Seriously what's the deal with "spreading"?

TraDaToR said:
but I don't think MOST calendar spreads have a trendy property.
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When you use the term "calendar spreads", are you referring to a simple pair with two legs - same product / different month ? Are you lumping butterflies and condors into your assumption about trending ? Is there a particular reason ( like prop firm rules to get flat by the close ) that drives your brief holding time frames ?

Sorry for the follow-up questions, but I'm just trying to get some color about what's driving your frustration.

I used to trade size spreads here in Chicago for several years on an intraday basis ( prop firm ) and for long term ( HF and Commercial and now my own account).
 
When you use the term "calendar spreads", are you referring to a simple pair with two legs - same product / different month ? YES Are you lumping butterflies and condors into your assumption about trending ? I BELIEVE THEY ARE MORE MEAN REVERTING THAN CALENDARS Is there a particular reason ( like prop firm rules to get flat by the close ) that drives your brief holding time frames ? NO. I SCALP NATIVE CALENDAR SPREADS DAILY . THE FRUSTRATION IS ONLY ON AUTOSPREADER PAIRS...BY THE WAY, I HAVE GOOD RESULTS ON A LONG TERM BASIS TRADING THE CURVE.

Sorry for the follow-up questions, but I'm just trying to get some color about what's driving your frustration.

I used to trade size spreads here in Chicago for several years on an intraday basis ( prop firm ) and for long term ( HF and Commercial and now my own account
 
What I am trying to understand, Bone, is why there are many people replicating spreads with autospreaders when you can simply post a size on a native calendar spread and wait to be filled with no legging risk? Perhaps you can enlighten me...:) My theory is that autospreaders are useless in agricultural space.

Following up on one of your questions, I have never traded or tested condors in fact, but butterflies seems more mean reverting to me.
 
TraDaToR said:
What I am trying to understand, Bone, is why there are many people replicating spreads with autospreaders when you can simply post a size on a native calendar spread and wait to be filled with no legging risk? Perhaps you can enlighten me...:) My theory is that autospreaders are useless in agricultural space.
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I can't enlighten you because I agree with your statement 150%. I have a TT Pro license and haven't used the AutoSpreader function in probably two years. I absolutely love the exchange supported spreads and I encourage all of my clients to use them whenever and wherever possible.
 
TraDaToR said:
OK. For an number of years I hear that most good futures traders are "spreaders" who use autospreaders... First time I come to the CBOT, the broker tells me the ones making money are spreaders, I go to London, Gibraltar, same thing...

For the last seven years I have lived off trading outrights and then native calendar spreads...So this year I decide to switch to X Trader Pro to pursue "spreading"...Yoohoo...Everytime I have a genuinely good spreading idea, i get picked up( of course I am in Europe, 1 sec latency...LOL) and when I try to find spreading ideas based on correlation, I can't find anything... The products which are really correlated( different wheats, soy and soy products...) already have intercontract native spreads. The products you think might correlate well logically( cocoa NY and London, robusta coffee and arabica ...) don't. There's no mean reverting property there...On the other side I don't see any real trendy property in spreads like Bone claims... Of course, it all dépends on the instrument...

So seriously , what's the deal? I must be missing something...In the agricultural space, no need for an autospreader, just trade native spreads, right?

Thanks for your help...
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Where did you trade in Gibraltar? Is there a prop trading firm running these days?

Thanks in advance
 
TraDaToR said:
OK. For an number of years I hear that most good futures traders are "spreaders" who use autospreaders... First time I come to the CBOT, the broker tells me the ones making money are spreaders, I go to London, Gibraltar, same thing...

For the last seven years I have lived off trading outrights and then native calendar spreads...So this year I decide to switch to X Trader Pro to pursue "spreading"...Yoohoo...Everytime I have a genuinely good spreading idea, i get picked up( of course I am in Europe, 1 sec latency...LOL) and when I try to find spreading ideas based on correlation, I can't find anything... The products which are really correlated( different wheats, soy and soy products...) already have intercontract native spreads. The products you think might correlate well logically( cocoa NY and London, robusta coffee and arabica ...) don't. There's no mean reverting property there...On the other side I don't see any real trendy property in spreads like Bone claims... Of course, it all dépends on the instrument...

So seriously , what's the deal? I must be missing something...In the agricultural space, no need for an autospreader, just trade native spreads, right?

Thanks for your help...
More...


1sec latency? Where exactly in Europe do you live? Quite strange, there must be something wrong with your internet provider.

Spreading ideas base on correlation is mistake (at least from my statistical research):
1. You should rather use cointegration - explanation why correlation is very dangerous to use is here: http://effectivetrader.blogspot.cz/2014/04/kointegrace-vs-korelace.html
Maybe I should start to write in english, because "googletranslator" is sometimes not working properly and then english senteces look kind of broken lol ... but if you try hard enough, I think you should understand what I mean even with google translated text :-)
2. Or you can use seasonality charts for trading futures - some review of seasonal chart services/softwares: http://effectivetrader.blogspot.cz/2014/06/nastroje-pro-obchodovani-komoditnich.html

Anyway my experience so far is, that there is much more trading opportunities in stock markets than in trading futures outright and spreads together...
 
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