Registered: Apr 2002
06-17-13 03:59 PM
Quote from Handle123:
I started to get much more involved into trading spreads in January, and I have to say it is much easier to profit by trading those than me trying to trend trade outright positions in short term durations. So maybe there is somthing that can give one a little edge in trading outright position in the NOB. But it still comes down to have a solid backtested trading plan, one can't get around this.
1. Many of my clients come to me as shorter term, higher frequency scalpers and day traders who are quite frankly frustrated trying to compete against the bots with a manual mouse and point-and-click DOMs. They are desperately looking for more consistency.
2. You are correct about a solid trading plan. I provide a model that was expressly designed by me for spread trades - it took about 20 years to refine. At the time of trade entry, we also set the profit target and the stop-loss level.
3. Most of my clients are paying non-member rates, so generally speaking we are not particularly sensitive to commissions given our trade holding timeframes and targeting. If I thought that the NOB was a much better set-up than the Bobl-Bund, I would take the NOB and not think twice about the commissions.
4. We like to do some synthetic intra market interest rates spreads as well. Many combinations possible there, and the exchanges give us a generous SPAN overnight margin credit. One example might be a CBOT Two Year Note versus GE U5.
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