Commodities

Heckyl Seasonality screen unlocks the secrets of commodity trading

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Seasonality Social Media

Heckyl Seasonality screen helps you to identify unique opportunities for trading in commodities by bringing out the best insights from the historical patterns.

We studied the directional likeness of 10 completed months of 2017 with the average monthly price trends of the past 5-years to derive at an accuracy score. The accuracy is calculated as

Accuracy

Here we are sharing 4 success stories for this year. Read the rest of this entry »

Did you miss this opportunity to long MCX Natural Gas in Apr’17?

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It is quiet intuitive that different seasons of a year impact the demand and availability of agricultural commodities thereby influencing the prices. However, empirical evidence suggests that seasonality plays a big factor in pricing of non-agricultural commodities as well.

Here, we present a case for Natural Gas. Prices of MCX Natural Gas gained in April every year from 2012 to 2016. The year of 2017 was no exception. MCX Natural Gas posted a gain of over 3% in April this year.

Seasonality screen - Natural Gas_09-05-2017 - Copy
[Heckyl’s Seasonality Screen]
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How to trade Calendar Spreads Profitably on Heckyl’s Commodity Platform

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Calendar spread trading in commodity futures market has traditionally been executed by professional traders. However, anyone can carry out such trading strategy by understanding how to implement it in real market conditions.

Calendar spread is a futures spread between two months (For e.g. November 2016 and February 2017) in the same market (For e.g. MCX Silver Mini). One can calculate spread by subtracting near month’s contract price from next month’s contract price.spreads Read the rest of this entry »

IS THE TIDE TURNING IN FAVOUR OF GOLD?

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Gold SPX
Chart 1: Gold and S&P500 Correlation

Gold, one of the top performing assets so far in 2016, has attracted a lot of attention. Turmoil in the equity markets and oil price crash have not only made investors jittery, but also forced many of them to invest in safe haven assets such as gold. As a result, billions of dollars of new money poured into physically backed gold exchange-traded funds (ETFs). In fact, fund inflows in the world’s largest gold ETF, SPDR Gold alone crossed more than $7 billion since December 2015, while gold holdings of ETFs have jumped to their highest level in 27-months. Read the rest of this entry »

Simplifying Commodities Trading

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Commodities Profile ImageTrading commodities has been the foundation of human economic activity through the ages, fundamental for our survival as individuals and fundamental for the sustainability of our economic and social systems. However, historically commodity trading has been the preserve of large traders, big commodity powerhouses and institutional investors. This is partly because understanding the nuances of commodities takes more effort than shares which is also why popular media coverage of commodities is minimal as compared to coverage of stocks – you see many more ‘experts’ commenting on stocks as compared to commodities.

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