Yield curve please help

Discussion in 'Financial Futures' started by traderchi, Feb 21, 2012.

  1. traderchi


    I used to trade the 30yr bonds and now im back to trading but Im looking to trade the yield curve because Im going to be trading after market hours 10pm and after.

    Can someone please be kind enough to help me , how I can set it up on TT X_trader
  2. bone

    bone ET Sponsor

    Use the exchange supported ICS spreads and avoid the legging risk, IMO.

    For TT, go to Market Explorer, pull up the "CBOT" server, select "product type" as "spread", and for the NoB for example, go to "CBOT ZNZB". You will see one price ladder.

    You need to remember that those one lots are actually done in clips of ten on the larger leg. So, if you see 10 bid for, it is actually a 100 lot.

    There is alot of quality info on the CME website Educational Resources section about these, and I would strongly urge you to review that thoroughly first before you risk dollar one. There is even a PowerPoint presentation on the CBOT ICS spreads. From my experience, you will not get a better fill using the AutoSpreader, and you do not have to concern yourself with the 'message-to-fill' ratio policy. Congratulations, you should find this to be easier than scalping - msot of my scalping clients kick themselves for not trying this endeavor earlier in their careers. The spreads trend and generally speaking "behave" better in terms of movement.

    Spreads do move and behave differently than flat price markets. They should be modeled differently as well, IMHO.

    Good luck, and smart move.