Energy futures spreads course

[EnergyLegger]

Hi

A family member recently approached me to 'set him up' to trade. Reluctantly I have spent about 10 hours with him getting him started swing trading Energy Spreads. He is now up and running and demo trading whilst I talk him through some trade ideas.

Although energy spreads sound complicated they are actually a great space to be in. The margins are very cheap and on the longer time frames H4, D, W, M they behave very differently to trading outrights. You also dont need a huge account (can start with $5k after demoing). 1st order spreads can trend very well and 2nd order spreads have useful mean reverting strategies. I have attached a chart example of a 2nd order fly spread. As you can see even while commodities have had huge volatility in the last month, this spread has been in a tight range. The name of the game has been buying 0.00s and selling 0.08s rinse and repeat, very simple and straight forward if you know what you are doing.

Anyways the point of this post is that I am thinking of producing a short video course (approx 10 hours long) which will be a 'Getting Started in Energy Spreads'. The course would be coupled with personal or group instruction from me via skype.

If you go looking for training in Energy Spreads online you wont find much if any. This is because many institutional/prop traders keep their methods closely held for obvious reasons.

Is there any interest in this here? otherwise I wont bother putting together the videos lol.

Thanks

energylegger

 

[EnergyLegger]

morning. The above custom energy spread is trading bid 9 offer 10 this morning. Great opportunity to sell some 10s on the offer. This will very likely be trading around 0.00 to 0.02 in the next few days/weeks. Much easier than trading flat price on the front month.

 

[EnergyLegger]

morning. the above future spread I am discussing here is the feb/mar/apr crude fly. see attached DOM right now. 48 bid @ 8s, 16 offered @ 9s. As you can see this is a very stable instrument compared to front month crude or the usual retail favourties spoos, dax, ftse, euro, cable etc.

The margin to hold this spread overnight is around $450, so even a small account can hold a 5 lot for days/weeks/months. A 1 lot is $10 per tick in the fly. Much more predictable than punting (guessing) on flat price.

I wouldn't suggest trading future spreads with an account less than $10k but i know a broker who will get you started with $3k.

please post any questions.

 

[EnergyLegger]

Please see today's chart and DOM of the feb/mar/apr crude fly. currently 86 contracts bid @1 27 contracts offered @2. This is a great spot to exit shorts from above where it was easy to get in at 8s or 9s. So an easy 6-8 ticks that could have been taken by holding for 4 days. Sometimes you have to wait longer, perhaps a couple of weeks. Very simple and straight forward trading with edge. Even with a $3k account it would have been possible to hold 7 of these fly contracts banking $70 per tick less commissions.

Anyone got any questions/comments.

 

[joselopezde]

"I am thinking of producing a short video course (approx 10 hours long) which will be a 'Getting Started in Energy Spreads'.

...Waiting the video...

Interesting thread!

 

[aztron]

Hi. I would be interested in the course

 

[EnergyLegger]

Hi. I would be interested in the course

Hi aztron. Your interest is noted. At this stage I am still gauging demand and I need to weigh up the pros and cons in relation to trading my own account as it will require significant time input. I would very much enjoy training a handful of retail traders in delta neutral methods that the pros use. I will have a think of the xmas hols.

Good Trading.

 

[aztron]

Hi aztron. Your interest is noted. At this stage I am still gauging demand and I need to weigh up the pros and cons in relation to trading my own account as it will require significant time input. I would very much enjoy training a handful of retail traders in delta neutral methods that the pros use. I will have a think of the xmas hols.

Good Trading.

Thanks for the reply. I hope you decide to teach. In any case I wish you all the best in your trading.