How (not) to Search for Profitable Commodity Spreads

The vast majority of traders focus on searching for spreads with 100% profitability in a given historical period. However, they intend to forget, that the strategy is listed as profitable even if the profit in a given year was only $ 1. The overall strategy performance may provide a high Total Profit figure and a high percentage of profitable years. However, such figures tell nothing about the stability of the strategy.

In our new article you can find out how to determine whether the strategy proves to provide stable profits.

2014-08-17_17-21-55

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