Wheat Futures Spread Swing Trade Idea

How is everyone?

Getting ready to execute a long position on Kansas City vs Chicago Wheat Spread. Our ideal entry should have been the 27th when our 20 Moving Average Crossed the 200 Moving Average, an area where a lot of technical traders and algorithms execute entries and exits for their portfolios. Unfortunatelywe don't catch all the best entries at the best times, it doesn't work like that. We see how off the 30 minute chart below the momentum is fierce through these crosses.

Daily Time Frame is showing a good pullback to the 200 after the initial breakout out to the top. Can be easy to say that an entry on the 30 minute around -52.75 is ideal, but look at the final photo when I overlay an Ichimoku Cloud, a technical tradingsystem used by many eastern traders and institutes. The cloud is showing an area of possible support.


With long target being far up to the par levels of 0, I would consider this a good longer term swing trade.

I am opening a position with 1Long September Kansas City Wheat Contract, and Selling 1Chicago Wheat September Contract.KEU2020-ZWU2020, With a Margin of $550 per contract. Normal margin needed would be $2,750. We are getting a huge discount putting this trade on as an exchange recognized spread! Only $550 to participate in a professional style trade!

Grains trade at $50 per point. Considering the supply zones, and areas of trade failure exits, I am looking to risk $250 to make $1100 per contract. If I am wrong, I move on to the next trade.


Trades are endless guys and gals. Life isn't. So trade it when you see it!

Watch a Free Webinar on the How's and Why's ofSeasonal Spread Trading Strategies: The Best Kept Trading Strategy of All Time

RISK DISCLOSURE:
The information contained on this website is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You must review and agree to our Disclaimers and Terms and Conditions before using this site.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.E RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.