Q&A: Trading Currency Spreads

Question: I was just looking at the spread between September 2011 and March 2012 Canadian Dollar. Is this worth trading?

A Simple Spread in Crude Oil

Here is an interesting pattern in Crude Oil calendar spreads. The recent sell off in Crude was sharp and violent and suggested bear spreads (short near month, long far deferred) would benefit. Interestingly, bear spread took a long time to react, almost as if it was waiting for the market to hold lower levels before […]

Seasonal data reliability

Question: How reliable is seasonal data? Is making money from it all that simple? Answer: To answer the second question first – no it’s not always simple. Anyone that tells you they have a trading method that is foolproof is either a fool or a liar. This is why you need to get good information. […]

What is seasonal trading?

Question: What is seasonal data? Answer: The ProTrader Digest uses seasonal data in every trade selection. Seasonality refers to a pattern that depends on, or is controlled by, the time of the year. Seasonality appears in many places. For example, sales of Christmas cards logically peak before Christmas. Accounting business peaks around end of the […]

Q&A: Trading Account Size

Question: Hi Guy I have read the book Three Little Spreads Went to Market. Very informative thanks. I have been looking for an alternative to shares that doesn’t have the extreme risk of some other derivative products. Just a quick question: do you see a specific amount in an account to make this type of […]

How to Trade the Crush Spread

One offshoot from the extreme volatility that came with the GFC is that many private traders are now looking beyond the simple strategies such as buying shares. This article takes a look at a risk friendly approach to trading Soybean futures.

How to Trade Eurodollar Spreads

This article provides an overview of using Eurodollar spreads as a low risk instrument to trade economic news and interest rate cycles. We’ll look at two types of spreads: bull spread and bear spreads. We’ll also look at when to place these spreads.

Spreads: Going Long and Going Short

Question: I understand the concept of a futures spread, but I get confused when they talk about ‘going long a spread’ or ‘going short a spread’. Given a spread has both a long position and a short position. How then can you go long or short a spread? Answer: The concept of being long or […]