Technical Education Consulting Services for Professional Trader Development

Note: March 2011 live market trader feedback provided below.

Now providing custom charting studies and proprietary market signal scanning software to clients

 

 

SpreadProfessor Live Market Training Progression

SpreadProfessor is not a broker, CTA or trading advisor - the only income from the client comes from the consulting fee.  As such the client's capitalization bankroll is entirely dependent on the client - I have independent clients clearing IB with $20K and I have independent clients clearing New Edge which requires a minimum $3M initial account balance. I have European prop clients clearing Schneider and I have Australian prop clients with Silk Road clearing MF... I have CTAs and hedge fund clients; it's just all over the map.  So, it isn’t easy recommending capitalization levels.

Time-to-Live Trade is also entirely dependent on the client. I still trade quite a bit personally, so I keep a controlled number of clients and I rotate them through the program at fixed intervals. They all start out training with me personally on a one-to-one basis with the modeling tools and the trading system procedures.  For the first few training sessions the consultant introduces the client to the trading models, the spread position construction combinations, and helps the client set up his own personal trading station in order to run the models and the scanner.   Once a certain competency threshold is met the client starts paper trading with the consultant.  During the paper trading process with me they are getting very consistent feedback from me with respect to the model trading signals, the profit targets, and the stop/loss targets. Again, when they reach a consistent competency level I clear them for live trading if they choose. At that stage in the training, I will also start to teach them how to construct their own spread combinations and make modeling adjustments.

Let me explain the term "paper trading" as it relates to me and my clients at least - as soon as they get a trading signal on their own personal trading stations at their office or home they provide me with a few model specifics, the market, the price level, and their profit and stop/loss levels via email. In that way I'm able to give them feedback, and the email notification gets tracked and trended by me. Once they close out the trade, they also notify me. So, in terms of the training and feedback process for the model and the trading system there is definite accountability and a progression to things.  During the course of this "paper trading" phase, there is a great deal of email interaction between the client and consultant about trading signal validity, holding timeframes, and valid stop/loss and profit target levels for the trade. 

Time-to-Live Trade can be somewhat abbreviated with experienced professional traders; for example, I took on a Chicago CTA as a client in late June of 2010, and he started trading live the first week in September of 2010.

For example, during August 2010, 3 clients who started in June 2010 had the following Win-Loss records paper trading with me:

DS: 39W, 11L, 9S
CL: 41W, 32L
MH: 16W, 7L, 1S

As these clients get more confidence and experience, we start talking about legging spreads in the live market and I'm able to show them my live market order books and if they are using TT or Pat Systems or CTS I can help them set up their execution platforms. We also put together a starting portfolio of trade combinations to use in the scanner and charting packages. The starting portfolio includes a position sizing and capital allocation plan. I have one client at the moment that is currently practicing legging yield curve spreads on the TT Sim environment.

So, everything is pretty much client-dependent in terms of capitalization and to some extent Time-to-Live-Market trading time horizons. Generally speaking, I like to see my clients in the 58-65% Win-Loss ratio percentages before I would recommend that they're ready to risk capital in the live marketplace.

Where's the Value In It?

Going It Alone: reflect upon your background, experience, capital and time resources. That evaluation needs to include trading losses, expenses and the time value component required for development.  Failure is also a very real possibility. How likely is it that you can sift through the internet, various seminars, academia, or texts and mine worthwhile information?  Make sure that your personal assessment is realistic.

Experienced Traders: what is a fresh trading revenue stream and exposure to new market spaces and techniques worth?  Are you forcing trades in your existing market, and would some proven diversity ease the pressure.  Portfolio managers are constantly searching for alpha, and legitimate diversity in tactics and markets is a career-bending enhancement for independent traders.

In an isolated and secretive profession stocked with exceptionally intelligent and competitive people, can a well-regarded and talented advisor working with you on a personal and interactive basis help you take it to the next level?

Why do most hedge funds and bank desks engage heavily in spread trading and relative-value market making, while  independent traders and retail-oriented speculators seem to prefer directional flat price risk? 

