Spread trading in Meta Trader - page 183
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Subscriptions cost differently everywhere. For example, on the most famous MRCI website http://www.mrci.com/web/index.php, if I'm not mistaken, a quarterly subscription costs about $130-150 (look it up, search for subscription types there), and it provides access to seasonal site materials on the entire commodity market and spreads http://www.mrci.com/client/seapat/index.php (there is a 2-week trial version)
In addition, monthly newsletters with the most "statistically promising" entries go with the subscription. These are single and pair entries.
For example, here's such a 5 and 15 year seasonal chart on the coffee (Arabica) KC U1 - KC Z1 calendar spread (arrows are mine):
You can read more and take the seasonal site addresses in the March, 15th issue of Leprechaun magazine in the article TRADING SPREDS - 4 (seasonality)
Going back to MRSI, I'm uploading in the download below an analytical sample sample of the seasonal movements of calendar and intermarket spreads for March-April, which was taken there by subscription access.
Mr Barsky!
Can I ask you an answer?
What is quasi-arbitrage?
;)
could you, .... explain the meaning of quasi-arbitrage. how does it (without going into detail) differ from trading on the assumption of a return to the mean? Simply, due to the fact that there are three pairs involved... the probability of a return is higher.
;)
Maybe not at all...
Well, just to name a few, in most cases we can determine the position sizes of correlated spread instruments so that the line of total equity (i.e. the spread line) runs in a predictable horizontal or slightly inclined channel.
In addition. there is a powerful supporting factor here - seasonality! Some commodities are in demand at certain times of the year much more than at other times.
Take oil and petrol. Certainly - correlated instruments to a large extent.
For example, in mid-April and early May, US refineries are temporarily and partially suspended from producing heating oil (at the end of the heating season) in order to prioritise gasoline production for the summer holiday season.
Oil purchases by these refineries are being severely reduced and demand is falling! However, production of oil itself by the production companies continues at the same rate, oil is accumulated in storage facilities and, therefore, the price of oil will decrease in relation to the price of petrol - demand for which increases every week in the spring! So, there is a rationale here in the "general case" from mid-April for 2-3 weeks to work only on selling the oil-gasoline spread: SELL CL - BUY XRB =1^1
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Note that in the civilised world - by anti-trust laws:
oil extraction, refining and retailing of refined products are strictly separated and one company can almost never engage in these three (even two!) activities simultaneously, which is a good argument to the predictability factor of commodity price movements!
(In contrast to our Russian market, where monopoly companies chemise in all three directions at once. That's why our retail gasoline price always goes up - despite the not infrequent drops in world oil prices!)
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avatara, - in the download below I have an interesting article SPRED WITHOUT BAD, which clarifies to some extent the issue of trading commodity spreads.
Mr Barsky!
May I beg your pardon?
What is quasi-arbitrage?
;)
"Don't make a fuss." (с).
Quasi-arbitrage is - by my assumption - almost arbitrage. For example, what I describe in my articles for working in MT4 - it's hard to call it strict arbitrage! And there's no need to!
But the conventional term"quasi-arbitrage" - is quite appropriate for it, and it doesn't bind me to anything strict! And that's why it leaves room for experimentation!
"Don't make a fuss". (с).
Quasi-arbitrage is - as I suggest - almost arbitrage. For example, what I describe in my articles for working in MT4 can hardly be called strict arbitrage!
But the conditional name"quasi arbitrage" - suits it very well and doesn't bind me to anything strictly! And therefore it leaves room for experimentation.
I'm not being vindictive...
I just wanted to know if I got it right.
THANK YOU for your concern and response!
Always YOURSELF !
Yeah. Yeah, right. It'd be a win-win. Kind of clever. It's the other way around, though.
What do you mean?
Checked it - it's working. coincidence?
;)
Can you advise on GOLD & SILVER any trading tactics? gold has a large spread of 70-100 pips.
Thank you!
p.s. maybe there is a tactic to trade on pairs with large spreads?
Any trading tactics on GOLD & SILVER? gold has a large spread of 70-100 pips.
p.s. maybe there is a tactic to trade on pairs with large spreads?
-
See the post on page 181 of August 21 (10:29) on silver-gold spread. https://www.mql5.com/ru/forum/122468/page181
Read the whole post carefully, including the lines:
" ... I would recommend to buy just futures SIU1-GCV1, because for spot instruments XAU/XAG our brokerage companies set completely "irrelevant" spread asc-bid, while for futures in MT4 you can (often) open without losses on asc-bid if (for example) open the first position of the spread in MT4 using a Limit order and the second position - manually. (I remind you that futures in mt4 Broco, InstaForex and some others are opened/closed by limit orders - without charging asc-bid spread). Why give someone else your funds, however small? And the ratio of XAU-XAG spot sizes in some mt4 - should be calculated differently (I don't know why - and I didn't care...)" - c
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The current seasonally adjusted silver-gold spread SI-GC=1^3(2^5) is thinly-terminated! True, the spread line retreated down a bit on Friday - it corrected. Let's see what happens next!