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Brent/WTI Hedging Strategy

  • #21
  • Jun 24, 2015 7:44am Jun 24, 2015 7:44am
[Quote = techlover; 8343966] {quote} lol proč broker zakázat a odstranit peníze? neděláme žádnou věc špatně, tvůrci trhu vám může zakázat, jít s ECN makléři [/ quote]


do not take it personally, please. Only I find it very easy .. I'm feeling test on fxtm cent today.
if I understand well BRENT-sell, buy-WTI .. transact business at a profit (2.0 lot - profit of 20 usd). Trade time: London time .. after closing open another trade .. well?

thanks
  • #22
  • Jun 24, 2015 8:36am Jun 24, 2015 8:36am
Quoting techlover
{quote} LOl why will broker disable and remove money ? we are not doing any thing wrong here , Market makers may ban you , go with ECN brokers

on what balance do you trade 1standard lot size?
I am what Many Dream to be but only a few can achieve, im a part of the 1%
  • #23
  • Jun 24, 2015 8:49am Jun 24, 2015 8:49am
Quoting Soros
{quote} on what balance do you trade 1standard lot size?
on 2k account i will trade 1.00 lot but i will trade other pairs too

i request all guys to test in demo first before going live
  • #24
  • Jun 24, 2015 8:51am Jun 24, 2015 8:51am
Quoting xpie
{quote} well in 2011 the price difference between wti ans brent as been almost 30 usd. so it doesnt mean that it is always fluctuating around an almost equal price. see this chart https://ycharts.com/indicators/brent_wti_spread
I agree with you Xpie

but as of now the spread is stable , we cant say wn it will change so iam trading right nw

we all know , no strategy in the Fx is holygrail , we shld catch it wn there is possibility
  • #25
  • Jun 24, 2015 11:33am Jun 24, 2015 11:33am
Hi,

this thread caught my eye because I use FF factory Eco Calendar but have been an oil day trader for around 18 years. I do not post usually on forums either.

you may get a bit of joy but Brent/WTI loosely follow each other with occasional decoupling.

good day so far on WTI.........I don't trade Brent.......pointless, if I am trading WTI as it is not exactly going to be a hedge or spread the risk. Would look to Brent if WTI not offering a set up but only then. I don't scalp small moves either.

greenpips99
  • #26
  • Jun 24, 2015 1:58pm Jun 24, 2015 1:58pm
Quoting Renkosignals
{quote} Was it profitable today as you described above??? I tried it today on a demo and so far I have made no profit yet nor have I been close to profit and it has been around 7 hours since the trades were opened.
I have made today my first 9 $ - in Demo .
Thanks for this Sharing @ techlover - will test again.

I am at work 10hours a day - so i can go for 1 Trade per Day - but thats fine.
Attached Image (click to enlarge)
Click to Enlarge Name: Brent - WTI Hedge 24.6.2015.jpg Size: 60 KB


Can you recommend a Broker for WTI and Brent- at now iam at ICMarkets.
  • #27
  • Jun 24, 2015 6:38pm Jun 24, 2015 6:38pm
Sounds promising. Gonna give it a try and see the result.
  • #28
  • Jun 25, 2015 12:05am Jun 25, 2015 12:05am
Quoting Treptowjens
{quote} I have made today my first 9 $ - in Demo . Thanks for this Sharing @ techlover - will test again. I am at work 10hours a day - so i can go for 1 Trade per Day - but thats fine.{image} Can you recommend a Broker for WTI and Brent- at now iam at ICMarkets.
No recommendations but Iam also using same broker
  • #29
  • Jun 25, 2015 2:56am Jun 25, 2015 2:56am
How many trades/cycle do u usually have in a day?
  • #30
  • Jun 25, 2015 3:00am Jun 25, 2015 3:00am
Quoting Treptowjens
{quote} I have made today my first 9 $ - in Demo . Thanks for this Sharing @ techlover - will test again. I am at work 10hours a day - so i can go for 1 Trade per Day - but thats fine.{image} Can you recommend a Broker for WTI and Brent- at now iam at ICMarkets.
Dear Treptowjens,

Wonderful,... you trade over day,... no SWAP seen ?

Please make sure,...

Budi
  • #31
  • Jun 25, 2015 3:51am Jun 25, 2015 3:51am
Quoting deusdivina
How many trades/cycle do u usually have in a day?
it depends on the volume of the market, some times i am getting around 5-6 cycles per day ,some times only 1 or 2
  • #32
  • Jun 25, 2015 12:34pm Jun 25, 2015 12:34pm
Didnt get any today.
  • #33
  • Jun 26, 2015 3:45am Jun 26, 2015 3:45am
Attached Image (click to enlarge)
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  • #34
  • Jun 26, 2015 9:19am Jun 26, 2015 9:19am
I like the concept but what about commission costs vs gains ? 2 trades for $10 ?
  • #35
  • Jun 26, 2015 1:51pm Jun 26, 2015 1:51pm
What are your position sizes for the hedge?
  • #36
  • Jun 26, 2015 4:12pm Jun 26, 2015 4:12pm
The spread has traded anywhere from ~ 2.50 up to 22 in the last 4 years. Good bet to go long Brent & short WTI for a longer term play.
Attached Image (click to enlarge)
Click to Enlarge Name: crude_spread.png Size: 10 KB
  • #37
  • Jun 27, 2015 1:46am Jun 27, 2015 1:46am
this is just placing two trades which accomplishes the same thing as a short on Brent/WTI.

It's like placing a "hedge" by going long EURUSD with another long on USDDKK
the USDs cancel each other out and you're left with a long on EURDKK - but you paid two spreads/commissions.

I'm all for making hay while the suns shining but have a plan for when the rain comes.
Attached Image (click to enlarge)
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  • #38
  • Jun 28, 2015 3:54pm Jun 28, 2015 3:54pm
Just a thought. If you think this method is profitable, then you should use a hedging EA and run it 24/7.
  • #39
  • Jun 29, 2015 8:25am Jun 29, 2015 8:25am
Quoting BubaYaga
this is just placing two trades which accomplishes the same thing as a short on Brent/WTI. It's like placing a "hedge" by going long EURUSD with another long on USDDKK the USDs cancel each other out and you're left with a long on EURDKK - but you paid two spreads/commissions. I'm all for making hay while the suns shining but have a plan for when the rain comes. {image}
Note that EUR and DKK's parity is fixed, but wti and brent isn't, the difference can be tremendous.
  • #40
  • Jun 29, 2015 8:33am Jun 29, 2015 8:33am
I've made some research and I have found that this is anticipating if the spread will widen or not, in other word, it's trading, simply, like anticipating wti movement.
Some broker gives contract on wti brent spread.

So I think that it's better to talk about the reason why the spread changed, instead of trying to demonstrate that this hedging works.
It have worked because the spread goes down for the last month, but it isn't always the case.
Have a look on this if you want more: http://www.investopedia.com/articles...-and-dubai.asp
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