SpreadProfessor Openings
- Thread starter bone
- Start date
Yep, I'm with you there, bone... 2008 was a massive lesson in the importance of sizing.
Epic delete.
bone, I'm curious: Do you choose what you're trading on a daily basis via the signal scanning software that you provide to clients, or also a gut feel for what's working or not working on a particular day?
Johnny:
Scanning software gives me an alert on a set-up, so the scanner is the screening tool. I have hundreds of spread combinations over every listed electronic exchange, so I need the efficiency and cold-hearted unattached accuracy.
I keep each spread combo in a chart with the coded studies I use, and those are tiled and saved under separate pages according to market space and exchange. When I get an audible/visual alert from the scanner I will pull up the corresponding chart and verify the signal. If I choose to take the trade signal, I apply a series of rules to determine the stop/loss level and profit target before I swing over to my other machine for trade execution. For exchange-supported spreads, I can use electronic GTC orders for stops and profit level orders. For the synthetic spread positions, I will set audible chart alarms on the appropriate price levels.
I am carrying inventory, and I want to let myself get taken out and move to the next position. It's all about risk reward. Leverage the shit out of generous exchange SPAN spread credits for initial premium.
Scanning software gives me an alert on a set-up, so the scanner is the screening tool. I have hundreds of spread combinations over every listed electronic exchange, so I need the efficiency and cold-hearted unattached accuracy.
I keep each spread combo in a chart with the coded studies I use, and those are tiled and saved under separate pages according to market space and exchange. When I get an audible/visual alert from the scanner I will pull up the corresponding chart and verify the signal. If I choose to take the trade signal, I apply a series of rules to determine the stop/loss level and profit target before I swing over to my other machine for trade execution. For exchange-supported spreads, I can use electronic GTC orders for stops and profit level orders. For the synthetic spread positions, I will set audible chart alarms on the appropriate price levels.
I am carrying inventory, and I want to let myself get taken out and move to the next position. It's all about risk reward. Leverage the shit out of generous exchange SPAN spread credits for initial premium.
I spent 18 months in the Bond pit leasing a Full Membership and scalping. Moved over to the Notes on a creative whim and never looked back. Was also very fortunate to get some fantastic mentorship very early on from two of the best spread traders in the universe - one owns TransMarket Group and the other was (and is) probably the biggest independent trader who ever cleared TMG.
Things really took off for me with the electronic markets - from 'Project A' in the early '90s to DTB in the mid to late '90s. I've always done far better trading electronically because of the access to so many different markets, and the fact that things are much more equal in the electronic markets in terms of access to order flow. Electronic markets are a spread trader's wet dream.
Things really took off for me with the electronic markets - from 'Project A' in the early '90s to DTB in the mid to late '90s. I've always done far better trading electronically because of the access to so many different markets, and the fact that things are much more equal in the electronic markets in terms of access to order flow. Electronic markets are a spread trader's wet dream.
The "lightbulb" came courtesy of a table of floor brokers at a local pub, when queried about me regarding what types of strategies and traders who made the most money over the long haul. Best bar tab I ever paid.
The other obvious thing was an observation I made in the early 90's about what kind of independent traders were cancelling their leases and buying the membership seats.
The other obvious thing was an observation I made in the early 90's about what kind of independent traders were cancelling their leases and buying the membership seats.
I'd say 2002 more like
But seriously, real Profs, are notoriously sloppy and absent-minded, so all is forgiven, bye 'til stacks lust!
04-10-02 11:34 PM
Sorry for the late reply; I just joined today. I trade 150-200K Eurex capital market futures contracts/month. The options markets are VERY liquid, and are comprised mostly of "black box" market-making firms who bid/offer calls/puts according to the current level trading in the futures market, and the software legs the futures leg (hedge)automatically. The futures leg quantity, of course, is calculated according to the delta of the strike where the option was executed.
These firms are typically WELL capitalized, and carry extensive books. It is not uncommon for them to buy/sell tens of thousands of futures contracts per day in order to adjust delta risk, and as they are "hit" on offset option positions.
If your purpose is to speculate, the bid/ask spreads are very tight, and you should be able to leg into a straddle or strangle with very reasonable slippage.
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