Sample Futures Spread Portfolio Capital Requirements (CHEAP)

[drownpruf]

Those spread combination listed in the original posts were pure random examples of SPAN initial margin rates - nothing more implied or intended. Just illustrating some capitalization costs.

My clients would draw and quarter me for sharing IP that they've contracted rights to and paid for.

Having said that, we do really well with butterfly and condors.

Your interpretation of "edge" is your interpretation.

Do you supply a client list to prospects so that they can vet your service?

 

[ballsofgold]

Those spread combination listed in the original posts were pure random examples of SPAN initial margin rates - nothing more implied or intended. Just illustrating some capitalization costs.

My clients would draw and quarter me for sharing IP that they've contracted rights to and paid for.

Having said that, we do really well with butterfly and condors.

Your interpretation of "edge" is your interpretation.

that's is understood. i do some flies and boxes as well, when i find good ones....but most of them suck.

as someone who has prospectively interested in becoming a client,
how many different profitable strategies are you running?

are you then saying that a client would have to pay your one off fee to have IP rights to your strategies?

 

[bone]

Do you supply a client list to prospects so that they can vet your service?

Yes, and they can be independently contacted. Emails are exchanged and sometimes phone calls. The big "if" being that I deem an interested person as being a serious prospect that has the potential to succeed. Only then will I refer them on to clients for further due diligence. On several occassions, I've had clients express concerns about candidates - so the " vetting" is a two- way street.

 

[bone]

are you then saying that a client would have to pay your one off fee to have IP rights to your strategies?

Yes, there is a four page consulting contract that deals primarily with IP. Essentially, the client is paying a one-time fee for access to my strategies, and in turn the client agrees that he keeps the models and indicators to himself. For example, he can prop trade or bank trade provided he maintains the confidentiality to himself.

 

[ballsofgold]

Yes, there is a four page consulting contract that deals primarily with IP. Essentially, the client is paying a one-time fee for access to my strategies, and in turn the client agrees that he keeps the models and indicators to himself. For example, he can prop trade or bank trade provided he maintains the confidentiality to himself.

OK that's interesting then. will have a think over.

 

[drownpruf]

Yes, and they can be independently contacted. Emails are exchanged and sometimes phone calls. The big "if" being that I deem an interested person as being a serious prospect that has the potential to succeed. Only then will I refer them on to clients for further due diligence. On several occassions, I've had clients express concerns about candidates - so the " vetting" is a two- way street.

OK, so the "dozens" (26 as you've stated previously) of ETers that have taken your "course" can be vetted only if you think the prospect is serious? God, this is a joke. Quick, take the deal before I double the entry fee! Is this sh*t even legal? Don't you have to be reg with the NFA to offer this service?

 

[jtrader33]

Most professional spread traders will tell you that spreads just simply "behave" better, trend better...

What's the intuition behind spreads trending better? After looking at your site, it states that this holds true in the case of equity pairs as well. I get why mean reversion would work - e.g. two airline stocks have similar exposures to fuel, travel demand, etc...but am at a loss for why trends in an equity pair would persist.

 

[bone]

OK, so the "dozens" of ETers that have taken your "course" are vetted only if you think their serious? God, this is a joke.

I don't teach newbies how to trade. Don't have the time and don't need the hassle. I take on experienced traders for clients who want to learn how to spread trade a wide portfolio of products. I was a commercial energy trader, and I traded interest rates and a variety of commodities at a prop firm and a fund. My typical client would be, for example, an ES day trader who wants to add an additional revenue stream or a Chicago fixed income yield curve prop trader who wants to get into energy and metals.

For example, I took on a floor trader at SFE who traded the STIRs - now, he's on the GS-Singapore energy desk.

I view spread trading as a smart growth progression for a flat price day trader. Think of it as continuing education.

I've taken on quite a few Bright prop traders who did a lot of equity pairs, but they wanted to learn how to spread trade futures.

So yes, I'm looking for a level of experience and competency to work with.

 

[drownpruf]

I don't teach newbies how to trade. Don't have the time and don't need the hassle. I take on experienced traders for clients who want to learn how to spread trade a wide portfolio of products. I was a commercial energy trader, and I traded interest rates and a variety of commodities at a prop firm and a fund. My typical client would be, for example, an ES day trader who wants to add an additional revenue stream or a Chicago fixed income yield curve prop trader who wants to get into energy and metals.

For example, I took on a floor trader at SFE who traded the STIRs - now, he's on the GS-Singapore energy desk.

I view spread trading as a smart growth progression for a flat price day trader. Think of it as continuing education.

I've taken on quite a few Bright prop traders who did a lot of equity pairs, but they wanted to learn how to spread trade futures.

So yes, I'm looking for a level of experience and competency to work with.

And none of these claims are vetted.

Don't you need to be registered as a CTA? The advice offered is specific in nature and decidedly one on one. I think you should be registered for all the reasons you cite in this thread (know your client).

 

[ballsofgold]

What's the intuition behind spreads trending better? After looking at your site, it states that this holds true in the case of equity pairs as well. I get why mean reversion would work - e.g. two airline stocks have similar exposures to fuel, travel demand, etc...but am at a loss for why trends in an equity pair would persist.

what he says is true that when you have correlated products, for some reason they have moments where you can get some clean trends. it might be that when something structural happens to one leg of the pair, the divergence happens in a systematic manner.

(see attachment as example - this is a live strategy that i trade using an autospreader)

I have never looked at equity pairs, per se, but i am a specialist in some of the markets that are listed on his website - and let me say its very difficult to make any real money out of some of the things he is marketing. I am constantly looking for all sorts of spread combinations to find an edge, and let me say that is almost like finding a needle in the haystack.

However, the probability of finding a successful strategy to trade daily to make consistent money is much greater than trading outright. There is lot of good things being marketed on his website, and i am very tempted. So I am in two minds about this guy Bone.


the truth is, any bonehead can purchase and autospreader and play around with various products. The key is do you have an idea as to why the strategy would exist in the first place, you just have to work hard to manipulate data and play around with combinations........ In that sense, i think the price of his course is overvalued - especially since he wants it upfront.....if it was pay as you go then that would be cool.

However, if he is currently working existing strategies where he is willing to share IP rights, then 7500 usd is probably only one to two months profits and it is worth it, but then this is where i become skeptical. Why the FUNK would anyone want to do that?