How can I utilize MRCI's information for day trading? Does the research provide correlation between 2 instruments such that signals on 1st instrument can give a lead on entering directional position in the 2nd instrument.
MRCI's seasonal spreads may be able to help you with intra-day trading simply by suggesting which of two instruments might be a better short and/or which the better long. In other words, a highly reliable spread of Long Heating Oil/Short Gasoline might suggest that, during a day in which you are bullish the complex, odds favor a long heating oil rather than long gasoline; conversely, if bearish on the complex, you might prefer short gasoline exposure. Regarding your tactics, you can simply assume one side or the other early in the day and exit late; or else you can maintain the spread overnight and then, whenever you see something intraday that suggests one side has better odds than the other, exit intraday only the side with lesser odds.
You must remember that spreads can move favorably in several ways:
(1) long rises faster than short rises;
(2) long rises, short moves sideways;
(3) long move sideways, short declines;
(4) long declines more slowly than short declines;
(5) long rises, short declines.
When you find a spread you like, check the Futures Correlations and also the Seasonal Strategies (outright long or short) to see if one side or the other matches.
