HELPING FUTURES TRADERS SINCE 1997

Cross-Browser App, use SeasonAlgo from any computer or mobile device , anywhere, anytime. Investors give sellers a small amount called margin, usually a small percentage. SeasonAlgo allows you to analysis your own spreads or automatically search with min. This site shall not be liable for any indirect incidental, special or consequential damages, and in no event will this site be held liable for any of the products or services offered through this website. I had not known of its existence, and it is precisely what I was wishing for. A great product that allows me to save a lot of time for my spread trading. The main con of these trading strategies is in the case of bad prediction; in this case, a loss is fast as profit, and this often discourages most investors.

We publish free futures spread seasonal trading strategies each month. Each trading strategy includes current chart (daily updated), backtest including results for each historical year and also cumulative absolute return.

Spread Trading

Speculators in the futures market can use different strategies to take advantage of rising and declining prices. The most basic are known as going long, going short and spread trading. Trades can be entered in two different directions, depending on where you expect the market to go. Short trades, on the other hand, are entered with the intention of profiting from a falling market. Once price reaches your target level, you buy back the shares buy to cover to replace what you originally borrowed from your broker.

For more, see The Stop-Loss Order: Make Sure You Use It. Whether you go long or short, you must have a large enough balance in your trading account to meet the initial margin requirement for the particular contract. Going long or short involves buying or selling a contract now to take advantage of rising or falling prices in the future.

Spread trading is another common strategy used by futures traders. Spread trading combines a long and short position entered at the same time in related futures contracts. The idea behind the strategy is to profit from the price difference between the two contracts while, at the same time, hedge against risk. For example, assume you put on a spread in gold. If gold prices rise, the gain on the long position will offset the loss on the short one — and the reverse would happen if gold prices fall.

Essentially, you assume the risk of the difference between the two contracts instead of the risk of a single futures contract. In general, spread trading is considered to be less risky than taking an outright futures position.

This involves simultaneously buying and selling two contracts of the same type and price, but with different delivery dates. These spreads are popular in the grain markets due to the seasonality of planting and harvesting. On the contrary, you margins keep draining owing to losses. So, you need to address the frequent margin calls. In yet another scenario, you bite more than you can chew. I mean you take over-leveraged positions.

If the weather is sunny as you expected, then you can make hay. But, if it gets stormy, then the extent of destruction becomes unfathomable. There exist so many strategies which would not only save your fingers from getting burnt.

But also would make trading a lucrative punt. To a large extent, investors take a long position in futures. They look at profiting from rising markets.

Historically, the markets have risen more than they have fallen. So, under this strategy, the investor provides for the downside risk as well. Suppose investor purchases May Index Futures contract for Rs containing shares. He pays an initial margin of Rs He is bullish that the index may rise. But at the same time, he is apprehensive about the loss if the market falls.

In this case, both the upside and downside potential are unlimited. He buys near month Nifty put options expiring in May at a strike price of Rs The put premium for the contract comes out to be Rs Rs per put for puts. The maximum loss, in that case, would be the premium on puts. However, he recovers it by exercising put option. There are times when you may get bearish about the markets.

Assume that you hold 3-month stock futures contract and go short on the volatility. In the times gone by, markets have always been bullish. The tendencies to go southwards are usually little.

Nonetheless, you feel that stock prices of the company would fall. Here, the profit potential is limited to the stock price touching zero level. It cannot go negative. But what if the reverse happens? The upside risk potential is unlimited. You would be in soup. You can arrest this.

Here again, with the help of options, you may check an un-hedged position. In this case, you may use a call option to bet on the upside potential of the stocks. In this situation, his profit potential is limited while loss potential is unlimited.

He buys 3-month 50 call options of Rs 20 each at an exercise price of Rs In this case, call expires worthless.

What is your FQ ?

While most speculative futures transactions involve a simple purchase of futures contracts to profit from an expected price increase—or an equally simple sale to profit from an expected price decrease—numerous other possible strategies exist. Free Seasonal Spread Trading Strategies With High Probability of Winning. Explore new way for commodity trading. Seasonality in combination with futures spreads, can give us a solid edge and base for building profitable trading strategies. Futures and Options Strategy Guide Learn 21 futures and options trading strategies in this easy-to-read guide. Whether you’re looking for new trading opportunities or a capital efficient way to manage portfolio risk, futures and options on futures offer a wide array of products to accomplish either objective.