Seasonal Sugar Trade for June 2019

We have a seasonal sugar trade ready to go. Now, we’re just looking for the entry setup. Friday’s outside bar reversal higher was indicative of the market’s reversion towards seasonal strength we’re predicting for this time of year.

The market is currently higher for the third consecutive day. We’d like a pause to position our purchase.

Depending on our entry, we expect to hold the trade for approximately three weeks.

We’ll likely risk somewhere between $950 and $1,000 per contract.

Sugar margin is currently $1,047 initial margin and $952 maintenance margin.

 

seasonal sugar performance

Out of sample hypothetical performance for 15years of the seasonal sugar strategy, we’ll be employing.

The hypothetical equity curve is plotted in white while sugar prices for the measured periods are plotted in yellow.

We’ll send the buy signal via our Seasonal COT Signals email and follow-up daily with the protective stop and exit day once our time is up.

I’ll be delivering a bullpen session on seasonality at the TradersExpo in Chicago on July 23rd, at 1:45 CST. Free Online Registration

Best, Andy Waldock.

andy@waldocktrading.com

 

 

This material has been prepared by a sales or trading employee or agent of Commodity & Derivative Advisors and is, or is in the nature of, a solicitation. This material is not a research report prepared by Commodity & Derivative Advisors’ Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Commodity & Derivative Advisors believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.