Spread Trading - Strategy & Calculation

[sprintravi75]

hi iGuru,

thanks a lot. pls let me know can this spread can be used for option trading. also, this stratergy is for intraday trades or positional. pls also let me know, can i call u if i need any help ofcourse after 12PM.

reagrds

ravi

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 give me a call at +91-9604052227 (after 12 pm any day)....... 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 iGuru,

thanks a lot. pls let me know can this spread can be used for option trading. also, this stratergy is for intraday trades or positional. pls also let me know, can i call u if i need any help ofcourse after 12PM.

reagrds

ravi

Hi,

This strategy is generally for Positional trading. (Sometimes you may get your target intraday also, but very rarely).

Sure you can call me for any help related to Commodity trading, I will be happy to help you & all, if it's possible.



Regards,

iGuru

 

[sprintravi75]

thanks a lot iGURU. so kind of u

regards
iguru

Hi,

This strategy is generally for Positional trading. (Sometimes you may get your target intraday also, but very rarely).

Sure you can call me for any help related to Commodity trading, I will be happy to help you & all, if it's possible.



Regards,

iGuru

 

[vssoma]

dear,
pls. post your results here, it'll helpful to all learners. if you are facing problem with your excel sheet, just zip it and go to www.ziddu.com and upload there and share the link here.

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!!!

 

[balaj78]

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 ,
I saw ur website .what is the service cost for this software .Can u please send me the images of ur software .
regards
bala

 

[vssoma]

dear,
is it possible to plot both contracts( spreads ) in one chart in amibroker. or at least the difference of the price of the two contracts in ami.

 

[hyraj]

Hi Guruji with due respect,
As per yur startegy i downloaded th mcx data for Lead & Zinc in Excel Sheet u provided whch is EXCEL indeed...On 9th Oct 2010 as per th closing price of Lead & Zinc........
the SPREAD GAP=-0.2, BEAR SPREAD RANGE=0.39.....means SPREAD GAP< SPREAD RANGE
which means it's a BEARISH STRATEGY in which BUY Lead SELL Zinc
Following above strategy I jst Bought Lead @101.85 & Sold [email protected] at 11.42AM On 11th Oct 2010.
And the result at 10.05PM on 11th Oct 2010 is
Lead =102.45..........= Rs.00.60 in Profit
Zinc=102.80............=Rs. 00.05 in profit
Overall Profit=Rs. 00.65........=00.65x5000=Rs. 3250.00
Don't know what will be th Closing Prices of both by11.30PM.......bt i'll note down.
The Startegy is Excel....n th best. KEEP IT UP GURU_ji
I m gonna to hold this one for coming 5 to 6 days within whch i hav to check or watch every night's closing prices whtr th TREND is going to b change or not.

 

[hyraj]

Hi Guruji with due respect
at th end of th session on 11/10/2010 Monday
the closing price of
Lead is Rs. 102.25..................... Rs. 102.25-101.85= Rs.00.40 profit
Zinc is 102.75..................... Rs. 102.85-102.75= Rs. 00.10 profit
Overal Profit= Rs.00.50
which is =5000x.50= Rs. 2500............................FOR 1 LOT

 

[TRADER24]

HERE IS THE LINK FOR EXCEL SHEET.
http://www.ziddu.com/download/12044715/MCXEDITEDBHAVCOPYLEADZINC.zip.html

I WOULD REQUEST IGURU SIR TO EXPLAIN MY DOUBTS IN MY PREVIOUS POST.I WOULD ALSO REQUEST OTHERS WHO ARE SYUDYING THIS STRATEGY TO POST THEIR RESULTS/DOUBTS , SO THAT WE CAN LEARN MORE AND CLEAR OUR DOUBTS.
THANK YOU!!!

 

[hitesh.trade]

Hi iGuru,

I have been testing your strategy in various agri commodities and it is always successful if the gap is more or less than the average bull or bear spread gap.

I want to know what is standard deviation and how it helps you to understand the entry and exit points.

I want to know how the spread range i.e bull & bear spreads provide a basis to take decision for entry and exit.

The calculations what you have made are simple to understand but really what is the theory or a explanation from you make this calculations (like std.dev, bull spread, bear spread) work and help you in deciding the entry and exit points.

Will be thankfull to you if you answer my doubts.

Waiting for your valuable reply.

Warm Regards,

Hitesh.