Orange Juice Liquidity

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Dean Hoffman
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Orange Juice Liquidity

Post by Dean Hoffman » Sat Jun 24, 2006 3:00 pm

I’ve been passively watching the bull market in Orange Juice for some time. Unfortunately, the liquidity of that market is notoriously bad (which is why I’ve only watched vs. traded it). I’m just curious if anybody has actually been trading the OJ move and can share what kind of slippage they have been seeing.

Dean Hoffman

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Post by Turbowagon » Sat Jun 24, 2006 3:08 pm

Edward Kim should be able to answer that for you. I think he is currently Long OJ. I am also interested to hear people's expereiences in this market as I am considering it for my portfolio.

Regards,
Ed Fowlkes, Jr.

edward kim
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Re: Orange Juice Liquidity

Post by edward kim » Sat Jun 24, 2006 9:52 pm

Dean Hoffman wrote:I’ve been passively watching the bull market in Orange Juice for some time. Unfortunately, the liquidity of that market is notoriously bad (which is why I’ve only watched vs. traded it). I’m just curious if anybody has actually been trading the OJ move and can share what kind of slippage they have been seeing.

Dean Hoffman
i don't know what you mean when you say the liquidity is "notoriously bad".

i have very low slippage on OJ - maybe about .05 to .10 if the market is slow, and .25 at worst when the market is moving really fast. i am okay with that, especially when the market moves from 60 to 170. sometimes i get lucky and have zero or negative slippage, and i am very sure other OJ traders out there experience the same thing.

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Post by trendyguy » Sun Jun 25, 2006 2:38 pm

Edward Kim, it's not that I doubt what you say.It's just that my broker is
"notoriously bad". At times I have experienced fills more that one cent above my buy stops. Relative to the other markets I trade, OJ is the slippage leader.

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Post by BARLI » Sun Jun 25, 2006 8:18 pm

trendyguy, Edward doesn't care about slippage since he's long term trend follower, so if he gets into OJ position at 120 and he's average holding period is 200 days it doesn't matter for him if OJ settled that at 119.0 and he's actual fill is at 119.5

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Post by edward kim » Mon Jun 26, 2006 3:04 pm

trendyguy wrote:Edward Kim, it's not that I doubt what you say.It's just that my broker is
"notoriously bad". At times I have experienced fills more that one cent above my buy stops. Relative to the other markets I trade, OJ is the slippage leader.
if that occurs on a regular basis, that OJ skid does sound really high. i never have that kind of skid with my stop in. if you are trading 50-100 contracts or more, then that makes sense to me. call your broker and ask questions - if you don't like what you hear, call others and see what they say.

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Re: Orange Juice Liquidity

Post by LeapFrog » Tue Jun 27, 2006 10:04 am

Dean Hoffman wrote:I’ve been passively watching the bull market in Orange Juice for some time. Unfortunately, the liquidity of that market is notoriously bad (which is why I’ve only watched vs. traded it). I’m just curious if anybody has actually been trading the OJ move and can share what kind of slippage they have been seeing.

Dean Hoffman
I trade OJ on a fairly regular basis and have attacked this bull on the way along at various times. Two to 6 lots. I also trade about 20 other markets on and off. By comparison, I would say the slippage in coffee is worse than OJ. What I find is that my fills are very slow coming back in OJ but that the slippage is not bad - .10 typical, .25 for a bad fill. The problem is much more the opening gaps - it can reverse overnight a lot. Limit orders usually are a good idea after the open has settled down. I don't get the impression the OJ pit is adequately staffed. Hope this helps.

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Re: Orange Juice Liquidity

Post by edward kim » Tue Jun 27, 2006 5:11 pm

LeapFrog wrote:By comparison, I would say the slippage in coffee is worse than OJ.
yes.

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Post by trendyguy » Wed Jun 28, 2006 2:50 am

Okay yes you are right, Coffee slippage is worse that Orange Juice.
In the last week I have made three transactions in OJ.
First 3 lot slipped 0.35
Second 3 lot slipped 0.75
And today I rolled over using a spread and slipped 0.65 on 6 contracts. The fill came back in about 20 min.
So in less than a week I have ??issed away $1,080. I have had enough now I think.
If anyone could pm me thier FCM, I think I am about to go on a shopping spree.

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Post by Bernd » Wed Jun 28, 2006 5:12 am

:wink:
Last edited by Bernd on Sat Apr 19, 2008 2:14 am, edited 1 time in total.

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Post by Forum Mgmnt » Wed Jun 28, 2006 8:58 am

I like it when OJ freezes.

My mom used to serve us popsicles made of the stuff :)

- Forum Mgmnt

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