Trying to find some info on - When to trade a Calendar spread and when to trade a Butterfly spread! ( all futures to futures) - The calendar I am trading is exchange traded spread but that exchange does not have a exchange traded Butterfly so can't chart ! Any ideas anybody?
When trading futures spreads, butterflies etc. you're taking a view on the (future) shape of the curve. Technical traders generally fade any 'humps' in the curve, while longer-term traders may take a fundamental view on how the curve should change if certain conditions emerge / cease to exist. You can always chart 2 calendars to create the implied butterfly - this is better than creating the implied from the outrights, but obviously still not as 'safe' as an exchange traded product. Note - if you're just getting into the world of spreads etc. I suggest you have a look at more liquid / less volatile markets rather than the product you mentioned in your next post. STIRS are good for starting out.
One other question in my mind is is converting a Calender spread in to a butterfly a good hedging Technic? Re chart 2 calendars to create the implied butterfly... I doubt on CQG desktop I can do that
Create a user-defined spread of any structure you want. Call support, if you have trouble. There are ex-traders there that have showed me a thing or two.