Multiple Spread Trading on Master Limited Partnership

An MST characteristic that makes it reliable and capable of obtaining constant profits is that it can be used indifferently on a vast number of asset groups.

In this example, we consider a group of 4 US Master Limited Partnerships (MLP). A Master Limited Partnership is a business venture that exists in the form of a public traded limited partnership.

On 29th July Multiple Spread Trading Algorithms formed this portfolio:

Buy  2885  PAA  (Plains All American Pipeline)

Sell   68    MMP (Magellan Midstream Partners)

Sell   739   EPD  (Enterprise Products Partners)

Sell   102   MPLX (MPLX Midstream Energy Infrastructure)

The trade has been signaled 90 min after the market opening, and it has been closed after few hours with a 2.9% net gain, using a traditional low-cost broker with a 10K$ margin required. 

Same trade, without collateral requested by a low-cost broker, could be performed only with a 2K$ margin, producing a 14.5% daily net profit. Mitivest aim is to reach this performance through a drastic margin reduction developing its platform instead of using third parties solutions.