the crack spread is used in the petroleum industry to describe refining costs.
Please see https://www.investopedia.com/terms/c/crackspread.asp for details.
Using my Spreadtrader it becomes easy to trade this spread on the ninjatrader platform . Please be advised that for professional traders some brokers offer to trade the crack spread directly hence reducing margin requirements.
The simple crack spread is a 1:1 spread between RB future and CL future. To readjust for different units you have to multiply the RB price displayed by 42.
Attached the setup for SpreadTrader .
In the SpreadTrader window you can then trade the spread by hand and as an option you can specify entry limit price and exit order . In the example given we enter 1 long position @ limit price 15 and then apply the TrailingStopSimple exit strategy to it. The exit strategy uses the full function set of a ninjatrader strategy and can be fully customized by you.
A chart of the spread can also be opened .
Happy trading and happy new year
Best regards
Andreas
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