Several existing clients have proven that even quite modest, retail-oriented accounts (Interactive Brokers being a great example) and commission structures are perfectly adequate to trade properly refined relative-value spread trading strategies.  High Frequency trading is not required - or even desired. 

SpreadProfessor has 18 consecutive years as a full-time trader with a positive P&L each year, so save yourself alot of time, expense, and abuse by using my expertise to your benefit.  Skeptical?  Good - my clients were shocked and subsequently pleased that I am building a business doing what few (if any) others will.  E-Mail me, tell me about your background and trading goals, then review my credentials and independently ask my clients questions for yourself before you make a committment.

Important Note: Consultant is not a Commodity Trading Advisor or Securities Broker, and is not making any offers or recommendations to buy or sell any securities. Consultant makes no market or securities risk advisements of any type.  Consultant makes no revenue on hardware, software, commissions, brokerage, or any other hidden fees.  Consultant makes no performance claims, express or implied.  Client performs due diligence on the Consultant, and both parties enter into a contractual agreement for the performance of technical analysis consulting services on securities markets before technical education work begins.  A key element for any prospective client's due diligence process is to get an independent
evaluation from current clients regarding the consultant's fitness, integrity, technical knowledge, and value.  An example of the provided technical studies by the Consultant to the Client includes statistical studies like time series analysis for time and sales data as provided by regulated trading exchanges and disseminated in the public domain.

A word about educator track records: I will of course, publish my track record for qualified individuals and funds in the next several months in the form of a private prospectus offering. I have been advised by my securities attorney NOT to publish my record as part of my private consulting business. Reason being: I have fiduciary control over my own trading and investment decisions as it relates to managing money in a limited partnership setting, but I have no control over the independent trading decisions made by my consulting clientele. So, there are legal reasons why I insist that prospective clients interview my existing clients about performance metrics.  The other point being that it is more realistic for a prospect to gauge his chances for success based upon how other clients have performed.

So, in a nutshell my securities attorney insisted that there not be any direct or indirect implications or representations that a client could replicate my trading performance metrics. But for managing money with power-of-attorney with respect to allocating capital under the structure of a limited investment partnership - of course.

A number of my Clients are making money in these markets - just ask them for yourself!  I teach independent traders a very detailed relative value correlation trading system with a proven, tangible edge.  No subjective interpretation of chart patterns, wave counts, Gann lines or candlestick formations.  My preference for most clients is a mechanical entry system.

private email address: strategery2@comcast.net

Email me your questions!  Serious prospects are invited to contact me for direct email instructions to current clients for your independent due diligence.  I provide personal and professional background materials in addition to the client references. 

Consulting Contract Rate: $6500 USD per six months

Required Monthly Infrastructure Expenses: varies greatly - I have clients spending a few hundred bucks per month using IB, eSignal, and DSL; on the other end of the spectrum I have clients leasing Apama or Portware with all the associated goodies and spending about $25K per month in expenses.  Bottom line: highly scalable and portable strategy.

Reports from Current Independent Trader Clients:

Feedback from JR on 03-03-11 re: his initial experiences live trading, and the possibility of balancing his job with trading:

I didn’t send but I had 3 trades last week that netted 1,600. I only traded one day though. My absolute monster to work through is time – getting to a consistent routine, reviewing markets to identify entries and then being able to handle entry intraday. It’s that crazy simple though just a bear to work through. I’m really thinking about ditching the job ~August and trading fulltime to alleviate this issue.

Feedback from MH on 03-07-11 re: his second week of live trading:

By the way - I'm hanging in there - had a great day on monday - +$1800 (I forget how many trades I had). Today and yesterday were slow. Had a couple of losers (small) and just couldn't get a feel for things, so I hung back. ($500) between the two days.

Feedback from MH on 03-02-2011 re: his first day of live trading:

... last week was my first full week trading the spreads - net P&L was a gain just under $1K.  ... pretty damn good spreading one-lot futures!

