Andy's Spread Trading Journal

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

  1. Trades

    I know, I know...this journal is very boring (comparing to all the exiting day trading journals).

    I did enter the following spread:

    7 x FCJ5 - FCK5 at 0.67 on 02/28, risk $250, target 3.0. Basis is seasonal and a uptrend channel.

    The idea was to enter when I see the spread moves up on the close. Well, it did move up on 02/28 but the close was actually below the entry value. Fortunately the spread moved up the next day. I plan to take some profits today 03/02 or tomorrow in front of the meats report on friday (Livestock Slaughter Annual Summary).

    Open trades:

    2 x 50*SK5 - 100*BOK5 at $13,976, risk is $300, basis is seasonal and a 123 low.
     
    #51     Mar 2, 2005
  2. Trades

    Yesterday (03/03) I took profit on my FC spread and got out with 3 contracts at 1.4. I got out in front of the meats report of today.

    Hyp. profit is $1,095 - commission $150 = $945.

    Hyp. account is now at $29,997.

    Open position:

    4 x FCJ5 - FCK5 at 0.67 on 02/28, risk $250, target 3.0. Basis is seasonal and a uptrend channel.

    2 x 50*SK5 - 100*BOK5 at $13,976, risk is $300, basis is seasonal and a 123 low.
     
    #52     Mar 4, 2005
  3. Trades

    I did exit my 50S K5 - 600BO K5 today at 17,018.

    Hyp. profit is $6,084 - commission $100 = $5,984.

    Hyp. account is now at $35,981
     
    #53     Mar 7, 2005
  4. hallo Andy,

    thank u for offering to send some informations about equity spreads.

    Please, I want some too. I got the book from J.Ross "Spread Trading" since a few days to work it out.

    best regards from a deep winter in bavaria :)

    Manni
     
    #54     Mar 8, 2005
  5. Hi Manni,

    please send me an email including your email address.


    Regards

    Andy
     
    #55     Mar 8, 2005
  6. j4872

    j4872

    Andy

    I believe this spread is at a loss because you inadvertently assigned $100 to BO on the open of the position and $600 on the exit. Otherwise your postings are educational.
    Thanks
    Judge
     
    #56     Mar 8, 2005
  7. The spread is not a loss. It was just a typing error on the first posting.

    Thanks,

    Andy
     
    #57     Mar 8, 2005
  8. Vienna

    Vienna

    Hi Andy,

    I learned spreads from JR, visited him in Texas, met Markus as well.

    I have a question re your Risk/ Reward:
    You risk 8% per trade. That is quite high in general. It seems that you manage to make about 15-20% per month, taken the short sample run you have here. That would equal about 2.5R per month, 1 R being your risk per trade (your worst-case stop).

    Do you have any longer range stats on what your Win/ Loss percentage is? Your expectancy? Your Average win on a trade?

    What I mean is that your hit rate must be pretty high to risk 8% per trade- otherwise, if you ever hit 5 losers in a row, you are toast. You probably hardly ever get hit the full 1R...
    Also, would you risk the same amount if you traded 200k?

    Thanks.
     
    #58     Mar 8, 2005
  9. Hi Vienna,

    you are right about the 8%. The problem is with a small account of 20k you have to be a bit more aggressive. Of course I would reduce it immediately when trading 200k.

    It is also correct that I hardly get hit with the full 1 R because I also do use I time stop on my trades. To get hit with the full risk is really the worst case.

    It is always difficult to tell about the % you make every month. As you have seen on the hyp. account, some trades just did shot up and made a fortune regarding the 20k account last month. It's possible that I will get a few month now where I can hardly make any money or where I even lose money.

    That's the problem with the trading game :)

    Over one year I would say it's possible to average around 10% - 15% per month....with the right attitude, risk and money management and discipline!

    Happy trading,

    Andy
     
    #59     Mar 9, 2005
  10. Trades

    I did exit my FC spread

    4 x FCJ5 - FCK5 at 1.12 yesterday (03/08).

    Hyp. profit is $900 - commission $200 = $700.

    Hyp. account is now at $36,681.

    I did enter a Metals spread:

    3 x 50*SIK5 - 100*GCJ5 at -$6,585 on 03/04, risk $800.

    The spread doesn't want to move up. Will exit today (03/09) if it's not moving up.

    I did enter a Eurodollar spread:

    9 x GEM5 - GEM7 (GE is the elec. market of Eurodollars) at 1.03 on 03/07, risk is $250, target 1.60.
     
    #60     Mar 9, 2005