Top of the 5 year average deviation. image

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In my opinion, edges taking advantage of market inefficiency (either manual or automation trading) won't last long. They may work for months or years but eventually they'll be neutralized by market efficiency. If your edge relies on certain kind of ...

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Isn't this a bit too early you declare 'victory'? Anyway, nice posting.

What I learned after losing $300,000 trading forex

Natural Gas Prices Reach “Turning Point” – BofA Analysts url Bank of America said prices are now at a “turning point,” with summer heat in the U.S. slowing natural gas storage gains and “the balance tightening rapidly heading into winter as demand ...

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Why Natural Gas Prices Just Exploded url The weather is going to be hot after all in the short term, forecasts now predict. That prediction sent natural gas prices soaring on Monday by nearly 20 percent as traders hold out hope for anything that ...

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Impressive..... Nearly 20% up! image url

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Look at this huge liquidity of Sep-Oct spread DOM. Over a thousand contract in each tick level! Compare this with Sep DOM. image image

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The Sep-Oct spread is finally getting narrower. In contango market, spread usually becomes narrower when price goes up. Not always true though. image image

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Made some decent gain. This is the last trade betting the direction anyway. Now I will trade spread exclusively. image

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Natural Gas Prices Continue Lower On Cooler Weather url Sep Nymex natural gas (NGU20) on Friday closed down -0.030 (-1.64%). Sep nat-gas prices on Friday continued to fall back after reaching a 3-week high on Wednesday. Nat-gas prices were ...

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Analysis: Henry Hub gas forwards turn bullish on tightening US supply-demand fundamentals url

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Natural Gas Prices Are Coiling With A Big Move Coming Soon url

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In September contract future (NGU20), it had about 85 ticks move yesterday. It means $850 move with one contract. It's not bad. I used to do /NG 1M scalping during Europe session break out, and I didn't worry about daily range mostly. image

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Oil and Nat Gas have some negative correlation recently. It's due to Oil-Gas hedge trading which is buying oil and selling gas at the same time for hedging. Oil is falling and Gas is rising today....

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The Risk of Spread Trading: Overconfidence image url

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Good readings about spread trading: url

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Compared historic seasonality chart between the two products. They are virtually the same. image image

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I also find Term Structure chart is useful. It visually displays current and historic (average) term structure (contango vs. backwardation). image

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Nat Gas futures spread between October and November contracts looks overly stretched in historical perspective giving us a spread trading opportunity. Plotted in free version of SpreadCharts: image image

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