Commodity Trading Blog

The Commodity Trading blog is an insider’s guide to commodity system trading and advanced risk and money management strategies.

Learn how insiders create their edge, from successful commodity trader Nick Pingitore and special guest traders.

Silver Delivery on Futures Contracts

With the vast disconnect in price between the silver futures and physical silver, several commentators have been advising buying futures and taking delivery.

However, as obvious as this may appear, if it were an option, why then is there a silver price disconnect in the first place?

Today, we will look at the facts of this prescribed strategy and see if there is an opportunity for us to take advantage of.

It’s The Risk Model, Stupid!

Alan Greenspan testified yesterday to shed some light on the current credit crisis.

He blamed the Risk Models. Why and how did the Risk Models fail? They did not follow proper...

Credit Crisis Meltdown

The current credit crisis has caught almost every trader by surprise.

When a "Black Swan" event like this hits, it is too late to devise a plan. The markets move much too fast and will unrepentantly take you down with them.

Don’t Be Right and Lose Money!

Volatility is the only way to describe the markets lately. As most traders know, Volatility is a double-edged sword. You can profit from it greatly or... well let’s just say it can make you sick.

The key to trading in volatile times like these is to manage your risks. Risk management begins with each new trade. Futures traders that fail to use it will…

Buy Gold and Sell The Dollar… Wait, Sell Gold and Buy the Dollar!

These are crazy economic times. The market commentators can’t even agree if we are in an inflationary or deflationary environment. Last week, the bailout was all but signed. Today, it was voted down. What’s in store tomorrow?

How is a futures trader supposed to make decisions? One of the best methods available is to use a mechanical trading system.

Ron Paul Announcement on The Bail Out

Ron Paul Announcement on The Bail Out

Negative T-Bill Yields? Get used to it.

Whether bills are discounted at 1% or 0.01% is really irrelevant… at these rates no one is buying them for yield. They are buying them for safety.

With the debate over the $700 billion bail-out package and the failure of several banks, safety is a huge concern today...

What Percent of Your Account Should You Trade?

There is a percentage to bet that will maximize your commodity trading returns.

If you bet less than this optimal amount, your returns will be less and if you bet more than this optimal amount, your returns will also be less.

This optimal amount is called the...

Euthanasia of the Dollar: US Dollar Index Futures

US Dollar Index Futures: Last week, the tug-of-war between the dollar being a good or bad investment was still vague.

Today, the winner is certain. The Fed has once again made it clear…

How Much To Bet Is Key In Futures Trading: The Kelly Formula Can Help You

In The New Market Wizards, Bill Eckhardt, co-founder of the Turtles with Richard Dennis, said, “The success rate of trades is the least important performance statistic and may even be inversely related to performance.”

What then is the most important? Your betsize. And there is no better way to calculate your proper betsize than using the Kelly Formula.