Hey Everyone,
I am a Merchandiser (handle grain purchasing in the US) for a trading company similar to ADM/Bunge/Cargill and I also run risk management for my desk. I also manage a spec account where I get a % of my monthly PNL as a bonus. Does anyone have any info on what the traditional percentage is that I should be receiving on my spec PNL?
Thanks for the info MXS,
My rationales behind spec trades tend to be fundamental and technically driven. I mostly trade the grains wheat/corn/soybeans/rough rice with some softs as well since I fee likel I have the best fundamental knowledge of these. Most of my positions are either outrights or spreads.
generally trade the spread when it gets out of whack. I also sometimes take delivery of receipts if it comes to full carry and I know I can sell them to mills who are short but this is rare.
Holding duration mostly just depends on technical signals and fundamental news.
Sizing is also up to my own discretion I think the most I have had on at a time is about 750 options and about 75 futures of a single commodity.