The theory would be to spread the risk somewhat, as multiple positions in multiple spreads would spread the risk somewhat - though of course the shape of the curve still is what's important.
Thanks! The signals are super-simple trend-following, and not based upon fundamental opinions/research. Also, not much money management here.
Just wanted to share that I've put on a seasonal trade in Eurodollars that's not part of my seasonal spread campaign as such - just sharing: Entered M8/U8 @ -0.250 If any of you want to hop in with me, I still doubt you're going to move the market much in my favour
Yesterday I had three more signals when the site was down, here are the transactions: Bought 1 Mar 08 / Dec 08 spread @ -0.775 Bought 1 Jun 08 / Dec 08 spread @ -0.315 Bought 1 Jun 08 / Mar 09 spread @ -0.310 Current Position: H8 - M8 - U8 - Z8 - H9 2 __ 2 __ -1 _ -2 _ -1
I have had two more signals, so I've made the following trades: Bought 1 Jun 08 / Dec 08 spread @ -0.245 Bought 1 Jun 08 / Mar 09 spread @ -0.230 Current Position: H8 - M8 - U8 - Z8 - H9 2 __ 4 __ -1 _ -3 _ -2
Added this morning: Bought 1 Mar 08 / Sep 08 spread @ -0.615 Bought 1 Mar 08 / Dec 08 spread @ -0.660 Current Position: H8 - M8 - U8 - Z8 - H9 4 __ 4 __ -2 _ -4 _ -2
hrokling - I'm enjoying your threads : thanks. Care to write some more about your overall Eurodollar strategy - rather than signal generation method - it might make it easier to follow & appreciate this journal ? J,
The idea is to capture the larger trends in the spreads. I'm also focusing on the two near (quarterly) months vs the next few months out, with the thinking being that this is where you'll see the most movement. I am however wondering whether the other leg should be slightly further out - 3 to 6 months more, but I'll stick with this for now. After giving back the early gains, Fed's action today was a huge winner for these positions. In one way, the Fed is very predictable. On the other hand, you're just shaking your head at what they're doing.
Could you please explain why you trade the spreads that are only 6 or 9 months apart? Is that where most of the volume is done in eurodollar spreads? If not could you please tell me what are the highest volume spreads (ex. front month and etc?). I have started to dabble in trading the euribor intra day along with trading the bund. I believe the euribor is europe's eurodollar. I am currently just scalping the front month but would like to get into trading the euribor spreads also. Any info is appreciated YT