27
May
May
09
May
May
I’m going to say it right up front…you don’t need any special knowledge to use Statistical Arbitrage, also known as StatArb. All it is, is a fancy name for pairs trading. But even that term, pairs trading, makes some traders unsure. It has too many moving parts, and people struggle to understand how one profits […]
08
May
May
Crude oil (CL) is one of the more active commodities to trade. It has tremendous volatility and excellent liquidity. Oil is affected by global economic and political conditions, almost to the same extent as US Treasuries. The price of crude oil affects the price of many other assets, including stocks, bonds, currencies and even other […]
07
May
May
The BoB spread is a type of yield curve spread, it depicts a spread between the very longest maturity treasuries, the 30-year Bond and the 30-year Ultra Bond. So, what’s the difference, and why is this such a good trading vehicle? Here’s the part of the yield curve that the BoB spread represents, indicated by […]
28
Apr
Apr
Spread or pairs trading is a very effective way to hedge your risk exposure to the movements of the broader market. With pairs trades you can make profits through simple and relatively low-risk positions. The trade is market-neutral, which means the direction of the overall market does not affect profit or loss…it’s the change in […]
25
Apr
Apr
There are many variations of the yield curve to trade, and it can be confusing which is the right one for your needs. So you may be wondering, which should I trade? The answer is relatively simple, if you understand your personal capacity and tolerance for risk, and whether you are a long-term or short-term trader. […]
24
Apr
Apr
In a previous post on Yield Curve Trading I list all the popular yield curve spreads that institutional and professional traders watch. The TUT spread is the 2-year over the 10-year Treasury futures spread. It’s a pairs trade that’s the difference between the notional values of the two contracts (cash value of the contracts). This spread […]
23
Apr
Apr
When we speak of hedging, what we’re really talking about is a pairs trade, where we go long one asset and short another. We hedge to take advantage of several key aspects of Treasury futures. The most important is the edge we get by eliminating the directional aspect of price (minimizes risk) and focusing instead […]
20
Apr
Apr
Yield Curve trading using futures has been the bread and butter of large institutions and professional traders for decades. This type of spread trading offers excellent returns and hedging opportunities in one of the most liquid markets in the world, US Treasuries. In our opinion, broader adoption to this type of trading into the retail […]
21
Jan
Jan
Volume is arguably the most valuable leading indicator in trading. Some of the most profitable professional traders trade almost exclusively off of volume and never look at price charts. It is important because it allows traders to take a sneak peak into where price action is heading by analyzing order flow. For every buyer, there [...]