Timing the Entry into a Spread Trade

jllm03

Newbie
Messages
3
Likes
0
Hello,
I am new to spread trading, but not futures markets.
Been trading the Futures markets for a little while with success, but became interested in Spread Trading.
In the past I have done some Spread Trading in the Stock Options market (Credit Spreads mainly).
Right now I am wondering if anyone has advise on what to look for for an entry point into a futures Calendar Spread.
What is your trigger on a spread chart, do you look for a bounce off the low, as in any other market, or is it that simple.
On the attached image, are we looking for an entry with the lowest Neg number? (mid April)
Thanks for your input.

Example: June09 Crude - Aug09 Crude:
2mplzrt.png
 
Hello,
I am new to spread trading, but not futures markets.
Been trading the Futures markets for a little while with success, but became interested in Spread Trading.
In the past I have done some Spread Trading in the Stock Options market (Credit Spreads mainly).
Right now I am wondering if anyone has advise on what to look for for an entry point into a futures Calendar Spread.
What is your trigger on a spread chart, do you look for a bounce off the low, as in any other market, or is it that simple.
On the attached image, are we looking for an entry with the lowest Neg number? (mid April)
Thanks for your input.



Example: June09 Crude - Aug09 Crude:
2mplzrt.png


Think I figured it out and was right in my assumptions.
Now I just need to time it right. Think I will wait for the end of the year for these beans to get ready to take off for the 2010 yr. (too late to jump in now, but I may track it for a Bear Spread on the Beans starting in July, from looking at seasonal charts)
16lcxox.png
 
Momentum

If you get you’re general timing from the seasonal charts, or the exact optimal entry day. Filter your results with a bullish divergence if there is one, and average-up with Parabolic.
 

Attachments

  • parabolic.jpg
    parabolic.jpg
    144.5 KB · Views: 285
Top