Spread Trading - Strategy & Calculation

[TRADER24]

After learning from iGuru the spread strategy one night i found a huge gap between Turmeric Dec & November futures and after reading the 10 year historical charts of the turmeric i came to know that turmeric always increases in the month of sep-dec.

Right now i am earning 76500 from this strategy and still there is huge gap of - 1,160 Rs/- between dec and oct.

My Spread Strategy:

Buy Dec Turmeric and Sell November Turmeric and exit early.


THANKS HITESH.TRADE FOR SHARING THIS STRATEGY ON AGRI COMMODITIES.:clap:
IF YOU DON'T MIND , CAN YOU PLEASE SHARE THE WORK WHERE YOU HAVE STUDIED 10 YEARS HISTORICAL DATA SO THAT WE ALL COULD LEARN MORE FROM YOU. ALSO WHICH ARE THE OTHER AGRI COMMODITIES YOU DO SPREADTRADE ? THANKS IN ADVANCE.:thumb:

 

[iGuru]

I have seen your excel sheet, but I didn't understand what exactly do you want to know. If possible please make it in broader term or else please call me I have given my contact detail in this post..........



SIR,
IT WOULD BE VERY HELPFUL IF YOU POST THE EXCEL SHEET FOR GOLD AND SILVER SPREAD EXAMPLES FOR AT LEAST 2 MONTHS ,LIKE YOU POSTED SHEET FOR LEAD AND ZINC . IT WOULD BE VERY HELPFUL FOR US TO UNDERSTAND CLEARLY.ALSO SIR , CAN WE SPREAD TRADE IN SILVER AND SILVER MINI . IF YES ,HOW? WITH BOTH SAME MONTH OR FAR MONTH CONTRACT.
VELURI SIR, ALSO CAN YOU PLEASE POST YOUR BACKTESTED EXCEL SHEET FOR SILVER .I WOULD UNDERSTAND SILVER SPREAD TRADING BETTER.

THANK YOU!!!

Hi Trader24,

By the end of this week I will post your query (excel sheet for Gold & Silver Spread), as I get time only during Sat & Sun.

Yes you can do spread in Silver & Silver Mini. Here only your lot size will vary which I mentioned in my previous post and you can do spread in near month contract as the contract period for both the script is different.

 

[balaj78]

Hi Trader24,

By the end of this week I will post your query (excel sheet for Gold & Silver Spread), as I get time only during Sat & Sun.

Yes you can do spread in Silver & Silver Mini. Here only your lot size will vary which I mentioned in my previous post and you can do spread in near month contract as the contract period for both the script is different.

Hi Guru,
Thank u for your excel sheet .We are eagerly waiting for the Excel sheet .
For the previous excel for zinc and lead we should update with the current month values for eg this month contract of 29-oct and after the expriry we should update with the next month values for eg 30-nov-2010 .Am i correct .

thanku
with regards
bala

 

[sprintravi75]

hi pralhad

how did you imported commadity data to Amibroker. pls explain in detail.

regards
ravi

 

[sprintravi75]

dear iguru

please let me know the trade initiated (bull spread) on 30.9.10 as per your excel sheet is still open. Also pls tell me can i call to night (or any day u say) at 12PM i have some doubts to ask.

Regards
Ravi

Hi Trader24,

By the end of this week I will post your query (excel sheet for Gold & Silver Spread), as I get time only during Sat & Sun.

Yes you can do spread in Silver & Silver Mini. Here only your lot size will vary which I mentioned in my previous post and you can do spread in near month contract as the contract period for both the script is different.

 

[rahulmalik]

Guruji, please let me know if we can use the combination of Natural Gas / Crude Oil for this spread. What do you suggest ?

 

[iGuru]

Guruji, please let me know if we can use the combination of Natural Gas / Crude Oil for this spread. What do you suggest ?

Hi Rahul,

Natural Gas & Crude Oil doesn't have good correlation (even in fundamentals). so please try to ignore the spread strategy for this.

 

[rahulmalik]

Thank you Guru ji, please suggest additional pairs other than lead/zinc which form a low riskier and more profitable combination.

 

[ANKPAGR]

dear,
nice explanation.....really you are guru.....
normally...i trade with crude...can you pls. give some idea about this strategy with crude....
tnx,

dear
plz don't try this in crude , bcoz i tried it when the diff btwn two contracts was 60 rs and can u believe the max difference i have seen after that was 230/- and that time i have 3 lots spread position and expiry was comming near , and at one time i was in 30k loss and at end i squareoff my posion with 20k loss , after that experience i came to this conclusion that which commodity don,t have delevery the diff can be any extent,if u want to play spread in crude then only play narrow diff to wider difference with operators, in that case u will find that loosing money chance is less .yes the lead and zinc spread gave me always money in this case only play for more difference to zero difference , don't play zero difference to more difference. this is my experience and i think iguru is the master bcoz of his research ,can anyone told me for more spread calls in any other commodities but that must be safe as lead n zinc.......thanx everyone

 

[johanna2010]

hello! there are many information relevant to stocks here.its very useful.

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