Hi Everyone- I am new to the site and new to the Bund/Bobl Spread. I just wanted to get a thread going. Does anyone use BBands when trading this spread? Are we all using the 2x3 ratio? Does anyone use the FV/TY spread as an indicator? Does anyone enter and exit a position using just the autospreader market depth or do you find it more profitable to leg in or out? Any advice would be much appreciated. TakeCare- Jim
There is another bund/bobl thread in the eurex section. Do a search. Do you think the us spread leads the euro spread?
I havent seen a direct correlation as of yet - except in extreme market moves - or on a number, but Ive honestly only been looking at this spread for a little more than a week.
The problem with the autospreader is that as the spread value changes, the computer will pull your order and reenter when the value goes back to where you want to trade meaning you will be at the back of the queue. You may be better off doing it manually and keeping your orders in as you will get to the front of the queue quicker. Also software is half the price. What about the 10 year us-euro spread? Have you looked at that? Autospreader may be more useful for this.
That is true and there definitely have been some situations over the last week or so that Ive become frustrated with losing my q position - especially in the Bobl. However I havent come to the conclusion yet that good q position outweighs a better spread level. I dont want to spend my time, risk needless roundturns and then end up with a spread level that I do not want. The first few days that I tried this trade - I spent a lot of time legging in and (mostly) outof my positions. Sometimes I got the level I was loking for or even better - but more often I found myself without the proper ratio - thus I was exposed to outright price movement - which is not what I want. I've brought myself back to basics - enter on the spread and exit on the spread. In time as I get more comfortable with the trade, I'll work in legging.
How are you working out your ratio? How much are you paying for clearing? Who are you trading with? I am looking for a clearer as I have been trading this with IB but they are too expensive. Are you profitable? How many lots do you think you can scale too?