Spread trading in Meta Trader - page 192
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spread trading via CFDs is masturbation.
I apologise in advance for the probably silly questions...(Not enough time yet to fully absorb the material)
Question for leonid553
Is there any technique to determine which FI is leading and which is lagging (i.e. master and slave search) for correct opening in buy and sell, to avoid situation described above?
We do not know what will cause spread narrowing (whether 1 FI will go back to the first one, or 2 FI will catch up with 1 FI).
spread trading via CFDs is masturbation.
I wrote it this way (it was under the influence of alcohol, I would say, in alcoholic shock). I did not want to offend anyone personally. I have just expressed a fleeting feeling.
Just in case - sorry.
Another thing I wanted to ask you, working on M15, do you look at the state of the spread on a higher TF when opening the next positions or do you pay more attention to the spread/cross chart, seasonality aside?
Question to leonid553
Is there any technique to determine which FI is leading and which is lagging (i.e. search for master and slave) for correct opening in both buy and sell, to avoid situation described above?
We do not know what will cause narrowing of spread (or 1 FI will return to the first one, or 2 FI will catch up to 1 FI).
In the most general case for commodity spreads, this is determined by multi-year seasonal trends.
Typical example. For calendar spreads. Cattle LEZ1 - LEG2 (December2011-February2012)
Shortly (3-4 weeks approximately) before the close Z1-contract expires, the spread usually starts narrowing. That is, the near cheaper contract rises faster (or falls slower) than the far contract:
In addition, it is known that live cattle prices have been increasing since the beginning of the second decade of December according to multi-year seasonal trends (shown with an arrow):
Thus, here we can assume with great certainty that both contracts will rise in price from the second decade of December, with - the near December Z1 cattle contract will rise faster than the far, February G2 contract.
I.e., according to the seasonality in December there is a reason to buy the spread: BUY LEZ1 - SELL LEG2 till December 29 (30th - expiry of the Z-contract)
It depends on the specific tools.
The difference is in volatility, mainly.
For EURCHF - the movements are usually small (if there are no interventions) - a few tens of pips a day, no more and there is no need to assess the situation on higher timeframes.
For other currency pairs - there is a significant volatility and it may be necessary to look at higher prices.
I do not trade much in currencies, mainly futures. And currencies are just incidental, sometimes.
No problem - come in and join the discussion and the current trade:
http://www.procapital.ru/showthread.php?p=1171229&posted=1#post1171229