Promising Futures Spread Strategy

Discussion in 'Educational Resources' started by Erich65, Jun 15, 2007.

  1. Erich65



    my name is Simon. I'm following this forum for some time now, but never have posted something so I would like to introduce me first.

    I'm trading for my own account a medium term trendfollowing system on about 30 commodity futures markets for about 5 years now. The system has produced positive but below average returns for the last three years (this is a problem that many cta's have).
    So I have been looking to diversify into other uncorrelated strategies for quite a long time now. I considered index option writing, which worked well in recent years, but I'm unconfortable with the inevitable risk of a high volatility burst. And most other offered futures strategies are basically some kind of a trendfollowing logic.
    Recently I came accross a website which offers a futures spread trading system (signal subscription only).
    Interestingly, although I trade futures for some years now I never engaged in spread trading. The results look impressive, but as you know this could also be a optimized result too.
    So I first would like to papertrade this strategy and get more information about spread trading.
    Is anybody in this forum familiar with futures spread trading and can you post some links about spread systems and strategies. And what do you think about the described system?

    I appreciate any comments and good luck!

  2. You're wasting so much time by trying to be a jack-of-all-trades. Stick with your "medium term" method but be willing to apply more leverage to it and increase your trading frequency.