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Allen Wrote:
Is anyone familiar with the Super Investor Files (TED Spread) by HUME?
Allen,
I have read the TED Spread book. In a nutshell, you buy a T-Bill and Sell a
Eurodollar with the same contract expiration date. The value of the TED
Spread is the price of the T-Bill less the price of the Euro and multiply by
$25.
The theory is that the Eurodollar is more risky and will always pay a higher
yield than the T-Bill. The trade itself is very easy, however, I felt that
the numbers the trade specified were outdated. I watched the TED Spread for
quite sometime and found very few trades that set up to Hume's guidelines.
There just didn't seem to be enough volatility for it to work as it did in
the late 1980's.
I hope that was helpful,
Brian
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