Feedback from PA on 02-06-10:

Feedback from LW on 02-09-10:

... to that end your help has really made a difference in my existing trading. ... previously I only traded when all factors were favourable, which meant doing only 10-12 trades/month.  Now I am doing 30-40 trades/month, as my research showed that my expectancy was almost the same when there was at least one factor/reason to do a trade rather than several. ... I have also largely dropped the mean reversion trades after learning that you only like to follow the trend.  It makes sense and I have noticed less 'sphincter-clenching' moments of getting caught in a blow out spread wondering what the hell happened.

Feedback from AJM on 11-17-09:

its a big change from the algo stuff or scalping 10's that i've been doing for the last several years but much better than...(what I was doing)... i really am likeing the energy stuff and have been very consistent on everything i'm trading except ed cal spreads.  The goal is the same level of consistency with much larger size.  I plan on exploring some of the equity spreads in the next month with the goal of automating 15 to 20 pairs although i am quite happy trading futures. 

Feedback from JP (a new client with his first consultation on 11-09-09) on 11-17-09:

Things are definitely better, especially since I have more trades to look at. I am still getting used to the (system)...Overall, I have made money with the trades, now I just need to get use to maximizing the (system).

Feedback from Jason on 11-16-09:

Please add my name to your referral lists for future clients.

Feedback from Angelo on 11-13-09:

Feedback from TH on 11-09-09:

Thanks for your thoughts today.  Regarding position sizing...When I hit $10k risk per trade will re-assess, hopefully I can get to this level in under 6 months. 

Feedback from Jason on 10-02-09:

Pete,

We may have found the cash machine with these ... spreads.  Traded 1 lot to figure out how to use the cqg trader.... all winning trades.  ... is smooothh.  Dabbled in the energy (crack spread) for 4 ticks on 3 lot.  I'm thinking 10 ticks might be a good target for this instruments; your thoughts?

Feedback from Alvin on 10-02-09:

Feedback from AM on 9-20-09:

I started trading intraday equity index spreads this week.  I am using your model ... I backtested your system over 6 months for 10 different XXX spread combos...  I tested the forecasting accuracy of ... As far as I'm concerned this is a huge edge, and highlights to me... the effectiveness of your model.  This has been a revelation to me, previously I tried doing... trades - no wonder I couldn't get an edge! ...So in summary, very positive so far, and looking forward to getting more trades under my belt in the next few weeks.  (redacted per the client's request)

Feedback from Luke, on 09-10-09:

G'day Pete,
Just thought I'd update you on progress.  I've traded a few sessions using your system with 4 winners from 5 trades, so off to a good start.

Feedback from Paul, on 09-04-09: 

1st trade: got chopped a bit after the #, but my size was 2 lots.
2nd trade: sold 5 lots ********** spread on the way down at 134.5, just covered at 132.0So up a little today. Yee ha!

Feedback from Tristan, on 09-04-09:

From my viewpoint, you basically have four choices on your quest to wealth trading the markets using your own existing knowledge and experience base:

1. Go to a top five business school and get hired by an investment bank or hedge fund.  Start as an analyst and hope you manage to work your way into position some day to risk the firm's capital as a trader.  Keep smiling when the traders steal your ideas and take the credit for themselves.  Compete with an army of unemployed bankers and traders currently roaming the streets looking for a gig.

2. Read "Reminiscences of a Stock Operator" and "Market Wizards".  Prowl trading websites like EliteTrader and Trade2Win.  Apply every combination of every technical study available on your charting package to market data.  Backtest accordingly.  Be one of 20 million persons trading some sort of oscillator or moving average variation to a common flat price market like the S&P 500 or the 30-year bond.  Maybe you're special, and it might even be an uncommon market, like the Liffe Gilt or the DAX.  Or, you have progressed to the point where you run a two-period rate-of-change study on a nine-period RSI to S&P emini 1 minute data and scalp like a madman.  Maybe buy a canned software indicator package.  Join an online trading academy that shows you how to daytrade the emini market in real time using their own money - and then find out later that the instructor couldn't make a dime trading for himself, and that the 'live program' with 'their own money' they are trading is in actuality the TTSIM environment.  Attempt to memorize a gazillion chart patterns and trade setups.  Allow someone to berate you by stating the obvious way after the fact.  Look at historical data and charts with 50/50 hindsight, and torture yourself relentlessly.  Read "Market Wizards" again.  Google the term 'Holy Grail'. 

