introduction to grain futures trading

Discussion in 'Commodity Futures' started by clearpicks, Apr 20, 2007.





  1. Fantastic post, Pabst.

    I dont see mini-corn, or mini -soy, heading down the same path as eurex canola, or london wheat.
    They were always thin, still worse than woefull, but these new contracts are working off established market bases.

    I could be wrong, obviously, but seems to me, a superior product, in an inferior speculative marketplace.
     
    #11     Apr 23, 2007
  2. You might try experimenting and developing your own trading system. Here are the results of a trend following system model for corn futures, 43.17 years of daily price data from 2 July 1959 to 1 October 2002.

    ===

    Number of trades 122
    Total profit $ 2673283
    Profit after subtracting $ 10.00 commission, slippage per transaction: $ 2670843
    Heat is 2.00 per cent of equity.
    Greatest draw down is 0.1828 (18.28 per cent).
    Cumulative Annual Growth Rate (CAGR) is 61.87 per cent.
    CAGR / Drawdown is 3.39
    Instantaneously Compounding Annual Growth Rate (ICAGR) is 7.69 per cent.
    Annually Compounding Annual Growth Rate (ACAGR) is 8.00 per cent.
    Information Ratio is 0.22
    Initial capital is $ 100000

    ===

    I suspect trading corn futures in a portfolio with a few other commodities might show overall lesser draw down.

    If you want to learn to play piano,

    <img src=http://www.victorholt.com/things/piano.jpg \img>

    at some point you have to do it yourself.
     
    #12     Apr 29, 2007
  3. Thanks for all the posts.

    Recently I use the opening call of hightower report as a general brief guideline for each day. I often read something like "buy breaks" in this report. Can someone tell me what it means in grain trading? For example, in today's opening call, the author wrote "WHEAT: RAINS HIT AUSTRALIA ON WEEKEND AND IN FORECAST FOR EUROPE; BUY BREAKS"
    Does it mean "buy break out of the range" or "buy weakness"?

    - Clearpicks
     
    #13     Apr 30, 2007
  4. Buy weakness.
     
    #14     Apr 30, 2007
  5. mde2004

    mde2004

    Get in on the pullback but always keep a tight stop in place.
     
    #15     Apr 30, 2007
  6. If you are going to trade the grains you better add this one to your favorites:
    http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=AGENCY_REPORTS&navtype=RT&parentnav=NEWSROOM&edeployment_action=changenav
     
    #16     Apr 30, 2007