Trading commodity spreads mechanically by Louis P. Lukac & B. Wade Brorsen
ARTICLE SYNOPSIS ...Trading commodity spreads mechanically
by Louis P. Lukac & B. Wade Brorsen
Using a mechanical rule to trade a futures market is not new--countless mechanical methods exist
with the general purpose of creating a profit while eliminating the human factor from trading. One place
where mechanical trading rules have received increased attention lately is in spread trading. Spread
trading involves taking a long position in one market and a corresponding short position in the same or
related market, so the offsetting positions reduce the risk.
If a mechanical rule could be developed for spread tradi...