The insiders fade moving average crossovers, and so-called overbought and oversold - regardless of Which indicator is used to show either of Those Conditions. They know When prices have reached the outer limit of the Bollinger Bands, and They know the location of supposed Forex Maverick support and resistance, etc. But with spreads They have the idea of the location of your orders. You are long in one market and short in another. Your position is invisible to the insiders. They can not run your stop, Because You do not have one. You can not place a stop order in the market When trading spreads! Your exit point is Entirely Mental; Exclusively it exists in your head.
In That Respect, spread trading is a more pure form of trading. It is the closest thing in trading to having a level playing field. That Could be the reason you Hardly ever hear about spread trading? Liquidity: Attempting to trade in the "thin" illiquid markets is one of the ways it Sureste encounter serious stop running and bizarre Price Movements. Howevera, other than occasional problems with getting filled, spread trading doesnt Suffer from a Lack of Liquidity - Which in itself creat more Trading Opportunities. I would never CONSIDER taking an Outright position in feeder cattle. Feeders are a thin, illiquid market Normally best left to professional Interests. But a Reduced margin (feeder cattle) - (live cattle) spread is something I look for all the time.