Andy's Spread Trading Journal

Discussion in 'Journals' started by Jordan_Andy, Nov 19, 2004.

  1. Trades

    I exited my MW-W spread already on 1/2 at 31 regarding my time stop.

    Hyp. profit is $500 - commission of $300 = $200.

    I took profit on my LH-LC on 1/31 at -25.2 with 3 contracts. I got out of the trade on 2/5 at -26.6 after my stop got hit.

    Hyp. profit is $880 - commission of $150 = $730.

    Hyp. account at $99,775.

    I am not happy so far with my spreads, but I am sure it will get much better.

    Happy trading,
    Andy
     
    #301     Feb 7, 2007
  2. #302     Feb 10, 2007
  3. Hi Andy! I have seen in the spread scan you use seasonality for your trade selection. Is seasonality the same in all markets or do you think some markets behave more seasonal then others.

    You can find seasonality in all markets but I personally think there is a big difference in “reliability” or “strength” of seasonality in the markets. I personally think seasonality is strongest in the commodity markets. In all markets where you have a physical product you have a production cycle during the year. Because the production cycle is always the same you get typical seasonal behaviors in these markets. Other markets, like the indices, also show a seasonal pattern but I think it is not as strong as in the commodity markets. Anyway, seasonality is only one criteria besides others and I would never recommend any entry just based on statistics. You have to look at the current chart of the current spread to see what is going on. That’s what we have to trade!
     
    #303     Feb 10, 2007
  4. Hi Andy! After giving some spread seminars together with Joe, what do you think is the most difficult part for your seminar attendees to understand?

    Spread trading is a bit different from straight futures trading in many points. It is a more “pure” form of trading. But the most difficult part to understand at the seminars is when we talk about “how to enter and exit a spread trade.” It is difficult for most new spread traders to understand that it doesn’t matter if you enter or exit Market On Close (MOC) today or tomorrow. Of course you will have a different result for each trade, but in the long run it will even out. It is the general idea that counts in spread trading, and the ability to follow your trading plan consistently.
     
    #304     Feb 20, 2007
  5. Hi Guys,

    I did want to enter LCJ7 - LCQ7 MOC on Friday, but because of the early close I missed the trade.

    Today I am happy I am not in the trade.

    I am having problems with the meats at the moment. Even intra-market spreads are very volatile.

    Happy trading,
    Andy
     
    #305     Feb 20, 2007
  6. Hi Andy, is there anything to protect my position against limit days regarding spreads?

    Unfortunately there is not much you can do. The only way to protect your position is to use a stop order close to the limit, but whenever the market explodes or collapses, even a stop order won’t help, especially in open outcry markets. When I am holding an intra-market position like LH-LH, I try to stay calm. Usually the spread itself isn’t moving much because both months are moving in the same direction. This is different when trading inter-market spreads like FC-LC. A spread trader needs to know that inter-market spreads include a higher risk than intra-market spreads. The following list is in order of increasing risk:

    - intra-market spread, same crop year
    - intra-market spread, different crop year
    - inter-market spreads
    - exotic spreads (like orange juice – S&P 500)

    Whenever I trade inter-market spreads I pay a lot of attention to every report that could affect my trade, and try to reduce my position before the report comes out, or even close my position completely.
     
    #306     Feb 22, 2007
  7. Sorry Guys for not posting my trades but I have been very busy.

    I entered a ED-ED trade and got hurt badly. Hyp. loss on this trade $4,250.

    Hyp. account is now at $95,525.

    I will try to post all my trades more accurate!

    Happy trading,
    Andy
     
    #307     Mar 2, 2007
  8. Hi Guys,

    I would like to change the idea of this journal. I've been posting trades since July 2004 but I am not sure if this really helps new traders.

    What they can definetly learn from this journal so far is " you have good times and you have bad times".

    Now, I would like to try something new.

    Let's find new trades or other interesting topics to talk about. I am sure, other traders can learn much more this way, what do you think?

    Let's give it a try.

    Happy trading,
    Andy
     
    #308     Mar 9, 2007
  9. #309     Mar 11, 2007
  10. ED-ED is going down and I am not taking any entry at the moment.

    But have a look at TY-US.

    Happy Trading,
    Andy
     
    #310     Mar 13, 2007