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!!!