Spread trading the correct mantra?

Discussion in 'Strategy Development' started by Ibtrader, Aug 28, 2006.

  1. Ibtrader

    Ibtrader

    hi,
    What are your views on spread trading in comparison to scalping or trend trading .Please also share you views on spread trading as a strategy for Day trading i.e is it a right approach?
    it will also be helpful if you can help me out with the factors you people look for while spread trading.
     
  2. I do alot of spread trading...it's how i learned the business 15 years ago. very beneficial for beginners as they're hedged all the time and they learn to watch multiple markets at one time. look for an app that drives / manages spread trading like Autospreader offered by TT.

    http://www.tradingtechnologies.com/autospreader.aspx
     
  3. rosy2

    rosy2

    i think so. most of my trades are spreads. either calendar outrights or options. nothing intraday. i think scalping is for people who don't want to put forth any effort in researching opportunities.
     
  4. Ibtrader

    Ibtrader

    I am really thankful for your responses, however I am still wondering what an scalper or trend trader has to say about it?
     
  5. I scalp ER2. I recently paid up for autospreader just so I could see the ER2-ES spread. It has made a tremendous difference in my trading.

    I also work my countertrend orders thru the autospreader. This has been very helpful because I do not get run over as often. What I do is work an order in autospreader. The order only works in ER2. When it is executed I have ES set at -4. That leg is never hit and I cancel the order working in ES.
     
  6. Ibtrader

    Ibtrader

    Any particular instuments where you think that spread trading works the most?
     
  7. I use autospreader for scalping as well postion trades. spreads have a higher probability of 'reverting to the mean' than outrights do. look at the correlations of es/er2, ym/es...zb/zn, zn/zf...fx works too to some extent...6b/6e...even 6j/6e but that can be a wild ride.
     
  8. Ibtrader

    Ibtrader

    Please help me i am confused.......how we can use autospreader for scalping because the moment we are going to ge the fill on one leg it is going to hit another.I am using spreader to execute three legs.

    Please your reply will be really appreciated as i dont have the kind of experience as you are having
     
  9. roctrend

    roctrend

    My question for someoneis on spreads like ER2/ES, NQ/ES not ZB/ZN, is how do you set up charts since the tick value and contract value are different; to get correct point action correlating to the correct $ amount. I use Ensign btw. Thanks
     
  10. My autospreader setup

    Working orders only in ER2

    ES leg is set at -4. So when ER2 leg is hit a limit order is sent into ES -4 ticks from last. So if ES is 1304-1304.25 the limit order would be a buy order for 1303. Then I just cancel the order.
     
    #10     Aug 28, 2006