Markman Capital Insight

Gemini TY nails 9.7% gain shorting Treasurys

Our bond futures programs Gemini TY completed its first sequence of the year Friday for a big $1,953.08 gross profit.

The system started shorting the 10 Year Note (TY) futures  on Jan. 15, and ultimately over the course of the next 50 days traded seven contracts, as you can see in the table below.

Bonds are traded in 32nds rather than decimals. The three digits on the right of the price are fractions of 32, with an implied decimal point before the last number. For instance, the first two contracts were shorted at 127 and 25/32nds. The third contract was shorted at 128 and 16/32nds.

The chart above shows the basic outline of the trading sequence .For illustration purposes, I am using the 20-Year Bond exchange traded fund (TLT) instead of the 10-year note futures because it is easier to diagram. The shape of the 10-year Note is very similar to the TLT.

That was a very nifty set of trades. The sequence was showing a negative balance through late January, but once the bond fever cracked the developer's conviction on this trade paid off very well.

The Gemini TY system is now up 33.9% gross since inception in mid-October last year. To learn more about the Gemini futures systems, click here. Or give us a call at (206) 651 4566 if you would like information on how to join.

 (Past results might not be indicative of future performance; all accounts may not achieve comparable results; futures trading involves substantial risk of loss; only speculate with capital you can afford to lose.)