Registered: May 2010
05-09-12 03:24 AM
Quote from Here2learn:
Can anybody recommend a good resource for learning energy futures calendar spread trading (books/articles/websites) or a resource for news on such (newsletters/market reports/commentary/etc)?
Since you asked so nicely, here's a thought which you may utilize. When I was a broker I had some clients who wanted to trade energy spreads.
So I would look at a chart of one crude contract minus the next one, e.g. CL-M2 minus CL-N2. This is charted and one can see the support/resistance. Then enter orders to buy near support or sell near resistance. I would typically risk about 0.50 on CL.
You can chart the difference between any two future contracts, e.g. June Brent crude and June WTI crude.
It's helpful to know if you should be Bear spreading (selling front month) or bull spreading.
So basically, my advice for those interested in spread trading is: Don't be afraid to chart it.
yes, it can be somewhat expensive. I believe I was using DTN's Prophet X, at about $400 per month.
Also, if you're willing to pony up "BONE" on ET has some good insights, from what I can tell.