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Dinerotrader

Oil Trading

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Cool. I was a month behind. I was trading the March while everyone else was trading the April. When everyone rolled over, so did I...to the older contract haha. Stupid. Easy fix though.

 

The monthly roll over of oil is a recurring annoyance. I hate having to switch over every month. Also, the normal momentum behind price swings dies out a little during the few days that there is a large volume split between the current and future contracts as seen on Wednesday and Thursday last week. Do a quick morning check to compare the volumes on the contracts like Brownsfan said and you'll get the heads up when you need to switch.

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I suppose I could do that if the volume is going to flip flop between contracts. If not, there is really no point, I'll just stick with the new one. The reason it's not so simple for me is just because m y setups usually take a few days to fully play out. It just means I'll have to have separate workspaces for each contract which is no big deal.

 

 

 

Why not? It's obviously pretty easy to see when your watching the wrong contract lol.

 

If it was so obvious, then why were you asking where the volume was today? When it was obvious that it was a huge volume day...

 

That's the point.

 

Obviously it wasn't obvious to see that you were trading the wrong contract or you wouldn't have posted to begin with.

 

I'll never understand how people can be trading the incorrect contract when a 5 second glance at a quote window will tell you what you should be trading.

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Ok fair enough, it's obvious when there is something amiss. Your post implied that because I was looking at the wrong contract it is somehow dangerous and I could lose money and I better not trade CL until I get the contracts straight. When anyone looking the the J contract today would know enough not to trade it, whether because its the wrong contract or some other reason for super low volume.

 

You could pick 1 of the 3 contracts at random, pull it up on a chart and know right away whether you should be trading it or not.

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Multicharts Version 6.0 Beta 2 (Build 3102) allows for continuous futures to be built with customizable rules. For example with the following setting for CL from IB data.

 

 

Neeto I don't have that dialogue on my 6beta2 but TSSupport are not renowned for there version control :)

 

What is the hieroglyphics in the contract description box? Is that to do with getting historical data?

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Neeto I don't have that dialogue on my 6beta2 but TSSupport are not renowned for there version control :)

 

What is the hieroglyphics in the contract description box? Is that to do with getting historical data?

 

It is under Quotemanager, Instrument, add custom futures.

The 'hieroglyphics' is generated automatically by the setup and presumably describes the rollover of the custom futures, similar to the function in Tradestation.

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Pay close attention to pivot points early in the session. I have also noticed that if price is near resistance 1 hr before the NY open - it is a low risk short as price will most likely go down to the pivot before deciding the eventual direction. As the day progresses pivot points become less reliable.

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Pay close attention to pivot points early in the session. I have also noticed that if price is near resistance 1 hr before the NY open - it is a low risk short as price will most likely go down to the pivot before deciding the eventual direction. As the day progresses pivot points become less reliable.

 

Can you post a chart so we can see what you are referring to. Thanks.

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How is it not simple?

 

Create quote window/workspace with CL contracts - as you saw what I did.

Check it daily.

Trade contract w/ the biggest number.

 

As Dinero pointed out, rollover was occurring last week. If you didn't realize that, then you probably shouldn't be trading this until you understand what contract to be trading.

 

Surely the most important thing is to avoid delivery, therefore you have to make sure you have rolled prior to the first notice day. So everyone who trades oil, or any other commodity should roll prior to the first notice day. That is the key date to be aware of.

 

The volume stuff is useful but not essential.

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Surely the most important thing is to avoid delivery,

 

As a small retail trader your broker will never allow a delivery to happen. Most small traders don't even have the funds to even accept delivery if they wanted to.

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Yes but it is still your responsibility to be aware of these things so that you have full control over your trading.

 

Plus you don't really want to get into a delivery situation at all, whether you can afford it or not.

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Surely the most important thing is to avoid delivery, therefore you have to make sure you have rolled prior to the first notice day. So everyone who trades oil, or any other commodity should roll prior to the first notice day. That is the key date to be aware of.

 

The volume stuff is useful but not essential.

 

Or you just trade the contract w/ the most volume, which takes about 5 seconds to scan in the morning. Once again, problem solved w/ a 5 second routine.

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Or you just trade the contract w/ the most volume, which takes about 5 seconds to scan in the morning. Once again, problem solved w/ a 5 second routine.

 

100% true - AND if you wait till the day before delivery notices are sent out (if your broker lets you get that close) your charts are gonna have gaps all over the place! Volume dries up well before notices are sent out.

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That's all well and good if you guys roll like that. Maybe I am just cautious and like to be aware of the types of events that might cause me a problem. In my opinion everyone should at least be aware of the first notice/ last trading day so they don't get into a sticky situation.

 

Just using volume, or relying on your broker is, I think, a little bit dangerous.

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Back in my dreaded chop zone again. This area is like a huge magnet. Maybe we'll get a gap tomorrow morning to get us out.

 

attachment.php?attachmentid=20396&stc=1&d=1269892214

 

Did I call that chop or what? Just couldn't get myself to stick to the plan today in my own trading for some reason. I despise this 82 price level on oil. We need some global change in the oil business to get ride of this "equilibrium level".

 

attachment.php?attachmentid=20415&stc=1&d=1269980689

5aa70ff2605de_3-30-201008.thumb.png.251a9f7f0dbf35887b3ef8922cb6c841.png

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I wish someone had mentioned this last month, I have to store all the oil I took delivery on in my pool. :angry:

 

Hey, well at least you have a pool. Of course, you can't really swim in it now, but there you go.

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Here is a position I am still holding. Stop is at breakeven. I've never held anything past RTH close. Overall trend is up so I am not very optimistic. I'll actually have to wake up during the night to check on it if I am still in it tonight.

 

attachment.php?attachmentid=20441&stc=1&d=1270064178

 

attachment.php?attachmentid=20442&stc=1&d=1270064178

5aa70ff2ec979_3-31-201004.thumb.png.e2b23baa7383307da289da5128ccaf98.png

5aa70ff303d53_3-31-201005.thumb.png.6767303902d0726eeddde51901fe3c7f.png

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