Hello dear traders. I want to share with you one interesting topic for trade with the
application of seasonality.
If you compare financial markets, such as the foreign exchange market and the goods
market, then I can say with confidence that the seasonal factor works best on the
commodity sector. Seasonal fundamental components are the main factors for taking
further action. For example, they include the periods of planting and harvesting, the
car period, the pre-Christmas period of demand for precious metals and other similar
periods.
But trading in direct futures contracts is still risky. How to protect yourself
against possible losses and guaranteed to earn every month for an extended period?
In this case we will be helped by more complex synthetic constructions, such as
calendar spreads, butterflies, crash spreads and others. Thus, we artificially form a
financial asset moving in the corridor, and also confirming our actions with you and
the seasonal period from which the commodity itself depends very much.
As an example, I want to show you a chart of a butterfly on one of commodity futures.
As you can see for quite some time, the graph looks like a corridor. Thus, it is very
easy to trade from the boundaries of this corridor, using the simplest technique along
with the indicator of Bollinger.
And in addition to this corridor, we can use the information on seasonality for this
butterfly spread. At what period of time this spread is more susceptible to downgrade
or to growth we will be able to learn only from the periods of seasonality and
statistics for a certain period of time with the help of the MoneyProfit resource.
The most interesting is that the probability of successful trading with the
application of this approach is above 80%.
And it's worth noting that the product is more predictable than the same currency
pair, as many factors affect the currency, which can not be said about commodities.
application of seasonality.
If you compare financial markets, such as the foreign exchange market and the goods
market, then I can say with confidence that the seasonal factor works best on the
commodity sector. Seasonal fundamental components are the main factors for taking
further action. For example, they include the periods of planting and harvesting, the
car period, the pre-Christmas period of demand for precious metals and other similar
periods.
But trading in direct futures contracts is still risky. How to protect yourself
against possible losses and guaranteed to earn every month for an extended period?
In this case we will be helped by more complex synthetic constructions, such as
calendar spreads, butterflies, crash spreads and others. Thus, we artificially form a
financial asset moving in the corridor, and also confirming our actions with you and
the seasonal period from which the commodity itself depends very much.
As an example, I want to show you a chart of a butterfly on one of commodity futures.
As you can see for quite some time, the graph looks like a corridor. Thus, it is very
easy to trade from the boundaries of this corridor, using the simplest technique along
with the indicator of Bollinger.
And in addition to this corridor, we can use the information on seasonality for this
butterfly spread. At what period of time this spread is more susceptible to downgrade
or to growth we will be able to learn only from the periods of seasonality and
statistics for a certain period of time with the help of the MoneyProfit resource.
The most interesting is that the probability of successful trading with the
application of this approach is above 80%.
And it's worth noting that the product is more predictable than the same currency
pair, as many factors affect the currency, which can not be said about commodities.