I am least sure about the corn and wheat spread trade.
I have not traded this before but wanted to start with a family of markets, t give me enough opportunities per week without hving to zoom down to the smaller time frames.
I intended to stay with a similar group of markets,namely markets most affected by inflation and the price of the dollar.
So oil, gasoline, heating oil, wheat, corn, natural gas. We can add Japanese yen and bonds to this, although these are also affected by interest rates.
Anyway, the value line is the corn and wheat spread calendar.
In the example below we see price drifting up and the value is above.
But then the calendars plummet and we then track the continued rise of the spread price.
We are looking for strong evidence of sellers at lower prices, as tis long slow drift upwards will contain a lot of buyers we do not want to fight against with my single contract trade!
When we see sellers at lower prices, and then a return to a (now) top edge at US open with value still dropping we can sell for a measured move down, wich we get, but it takes 24 hours.
We make $470 per contract. We can up the contracts but this is a long trade to watch, epsecially as we cannot directly enter a stop loss in to the market for a spread trade.
