The natural gas experiment - the analysis

It sounded so easy - too easy. Making money by opening buy and sell trades at the same time without the risk of loosing money. I liked the idea, so I did some calculations (that I presented in this older post) and figured: This can actually work. So far it was only a theory. In order to find out if it really works, I started an experiment and opened a buy and a sell trade for $NATGAS at the same time. Just two days later the experiment was finished, when the sell trade hit the stop loss. Unfortunately the trading strategy didn't work. In this post you can find my analysis, why the theory was wrong.

The natural gas experiment - the beginning

Today I read about an interesting and simple trading strategy: "Go long and short at the same time and you will always make profit!" Hard to believe - it simply sounds to easy. Then I started making the math...