Spread Trading - Strategy & Calculation

[dewashish]

thnx Sir for ur valuable replies ...
Help with analysis in other commodities/stocks/options ..
Thnx again...

 

[TRADER24]

Sir,
i am doing backtesting for lead and zinc spread trading.
The strategy gave good results monthly.
Sir i have a question ,In the month of february when the spreads were around -3 for lead and zinc , we use bear spread strategy. But the spread gap didn't reduce till expiry (it went to -6,-9 etc).
In such case how to control risk ?
Also i tried with gold near and far month .i didn't understand how to spreadtrade in gold. sir,can you please attach an xcel sheet like lead and zinc , for gold,silver etc. so that we can get clear idea of it.I am not able to attach excel sheets as there is error 'invalid file .xlsx '. please answer my questions when you get time.
Thank you!!!

 

[hitesh.trade]

Book on Spread Trading & Stratagies

Dear Friends

I have learnt all my spread trading strategies from this smart and well written book from Courtney smith "Futures Spread Trading the complete guide".

You can download the ebook version of this book from the link below:

Link to download : http://www.ebook3000.com/Futures-Spread-Trading--The-Complete-Guide_83066.html

Direct Download - http://uploading.com/files/99ccc92m/0934380481SpreadTrading.rar/

Remember the file is in Djview format and the dj viewer can be downloaded from this link below:

http://sourceforge.net/projects/djvu/files/DjVuLibre_Windows/


I would say with my experience that spread trading is one of the best trading stratagies specially in agri commodities.

Happy Trading!

Regards

Hitesh Jain, Bangalore.

 

[TRADER24]

Re: Book on Spread Trading & Stratagies

Hello hitesh,welcome here.
Do you spread trade on mcx commodities regularly.on which commodities do you spread trade and what strategies do you use?
Hope your guidance to new traders like us.
thank you!!!

 

[hyraj]

Hitesh i tried to download both th links, th link Djview format download is succesfull bt th other link didn't.

 

[hyraj]

Rspected Guru_Jiiiii
A little confusion.....plz.
As per yur strategy If the spread Gap > Bull Spread Range, then we will go for Bull spread strategy
Bt after stdying yur sheet i hav a little confusion that
1)On 6th Aug The Bull Spread Range is 3.6. and Spread Gap is 2.2
Means Spread Gap<Bull Spread Range
2)On 7th Aug The Bull Spread Range is 3.73 and Spread Gap is 2.3
Means Spread Gap <Bull Spread range
3)On 9th Aug The Bull Spread Range is 3.82 and Spread Gap is1.85
Means Spread Gap <Bull Spread range
It means on 6th Aug,7th Aug & 9th Aug successively th Spread Gap<Bull Spread Range
then also u continued to hold th position...No doubt u got th best targets on 9th.....bt i didn't understand about these 3 days....so a bit confusion. Hope Guru_ji will clarify it.

Thanks for yur al valuable posts. N the Bestttttttttt Excel Sheet....is indeed EXCEL
Rards
HYraj.

 

[assamese]

Hi everyone,
Excellent Discussion.
My company symphonyfintech-dot-com has an 'Automated Trading System' (ATS). This ATS can be used for 'Calendar Spread Arbitrage' in MCX. We recently received approval from MCX.
You will have to pick the Instrument/Expiry-Dates, Profit/Loss Margins & then the software will automatically keep scanning the live-data and execute the trades for you.
If you are interested, please look up our web-site.
Thanks - Sanjay

 

[iGuru]

Sir,
i am doing backtesting for lead and zinc spread trading.
The strategy gave good results monthly.
Sir i have a question ,In the month of february when the spreads were around -3 for lead and zinc , we use bear spread strategy. But the spread gap didn't reduce till expiry (it went to -6,-9 etc).
In such case how to control risk ?
Also i tried with gold near and far month .i didn't understand how to spreadtrade in gold. sir,can you please attach an xcel sheet like lead and zinc , for gold,silver etc. so that we can get clear idea of it.I am not able to attach excel sheets as there is error 'invalid file .xlsx '. please answer my questions when you get time.
Thank you!!!

Hi Trader24 & Hyraj,

Sorry for not able to reply your queries, as I'm somewhat busy with my work a lot.

It will be helpful if you people can PM me here to have my number for some query....... I will explain everything at that time or just give me some time to get back to you with my reply & excel sheet for Gold Spread.


Regards,

iGuru

 

[iGuru]

Hi everyone,
Excellent Discussion.
My company symphonyfintech-dot-com has an 'Automated Trading System' (ATS). This ATS can be used for 'Calendar Spread Arbitrage' in MCX. We recently received approval from MCX.
You will have to pick the Instrument/Expiry-Dates, Profit/Loss Margins & then the software will automatically keep scanning the live-data and execute the trades for you.
If you are interested, please look up our web-site.
Thanks - Sanjay

Hi sanjay,

Thanxs for sharing this useful tools for us. It will be very helpful & productive for the traders who want to do spread trading.



Regards,

iGuru

 

[hitesh.trade]

Hi iGuru,

Great Article. Liked your detailed explanation through the excel sheet.

Regards,

Hitesh