Spread trading!

Nothing going on right now in the markets, so great time to show you what and how I trade.

I trade using ladders (shown below - click to enlarge) which is a very normal way to trade. the coloured numbers are the prices, on the left are buyers and on the right sellers and the numbers on far right is todays volume at each price. The green block highlights the last traded price.

The darker shades show the high and low for today which is quite narrow because I screenshot this less than one hour after the markets open. I trade the first two against each other and the last 3 which is a spread of two speads, also known as a fly. Below is the fly spread for monday, the idea would have been selling high and buying low because the spread is quite mean reverting intra day.

Although if you look at the bigger picture, the fly over the past few weeks.

You wouldn't realistically be selling this fly intra day on monday, although I remeber doing so for a quick profit. Its relatively low so you would be trying to buy the dips during the day. Right now the fly is really low, I picked up 205.94s last night which was nice. Long the schatz (2nd ladder), short the bobl (3rd) and long the bund (4th) makes you long the fly.

Today I am looking to see if it breaks down to 90s otherwise maybe buying something below 206.00. Although likely gonna miss out if it goes up.. but I bought below 00s loads of times last night and it never got past 206.05 so just watching for now as its very tight and could make a move down as its been trending down for a week. It opened up where it is now about 206.01s and as the range has been so tight I don't want to buy what could be near the high for the day because I think it's best to trade todays prices and only to keep in mind yesterdays.