spread wheat vs corn 07:40 28-Aug-19 ADDING SOME MORE

.LOG


spread wheat vs corn 07:40 28-Aug-19


I spread trade WHEAT versus CORN.

I follow more or less -

Keith Schap – The Complete Guide to Spread Trading

The guy who spreads and makes a little every day is the one who walks away with
the big money.”
–A veteran trader, quoted in Futures

Every time i enter a trade in WHEAT i enter a trade in CORN with the same amount of units.

Trade accordingly your account size.

The trades can last hours, days or weeks.

Patience and discipline and money management. I will not lose more than 5% of the equity.

I can trade every hour or other.

Intercommodity Spread

The Intercommodity Spread is a spread between two different commodities, but in the same delivery month. Often this spread will set-up according to seasonality or occasionally a harvest supply/demand picture.

The Corn-Wheat Spread

The Intercommodity Spread is our focus for today! Specifically, we will analyze
the merits of the Corn-Wheat Spread going into the 1st and 2nd quarter of 2011.
This is a trade that I have monitored since the 80’s. I believe that it was first
notable in the mid 60’s. The beauty of taking a classic trade and reviewing the trends
and history of the trade saves time in research and previous observations may even save
money on potential variances to watch for. In this particular spread, we note that July
may be a strong month for corn as the weather conditions, plantings acreage, export numbers may still be unknown. The crop is still vulnerable until toward harvest which is in the fall. On the other hand, the harvest for the soft red winter wheat may be in July, allowing the market to regard the saturation of a harvested crop. One may look at the months; March, July and September contracts for this particular spread trade and select another, but this is the anatomy of the spread, not to be confused with a trade recommendation. As a matter of fact, this spread may be reversed at another time of the year. June may be a time frame to review the Wheat-Corn Spread. These grains are both feed product and may also be affected by livestock production trends, global supply-demand figures, weather conditions and basis for the farmer. The wheat is typically a heavier protein cereal, while corn does not vary to the extreme. In modern times patents on the seeds of varied grains has become big business. The USDA regulates the delivery, grades and contract size regular for delivery. The seeds and
fertilizers must also endure disease and pests. There are Government Subsidy programs
as well in some cases to control the crops being planted. In recent times, Africa has
been know to lease land for crops to fulfill some of their required grain inventories
in countries such as China.

Technically, it is good to pull up a spread chart to monitor the merit of the potential
move. One may select their Indicators to best confirm an entry.

There is no audio in my videos.
This is a demo ac. I have a real ac with oanda.
Beyond Technical AnalysisCommoditiesCORNcornwheatspreadWheatwheat_setup

相關出版品

免責聲明