the per contract return rate of spread trading is always going to be lower than comparable outrights, but your assumed risk is lower too. If you are a consistent spreader in the bobl/shatz then it wouldnt be unusual to be spreading several hundred contracts at a clip. At one euro per contract, while a slim margin, its still a positive expectancy and one euro on a hundred lot times twenty trades in a day is still a decent net for the day.
On ES I make $50 per contract per point and YM I make $5 per contract per point...... same as everyone else
Hi i was wondering how you managed your fgbm and fgbs spread this month,whats your strategy regarding doubling up and stop loss,what is the ration in which you trade it?
Hey, My FGBM and FGBS spreads have been pretty steady this month. Due to the lack of activity I've stepped back, watched the charts, and only traded what I considered to be high probability opportunities. I don't use a stop loss in the traditional sense. When I believe the prices have deviated significantly from the fair price I'll take a position. I'll take it off when I believe the prices have reached equilibrium, or if I feel that my intuition was incorrect. Trades typically last from a few seconds to a few hours. I never hold trades for more than 24 hours. If a trade continues to deviate from my estimate I may double up a few times. But if it's moving due to fundamentals I'll cut immediately. I don't trade martingale systems. My ratios are proprietary, but if you do your own analysis you'll get similar numbers. I don't use anything magical. If anyone here would like to discuss futures spread trading in more detail I'd be interested in participating in a thread on the subject. I'm interested in professional day trading strategies on futures spreads and baskets. The sort used by futures arcades and prop firms. I'm not that keen on seasonal strategies. Kind Regards, verynewboy
The absolute creme de la creme of my trading systems is 90% accurate, makes 4000 per contract has a profit factor of 4 ANDDD: is lucky if it generates 1 signal a yr. average time between signals is 1.5yrs - 2yrs. So there you go. 1 signal every 1 or 2 yrs basically means untradeable. if u thought it was too good to be true, it probably is