Past Meetup

Trade the Anticipated Big Move in Interest Rates (and Range Trade meanwhile)

This Meetup is past

34 people went

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One of the greatest and most consistent trades of the past 30 years has been long Bonds. When that market reverses, we could see another 30 year move in the other direction! Who would not want to consider such a "once in a generation" trade? Short term interest rates are also at an extreme also right now, giving rise to some uniquely high-potential limited-risk trades.

Here's a chance to learn in a single meeting about

- a simple way to get into futures trading

- trading Bills, Bonds, and Notes (and more)

- trading both long term moves and short-term ranges at the same time.

We will explain all of these simply from scratch - no prior background needed!

(Note: For a detailed preview of this talk, including an interactive PDF with many links and spreadsheets, click on: PDF (http://files.meetup.com/1004673/Catranis-Report-PresentationVersion.pdf) and Spreadsheets (http://files.meetup.com/1004673/Catranis-spreadsheets.zip) ).

We will go into very specific trading strategies in depth, with specific clear rules. These are not just hypothetical trades - they are real strategies that some of us are already trading. They would also be great trades to start trading futures with, in my opinion, because you can trade them in a small way.

We will look briefly at the U.S. Debt trajectory and Fed. policies which set the backdrop for these trades.

Peter Catranis is a Trading Advisor and Introducing Broker with Straits Financial (http://www.straitsfinancial.com/en/home) who specializes in trading interest rates. He has decades of experience in financial futures, having originally worked on the floor of the CME and run the office of 13 times CME chairman Jack Sander, who with Leo Melamed put the S&P 500 and the Eurodollar (interest rate) contracts on the board. Peter is also the proprietor of http://treasuries.com/ .

Peter, a clear and patient speaker used to dealing with clients both unsophisticated and sophisticated, will talk with us remotely and interact with our members. Although Peter is American, he now lives in the British Virgin Islands for a good part of the year, and will talk to us from there.

With short-term interest rates so near zero, there are some attractive possibilities to put on positions with low risk that anticipate eventual large moves, while range-trading these markets in the interim.

Peter will outline his own very-strongly held views on where interest rates are headed (in a word, Up) and why the move may be huge when it comes, large enough to make fortunes for some. He and I look forward to a dialogue/debate with those in our group who may think the opposite, expecting continued deflation.

We will go on to outline trades and campaigns in great detail, with Excel spreadsheets and charts, including entry points, profit targets, range/scale trading approaches, and risk controls, from among:

(1) Short and range-trade 3-month Eurodollar rates (The Eurodollar rates contract is a key short-term interest rate instrument that, despite the similarity of name, has nothing to do with the Euro-Dollar currency pair - we will explain)

(2) Short and range-trade 1 month Fed-Funds

(3) Short and range-trade the Two Year Note

(4) Spread: Long Sept 2013 Eurodollar, Short Dec. 2014 Eurodollar

(5) Spread: Long ED September 2013, Short ED September 2017

(6) Spread: Long June 2015 Fed Funds, Short June 2015 Eurodollar

Peter is making available an interactive report and spreadsheets for you to explore these trades on your own computer (those who have a laptop handy might want to bring it although it is not essential).

Peter has been trading interest rates for decades and knows them like the back of his hand. He trades with a pragmatic approach that aims to control risk very explicitly and tightly.

What is really unique is that he outlines his trades very clearly in the form of some simple rules (the equivalent of simple trading systems) that you can easily follow on your own. Of course, Peter's business is trading on behalf of clients, but he will give enough detail that you can easily put on trades on your own as well. For those who are unfamiliar with trading futures, which Peter trades, we will explain how to do so.

Besides Interest Rates, Peter also has been trading a purely mechanical multi-currency program with outstanding results, that I have asked him to outline if he can. If he can get the permission of the designer of the trading system, he will give us the rules verbally. They are not all that complicated.

Peter does want to protect the value of all of the work he has done, so let me ask that there not be any re-publishing of his materials and methods disclosed in connection with this meeting. You are free to use them in your own trading though. If we can continue to extend this courtesy to our speakers when they are willing to present otherwise-unpublished material, they can share more with us.

Peter recently became affiliated with the U.S. subsidiary of Straits Financial (http://www.straitsfinancial.com/en/home) because of the firm's financial strength based on its worldwide operations based out of Singapore. He can be reached at [masked] and welcomes inquiries to that email address.

After the meeting, everyone is invited to get together informally at the nearby Player's Retreat Restaurant.