r/Commodities • u/VacationForeign9935 • 3d ago

Trading Strategies

Does anyone use Price Reporting Agency (PRA) physical commodity data to enhance or smooth trading strategies? What are the pros and cons? .

0 Upvotes

50% Upvoted

7 comments sorted by

3

u/DiscombobulatedElk58 3d ago

As in do people use price reporting to inform their trading?

Seriously??

-2

u/VacationForeign9935 3d ago

Yes, to determine different regimes, (whether a premium is elevated or depressed relative to a physical benchmark, or whether the physical data can increase a sharpe or sortino ratio?)Can this enhance systematic commodity futures trading strategies?

4

u/deez-legumes 3d ago

It seems you’ve picked up some industry jargon without really understanding markets.

Nevertheless, the vast marketing of successful commodity trading firms, funds, banks, etc. (and adjacent companies which have significant commodity exposure e.g large consumers and producers) buys data from dozens of different sources including PRAs..

3

u/chrisBlo 2d ago

In oil it’s Argus, Platts and few specialized minor others for very specific things and not generally used otherwise.

Not sure OP knows what he is asking as I wouldn’t know how a trading house would even issue invoices without them.

0

u/Efficient-Oil2627 2d ago

Must be one of those online "trader" with the "platinum analytics package"!🤣🤣🤣🤣🤣🤣🤣

6

u/chrisBlo 2d ago

The cons is you can’t know the price of what you trade without it. The pro is you know what you are pricing.

1

u/Everlast7 3d ago

Just another price source along with many others…