# Bear Calendar Spread Strategy AI Agent Connect

> Generates deterministic trading signals for bear calendar spreads using spread z-scores and contango analysis.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_TJG5o1dRx777yG1fMtYI08FbZM0DqHjys5PpdDoT/ai-agent-connect
- **Tags:** futures, calendar-spread, contango, trading-signals, quantitative-finance

## Description

This MCP server provides a deterministic engine for executing bear calendar spread strategies. It monitors the relationship between near-term and far-term futures contracts to identify profitable opportunities. By analyzing spread volatility through z-scores and ensuring market contango, the engine identifies when spreads have expanded too far or are reverting to the mean. Users can use `calculate_spread_signals` to generate daily trade directions, `get_spread_economics` to calculate cost of carry and convergence targets, and `validate_contract_suitability` to ensure liquidity requirements are met before execution.

## Tools

### calculate_spread_signals
Generates daily trading signals based on spread volatility, contango status, and z-scores

### get_spread_economics
Provides detailed financial metrics regarding the cost and targets of the current spread state

### validate_contract_suitability
Verifies if two specific contracts are eligible for the strategy based on underlying asset and liquidity

## Prompt Examples

**Prompt:** 
```
Generate trading signals for these near-term prices [100, 101, 102] and far-term prices [105, 106, 107] with near-term OI [6000, 6100, 6200] and far-term OI [7000, 7100, 7200].
```

**Response:** 
```
The signals generated for the provided price arrays are: Day 1: HOLD, Day 2: HOLD, Day 3: SELL.
```

**Prompt:** 
```
Calculate the economics for a spread where the near-term price is 100 and the far-term price is 105.
```

**Response:** 
```
The spread width is 5, the cost of carry is 5, and the convergence target is the historical mean.
```

**Prompt:** 
```
Check if these contracts are suitable: near-term underlying is GOLD, far-term underlying is GOLD, near-term OI is 10000, far-term OI is 12000.
```

**Response:** 
```
The contracts are eligible for the strategy.
```

## Frequently Asked Questions

**What is a bear calendar spread?**
A bear calendar spread involves selling a near-term futures contract and buying a far-term contract to profit from the narrowing of the spread.

**How does the engine determine a SELL signal?**
A SELL signal is triggered when the spread z-score exceeds 2.0 and the market is in contango, indicating the spread has expanded significantly.

**What liquidity requirements are enforced?**
The strategy requires both the near-term and far-term contracts to have an Open Interest (OI) greater than 5,000 to ensure sufficient liquidity.