I have tried spread trading for a few days. It is a new experience that is
totally different from directional trading.
I tried GBL/GBM (1:3) and ESTX/DAX (3:1) spreads. I only used market orders.
1. There are some times both legs are positive (very nice ) but
some times both are negative (horrible ).
2. The spread ratio is rather subjective. For the GBL/GBM , some people
said 1:4 other said 1:3 still other said 1:5. The ratio can greatly affect
the result.
3. Still have the temptation to cut the profits short and let the losses
run. I also tried to add to the profit leg but don't know it is good or
not. Is it common for spread trading?
Any comments are welcome.
totally different from directional trading.
I tried GBL/GBM (1:3) and ESTX/DAX (3:1) spreads. I only used market orders.
1. There are some times both legs are positive (very nice ) but
some times both are negative (horrible ).
2. The spread ratio is rather subjective. For the GBL/GBM , some people
said 1:4 other said 1:3 still other said 1:5. The ratio can greatly affect
the result.
3. Still have the temptation to cut the profits short and let the losses
run. I also tried to add to the profit leg but don't know it is good or
not. Is it common for spread trading?
Any comments are welcome.
