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The Commodity Spread Program: Why It Works

Platinum Trading Solutions
By : Platinum Trading Solutions
INFORMATION
Published : Jul 25, 2008
Length : 5
Type : White Paper
 
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Overview :

Long only commodity funds that buy and hold huge quantities of futures contracts in many commodities have become a very powerful force in the market. These funds act in a very predictable way and the PCSP has found an ingenious way to profit from the price movements of the spreads caused by these long-only funds.

Find out how you can trade the Platinum Commodity Spread Program free for 30 days.

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The Platinum Spreads program takes advantage of LOCF’s (Long Only Commodity Funds) which now total approximately $200 Billion in assets. These funds in some cases account for 40% of the holdings of a commodity in any one month. They typically hold huge quantities of futures contracts in the front month. When they roll these futures contracts to the next contract month, the results on the spreads can be dramatic. This program exploits the large price movements resulting from these rolls from one month to another. We enter spreads between different contract months in the same market to keep the risk low. The spread trade is entered several months from expiration and always exits at least one month before expiration of the nearby contract. The program has generated outstanding profits with a very low drawdown. While many trading strategies have failed in recent years, some spread strategies based on the "Goldman Roll" show exceptional potential. Our unique system has an innovative way of positioning your portfolio for optimal success in both Bull and Bear market conditions. As you can see from our systems LIVE performance results last year, in one of the biggest commodity bull runs to date, we earned over 54% NET in 2007! Now..Imagine if the commodity bubble pops! The results will astound you, so make sure to inquire within for more details! Investors generally look to diversify among a number of different markets in order to offset risk. However, traditional trend following programs, while producing adequate long term results, have generated below average returns in recent years. Typical spread trading programs use seasonal patterns which are both well known and unpredictable, producing unstable high risk returns. In recent years, the emergence of large amounts of money in the "long only" commodity fund has had a profound impact on the market. This program has been designed and tested by an experienced trader and finds a unique very profitable method of exploiting the large price movements resulting from rolls from one month to another in these long only funds. Review our breakthrough strategy for yourself, and discover the new industry standard in Advanced Technical Trading!
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