Spread Trading

Mietesh

Mietesh

New Member
#41
#41
Hello Traders,

Take Full PROFIT On My Spread Position Advice of 8th June " Now one can surely take Spread position between 14.50 ~ 15.00 S.Gap with Tgt of 12.00 & SL of 16.75 ~ 17.25." This Fetched Final Profit Of Rs.15000 Plus as Per Saturdays Trading. Hope you able to get good profits. Would like to have your comment on it. Next Position Advice In A Day Or Two.

Bye Happy trading.
 
P

PitBull

Member
#42
#42
Sorry I haven't been updating very often.
The spread gap right now is whipsawing/oscillating between 11 - 13.95.
Using my two day rule , the last entry I had was on the 11th which stopped out on the 14th.
Another entry was there on the 18th, but that would have stopped out on the next day.

I am not trading in the current scenario. I would wait and see what happens.
 
Mietesh

Mietesh

New Member
#43
#43
Dear Mr. P,

Thanks for your msg reply.
Its bit confusing to understand your msg exactly. As your msg reads "LAST ENTRY YOU TOOK ON 11th & IT STOPPED on 14th" but its not clear whether you took Bull or Bear position. And what does Stopped means here.......do you mean StopLoss on 14th ?? I Would Wait For your clear reply.

Thanks in Advance.
 
P

PitBull

Member
#44
#44
Date LEADM ZINCM Spread Gap
9-Jun-11 116.05 102 14.05
10-Jun-11 114.5 101.15 13.35
11-Jun-11 114.25 101.05 13.2
13-Jun-11 113.7 100.5 13.2
14-Jun-11 115.5 101.55 13.95
15-Jun-11 112.25 100.05 12.2
16-Jun-11 111.8 99.25 12.55
17-Jun-11 109.35 98 11.35
18-Jun-11 109.35 98.25 11.1
20-Jun-11 110.35 97.5 12.85
21-Jun-11 109.8 98.35 11.45

Mietesh,
My method is quite simple.
1. If the spread gap is reducing, Short Lead Buy Zinc.
2. If the spread gap is increasing, Buy Lead Short Zinc.

The position I took was (Short Lead, Buy Zinc) which hit the stoploss on the 14th.

Off topic - The usage of the terms "bull spread" and "bear spread" cannot be applied to the Lead Zinc spread. They mean something else completely which is why I get confused when you ask me that question.
 
Last edited:
P

PitBull

Member
#47
#47
Mietesh,
If I can offer a suggestion, your stoploss is too large. If you are aiming for a profit of 2.25 and you are keeping a stoploss of 3.5, you are automatically targeting a bigger loss then your profit. You need to relook your risk management.

In this case, however, you can set the stoploss at 15 because the 15 level has not been broken since April.
 
Mietesh

Mietesh

New Member
#48
#48
Dear PitBull,

I do respect your suggestion. Its nice to draw my attention on Risk management in Spread Trade & its given StopLoss.
But my calculation is somewhat different.... I see that in Spread Trade there are very few incidence of long SL getting triggered but if you keep short SL then chances are that SL gets hit and then the Target also achieved. Normally in Spread its patience that counts so if one is ready to keep Long SL then will surely get more accurate results against one who keep Short SL. Normally I know that SL should be lesser then Target but in spread it doesnt work like that, that's what my backward charting says.

If by chance you dont agree with me then do try personally and see the results.

Happy Trading in Spread.

MIETESH.
 
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