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Re: Profit_Ace post# 6968

Wednesday, 01/26/2005 2:56:52 AM

Wednesday, January 26, 2005 2:56:52 AM

Post# of 51804
@ 'Profit_Ace' -

i am not sure what you are exactly talking about, but i´ll pick it up.

1st answer - trading futures -

right, there are different systems called " carry trades ", but most of all you trade them in commodities and currecies.

in commodities you trade them as " 1 2 3 crack " this is the different correlation CL HO HU.

in currencies very often is traded not the single price like DX, no, most of the traders using the correlation between $/€ or Y/$ .....

other side, if you want to trade this in futures, it is not so easy to cover the hedge on the other side.


2nd answer - trading options -

there you can trade the underlying straddles vs. strangles and you have to take care to be well positioned in the priced target and most of all in delta and theta correlations ( depending on your personal money management ).

3rd answer - trading brackets -

you trade in 2 same weighted positions in a congestion range. then you have to buy or sell against the market.

long pos @ 1000
short pos @ 1200
actual price @ 1100

so, if the price goes down you sell the long pos. if it goes up you cover short and so on. this is a good system, when you have clear defined ranges, a good trading plan and 2 accounts.

ok, i am sure there are much more systems ´to trade, but also all of us has it´s personal style to trade.

linzy


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