratulations. I love my client business, and they love me. Every one of them spoke independently to existing clients before they signed the contract. And you would not be the first public flamethrower who privately groveled to become a client - if you identify yourself to me, I will not take your money. I only want to keep a fixed and manageable number of clients, and I do turn applicants away - especially the damaged, bitter souls. Again, why not post one constructive trade. Since you're a metals trader, put one up!
HF can't trade many of these spreads effectively because of their divergence. Just because an automation strategy like stat arb trades alot of volume by no means suggests that all exploitable inefficiencies are somehow magically scooped up in the markets. Far from it. You should study up on relative value trading strategies to get a better perspective on spread trading.
I started this thread to alert members that the metals spreads are really hot right now, and I put out an ETF equivalent [PPLTY vs. (GLD * 1.5)] as a proxy for one of the hottest: Nymex Platinum Futures vs. Comex Gold Futures. No, this is not original information, and I'm sure that there are plenty of other people doing the trade - but does that make it somehow less effective or unworthy of mention? Does anybody really think that what they are doing in the regulated market space is somehow unique and original? (coming from someone with several patents)
Anaconda: yes, I am soliciting for clients because I have several who signed up in the late fall whose six month terms are due to expire, so I could rotate in a few 'newbies'. And yes, I have several LME trades which I will not discuss on this board. And I still trade and do it very well, thank you. If you are so fortunate as to have had 18 consecutive positive years trading, have a large family, and decide to spend two days of your week with private clients or in your boat or on the golf course well then, congratulations. I love my client business, and they love me. Every one of them spoke independently to existing clients before they signed the contract. And you would not be the first public flamethrower who privately groveled to become a client - if you identify yourself to me, I will not take your money. I only want to keep a fixed and manageable number of clients, and I do turn applicants away - especially the damaged, bitter souls. Again, why not post one constructive trade. Since you're a metals trader, put one up!
First of all, I never groveled to you secretly, so please do not resort to lies. I have never reached out to you and the only communication has been through this post. I made a comment, but realistically, I have no interest in your service whatsoever, even if it was free.
Second of all, I simply asked for you to post some proof of your claims. I know you won't, and proof is not mandatory, just like making outlandish claims is not mandatory when trying to sell a service. It's a simple request. You reply with more boasting & putdowns. I been around the block, so I know your type by now.
Third of all, I have no intention of posting any trades and have not done so in years. I have no service to sell and I am not making extraordinary claims. Personally, I like gold/silver spreads only because I know the market well, particularly from the physical bullion standpoint. I know that it is nowhere the cash machine you are trying to make it out to be. Metals spread trading is a very old strategy with a lot of competition. It is viable, with the right effort & dedication, but your claims are plain old bullsh*t.
Finally, you are a paying sponsor, so feel free to continue your promotion. I am confident you will find some suckers, as evidenced by this thread already. I find it comical and wanted to poke some jabs at you. I find it even more comical that some suckers will actually still sign up with after all the history with all other snake oil salesmen. Really, your signature says it you. You teach a tangible edge. Makes perfect sense considering the real opportunities if one has a tangible edge. LOL!