Seasonal spreads

Experiencing HUGE P&L-swings right now, something I was mentally prepared for. Looks like the RB-spreads can be turning now, we'll see tomorrow. I still am looking to add to positions there.
 
Added to my RBOB spreads:

1 Jan 08/May 08 @ -0.1860
and
1 Feb 08/Jun 08 @ -0.1620

This makes the current average position:

Long 3 Jan 08 / Short 3 May 08 @ -0.1820

Long 3 Feb 08 / Short 3 Jun 08 @ -0.1506

Yesterday was a huge turnaround day in the relationship between Heating Oil and Gasoline, so the seasonality may have bottomed on Wednesday. I'm looking to add one more contract in each of the RBOB spreads on Monday as well.
 
Ok, here we go again - a spread in interest rates which isn't properly balanced. This has been discussed before, but it's carried out 1:1...

Bought 1 Mar 08 ZT 2-Year Notes / Sold 1 Mar 08 ZF 5-Year Notes @ 100.015,625

I'm looking to add one more next week - on Monday was the plan, but waiting until after Fed.
 
hrokling,

I am very interested in getting my feet wet with spread trading.

I am a novice and would love to hear of some things to watch out for. Just simple advice would be greatly appreciated.

Thanks for the great journal!
 
And now I added to my RBOB spreads for the last time:

1 Jan 08/May 08 @ -0.1870
and
1 Feb 08/Jun 08 @ -0.1600

This makes the current average position:

Long 4 Jan 08 / Short 3 May 08 @ -0.1832

Long 4 Feb 08 / Short 3 Jun 08 @ -0.1530

This position makes me smile - although I trust my calculations and method I KNOW that this position is huge and volatile. It's going to be extremely interesting to follow the development of Gasoline (and also Heating Oil) over the next couple of weeks.
 
Quote from Don't Pass Bet:
I am very interested in getting my feet wet with spread trading.

I am a novice and would love to hear of some things to watch out for. Just simple advice would be greatly appreciated.

Thanks for the great journal!
More...
Glad you appreciate it! As for spreads, the best way is to fund an account and start with the small ones. The ZT / ZF one shouldn't be too volatile if you wait until after Fed, but you should be careful with energies. You could start with buying the MRCI Encyclopedia to get an overview of various strategies. I also recommend Howard Abells book on Spread Trading. Other than that I know Joe Ross has many books out - I haven't read them, but some say they're great. Good luck with your spreading ventures!
 
Opened the following position today:

Bought 2 Nov 08 / Sold 2 May 08 ZS Soybeans @ -97 1/2

Planning to keep it until the beginning of February, with a pretty wide stoploss.
 
Ok, one last spread today:

Bought 1 Jun 08, Sold 1 Mar 08 NG Natural Gas @ 0.160

It's quite annoying, but this is a spread I had meant to enter next week. However, I've been watching it since it was negative - and the uptrend has been silky smooth. It's almost impossible to understand that it's a spread in Natural Gas that you're watching.

When you do your due diligence (look at the history of the spread) it's had a few extremely violent years (I'm talking drawdowns in ten thousands), and they've usually come early December. And I've gone around, waiting for one of these, without one surfacing (yet?). And all the time it's now moved 2.000 usd since I started watching it. I'm getting in, and if I'm stopped out it's meant to be :) Famous last words: This time it's different.
 
Took stoploss in Soybeans:

Sold 2 Nov 08 / Bought 2 May 08 ZS Soybeans @ -120 - CLOSED - LOSS -22 1/2 which is usd 2.250.

In retrospect this trade just looks silly. Moving on...
 
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