Crude Oil on high note ..is it?

anandsancheti

Junior member
25 0
Well no one is talking crude here anymore, why because it fallen on your face, like the 200 stuff now it looks like a dream and no more. I expected crude to face topping resistance @147.6 and bingo it was. now i expect it too take support at 105 levels and move higher to 125 from where we start another fall.
I have read all the bullish story, as goes with extremely beautiful girls, the same goes for extremely bullish markets.
 

BREND

Active member
216 0
I think USD still play an important part.

Oil / Gold ratio has gone too high, meaning gold has been falling but not so much on oil. But this Oil / Gold ratio chart is coming down, so this possibly means that oil is going down as well.
 

woodstockvilla

Junior member
26 0
ohhh..I see so there is an insight meaning to Oil's progress...

thanks for letting it know....I was just about to trade on oil being higher...

u just saved me...
 

anandsancheti

Junior member
25 0
spreads are a good way of reducing risk but then one cannot expect big profits either, thus it is sensible that one trades stuff naked than hedged. one has to be a good analyser or needs a good system to be able to do that.
If anyone is afraid about losing money in trading then he should probably not trade.
 

BREND

Active member
216 0
spreads are a good way of reducing risk but then one cannot expect big profits either, thus it is sensible that one trades stuff naked than hedged. one has to be a good analyser or needs a good system to be able to do that.
If anyone is afraid about losing money in trading then he should probably not trade.
In futures trading, there are mainly 2 strategies, one is directional trading and one is relative value trading. Spread trades belong to relative value.

Update on my Oil / Gold spread trade: Oil Trading: Profit for Oil / Gold Trade Turns Higher. Profit is now US$1263.

Trading speads do not means that one is afraid of losing money, it just means that he sees opportunity in this area. Oil / Gold ratio chart shows that this chart has peaked and is coming down, so the rationale is to short oil and buy gold.

Yes I had using a system that I had created to trade forex and commodities. This system is the result from my years of trading, back-testing and experiments.

Another strategy which most traders are not familar is volatility trading. If anyone is interested to learn or find out more, feel free to send a message to me. I often trade volatility on forex on days which there are important US economic announcements, ie Non-farm payroll, GDP, leading indicator.
 

anandsancheti

Junior member
25 0
i read your website, but think that hedging 1/8th of my risk is not sensible.
your crude trade was worth $11500, while Gold trade was $82230, the gap is so huge that i wouldnt do a trade like that. rather i would go naked.
another thing is i dont trade for these 2% moves, my thinking is that when a trader loses is shirt, thats the time to make money. because if one bad trade or drawdown can finish the trader that means it can also make another trader awesomely rich.
why will a trader lose his shirt because there was a big move against him, but my system is such that there can never be a big move against me, thus meaning that any big move which will be a drawdown for another trader, will be my profits. even is the market is limit on ,that is my profit to make and not lose. thats the way my system has been devised.

2 good trades in an year is all i need and as long as i dont have drawdowns which my system doesnt allow for, means that i will make more money than my broker from my trading.
though i know no ones system is created to suffer drawdowns but my system is unique as it stay with a stock, indices commodity or currency. either long or shot. one big move thats all i need, thus i choose to trade crude and not gold. because crude has higher beta than gold.
you can check my position in another thread on crude.
 

BREND

Active member
216 0
i read your website, but think that hedging 1/8th of my risk is not sensible.
your crude trade was worth $11500, while Gold trade was $82230, the gap is so huge that i wouldnt do a trade like that. rather i would go naked.
another thing is i dont trade for these 2% moves, my thinking is that when a trader loses is shirt, thats the time to make money. because if one bad trade or drawdown can finish the trader that means it can also make another trader awesomely rich.
why will a trader lose his shirt because there was a big move against him, but my system is such that there can never be a big move against me, thus meaning that any big move which will be a drawdown for another trader, will be my profits. even is the market is limit on ,that is my profit to make and not lose. thats the way my system has been devised.

2 good trades in an year is all i need and as long as i dont have drawdowns which my system doesnt allow for, means that i will make more money than my broker from my trading.
though i know no ones system is created to suffer drawdowns but my system is unique as it stay with a stock, indices commodity or currency. either long or shot. one big move thats all i need, thus i choose to trade crude and not gold. because crude has higher beta than gold.
you can check my position in another thread on crude.
You said you had read my website, then you should know that I am trading commodities and forex. Spread trade is just one of the many trades, no need to keep talking about it. Move on!
 

anandsancheti

Junior member
25 0
thats not the issue, my point is that how does it make sense to have a spread that is only 1/8th your bigger position, it doesnt provide much hedge anyways. may be adjusting for beta you could have gone for 1/2 times the gold position, anyways its not my job to make anyone better. if anyone wants to get better one has to strive for it.
Plus you are a senior member here, thus you know more about trading than me.
I only have 18 months of trading experience, guess have a lot to learn.
havent got that much time to argue about useless things.
 

BREND

Active member
216 0
In futures trading, there are mainly 2 strategies, one is directional trading and one is relative value trading. Spread trades belong to relative value.

Update on my Oil / Gold spread trade: Oil Trading: Profit for Oil / Gold Trade Turns Higher. Profit is now US$1263.

Trading speads do not means that one is afraid of losing money, it just means that he sees opportunity in this area. Oil / Gold ratio chart shows that this chart has peaked and is coming down, so the rationale is to short oil and buy gold.

Yes I had using a system that I had created to trade forex and commodities. This system is the result from my years of trading, back-testing and experiments.

Another strategy which most traders are not familar is volatility trading. If anyone is interested to learn or find out more, feel free to send a message to me. I often trade volatility on forex on days which there are important US economic announcements, ie Non-farm payroll, GDP, leading indicator.


--------------------------------------------------------------------------------

Took Profit on Oil / Gold Spread Trade :clap:

On Monday 25 August, I mentioned that Oil / Gold ratio chart looks toppish and has started to move downward. So tap on this downward movement is to sell oil and buy gold.

I had sold 1 lot of supermini oil at 115.00 and bought 1 lot of gold at 822.63.

Currently oil is trading at 97.60, gold is trading at 892.08.

Profit and Loss:
Shorted 1 lot of supermini oil: (115.00 - 97.60) x 100 = +US$1740
Bought 1 lot of gold: (892.08 - 822.63) x 100 = +US$6945
Net profit = 1740 + 6945 = US$8645

If you are interested to view more of my trades, click on my name and go to my Home Page.