What Went Right/Wrong (week 2)

Week 2 of trading on Trade Sim was a mixt of loss and gain with my soybeans contracts. From the first week I come with a short contract for January 2013 (S3F) and a long contract for November 2013 (S3X).

This combination result in an equity as low as 39124.65 in the beginning of the week. Then, the prices for soybean decreased and I start making some profits, but because of my long contract, I was still losing money.

Analysing the evolution of the price for these two contracts from June 1st to September 21st I noticed a high correlation (0.898) and a close movement in time and also a decreasing trend on the last days.

This made me go short with other 2 contracts on January (S3F) and payoff the contract from November (S3X). As a result, at the end of the trading week my equity balance was 40098.28 (I gain back the losses from last days) and a realized loss of $-238.50 which was due to the November contract that I payoff on Friday.

http://www.scribd.com/doc/50096428/22/Payoff-for-Futures-contracts

http://www.thecropsite.com/news/12058/soybean-prices-tumble-but-there-are-some-positive-developments

 

One comment on “What Went Right/Wrong (week 2)
  1. Yijeong says:

    Happy to hear that your strategy worked and you have gain. I like your description about your margin account. Thanks!

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