3.  Change the the actual market instrument that you are trading until it suits your eye, your risk appetite, and your favorite technical study(s) and trading style.  This usually involves some sort of scientifically engineered combination of markets that when modeled the resultant data points look like Stevie Wonder or your grandmother could point at the chart and tell you where to buy and where to sell.  You will now be labeled a spread trader - or the Headmaster of HogWarts.  Fade the crap out of 1 sigma moves, and add to that slow but steady trending market until it decides to make the turn nice and easy like the U.S.S. Nimitz trying to dock at Tokyo Bay.  Go to town - every day.  No need to worry about other market participants, because you are zigging when the rest of the world is zagging.  Add up all of the traded instruments in the world, and then square that sum.  The resultant figure is the number of potential simple pair spreads available to you.  Simply add orders of magnitude for butterflys, condors, and baskets.  Welcome to SpreadProfessor. 

4. Work smarter about the financial instrument you currently trade.  Maybe the subscriber isn't quite ready to make the jump to pure spread trading.  My work with that subscriber would be to derive statistically correlated instruments to model in parallel and in real time to the subscriber's existing market instrument of choice.  Combining statistical and technical analysis, this approach provides the subscriber with an additional trade entry and exit point confirmation component.  Think of it as getting trade signal confirmation from multiple sources in real time.

Items 3 and 4 above work best in the electronic marketplace.  In fact, the approach that SpreadProfessor takes to the marketplace is to teach subscribers to apply statistical arbitrage methodologies in a very practical way to an individual trader's day trading and swing trading styles.  This has become critical in 2009, because the surviving investment banks and hedge funds in the marketplace are using high frequency statistical arbitrage "black box" methods to game the market - making it difficult for conventional technical analysis tools like oscillators and moving averages applied to a single instrument to compete.

What the SpreadProfessor service provides to the subscriber:

1. Instruction hours outside of normal U.S. market trading hours; typically in the afternoons and evenings.  Instruction is both interpersonal (one-on-one) and in group formats, depending on the requirement circumstances and is at the discretion of the SpreadProfessor instructor.  Many instruction sessions take place over the internet via live or previously recorded Webinars using the instructor's charting platform and statistical modeling tools.  Some instructions, like statistical studies and modeling for spread instrument construction or trade execution and management takes place over postings placed in the secure password-protected section of the website.  Individual and group instruction times are scheduled and posted on the SpreadProfessor website.  All group webinars and instructional materials will be archived and posted in the secure Subscriber access part of the SpreadProfessor website.  Subscribers also have access to the SpreadProfessor's personal email and cell phone.  Because the instruction format is more group-based than individualized, the costs can be held to a much more reasonable level than an exclusive personal consulting retainer.

2. Subscribers are encouraged to review their day's trading performance with the SpreadProfessor either personally or with the other subscribers via secure website posting.  The SpreadProfessor will always respect the confidentiality requests for each subscriber wishing to keep spread combinations and studies private from other subscribers.

3. SpreadProfessor brings fresh ideas and concepts to the new subscriber's trading universe.  Energy, stocks, interest rates, OTC - you name it, and the SpreadProfessor has probably either traded it or extensively modeled it. 

4. New subscribers are individually assessed by SpreadProfessor to determine their baseline competency level, and then an individualized custom plan is jointly constructed and agreed upon by the instructor and the new subscriber. If the subscriber has a trade setup or technical study(s) that he tends to favor, SpreadProfessor will make every effort possible to fit spread construction and trading setups into that framework.  All technical studies and models require tuning and alteration in order to work properly with spread markets and correlator setups.  SpreadProfessor will also customize spread construction to suit each subscriber's capitalization and P&L goals. 

5. After six months of instruction, the SpreadProfessor assesses the progress and competency of each subscriber.  At the discretion of the SpreadProfessor, subscribers demonstrating good spread trading skillsets are offered trader placement assistance by the SpreadProfessor if requested by the subscriber.  This includes letters of recommendation to potential employers and resume reference permission.  SpreadProfessor will speak to employers directly on the subscriber's behalf to detail the training and instruction completed by the subscriber.  If the subscriber wishes to explore opportunities within the Chicago area proprietary trading community, the SpreadProfessor will arrange for at least two interviews for the subscriber at the subscriber's request.

