Ah, flatteners... Very nice! Fundamentally, I think it's the trade to do, pretty much across the world.
SpreadProfessor Openings
- Thread starter bone
- Start date
Marting:
When I first started doing this, 75% of my new clients were fixed income curve traders sick of fading moves and having their heads handed to them. Well, I gave them a divergence model that works, and I gave them a much broader selection of market spaces to be in - my theory for clients is to 'cherry-pick' the best set-up bias. All markets come and go, and if you're a 'one-trick' pony, you are going to suffer along with it. When you force trades in a crap market because you desperately need the income, nothing good ever becomes of it.
Flash forward several months later - there are some awesome curve trades with my model, and I cannot get them to even sniff the curve. Not a taste. Not even a little mouse nibble. They are just so enamored with metals and cracks. Two of my guys have to be 15% of the Comex market - they are buying up seats to park the pre-tax expenses. Go figure.
When I first started doing this, 75% of my new clients were fixed income curve traders sick of fading moves and having their heads handed to them. Well, I gave them a divergence model that works, and I gave them a much broader selection of market spaces to be in - my theory for clients is to 'cherry-pick' the best set-up bias. All markets come and go, and if you're a 'one-trick' pony, you are going to suffer along with it. When you force trades in a crap market because you desperately need the income, nothing good ever becomes of it.
Flash forward several months later - there are some awesome curve trades with my model, and I cannot get them to even sniff the curve. Not a taste. Not even a little mouse nibble. They are just so enamored with metals and cracks. Two of my guys have to be 15% of the Comex market - they are buying up seats to park the pre-tax expenses. Go figure.
To each their own... I, unfortunately, don't have the luxury of tapping other mkts, as it's not in my mandate. So I have to diversify across time horizons and the macro/RV spectrum. It's been interesting recently, to put it mildly.
Crude Oil calendar spreads have been very good the past few days - looks like they are picking up a tad in range and vol which is good for us.
Several prospects have asked about using more 'retail-oriented' brokers like Interactive Brokers for an account to spread trade. The fact of the matter is that I have four clients using IB that are funded quite modestly by most standards for independent traders - and their monthly expenses have been less than 25% of their profits. My preference has been to dial down the sensitivity on their models a tad and put them into spread combinations and market spaces that have modest risk and can accomodate slightly longer holding periods - typically several minutes to a couple of hours. Once they build some capital and confidence in the system, we can always ramp up the capabilities and monthly expenses.
I hate digging holes up front. Worst thing. Much better to start off slower with more deliberation and planning. Now if I can manage to translate that mantra to my sex life.
Several prospects have asked about using more 'retail-oriented' brokers like Interactive Brokers for an account to spread trade. The fact of the matter is that I have four clients using IB that are funded quite modestly by most standards for independent traders - and their monthly expenses have been less than 25% of their profits. My preference has been to dial down the sensitivity on their models a tad and put them into spread combinations and market spaces that have modest risk and can accomodate slightly longer holding periods - typically several minutes to a couple of hours. Once they build some capital and confidence in the system, we can always ramp up the capabilities and monthly expenses.
I hate digging holes up front. Worst thing. Much better to start off slower with more deliberation and planning. Now if I can manage to translate that mantra to my sex life.
I have received several queries about my scheduling availability for private webinar conferences with clients. One of the benefits to me for capping client enrollment and controlling how I rotate new clients into my training program is that I can schedule a private session just about any time on weekdays (within an 18 hour workday window for me) if given 12 hours notice. On occasion I can schedule on weekends. About 75% of the time I can make a meeting with a couple hours notice.
I have clients in Norway, the Netherlands, UK, Australia, Singapore, and all U.S. timezones - client access and scheduling difficulties has not really posed problems. If I'm trading on a given day and I have some reasonable lead time, it's never been an issue. Of course, I can answer emails or Skype and cell calls just about any time if there is no imminent economic release data forthcoming.
Another benefit to limiting enrollment and rotating clients through at controlled intervals is that clients can proceed at their own pace and scheduling requirements in terms of how many meetings they would like and the frequency of those meetings.
I have clients in Norway, the Netherlands, UK, Australia, Singapore, and all U.S. timezones - client access and scheduling difficulties has not really posed problems. If I'm trading on a given day and I have some reasonable lead time, it's never been an issue. Of course, I can answer emails or Skype and cell calls just about any time if there is no imminent economic release data forthcoming.
Another benefit to limiting enrollment and rotating clients through at controlled intervals is that clients can proceed at their own pace and scheduling requirements in terms of how many meetings they would like and the frequency of those meetings.
I have signed three ET members last week after extensive due diligence was completed, and I would like to take on two more clients. Anyone who is genuinely interested should PM me here on ET or email my website address link. About half of my new clients since January have been options traders - speculators and market-makers.
You big swinging d***.
I've always laughed when people complained to me about ICE and Nymex commissions and the tic size. You can make or lose alot more money trading a ten lot in Nymex than you can a fifty lot in the CBOT Notes. Literally. Seriously.
I have got several guys with modestly funded IB accounts, paying like $5 a turn and using the TWS for execution, who are doing great trading the RBOB Crack and the CL front calendars. Even with 'retail' commissions, certain spreads are quite functional.
Metals spreads are going great guns, too.
I've always laughed when people complained to me about ICE and Nymex commissions and the tic size. You can make or lose alot more money trading a ten lot in Nymex than you can a fifty lot in the CBOT Notes. Literally. Seriously.
I have got several guys with modestly funded IB accounts, paying like $5 a turn and using the TWS for execution, who are doing great trading the RBOB Crack and the CL front calendars. Even with 'retail' commissions, certain spreads are quite functional.
Metals spreads are going great guns, too.