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From my research, the butterfly spreads tend to be mean reverting but they can blow out. It is good to be diversified across spreads and size up...
So if there is less liquidity on screen, it is reasonable to assume that one cannot get better prices on screen than via OTC.
Do you trade mean reversion or trend?
A book recommendation....
Didn't catch that. Important to note. Thanks Trader13. Are you using any of these sites? Did you find anything better? It seems like all of...
As noted by autospreader (the blogger/trader), Aikens and bone, combining spreads can result in lower variance. This is a eurodollar butterfly...
Eurodollar butterfly from Seasonalgo. Just a test. Will post more and explain the features of their charts later. [ATTACH]
This is a butterfly spread that once traded in a narrow range before it blew out. Stephen Aikens has a more detailed explanation on his website....
The archived forum. http://stirfutures.websitetoolbox.com/
http://www.stirfutures.co.uk/?page_id=393 Stephen Aiken's forum. His Q&A section answers a lot of frequently asked questions.
This index spread chart is not properly ratioed. You can find appropriate ratios on CME and I'll post the link later.
http://www.cmegroup.com/trading/equity-index/files/Stock_Index_Spreading_0410.pdf Guide on stock index spreading.
Taser would have been ideal.
Separate names with a comma.