Spread Trade Training

Discussion in 'Educational Resources' started by bone, Jul 15, 2016.

  1. bone

    bone

    I have three clients going live in July and August, so I will have room in my training rotation and if anyone might be interested in learning more about becoming a client please PM or email me.

    We are primarily swing trading futures spreads, which have very low margin requirements as compared to outright futures contracts.

    Thanks.
     
  2. bone

    bone

    I am sending out a recorded webinar to clients today entitled: "Meat on the Bone". This is a 75 minute discussion with several current trade set-up examples.

    Quite occasionally, trade entry set-ups might present a bit of a quandary to the trader in terms resolving a conflict between reasonable stop-loss and profit target level placement versus what we model as "available" trading range from trade entry price to profit target price. In other words, from a risk/reward standpoint, is there enough Meat left on the Bone - or is it a more prudent course of action to take a pass and that particular trade idea and move on to other possibilities ? I talk about using on-the-run historical vol and trading ranges to help with that decision process.

    Most trade set-up ideas we encounter are straightforward in terms of entry "go" or "no-go".
     
  3. bone

    bone

    As spread traders, we are modeling the relative convergence or divergence between two or more highly correlated instruments. That is where the buy or sell entry signals are generated.

    That, at least in my opinion, is the big difference between trading outright flat price instruments and a spread trade.