Spread Trading

[Overnight]

...Its admins with fake accounts to stir up controversy to get you to interact more on the site. Good luck. like i said. i cut losers trading and in real life faster than a fpga

To infer that the admins of this site have fake accounts here, and post through them to "stir up controversy" to generate more clicks, is insulting at the least.

We armchair warriors of the market generate enough original content that the "admins" do not have to attempt that sort of cheapy traffic shit. I mean, seriously. Step back and look at all the original content of poop we unique usernames produce. The "admins" do not need our help. We just can't help ourselves.

Case in point, me! The admins could never make up the shit I post. So apologize to Baron, or he might give you a purple nurple.

P.S. This is the commod futures section, Keep any options talk to the options section where it belongs. In the loony bin where options folks reside. Crazy stuff. (But as I am starting to learn, very slowly, maybe more sane than futures. The FACK.)

 

[gaussian]

First of all this one thread explains what this site is about and the stench of money kosers permeates every pixel no matter if its 8k or 4k. Gaussian its clear you have never heard the word synthetic except when it comes to your demo acct which is synthetic along with Real Money who is probably just like 90% of all the fake users here who are part of the masquerade just to keep ad revenues flowing. personally any entity that advertises on this site is someone you should steer clear of and this guy bone who charges 7k for a spread class.lmfao. it aint rocket science and thats a steep tuition price. believe what you want but 90% of the jamokes on this site are not even real people. Its admins with fake accounts to stir up controversy to get you to interact more on the site. Good luck. like i said. i cut losers trading and in real life faster than a fpga

I've actually done fairly well so far trading spreads, with a downside risk that is tolerable.

You don't trade synthetic commodity spreads. You're in the wrong forum, and apparently missing a dose of your tranquilizer.

 

[BlueWaterSailor]

Case in point, me! The admins could never make up the shit I post. So apologize to Baron, or he might give you a purple nurple.

How do you know you're not just an AI that Baron wrote, with generated sense data being fed to your proprioception() function?

https://www.iep.utm.edu/brainvat/

P.S. This is the commod futures section, Keep any options talk to the options section where it belongs. In the loony bin where options folks reside. Crazy stuff. (But as I am starting to learn, very slowly, maybe more sane than futures. The FACK.)

Daaaamn. Give a guy a little taste, next thing you know, he wants to bogart the whole thing. All right, all right, I guess there's enough liquidity to accommodate one more options trader...

 

[trustedsource]

Slippage? Use limit orders.

Huge losses? Don't trade multi-lots and keep your margin requirements in check.

Spreads are filled on the exchange together so you are never legged into or out of a spread (unless you leg in yourself).

This has been a waste of time reading. In order to make myself feel better I found this book to help you with your spelling mistakes.

I shouldnt waste the pixels but im just a sucker for bonafide stupidity that also trades money. learning easily how inexperienced my adversaries are only fuels my money grab. just because you place a limit order does not stop slippage in spreads. the post you wroylte abiut using limit orders for spreads to stop slippage had enough real traders laughing in unison to register on an alaskan richter!

 

[trustedsource]

I've actually done fairly well so far trading spreads, with a downside risk that is tolerable.

You don't trade synthetic commodity spreads. You're in the wrong forum, and apparently missing a dose of your tranquilizer.

i actually dont give a crap how great u think you are..

 

[gaussian]

I shouldnt waste the pixels but im just a sucker for bonafide stupidity that also trades money

Aww, im flattered you know I trade money

earning easily how inexperienced my adversaries are only fuels my money grab.

Again, yeah I'm learning futures spreads but I'm really quite enjoying it. It's been the most stable return I've experienced in a long time.

i actually dont give a crap how great u think you are..

I'll admit I'm definitely not great. Still learning spread trading futures. But it's a lot more fun than playing with the chop in ES.

just because you place a limit order does not stop slippage in spreads.

Anecdotal but in 5 years of trading I've never experienced a slippage in a limit order. Of course they fill in your benefit, but slippage means I lose money - and that I've never experienced on a limit order. If you mean fill on the legs maybe? But that's not the way you calculate a spread regardless. I currently trade with IB but even with AMP I've had excellent results placing limit orders. I'd be surprised if it's even possible to experience slippage in a limit order given you're getting filled on the book.

How're doing RED? If you're going to make alts at least change the way you post a little.

 

[trustedsource]

no one said you lose on a limit order. im glad to see you went and studied a little and learned that yes you can lose trading spreads with limits. its obvious by your answer you didnt know shit and still dont. good luck you will need it. 90% of black swan blow ups were in a spread that out of nowhere just completely crushed participants.. will happen over and over. if u cant trade es on its own dont attempt the spread. es is easy along with all other stock indexes these days

 

[Trader13]

There is no such thing as "standard deviation" in the marketplace. A fact very few realize.

To have a standard deviation, you need to have a stable average.

Averages are unstable in fat-tailed domains.

It has infinite variance.

Research further. I can point you down the path to gain further understanding.

In this case, which measure of variance would you use?

 

[trustedsource]

in

no one said you lose on a limit order. im glad to see you went and studied a little and learned that yes you can lose trading spreads with limits. its obvious by your answer you didnt know shit and still dont. good luck you will need it. 90% of black swan blow ups were in a spread that out of nowhere just completely crushed participants.. will happen over and over. if u cant trade es on its own dont attempt the spread. es is easy along with all other stock indexes these days

truth you lose more on limit orders than any other order type due to not getting filled. u think hft just ignores your order on the book. they know exactly what order you are in to get filled. they have algos that will stop filling 2 contracts before u fill on purpose. u sit there n say damn they hit my price n now im losing or now im not in. that is called opportunity cost and thats what you dont seem to understand when you have edge a limit vs mkt order wont be the difference between profit and loss as far as slippage but as far getting filled period it will change everything. imagine a roulette wheel no greens or zeros. you are playing red..red 22 times in a row. u know it can go red into eternity but at this point u say im going to bet black. it goes red 23 times. u say crap. ill sit the next one out..it goes black on the 24th spin amd u werent in it!! see opportunity cost. you chased it for 23 spins n gave up...sadly even if u had won on black this is where you the bad gambler would have said i won i won..but a real trader says ok..so im betting black again and again or im going to bet red again ..you dont stop trading and this happens when limits are utilized by missing opportunistic trades in the mkt because you have such little edge or no edge that 5 bucks a tixk or 12.50 a tick is the difference between winning n losing. just ridiculous

 

[bone]

would like to do more analysis on pair trades in energy commodities. What are the biggest factors in analyzing a spread trade like this? Standard deviation and correlation are the two I would
Think are most important, correct ? Thanks.

It's too bad that your sincere thread has been hijacked.

For intra market spreads (same commodity, different expiries), naturally correlation isn't a real issue. For inter market spreads that are recognized by exchanges for SPAN margin credits, (like Gasoline versus Crude or Two Year Notes versus dated Eurodollars) those are highly correlated - but other less obvious synthetic combinations can get exotic (like Transco Zone 6 Natural Gas versus TCO Appalachian Natural Gas, or French 10 Year Notes versus German Bunds) and will require analysis for correlation and cointegration.

If you stick to exchange-recognized spreads they will always be considerably less expensive to trade in terms of margin than outright futures.

I would suggest that you swing trade them and not day trade them.