Home Forums Main Forum Pearls from the Client Chat

  • Author
    Posts
  • Curve Advisor
    Keymaster
    Post count: 612
    #3881 |

    I am beta testing a limited client chat as an additional service for Premium subscribers. We discuss everything from positioning, to analytics, to set-up, to risk management, to trades that look leggable, to some “finer points” of futures trading, to general trading concepts. I thought I would start by posting some of the more general commentary in this thread. As the weeks go on, I may start posting some more specific commentary on STIR futures trading.

  • Curve Advisor
    Keymaster
    Post count: 612

    * We don’t want to get too crazy with the front libor, since we have no competitive advantage trying to predict where libor is going to fix.

    * Before you leg, think about: (1) what fits your view, (2) what fits your book, (3) have alternatives in case the leg moves, and (4) consider if you whiff. Depending on the strength of the above, you need to size smaller (or bigger). If the individual leg is somewhat rangebound, you can consider scaling the leg (in small size).

    * It’s not advisable to hold a [rangebound] trade until it gets to the top of the range (unless you have a strong view), since presumably you would want to sell if it got to the top. You are generally looking to get to the middle of the range, unless you think there could be more momentum. Since you have many fly trades that are correlated, you should decide which ones are the best to keep for the massive move, and which ones are best to unwind earlier.

    * For every trade you have on, have in mind an exit level.

You must be logged in to reply to this topic.