Seriously what's the deal with "spreading"?

Discussion in 'Commodity Futures' started by TraDaToR, Apr 25, 2014.

  1. bone

    bone

    When you use the term "calendar spreads", are you referring to a simple pair with two legs - same product / different month ? Are you lumping butterflies and condors into your assumption about trending ? Is there a particular reason ( like prop firm rules to get flat by the close ) that drives your brief holding time frames ?

    Sorry for the follow-up questions, but I'm just trying to get some color about what's driving your frustration.

    I used to trade size spreads here in Chicago for several years on an intraday basis ( prop firm ) and for long term ( HF and Commercial and now my own account).
     
    #11     May 22, 2014
  2. TraDaToR

    TraDaToR

    When you use the term "calendar spreads", are you referring to a simple pair with two legs - same product / different month ? YES Are you lumping butterflies and condors into your assumption about trending ? I BELIEVE THEY ARE MORE MEAN REVERTING THAN CALENDARS Is there a particular reason ( like prop firm rules to get flat by the close ) that drives your brief holding time frames ? NO. I SCALP NATIVE CALENDAR SPREADS DAILY . THE FRUSTRATION IS ONLY ON AUTOSPREADER PAIRS...BY THE WAY, I HAVE GOOD RESULTS ON A LONG TERM BASIS TRADING THE CURVE.

    Sorry for the follow-up questions, but I'm just trying to get some color about what's driving your frustration.

    I used to trade size spreads here in Chicago for several years on an intraday basis ( prop firm ) and for long term ( HF and Commercial and now my own account
     
    #12     May 23, 2014
  3. TraDaToR

    TraDaToR

    What I am trying to understand, Bone, is why there are many people replicating spreads with autospreaders when you can simply post a size on a native calendar spread and wait to be filled with no legging risk? Perhaps you can enlighten me...:) My theory is that autospreaders are useless in agricultural space.

    Following up on one of your questions, I have never traded or tested condors in fact, but butterflies seems more mean reverting to me.
     
    #13     May 23, 2014
  4. bone

    bone

    I can't enlighten you because I agree with your statement 150%. I have a TT Pro license and haven't used the AutoSpreader function in probably two years. I absolutely love the exchange supported spreads and I encourage all of my clients to use them whenever and wherever possible.
     
    #14     May 23, 2014
  5. Where did you trade in Gibraltar? Is there a prop trading firm running these days?

    Thanks in advance
     
    #15     Jun 17, 2014
  6. kanellop

    kanellop

    Hello Again, TraDaTor.

    I hope and i wish to be well.

    I have a question this hour for you.

    Do you use at all data from here: http://www.mrci.com/web/index.php ?

    Best Regards,

    George Kanellopoulos.
     
    #16     Jun 19, 2014
  7. tom_czr

    tom_czr


    1sec latency? Where exactly in Europe do you live? Quite strange, there must be something wrong with your internet provider.

    Spreading ideas base on correlation is mistake (at least from my statistical research):
    1. You should rather use cointegration - explanation why correlation is very dangerous to use is here: http://effectivetrader.blogspot.cz/2014/04/kointegrace-vs-korelace.html
    Maybe I should start to write in english, because "googletranslator" is sometimes not working properly and then english senteces look kind of broken lol ... but if you try hard enough, I think you should understand what I mean even with google translated text :)
    2. Or you can use seasonality charts for trading futures - some review of seasonal chart services/softwares: http://effectivetrader.blogspot.cz/2014/06/nastroje-pro-obchodovani-komoditnich.html

    Anyway my experience so far is, that there is much more trading opportunities in stock markets than in trading futures outright and spreads together...
     
    #17     Jun 19, 2014
  8. TraDaToR

    TraDaToR

    No. I have never been a Customer of MRCI. I like their encyclopedia though. I am using barchart trader free Platform for daily datas and scarrtrading website.
     
    #18     Jun 19, 2014