I think this would be a good lesson, I know next to nothing about spread trading, and it sounds like a good way to further limit risk.
It looks like the money boys are not thrilled about Spain's new government. Seems like they are buying dollars right now.
For now the spreads will be dollar neutral. We want to be long volatility on the numerator on long spreads and vice versa. The idea here is to capture and isolate confirmed A trades that we expect to have follow through with less volatility then the outright. These spreads will be driven by price action. In other words, once the leading edge of the spread changes it behavior, to exit the spread. And correct, we most certainly are NOT trading mean reversion. We are looking for trends.
Dollar index is down right now RCG, not up. Terrible price action in the dollar right now relative to the ES.
My time frame is shorter than yours. You swing trade, I daytrade. However, the post you make do factor into whether I will step on the gas or ride the brake.
I watch all time frames. US Dollar opened lower TONIGHT. Now that in isolation tells me nothing. What does tell me something is that ES opened down 10 handles and the US Dollar did not even try to come off. Sitting around unched. That gives me a lot of information. That's how I read price action.
Do your traders do this in your office? Kinda impressed that you are providing a high level of training here at ET for free, haven't seen that since dbphoenix and acracy were running around here.
I like to write. Not very good at romance novels so I write about trading. But you make an interesting point RCG. Maybe I should post less.
This thread is hidden to the ET world. In the TA section with an unassuming title ACD or ABC..something like that lol You can keep positng John, we are troll free here!