i just have always thought that if you had the talent to leg really well you wouldn't need to spread at all....
Hi Bone, I'm an eSignal user and I can't seem to find such a library of 7009 exchange supported spreads. I fully realize that you're not eSignal support (who themselves couldn't point to it) but I'd appreciate it if you could guide me to where in eSignal I could find the library to whichyou're referring -- Thanks.
Go to "file" in the upper left toolbar, then "new", then "symbol search", then in the "search for all instrument types" tab scroll down and select "exchange-traded spreads". The next tab over to the right allows you to "search for all exchanges" or to select an exchange. This exact description might vary depending upon what version of eSignal you are using, but the facility is there regardless. I would imagine that the number of exchange-traded spreads that you are able to pull up is directly proportional to the number of futures exchanges that you are personally subscribed to.
There is nothing stationary about trading crude flys as of late... All rolling off the contango end of the earth... Any insight Bone?
Not quite sure what you mean by the term "stationary" - are you referring to mean reversion back towards a state of backwardation or some sort of historical mean, or what ?
butterflys act like calender spreads if the market stays in deep contango is what i'm saying... stationarity yes has to do with mean reversion
I've always felt that calendar spreads in the energy complex at least were highly delta directional with the underlying prompt contract, and that butterflys and condors were not so much. I hear what you are saying, but I'm not necessarily in agreement with the notion that butterflys - especially those constructed further out in the curve, act like calendar spreads per se.
ya... i agree calendar spreads are highly directional... what i'm getting at is.. if crude stays in steep contango for an extended period of time those flys roll off the curve much similar to calendar spreads themselves... I have yet to find a way to get stationarity by a construction of spreads.. i was hoping to accomplish that with double flys.. so once could more islate a dislocation and spread away the other risks (like roll off risk/ price level) etc.. you take a discontinuity in dec contract of the structure xzf17 we could stay in contango and that could just get more dislocated all the way to expiration.. if you quote to the front contract then i'm saying it would go more negative.. it was at -.14 at the height of selling more recently... i'd love be told i'm wrong... i generally have traded closer to expiration for more action yet still 3 months away from the front contract..
cd, Just MHO - if a trade setup frustrates you, don't take it. Hopefully nobody has put a gun to your head and told you to find a CL spread trade that you like. Bury those charts on a different page or tab and look at Nat Gas, Heating Oil, ICE Gas Oil, STIRS (been good lately)... my clients are finding trades and quite frankly most of them are butterflys and condors ( we like 'em ). Forcing trades ( or love ) just does not work.