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Helmuth's Trading Technique: Further Evidence and Implications for Cattle Hedging Strategies 1975-1982

Author

Listed:
  • Pluhar, Darwin M.
  • Shafer, Carl E.
  • Sporleder, Thomas L.

Abstract

Hedging strategies can assist cattle feeders in managing price risk. Confirmation of Helmuth'S live cattle trade signal suggested it as a short· hedging device. Seven technical hedging strategies, three emphasizing the trading technique suggested by Helmuth's work, were evaluated over three subperiods within the July 1974-December 1982 period. Four previously developed technical hedging strategies. were evaluated monthly from 1975 to 1982. Findings suggest ·that the fundamentals incorporated in the Helmuth technique resulted in a trading strategy superior to the purely technical strategies. Fur­ther, this research indicates that technical hedging strategies pro­posed through previous research were of limited usefulness ex ante.

Suggested Citation

  • Pluhar, Darwin M. & Shafer, Carl E. & Sporleder, Thomas L., "undated". "Helmuth's Trading Technique: Further Evidence and Implications for Cattle Hedging Strategies 1975-1982," Staff Paper Series 257976, Texas A&M University, Department of Agricultural Economics.
    • Handle: RePEc:ags:tamusp:257976
    DOI: 10.22004/ag.econ.257976
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    References listed on IDEAS

    as
    1. Purcell, Wayne D. & Riffe, Don A., 1980. "The Impact Of Selected Hedging Strategies On The Cash Flow Position Of Cattle Feeders," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(01), pages 1-9, July.
    2. Peterson, Paul E. & Leuthold, Raymond M., 1982. "Using Mechanical Trading Systems To Evaluate The Weak Form Efficiency Of Futures Markets," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), pages 1-5, July.
    3. Mann, Jitendar S. & Heifner, Richard G., 1976. "The Distribution of Shortrun Commodity Price Movements," Technical Bulletins 158107, United States Department of Agriculture, Economic Research Service.
    4. Heifner, Richard G., 1972. "Optimal Hedging Levels and Hedging Effectiveness in Cattle Feeding," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 24(02), pages 1-14, April.
    5. repec:cup:jagaec:v:12:y:1980:i:01:p:85-93_01 is not listed on IDEAS
    6. Huszar, Paul C. & Walters, Forrest E., 1974. "The Live Cattle Futures Market Failure: An Alternative," WAEA/ WFEA Conference Archive (1929-1995) 323778, Western Agricultural Economics Association.
    7. Leonard J. Haverkamp, 1970. "Potential Developments in Futures Markets of Significance to Agriculture and Related Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(5), pages 842-842.
    8. repec:cup:jagaec:v:14:y:1982:i:01:p:147-151_02 is not listed on IDEAS
    9. Gorman, William D. & Schuneman, Thomas R. & Catlett, Lowell B. & Urquhart, N. Scott & Southward, G. Morris, 1982. "Empirical Evaluation Of Selected Hedging Strategies For Cattle Feeders," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
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