The Correct Method of Analysis

The most efficient and accurate method for analysing a spread

Books and courses on spread trading all repeat the same tired advice: select a seasonality and compare it with recent years' prices, buy the spread when the RSI is oversold, or follow technical analysis patterns like a 1-2-3 Ross low or a double bottom. The reality is that spread trading operates on fundamentally different principles.

You simply cannot reduce commodity trading to a standard, automatic strategy because numerous variables affect crops and livestock. It is misguided to limit spread trading to the seasonal trades recommended by Moore Research and SeasonAlgo, with their predefined entry and exit dates. Trading commodities requires a more sophisticated approach and comprehensive data analysis to develop a complete understanding of market conditions and ensure the probabilities favour your position.

In Commodity Spread Trading - The Correct Method of Analysis, I reveal a five-step analytical method where seasonality represents just one component. This approach does not rely on technical analysis or indicators— tools that are better at creating illusions than generating consistent returns. I will demonstrate how focusing exclusively on spreads recommended by Moore Research and SeasonAlgo severely constrains your trading potential and blinds you to numerous valuable opportunities.

This method stems from over 25 years of experience in financial markets—including time as a fund manager—with particular emphasis on commodities. This expertise led to my 2018 collaboration with one of Europe's premier investment firms.

By reading Commodity Spread Trading - The Correct Method of Analysis, you will master critical concepts including seasonality study techniques, fundamental analysis principles, term structure analysis methodology, contango distribution patterns, and COT net position interpretation. You will learn how to capitalise on market anomalies, identify the most promising spreads, understand the essence of effective spread trading, and learn numerous other vital aspects through practical examples.

Once you have internalised the five steps of this proven method, you will possess all the information necessary to make consistently sound trading decisions. Your perspective on spread trading will be transformed completely, allowing you to see opportunities invisible to most traders and avoid common pitfalls that plague the majority of market participants.

   Read the first 4 chapters for free!