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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., 1985. "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

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    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(1), pages 1-9, July.
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    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(2), pages 1-14, April.
    5. Purcell, Wayne D. & Riffe, Don A., 1980. "The Impact of Selected Hedging Strategies on the Cash Flow Position of Cattle Feeders," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(1), pages 85-93, July.
    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.
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