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Exclusive Insight: The 1st Trade with our $100,000 Trading Account

Posted by Matthias D. aka nleeson111 on May 8, 2018 10:13:18 PM
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We are proud to present our first trade with our $100,000 real money account. This is a trade for advanced and expert traders, yet also beginners can learn a lot from our detailed description.

Trade # 1: Calendar Spread in Corn

We have noticed an exceptionally large discrepancy between the July 2019 and September 2019 contracts in the various corn contracts. Currently, the price difference between the two contracts is -20.5. Usually, the average difference between two adjacent contracts is -6:

Calendar Spread Mais

You can see very clearly that the level of -20 has been reached very rarely.

In the following picture you can see the different contracts with their respective prices and the discrepancy stands out clearly:

Screen Shot 2018-05-08 at 18.55.11

What is also clear is that it is not uncommon for a negative price difference to occur between July and September. This is partly due to the seasonality. Learn more about seasonality in our course.

Profit target of the trade: $1,450

We strongly assume that this so-called calendar spread will reach the long term average of -6 and therefore we have decided to buy this spread at -20. This means we are selling the July '19 contract while buying the September '19 contract.

Overall, we have bought this spread twice. Should we reach our take profit of -6, we will make a profit of $1,450 (1.45% return on our overall account size and 483% return on the deposited capital for this trade of $300).

Screen Shot 2018-05-08 at 15.40.15-2

(Source: Screenshot from the Trader Workstation by CapTrader)

If you are confused about the above SLD and 20 1/2, it should be said that it is exactly the same if you buy -20 1/2 or sell for 20 1/2.

How do I learn to trade Calendar Spreads?

This way of trading is part of our futures trading training that starts at Tradimo this summer. In the meantime, premium members will receive interactive instructional talks in the premium community and during live premium webinars.

Become a Premium Member Now

Disclaimer: This article was written for educational purposes and does not constitute financial advice. Please learn to trade and invest yourself or seek independent professional advice. Your own trading is always at your own risk.

Topics: Learn To Trade, Futures, Commodities

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