performance cumulative returns performance commodity futures spread trading february 2017

Performance: February 2017

Monthly P/L:                                                     6%

Commissions:                                                 -0.2 %

Monthly P/L inc. commissions:              5.8 %

YTD P/L inc. commissions:                       5.8%

Since inception inc. commissions:    23.7%

 

Overall performance statistics.

Trading Activity: January & February

Opened positions

LEQ17 – LEM17 (Live Cattle): entered with three contracts at the beginning of January. January 17th the first PT reached and two contracts were closed.

ZWH17 – ZWZ17 (Wheat): January 26th and February 3rd bought two contracts when price broke resistance and 1-2-3 pattern occured. January 17th closed one contract.

Watch list update

Yesterday I made re-analysis of February’s watch list. I am already trading Wheat and Live Cattle but it seems that in Soybean Meal seasonality started and 1-2-3 pattern is forming. Originally I considered ZMN17-ZMZ17 but ZMK17-ZMZ17 has better results in my re-analysis.

How to Reduce Risk in Trading Futures [Video]

There are several ways how to reduce risk in trading futures. Very popular are options, but I would recommend to consider futures spreads, also known as commodity spreads. Spreads have many advantages and we do not need to have to pay for premium as it is in options.

Why to trade spreads

  • Suitable for beginners with small account.
  • Fundamentals do not have such an impact as to the outright futures.
  • Trading is simple and less time consuming. It takes only few hours every two – three weeks to prepare potential trades and then just couple of minutes daily to control the positions.
  • Traders can achieve high percentage of winning trades, 80% is not unusual.

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