Natural Gas calendar spread.

S

stasbz

Hello!
I am interested in calendar spread trading in NG futures. Usually we buy/sell front/back month. But i noticed that front month usually moves more than back month.
For a example, on 01/16/19
NGG19 moved 300 ticks
NGH19 moved 220 ticks.
i watcjed other days, i didnot see that back month moved more ticks than front month.
That makes me feel that trading calendar spread (buy/sell front/back month) in case of NG isnot Spread. I might just buy outright position, because i need to quess direction and front month usually moves more than back month.
Anybody knows what the right way of trading spread in NG. Maybe Butterfly calendar.
I read some posts of Bone for long time. I knew You are good at spreads. Could you help me.
 
Have you not read the recent news about traders that got killed by trading calendar spreads ? And it's not the first time this happens ...
 
cvds16 said:
Have you not read the recent news about traders that got killed by trading calendar spreads ? And it's not the first time this happens ...
More...

but if you look at the charts, NG spreads were gradually going up before it went parabolic so it was a fantastic breakout trade. It seemed more of a surprise and discontinuity in the outright markets.
 
I've never traded futures spreads, but what is scary is you have to have "alot" on to make money in the spread fluctuation. God for bid one side moves heavy and the other doesn't, you would get obliterated.

Some guy in Norway or Denmark was trading spreads on electricity I think, He lost like 200 million of his own money... he was independent trader.
 
R1234 said:
but if you look at the charts, NG spreads were gradually going up before it went parabolic so it was a fantastic breakout trade. It seemed more of a surprise and discontinuity in the outright markets.
More...
That is interesting, I will review charts before that move.
 
Palindrome said:
I've never traded futures spreads, but what is scary is you have to have "alot" on to make money in the spread fluctuation. God for bid one side moves heavy and the other doesn't, you would get obliterated.

Some guy in Norway or Denmark was trading spreads on electricity I think, He lost like 200 million of his own money... he was independent trader.
More...
What way do you trade?
 
futures, directionally. I place bets on where I think the price of the contract will go.

I don't trade gas often, but I'm actually short it now ironically.
 
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