6. Instruction is purchased in increments of six month pre-paid blocks.  The cost for each six month block is $6500 (USD) due in a  lump sum payment, which can be made via wire transfer, cleared personal check, credit card, or Pay Pal.  The payment includes Webinar access and the ability to view the SpreadProfessor's online charts and modeling.  Each subscriber is responsible for his own individual personal charting and statistical study subscriptions.  Important note: SpreadProfessor strongly advises that subscribers consult their tax professionals about the possibility of deducting the SpreadProfessor subscription cost as a  professional service - this includes all subscribers itemizing deductions for Federal Returns on Forms W-2, 1256, and 1099.

7. Because of the high level of detail and professional competency associated with my trade and trader development work, I will not be allowing free trial periods.  

8. SpreadProfessor clients are using eSignal and CQG charting packages for the analytics with technical study component settings provided by SpreadProfessor. Other charting packages which support synthetic futures and equity spread combinations in the spread bar format can usually work as well. 

9. SpreadProfessor clients are a mix of proprietary and independent traders; most of whom use the Trading Technologies platform for execution, but several use the broker-provided complimentary execution platforms.  Some clients use automated spread execution software, and others choose to manually leg their spread positions.

10. Clients use a number of different clearing firms - Interactive Brokers, Advantage, Velocity, TransAct, RCG, Man Financial, and others.

Some potential subscribers have asked about splitting trading profits in lieu of the subscription fee.  My advice has typically been to use their existing capital to successfully complete six months of SpreadProfessor instruction, and then to start the interview process for a fully-backed proprietary trading position with a monthly draw salary.

I would invite you to email me with any questions you have, and to review the SpreadProfessor's credentials as a trader, his personal background information and the regulatory compliance information.  Anyone seriously considering this service should weigh the value of their expectations against the value of the deliverable.  My private email is strategery2@comcast.net 

SpreadProfessor has no NFA, CFTC, or SEC complaints, actions or sanctions in the past or currently under investigation.  SpreadProfessor has no misdemeanor or felony arrests or convictions.  SpreadProfessor has no bankruptcy history or liens levied against him. 

Specific and Factual Examples 

Above is my 2006 statement for the ICE exchange from Advantage Futures.  I netted close to $500K in this account for just one spread trade: the ICE Brent Crude/GasOil Crack Spread.  There is no reason why a good trader couldn't monitor and trade multiple spread combinations at the same time. 

SpreadProfessor students will learn how to properly construct and model spread combinations.  Good correlation studies and proper instrument weighting are critical - that is the whole foundation for creating your own customized market to trade.  Above is the statistical Z-Score plot for the Swiss Franc future versus the Eurex Bund future.  Also of great importance is for SpreadProfessor to help you fine tune your favorite technical studies or even to model and suggest new ones for you, because flat price technical studies need to be modified in order to work correctly and behave properly with most spread markets. 

Above is my personal work station setup using the Trading Technologies Auto Spreader for the PJM electricity versus natural gas heat rate spread OTC swap.  I can always get a better price here on the screen than through an OTC voice broker because I am picking up a considerable edge in either the power or the nat gas side.  In the OTC world, the bid/ask spread can be a few to several thousand dollars or more for the smallest contract size. 

Electronic screen execution settings for automated spreading tools need to be carefully refined and tuned to avoid getting 'picked off' or fined by an exchange for excessive messaging.  This includes liquidity considerations such as market product quotation and execution slippage.  Execution strategies are huge.  Some traders are able to use their tradecraft skills to really improve spread leg price execution levels.

Spread trade execution, position management, and entry/exit signals will be covered extensively for subscribers.

