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Dinerotrader

Oil Trading

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change your stops to stop limit orders instead of stop market orders and you shouldn't have any slippage.

 

Thanks,

 

On entries I use stoplimits.

 

On my exits however, stops are the only logical choice

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Hi Guys...I have been trading crude for most of 2010 and it has fast become one of my favorite markets to trade. Here's my two cents on slippage. I typically will see 1-3 ticks of slippage when I do have it. Lately it hasn't been a big issue for me at all. Occasionally I will see a 4-5 tick slip but it is rare. Inventory report wednesday's can get a little interesting but thats about it.

 

My problem with stop limits on entry is that you will miss trades from time to time. When CL starts moving you won't always get your fill with a stop limit. I hate missing moves on CL so I use stop markets for entry and accept the slippage when it comes. As long as the slippage stays around 1-3 ticks I'm ok with that. If it starts to jump to 4-5 ticks on a regular basis then that changes things and I will need to reevaluate.

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Entering on stop limits can be dangerous as the above poster said - you will basically guarantee fills on all losing trades and guarantee missing some winning trades. Not my cup of tea. I'd prefer to do the opposite.

 

:2c:

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dinerotrader,

 

CL has been very difficult to trade this week. We haven't seen the nice early movement that we have been used to in the past. The moves are either happening premarket are later in the session. This has thrown a wrench in my trade plan because the moves are happening outside of my trade times.

 

I had a feeling we would see a late session breakout today but after the choppy morning I didn't want to risk it. This is one of the first down weeks I have had on CL in a long time. Let's hope things get back to normal next week.

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Dino,

Thats why I don't use Time charts. I want to catch the move with volume or price action. I wish I had traded the afternoon, but my system caught it. I only had about a minute and a half to catch it after the short.

clminute.thumb.jpg.16b7d7b8eb924f74e7b304a67a748e1b.jpg

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Method,

My system is very mechanical. There is the 10% art, in adjusting the entries or stops, but I have a set of rules in my trade plan that can filters out some trades. However, I stick to those rules, which makes it mechanical. If I find that, a particular trade is not working out I can change the plan and add a filter, say taking trades against the trend or not taking re-entry trades. Is that as clear as mud:)

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Dino,

I fogot to ask, what time do you trade CL. Just the mornings, all day or the afternoons?

 

I normally only trade pit hours and sometimes pre-market if things are setup up well with S/R levels. I prefer to only trade the first 3 hours of pit but it changes.

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Dino,

Today was great. I was talking to someone who had backtested and studied Crude and he said that on Tuesday 9am-10am was the best time to trade. I think 70% win rate. I missed the first trade as I got ready to trade a little late. I was back from Apple with my new I phone 4. The next trade I adjusted below the swing low so I only got 13 cents and then the last trade hit full 18 cent target. I skipped the second long as the adjustment above the tend line was more than 4 cents.

CLTuesday.thumb.jpg.2ee08483e08e97a033e5e2bc46234f56.jpg

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Dinero,

Today was great. I was talking to someone who had backtested and studied Crude and he said that on Tuesday 9am-10am was the best time to trade. I think 70% win rate.

 

That would depend on your trade setup. You appear to have many things on your chart but not sure what to make of it, how you are entering, and where your entries and exits are.

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Dino,

I will attach a blown up chart with very few lines. There is a major trend line and a trail line. The pluses you see are the entries and the two sets of dots are the money management and full target. All of these numbers are in your data window. Very visual and easy to see targets, stops and entry. If you want I will do a video recap of a day. I hope this helps.

CLDETAILS.thumb.jpg.9a1349ca11a95f351fd19350960580ad.jpg

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Dinero,

I will attach a blown up chart with very few lines. There is a major trend line and a trail line. The pluses you see are the entries and the two sets of dots are the money management and full target. All of these numbers are in your data window. Very visual and easy to see targets, stops and entry. If you want I will do a video recap of a day. I hope this helps.

 

Not a big fan of video. Simple chart annotation of why you entered and exited and how you used your indicators would be fine.

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talk about Drunk trading, I have been away for a while and looked at Crude today and it suddenly seems to be a lot less liquid than normal.

In terms of it regularly moved up or down ten cents from the last sale without having and trades. eg; last sale was 76.36, and it was offered 76.26

This seemed to happen a lot today.

It can certainly play havoc with automatic stops etc;

maybe crude is having a few blackout trades and its not remembering to trade at certain levels.:)

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Sure,

As we can see from the chart above, we are looking for possible support in the cluster zone 73,74 - 74,10 (end of Wave 4). If the prices are supported in this area then we will find the wave 5 projections as possible upside targets.

 

Slds,

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Sure,

As we can see from the chart above, we are looking for possible support in the cluster zone 73,74 - 74,10 (end of Wave 4). If the prices are supported in this area then we will find the wave 5 projections as possible upside targets.

 

Slds,

 

Okay I more clearly see what you are seeing. Now the question is how do you get in watching a daily chart. At what point in the (4) area will you buy?

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Well, as we don’t know in advance whether or not a particular zone will hold, first I what to see if this area will stall the market and I then look for a (daily) bullish reversal bar.

 

(update: Crude sell off through the cluster zone and the price is now testing second cluster zone, Let´s see how it works!)

sld

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Going long in crude oil following the Egypt situation which could result in a low supply from the region and subsequently high oil price .....

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