Basically, we have two ways to evaluate seasonality, numerically and visually. Both methods have their own advantages and disadvantages. In this article, I would like to explain how to correctly evaluate seasonality with the help of seasonal patterns and how to avoid common mistakes.
This spread combines several conditions to create good trading opportunity:
This spread combines several conditions to create good trading opportunity:
This spread combines several conditions to create good trading opportunity.
Spread trade is the simultaneous purchase of one security and sale of a related security, called legs, as one unit. Opening spread trade, we are in long and short position. Why is that useful? There are several applications depending on intentions and traded security. Let’s see some of them.
SeasonAlgo is the first and only platform designed for seasonal spread trading. Started as personal project for spread analysis, released later publicly for fellow traders, improved with ideas from the community, SeasonAlgo became a professional service available to all spread traders. The whole platform consists of several tightly integrated modules.
In statistics, many time series exhibit cyclic variation known as seasonality, defined as the repetitive and predictable movement around the trend line. It is detected by measuring the quantity of interest for small time intervals, such as days, weeks, months or quarters. The best known seasonal progression is the outdoor temperature. Based on the time of the year, you probably know the range of temperatures you can expect.
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The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well for you. The use of leverage can lead to large losses as well as gains. Past results are not indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.
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