Seasonality is one of the significant forces influencing commodity and futures markets and stands behind periodical price movements at specific times of the year. Seasonal behavior can be explained by many fundamental reasons, like weather cycles, trends and patterns in consumption, important annual events and many others which cause changes in supply and demand. Although we don’t have to know all seasonal fundamentals, with enough of history data, knowledge of statistics and data mining, seasonal patterns can be discovered with the help of computers. Seasonality can give us a solid edge and base for building profitable trading strategies.
Read moreSpread trade is the simultaneous purchase of one security and sale of a related security as one unit. Opening spread trade, we are in long and short position. This brings us a lot of advantages compared to trading outright position:
Technical analysis of seasonal spreads is not complicated but requires specific tools, which are not available in common retail trading platforms. We designed our platform with all seasonal spread trading nuances in mind.
Reliable seasonal trends are essential for successful futures spread trading. Because this is the edge which makes our profits. We give you thousands of strategies and smart search engine to select the strategies which suit your trading style.
It’s always good to have evidence of your trades. But in seasonal trading it’s very important. Seasonality is cyclic which means that next year you can trade the same opportunity. After few years you can have your own portfolio and pick trades only from it. Our portfolio management is integrated in platform and includes following:
Available retail trading platforms don’t allow seasonal and spread backtesting at all, because of its specific requirements. So we feel there is a lot of room for improvement and we started to work on full feature advanced backtester for seasonal spread trading. Nowadays it’s a still concept but we are working on a new version.
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The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well for you. The use of leverage can lead to large losses as well as gains. Past results are not indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.
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