ES + CL + more - having multiple futures auto-strategy

Discussion in 'Commodity Futures' started by autom, Feb 18, 2017.

  1. autom

    autom

    Yes, i believe i do based on backtesting since 2008 and also some live trading. @algofy. Thanks for bringing that point though. @Handle123 CL had a quite a bumpy ride since 2008 till now. I believe backtesting for that period gives a good confidence
     
    #11     Feb 18, 2017
    Xela likes this.
  2. What you are looking for is diversification. You mention that you intent to use the same trading strategy on each of the instruments, so that does not provide diversification. Then you can look for diversification in the instruments which you use. CL and NG are both in the energy basket and have a rather high correlation. So this will probably not help you in finding diversification. It would probably be better to look for instruments which are in completely different asset classes.
     
    #12     Feb 19, 2017
    autom, shatteredx and Xela like this.
  3. autom

    autom

    You are right.. NG and CL kind of trended similar last 10 years. I will need to find 3rd diverse instrument in addition to ES and CL which should be liquid enough
     
    #13     Feb 19, 2017
  4. Overnight

    Overnight

    How about ZS? (Soybeans)
     
    #14     Feb 19, 2017
  5. Many classes to choose from. For example: metals, equities, bonds, volatility, agriculture, forex.
    You could start by looking at this page: http://www.mrci.com/special/corr180.php and look for pairs that have a low correlation (i.e. their value is approximately between -20 and +20).
     
    #15     Feb 19, 2017
    water7, autom and algofy like this.
  6. autom

    autom

    @HobbyTrading that matrix site is awesome. Thanks ..
     
    #16     Feb 20, 2017
  7. @autom you are welcome. Another poster at ET pointed me to it and I had the same response when I saw it.
     
    #17     Feb 20, 2017