EDGE SERIES TOOLS
Bond EDGE offers the perfect solution for traders who want to trade Interest Rate Futures using a relative value trading analysis. The tool's designer, Pablo Lucena, explains his motivation for building Bond EDGE as: “… making the comparison between completely distinct futures contracts as easy as comparing 2 against 4, or A against Z – thereby bringing comparisons that are apples to apples.“
Bond EDGE comes packaged with the Masters in Trading Bond Bootcamp workshop – the definitive guide to trading Interest Rate Futures, a $497 value by itself.
WHAT DOES BOND EDGE DO?
CHART PRICE ACTION, NOT THE UNDERLYING OF THE PRICE
What sets the EDGE series apart is traders now are able to compare any future contract against any other future contract, regardless of asset class. Bond EDGE looks at how much $ each contract has moved and displays this information in a chart.
The green line above is the 30-Year U.S Treasury Bond Futures (JUN 20). On the right, notice how Bond EDGE displays the P/L impact of a 1 lot /ZB futures contract, rather than the current price 180’03.
A SINGLE PANE FOR ALL BOND FUTURES CONTRACTS
Compare each of the Interest Rate Futures contracts on one chart. Notice how each futures contract is displayed in the P/L impact of a 1 lot.
How can we use this information? Look at the time period: 3/9 to 3/11. Notice how the blue line (the bond contract) starts to trade expensive relative to the other two lines (green = /ZN, pink /UB)? A relative value trader sees that as an opportunity to sell short the /ZB (blue line) and simultaneously buy (go long) the green or pink line /ZN or /UB).
ANALYZE THE PERCENTILE RANKINGS OF EACH SPREAD
Analyze the percentile rankings of each spread to better guide for potential turning points in the underlying instruments that make up the spread. Visual inspection is one thing, but quantifying exactly where the spread is relative to the timeframe is a must-have for any trader.
In the chart above, the red line shows the value of the 5 year butterfly (you'll learn more about this.) The percentile ranking of the 5 year ‘fly is 74.7%. The data analyzed above demonstrates the 5 year fly is 74.7% away from it’s low and 24.3% away from its highest within the given time frame.
Purchase Bond EDGE for the low price of $1,497. Includes Masters in Trading's Bond Bootcamp workshop, a $497 value by itself.
Bond EDGE – Trading Tool (for ThinkorSwim
Includes 4+ hrs of Video Instruction
Customizing and Saving your Charts
Ratios: A Deep Dive with the tool's creator, Pablo Lucena
- Bond Edge Class
Products Plotted (Default)
- ZT (2 year)
- ZF (5 year)
- ZN (10 year)
- TN (10 year ultra)
- ZB (30 year)
- UB (ultra)
Bond Boot Camp (Included)
9+ hrs of Video Education
- Bond Trading and Treasury Basics
- Introduction to Spreads and Files
- Advanced Spreads and Files
- The Bond Trading PDF (25 pages)
- Current Files and Spreads
- The Yield Curve Handout