 

Help for the Scalper and Day Trader

A very close friend of mine scalps Ten Year Note futures for stupid size, and starting in 2008 he began getting shaken out of trades and whipsawed quite a bit.  Under exclusive contract I built a highly correlated trading system for him that let him stay with a trade or dump it with confidence - independent confirmation for entry and exit signals.  The green data above is not an interest rate product, but showed remarkable correlation to the Note for intraday high frequency data.  Simple, amazingly effective, and fundamentally grounded.  The technical studies are identical for both products.  For high frequency traders, correlations need much further refinement and modeling than simply comparing daily closing marks - you have to be able to stay with a trade during the course of a day.

Above is a correlated trade setup I built under exclusive contract for a big Eurodollar pit trader (a scalper, not a spreader) who was struggling making the transition to the screen.  This is a highly correlated indicator that interestingly enough works only for the six-month Eurodollar futures contract (gray line) - nothing else in the curve works nearly as well.  The correlated instrument (green line) is not in the interest rate complex, and is a completely different product than the indicator I used for the Ten Year Note example you saw earlier above.  This trader didn't want anything to do with technical analysis, so the rule we settled upon was that he would take a trade when order flow for both instruments was working together.  Works for his style and personality.  Every week I update the statistical fit (correlation) for these two products.  Again, it is a different animal entirely to model daily closing marks versus high frequency intraday data.

Generally speaking, acceptable statistical correlations greater than 93% can last from several weeks to several years, and need to be checked frequently and possibly updated.  Nature of the beast - make sure your edge is effective and current.

What exactly is a spread trade?

A spread trade position includes two or more highly correlated instruments which requires the trader to be long (buy) one or more of the instruments and equally short (sell) the remaining instrument(s) which makes up the position.  The object of the strategy is to profit from the price differentials from within the spread position and not from the direction or behavior of the broader market. 

One example of this might be for a trader to hold a long postion of FedEx stock valued at $10,000 while simultaneously being short $10,000 worth of UPS stock.  

The chart above shows the market action for the S&P 500 ETF (SPY) overlayed upon the FedEx versus UPS stock spread pair (the blue line) for June 25 and 26, 2009.  On June 25 the spread had a $1.74 trading range, and on the 26th the range was $2.25.  Note how easy it was to exploit the trend for the pairs spread on both days.  No false breakouts, no conflicted technical signals.  Who could argue with that kind of consistent market? This is typical for properly constructed and modeled spread trades.  Automate this trade and expand the scale of applications to replicate the statistical arbitrage strategy for highly successful 'black box' hedge fund firms like DE Shaw and Rennaissance.

The chart above shows intraday price action for the August Nat Gas future (black) overlayed by the August/Sept/Oct Natural Gas Butterfly spread (blue) for June 26, 2009.  Properly constructed and modeled multiple instrument spread positions like butterflys, condors, and baskets show strong mean reversion tendencies - perfect for the habitual faders among us. 

Let's take another look at the strong mean reversion tendencies for properly constructed and modeled multi-legged spread positions - in this case, an interest rate futures condor.  The blue line represents the Sept 09 Eurodollar versus the Sept 11 Eurodollar and the red line represents the Five Year Note versus the Ten Year Note weighted 1.6.  This is intraday data for June 26, 2009. 

Here is the intraday data for the Ten Year Note future on June 26th, 2009 as shown above.  Just a bit choppy. 

Shown above is the June 26, 2009 intraday data for the Nymex Heating Oil Crack Spread versus the ICE Gas/Oil Crack Spread.  Smooth, easy, and predictable.  Just hop on board.  This illustrates one of the best selling points about constructing spread trades and honing your skills using the SpreadProfessor website service - your own durable and lasting edge in the marketplace and true originality.  How many traders do you suppose are plugged into this trade compared to scalping crude oil futures?  You zig while everybody else is zagging.  No herd mentality here.  Welcome to the fine art of making money consistently - building wealth by hitting for average instead of swinging for the fences every time up at bat. 

Here is the June 26, 2009 intraday data for the August Nymex Crude Oil future. 

Undeniable Facts for Properly Constructed Spread Trades:

1. Spreads trend more frequently than outright futures or equity positions.

2. Spreads often trend when outright futures or equities are trading flat or chopping around.

3. Spreads are a much more consistent producer than directional, outright trades.

4. Certain types of spreads show very high mean reversion - great for the habitual faders among us.

5. Using proper technique and study parameters, spreads can be modeled with technical and statistical analysis far better than outright positions. 

