Right I would only leg into the double by using single flys.. Not even going down an order to cals... Otherwise the legging risk is a trade in itself and alot more risky
correct nobody was saying leg into a box spread from the individual months lol that would clearly be dumb.
The thing you have to realise caveman is anyone who is trading this sort of thing has probably signed an NDA or would not want to show their hand. GL
I just had a potential client interview at a prop firm in Chicago. He claimed that the principals interviewing him stated to him that most of the traders were spread traders - and much more complex and diverse than simply trading the roll or a calendar pair. And of course, there is an extensive NDA and non-compete agreement involved.
I trade these relationships all the time. You're just isolating the month you think is out of line in this case the long 3 lot relative to the short 1 lot, I've never called it a double fly but I guess that's what it is, I just call them relative value combos. I generally leg into them with a 3 lot in the 1 month spread that's out of whack and a 1 lot in the 3 month spread.
Ahh leg the inside then out.... I'm sure your seeing vxzf17.... Double fly comes from Eurodollars wheree it I ls excahnge supported...
Obviously the more you pyriamid around the out of ssync month the more you isolate that kink from price direction in general... Although a 1331 is the threshold for anyoen I would think with retail commissions... As once you go out further in Pascals triangle 14641 you end up with exponentially large number of contracts...
Not sure I get the reference haha. But ill do a 3x1 month vs 1x3 month, or 6x1 vs 1x6 or 3x2 month vs 1x6 month etc etc all the time. You'll want to generally get into the biggest leg first, queue or lift/hit the 1 month spread because it's worth 3 times the tick value of the 3 month. If you get a good fill there then you've got 3 ticks to play with in the 3 month. Retail commissions are pretty high for this kind of trading though. The same trade would cost between 1.50 and 2.50usd per RT at a prop firm. Which in this case would be 8RT.
Ya but that puts you outright in two contracts with the 1x3 ... That's alot of leg risk to me idk... Why take that much directional risk in entry.... This art of legging has its own specialization in itself and can be considered a trade in itself almost....