Does anyone here trade this? I've just started trying to learn with 3 lot of 3s and 1 lot of 10s. This obviously means I can't use the spread market to get out.
My overall strategy is to leg into the spread at a better price than the curve market. Looking at the market right now we have:
97280/97290 with vol 1400 by 3500
96720/96725 with vol 40 by 280
and the spread market is 555/560 with vol 21 by 8
- so we want to long @ 550 or short @ 565 to be in a +EV position
- If we were short @ 97290 in the 3 yrs then we could go long in the 10yrs @ the offer to have a good position.
The problem I have found so far is that I find it difficult to get good queue position in the 3yr bond without taking too big of a risk.
So if there are any curve traders here I have a few questions:
- how do you approach your trading? What do you look for in the market/other markets?
- Do you have orders waiting at key levels or do you just play what the market is giving you based on where you expect it to go?
- Do you aim to make 1/2 tick or scratch, or do you take a more long term angle?
- What % of your trades are scratches/losses/wins and how much?
- If you are trading the day session how often do you leg into the spread market?
- Any other tips you wish you had of known when you were starting?
Thanks very much