6. In the electronic marketplace there is more opportunity now than ever before for spread traders to profit - especially for those who can show some creativity and are willing to learn.

After 17 consecutive full-time years trading, my goal is to spend less time trading and more time with my family.  To that end, I will take on a limited number of paid subscribers and teach them through individual instruction and group webinars to properly spread trade.  If this prospect interests you I would invite you to email me with any questions you may have. My private email address is strategery2@comcast.net

Worldwide, Hedge Funds and Bank Desks usually engage in spread trading for speculative purposes - relative value and stat arb are two of the most popular techniques.  For that matter, any arbitrage trade is by definition a very highly correlated spread trade.  Commercial desks that engage in dynamic hedging are managing the spread relationship between volatile commodity prices and their production requirements. 

Charles DiFrancesca ("Charlie D") was considered by many to be the biggest and best Treasury Bond futures pit scalper on the old CBOT floor in his day.  Among others, Charlie D counted the great technician Tom DeMark as a friend.  One of Charlie's biggest weapons were the T-Bond's intraday correlations to various instruments.  In his book entitled: Charlie D, author William Falloon quotes him as saying: "I may follow yen,... a commodities basket, oil, or the Dow... But I'm a spreader at heart...". 

Any market on any exchange (and most OTC) can be tamed and made consistently profitable through the proper application of spread trading.  Electronic markets have greatly expanded the universe of opportunities for properly trained spread traders.  For you personally to grow your success as a trader, consistency is the key.  Consistent traders can month in and month out build trading account equity and grow their trading universe, pay the bills, maintain the mortgage, support families, have a 401K plan, and if they choose - a track record that attracts outside capitalization or professional employment interest.

The SpreadProfessor Website provides a constantly expanding 'digital textbook' and reservoir of knowledge for the membership.  Through the webinar process and shared screens, members interact with me live and learn how to construct and trade spreads for their markets and time horizons of interest.  Members will know how to perform correlation analyses and technical studies for any spread combination they can think of.  We will individually and collectively fine-tune and trouble-shoot trades and strategies here on the website membership forum.  Webinars will be archived here on the site, and I will also catalog specialized information and studies on specific topics on the website under the tabs called 'Member Blueprints'. 

Terms and Conditions.

Consultant is not a Commodity Trading Advisor or Broker, and is not making any offers or recommendations to buy or sell securities.  Client agrees to waive all legal recourse and legal rights against Consultant except as provided under Illinois Law.  Clients fully and completely acknowledge that the buying and selling of any commodity, equity, stock, bond, or financial instrument results in the loss of that investment, and that the Consultant shall not to be held liable, responsible, or negligent in any way for the monetary, emotional injury, or any other injury resulting from any loss to the Client.  The information the Consultant provides to the Client is deemed to be reliable, but is not guaranteed as to accuracy or completeness.  Consultant recommends to Client that anyone trading financial markets should consult with a qualified financial advisor or professional investment counselor before doing so.  All financial and securities markets are speculative, and contain a high degree of volatility and risk.  Client agrees to maintain the confidentiality and security of the Consultant’s work.  Client agrees not to reproduce, retransmit, sell, distribute, publish, broadcast, circulate or otherwise commercially exploit any information or content of the Consultant in any manner without the express written consent of the Consultant.

 

Past Performance is Not Indicative of Future Performance. 

Historical, back-tested, hypothetical, and simulated performance results have inherent limitations. The Client acknowledges that past performance does not and should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. The Consultant is not responsible for losses or damages arising out of errors, omissions or changes in market factors. The Consultant’s work does not purport to contain all of the information that an interested party may desire and, in fact, provides only a limited view of the securities and financial markets. The Client agrees that he is a sophisticated investor capable of understanding the considerable complexity and assuming the high degree of financial risk involved in all financial and securities markets.

 

Consultant is Active in the Financial and Securities Markets.

Client agrees that the Consultant buys and sells securities and financial instruments in the same markets that the Client is active in.  Client agrees to waive all claims regarding conflicts of interest with the Consultant.