|Quotes C.M.E. Bloomberg Straits Financial Economic calendar Open an account
What capturing the move higher in short term U.S. interest rates is worth.
Current rate 0.10%, current position value = $4,166
Feds target by the end of 2016 = 2.00%, position value = $83,333
Feds target when the U.S. returns to full employment = 4.00%, position value = $166,667
Click here for my report trading U.S. short term rates higher (no registration is required).
From near 0.00% the Fed funds rate can only have a major market move in one direction, higher.
The Fed is giving us clear guidance as the where interest rates will be and when
Fed’s Fisher wants December taper, clear path to end of QE3
$12,500 unit valuation table
While we’re waiting to capture the move higher.
Were trading the Feds defined range, over the last 2 years weve had 14 opportunities to capture a 30% plus appreciation in contract value. Click here for my report trading the Feds defined range in short term rates, (no registration is required).
Below is the trade-by-trade performance using the same entry/objective cost averaging strategy from September 2011 start balance = $25,000 through November 2013 balance = $104,449.
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Click here for full disclosure of trading methodology, links to contract specifications, charts, quotes,
Trading the Fed funds rate higher requires establishing a net short position
Currently the August 2014 Fed Funds futures contract is trading at 99.90, representing a rate of 0.10%, total contract value $417, when this contract trades back at 99.7150 representing a rate 0.2850% its value will increase by 185% to $1,187.
Click here for full disclosure of trading 2 year trading methodology, links to contract specifications, charts, quotes, historical data, interactive risk/reward spreadsheets with instructions on how to use them enabling you to qualify every trade and/or experiment with your own trading criteria.
Trading Cycle 12 entry, objective rate, contract price, contract value chart