Spread Trading - Strategy & Calculation

[nac]

Why you guys asking for Excel Sheet of Gold/Silver...

He has given his theory... Explained very clearly about his theory

Why don't you guys go on and download the data and back test yourself...

 

[mehtaka]

I have already made an excel sheet on gold.

I wanted to know abt the spread gap....coz it is acting abnormally in btwn.

Also had some query reg zinc-lead.

Dont know where is mr.guru.

 

[VBS2010]

I have already made an excel sheet on gold.

I wanted to know abt the spread gap....coz it is acting abnormally in btwn.

Also had some query reg zinc-lead.

Dont know where is mr.guru.

Dear Mehtaka,
Can U help me out to get excel file in Gold & silver?

Thanks.

 

[gb333]

Dear VBS 2010..
Can I apply the same strategy in Lead Mini and Zinc Mini ?

 

[mehtaka]

Sure VBS...

I have attached the excel sheet....
i have written the trade calls in bull/bear spread gap....but thoseare incomplete calls...
AS i said in previous post...that the spread gap is acting abnormally...so cant make out the perfect entry levels.....

Also let me update you how i have updated the datas...
Example...Near month(dec) has a data from 1-50 and far month Feb 2011 has 25-75....
so the first 25 is updated from oct series (that time oct was the near month and dec was the far month)......and as soon as dec is finished i.e till 50th data....the rest 25 data of feb will become the near month.
hope you got that.

Do reply for any query.

Sorry dude not able to upload file....
will try again...

 

[mehtaka]

Zinc and lead spread is now 3.5....
3-4 post back i said it was trading at a gap of rs.5....

 

[VBS2010]

Zinc and lead spread is now 3.5....
3-4 post back i said it was trading at a gap of rs.5....

Hello Mehtaka,

Thanking u for sharing post,
I would like to know that Is that effective if we do spread trading between Lead Mini & Zinc Mini? And How much spread gap we would take position on it. e.g. Max +4 to +5 or -3 to -7.
And Can We say that Spread trading between LeadM-ZincM is much safer than Gold-Silver?

Thanking you.

Rgds,
VBS

 

[mehtaka]

Hello VBS,
Do you want to know the spread trading btwn different gold futures......or btwn gold and sil?
As i have prepared sheet of gold with two different futures.

I have never analysis the spread btwn gold and sil, as the lot size of both the comm are different. If you buy 1 lot of gold(1kg)..u need to buy min 3 lots of sil (30kg). So my mind never got set with this one.

Personal view: If you do a spread trading btwn two different comm like zinc-lead or gold-sil, though they move up and down in same manner, still their fundementals are different.so need to be careful.

 

[VBS2010]

Hello VBS,
Do you want to know the spread trading btwn different gold futures......or btwn gold and sil?
As i have prepared sheet of gold with two different futures.

I have never analysis the spread btwn gold and sil, as the lot size of both the comm are different. If you buy 1 lot of gold(1kg)..u need to buy min 3 lots of sil (30kg). So my mind never got set with this one.

Personal view: If you do a spread trading btwn two different comm like zinc-lead or gold-sil, though they move up and down in same manner, still their fundementals are different.so need to be careful.

Dear Mehtaka,

Actually I am trading in Bullion for last 3 yrs but plan to start spread trading in Zinc-Lead Mini commodity. What is your opinion on Lead-Zinc is much safer than Gold-Silver.

Mehtaka, I want to know that if First position create in Spread in Lead-Zinc at 4.5 (=Lead Price-Zinc Price), How many days can hold the position to square Off at Spread 0 or -1 or +1.
& In a Intra day -How much difference shows in Lead-Zinc Spread during a day

Thaxs

VBS

 

[mehtaka]

Dear Mehtaka,

Actually I am trading in Bullion for last 3 yrs but plan to start spread trading in Zinc-Lead Mini commodity. What is your opinion on Lead-Zinc is much safer than Gold-Silver.

Mehtaka, I want to know that if First position create in Spread in Lead-Zinc at 4.5 (=Lead Price-Zinc Price), How many days can hold the position to square Off at Spread 0 or -1 or +1.
& In a Intra day -How much difference shows in Lead-Zinc Spread during a day

Thaxs

VBS

I would prefer Zinc-Lead.....As i have never analysed Gold-silver spread.(reason i said you before)

About how long one needs to hold on the position ......it all depends...I dont mind holding it for the entire month as long as it gives me min profit of
Rs.10000/-...on an investment of 1L (50k zinc and 50k for lead). Well it comes to 10%...thats should be good.

If you have gone thru the excel sheet, must have notice that bear spread call has took long time...than a bull spread.
the current bull call is running since long, expiry is near, yet the difference is 4rs.