Trading Tips 09 I Unleash the forward curve.
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Transcript of Trading Tips 09 I Unleash the forward curve.
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TR�DINGTIPS. Issue
09
How to visualize forward curves to maximize information.
UNLEASH THEFORWARD CURVE.
Philipp is the Senior Quant Analyst at Intalus. He was born in Austria
and studied electrical engineering before joining a large German bank
where he developed fully automated trading strategies for the
proprietary trading department. His book about designing successful
trading strategies has been among the top sellers in Germany for the
last two years. Currently at Intalus, he is responsible for the in-house
training of institutional traders and the development of custom-made
algorithmic trading strategies.
You may contact Philipp at
UNLEASH THE FORWARD CURVE.
by Philipp Kahler
TR�DING TIPS. Issue 09UNLEASH THE FORWARD CURVE.
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UNLEASH THE FORWARD CURVE.How to visualize forward curves to maximize information.
Futures traders are definitely familiar with a forward curve chart.
It shows the prices of the next contracts and sometimes gives an
indication where the market might be headed in the longer term.
To display a forward curve in Tradesignal:
01 Click the Forward Curve icon in the ribbon bar
02 Enter the instrument code, for example a RIC like ‘CL’ for Light Crude Oil
if you are using Thomson Reuters data or ‘CL1’ if you are a Bloomberg customer.
Instead of entering an instrument code you may also select an instrument
from one of your instrument lists, right-click and choose “open as forward curve”
03 Finally press Next and Finish.
A new chart opens up and it shows you the forward curve of the
selected contract.
The above chart depicts today’s price of each contract traded. As you
can see from the scale, the chart starts with March 2013 contract and
ends with the mid 2019 contract.
You can combine this type of forward curve chart with a “normal”
futures chart with Tradesignal. Hence, you are able to display the
current and historic prices of the current futures contract and also see
the prices of the upcoming contracts in one chart (contango or
backwardation for your futures contract).
TR�DING TIPS. Issue 09UNLEASH THE FORWARD CURVE.
Fig. 1: The standard Forward Curve; created by using Thomson Reuters historical data.
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Open up a chart of any futures contract. This can be a continuous
contract or a dedicated contract. In my case I use CLc1, a RIC from
Thomson Reuters.
01 Go to your list of indicators and look for the “forward curve” indicator;
02 Drag and drop this indicator onto the chart. Now Tradesignal will take
some time to process all contracts of these futures and derive the relevant
forward curve.
03 When you see the forward curve – simply drag and drop it from its sub-chart
to the main chart window respectively drag and drop it on the same axis
where your futures is. This gives you the following graph:
As you can see both charts – the “normal” Crude Oil chart and the
corresponding Forward Curve – are now seamlessly integrated.
Now it’s easier to recognize where prices come from and where they
might go.
Take care, take profit,
Philipp Kahler
Senior Quantitative Analyst at Intalus
Watch video to see how you
can create Forward Curves and
more in Tradesignal®.
TR�DING TIPS. Issue 09UNLEASH THE FORWARD CURVE.
Fig. 2, Tradesignal’s Forward Curve applied to a “normal” chart.
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© 2013 Intalus – www.intalus.com
Distribution allowed under a Creative Commons Attribution-Noncommercial license:
http://creativecommons.org/licenses/by-nc/3.0/
Tradesignal® is a registered trademark of Tradesignal GmbH.
Unauthorized use or misuse is specifically prohibited.
SCAN FOR THE BEST.
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HIGHLY EFFICIENT
SHORTING.
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from a short trade.
RULE-BASED TRENDLINES.
How to use point & figure trend lines
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TR�DINGTIPS. Issue
01 SCAN FOR CANDLE PATTERNS.
How to find best performing
stocks and the best risk/reward
opportunities by identifying
promising candlestick patterns.
INDICATORS
ON INDICATORS.
Simple steps to advanced analysis.
A publication of
TR�DINGTIPS. Issue
07
How to find the best risk/ reward opportunities based on candlestick patterns.
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SCAN FOR CANDLE PATTERNS.
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How to create your own equity basket.
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SPEED UP YOURDECISIONS.
TR�DINGTIPS. Issue
02
TR�DINGTIPS. Issue
08
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Simple steps to advanced analysis.
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INDICATORSON INDICATORS.
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How to create and trade an optimal portfolio.
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CONTROL YOUR RISK.AUTO-ADJUST POSITION SIZE.
TR�DINGTIPS. Issue
03
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How to identify and profit well from a short trade.
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HIGHLYEFFICIENTSHORTING.
TR�DINGTIPS. Issue
04
A publication of
How to use point & figure trend lines in candlestick charts.
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RULE-BASEDTRENDLINES IMPROVEDISCIPLINE.
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05
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A simple, but effective strategy.
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PROFIT FROM GAP TRADING.
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