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TradersCALM - Spreads : Improving the Odds © "Dedicated to trading with good feelings." All services are free. |
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Many, if not most, traders trade one instrument at a time or multiple instruments independently. But trading some ratio spreads of two highly positively correlated markets has advantages for both momentum players (such as trend-followers) and faders (such as market makers). Some spreads offer improved reward to risk ratios as they often, but not always, have some or all of the following characteristics: for momentum players: improved odds of 'trending', improved expected profit per unit drawdown, for faders: greater control of maximum exposure, improved position size for same 'uncle point', for all traders: an opportunity to trade with better feelings. |
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