Spread Trading - an easier way to trade!

Joe

Could you go into more details on the Corn trade.

What contracts did you trade specifically, why corn
and what if any other filters did you use as the entry other then the hook.

What is you plan for exiting the trade.

I think this would help people see your process to see if it would suit their style (while my style to be honest... lol)

:)
 
After long thinking, I have decided to create a site on commodities spreads and seasonals.

It's here http://moneycat.greatnow.com

My goal is to include and make available to the public raw data and research outcome over different seasonals and spreads strategies.

It's still at the beginning, so don't expect too much right now, rather please return periodically to see new additions.
 
Quote from atorchio:

After long thinking, I have decided to create a site on commodities spreads and seasonals.

It's here http://moneycat.greatnow.com

My goal is to include and make available to the public raw data and research outcome over different seasonals and spreads strategies.

It's still at the beginning, so don't expect too much right now, rather please return periodically to see new additions.
More...

Your link doesn't work....:)
 
Quote from keeptradin':

Well, he did warn us not to expect much...LOL! :p
More...

But that's below my lowest expectations! :D

It worked fine, until I decided to post here... Is it already time to change provider?

I'll give them a few more days...
 
Hi folks,

I'm a newbie to the forum so pardon any repetitive questions.

I've been an electronic scalper for a while and doing well (knock on wood). I use X-Trader Pro and CQG for charting. I'm very proficient with both.

However, I would like to start looking at other methods of trading. I'm a customer at a futures FCM at the CBOT. Most of the other customers are bond spreaders trading the FOB, NOB, FIT.

My questions are:

1. How are these spreads calculated?
2. Is there a book/website/tutorial some where?
3. Are there other electronic spreads worth looking at?

I know this is so much to ask from you guys, but I have been doing research for a while and I'm completely lost.

Thanks for the help.
 
Quote from FuturesTrader71:

Hi folks,

I'm a newbie to the forum so pardon any repetitive questions.

I've been an electronic scalper for a while and doing well (knock on wood). I use X-Trader Pro and CQG for charting. I'm very proficient with both.

However, I would like to start looking at other methods of trading. I'm a customer at a futures FCM at the CBOT. Most of the other customers are bond spreaders trading the FOB, NOB, FIT.

My questions are:

1. How are these spreads calculated?
2. Is there a book/website/tutorial some where?
3. Are there other electronic spreads worth looking at?

I know this is so much to ask from you guys, but I have been doing research for a while and I'm completely lost.

Thanks for the help.
More...

Hi FT71,

Quite a few 'basics' and strategy downloads for interest rate contracts can be found on both the CBOT's and CME's websites. Many of the various spread value calculations are covered in this literature, and they're useful for general orientation. Also, LIFFE's 'Trading STIRS' is comprehensive for a lot of the theory and basic spreads.

For books that will describe the mechanics of interest rate spreads and the ratio calcs, check authors such as Fabozzi, Tuckman and Choudhry, Kolb, John Hull, while Kaufman examines TA of spreads in his work. There are no (IMO) practically useful books on developing spread trading strategies. It takes (as you are finding) '000s of hours of effort, despite what this thread title may claim!

Curve traders also use EDs as proxies for certain Treasury contracts - the shift of volume to Globex has really helped. Look beyond the obvious - the 'traditional' spreads such as TED are hardly viable these days. Still, it depends what your game is going to be - spread scalping, curve trading, basis trading etc.

Evaluate your need for CQG. I know of a few pros who use only Barchart (much cheaper, and good for spread charting). You can get a long way with paying nothing, but again, depends on the timeframe for your trades.

regards,
 
Quote from dunleggin:

Hi FT71,

Quite a few 'basics' and strategy downloads for interest rate contracts can be found on both the CBOT's and CME's websites. Many of the various spread value calculations are covered in this literature, and they're useful for general orientation. Also, LIFFE's 'Trading STIRS' is comprehensive for a lot of the theory and basic spreads.

For books that will describe the mechanics of interest rate spreads and the ratio calcs, check authors such as Fabozzi, Tuckman and Choudhry, Kolb, John Hull, while Kaufman examines TA of spreads in his work. There are no (IMO) practically useful books on developing spread trading strategies. It takes (as you are finding) '000s of hours of effort, despite what this thread title may claim!

Curve traders also use EDs as proxies for certain Treasury contracts - the shift of volume to Globex has really helped. Look beyond the obvious - the 'traditional' spreads such as TED are hardly viable these days. Still, it depends what your game is going to be - spread scalping, curve trading, basis trading etc.

Evaluate your need for CQG. I know of a few pros who use only Barchart (much cheaper, and good for spread charting). You can get a long way with paying nothing, but again, depends on the timeframe for your trades.

regards,
More...

Some excellent advise....

Could you be more specific if one where trying to use spreads on a short term (say 1 month) timeframe.

I need to generate a monthly income from my account.
 
Quote from Samson77:



Could you be more specific if one where trying to use spreads on a short term (say 1 month) timeframe.

I need to generate a monthly income from my account.
More...

I can, but please define what 'monthly income' means to you (conceptually)

I trade mostly money markets and notes, and my timeframe is typically 3 - 15 trading days in the futures spreads.
 
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