- New Science in old markets -

Wheat trade

Here are the trading details of the 'long wheat' trade advised yesterday. Based on an entry price of 467 in the March 2016 contract the stop-loss should be placed at 442 and the profit-take threshold sits at 489 - two  day's worth of the current daily volatility away from the entry, as usual. The 15-day time-out shown is on Christmas Eve and the 10-day 'sense check' review is on Thursday December 17th.

This 10-day review exists in all HED commodity trades because of the inherent 'volatility of volatility' in these markets. This is true to some extent of other markets too, as seen in the big jump in bond market volatility yesterday but it is a more common feature of those markets that are vulnerable to supply shocks, meaning most commodities.

Wheat trade AlphaMail