crack spread trading

[zweistein]

Hello to all,

the crack spread is used in the petroleum industry to describe refining costs.
Please see https://www.investopedia.com/terms/c/crackspread.asp for details.

Using my Spreadtrader it becomes easy to trade this spread on the ninjatrader platform . Please be advised that for professional traders some brokers offer to trade the crack spread directly hence reducing margin requirements.

The simple crack spread is a 1:1 spread between RB future and CL future. To readjust for different units you have to multiply the RB price displayed by 42.

Attached the setup for SpreadTrader .

In the SpreadTrader window you can then trade the spread by hand and as an option you can specify entry limit price and exit order . In the example given we enter 1 long position @ limit price 15 and then apply the TrailingStopSimple exit strategy to it. The exit strategy uses the full function set of a ninjatrader strategy and can be fully customized by you.

A chart of the spread can also be opened .

Happy trading and happy new year

Best regards
Andreas

https://www.zweisteintrading.eu/spreadtrader,htm

[guidoisot]

Hello zweistein
Thank you for your post where you are showing a daily chart example, however since on your website you also mention that it is possible to use your spread indicator/add-on for quick scalping trades, would you mind to post some additional information/examples on how to use your tools?
How do you apply different exit strategies?
Are your tools compatible with the Strategy Builder of NT8? If so, could you perhaps post here some explanatory videos better explaining what your spread trading tool can do, daily and intraday on CME's ES, NQ, RTY, and how difficult it would be to use it ? Alternatively could you perhaps direct me to your YouTube, or to a similar video channel, where one can find out some additional information?
Thanks. Best.