oil trading style

[crude_lover]

I was wondering for the oil traders here whats your trading style are you more position or do you scalp it ?

Especially i would be interested in hearing from any prop oil traders as i was wondering if there were many people who day traded oil scalping positions in and out very quickly through out the day

 

[£10kLoser]

I used to day trade it for 50 pips for about six months last year until my system started to fail in October. I noticed a simple pattern - if oil moved by more than 80 pips in 2 hours for no good reason other than traders buying or selling, it almost always retraced by 50 points.

At $50 a pip, I made good money every month until it went erratic...

Much of the time, oil and gold move intra day just because of traders trying to scalp a profit. If we can catch times when they are fluctuating much more than the daily gain/loss, I think there is money to be made taking 20 - 50 pips in less than a couple of hours. Oil was closing around a dollar a day difference but was regularly moving 2 dollars - what does that tell you? Haven't checked it recently but that scenario is great for day trading.

Given up on oil now but I'm winning 4 out of 5 with gold! Just hope it continues...

 

[DemonHeadmaster]

I put on a mixture of positions throughout the day, both on the outrights and spreads.
They'll be based on a number of factors, such as technical support/resistance levels, size of orders in the outights (esp during the minute marker window), size, volume and range of front/back month spreads, fundamental news (price reactions to news such as pipeline explosions, production hikes, etc).

Most of my trades are scalps, with the odd overnight spread position, if i feel its been pushed too far out of line. I don't carry any outright overnights.

Cheers,
DH

 

[Chartsky]

I used to day trade it for 50 pips for about six months last year until my system started to fail in October.

Given up on oil now but I'm winning 4 out of 5 with gold! Just hope it continues...

Yeah, oil seemed to really change last Fall. Trading during the Summer was almost too easy, then in the Fall I started noticing some REALLY big size (100-lot or 200-lot orders) coming in at odd times and at market and price spiking as a result. Had to adjust my system big time, and it still went into draw-down until after the first of this year.

You might want to look at CL again. GREAT volume and volatility. You could be getting 50-ticks ($500) several times a day. And while the big size still causes occasional spikes, the larger range cuts down on those spikes affecting trades as much.

I tried gold, but always got too much slippage. There's slippage in CL too, but follow-through makes it back.

 

[123]

Oil is certainly going to rise higher and higher, take long positions on crude oil futures is the trading strategy.

1) Growth in Emerging Economies --> Rising Oil Consumption --> Higher oil price

2) OPEC --> Government depend on oil income --> Cartel restricts supply --> Higher Oil price

3) Geopolitical Issues --> Cause disruption / thread of oil production --> Lower global spare capacity --> Higher Oil price

4) Peak Oil Theory --> Declining Oil production --> Less Supply --> Higher oil price

I believe oil price is going maintain its uptrend in the mid-term. I'm predicting oil price to reach $250 in 2 years' time.

 

[DemonHeadmaster]

Oil is certainly going to rise higher and higher, take long positions on crude oil futures is the trading strategy.

1) Growth in Emerging Economies --> Rising Oil Consumption --> Higher oil price

2) OPEC --> Government depend on oil income --> Cartel restricts supply --> Higher Oil price

3) Geopolitical Issues --> Cause disruption / thread of oil production --> Lower global spare capacity --> Higher Oil price

4) Peak Oil Theory --> Declining Oil production --> Less Supply --> Higher oil price

I believe oil price is going maintain its uptrend in the mid-term. I'm predicting oil price to reach $250 in 2 years' time.

You've mentioned some interesting points.... So where are you long from?

 

[123]

You've mentioned some interesting points.... So where are you long from?

I had been optimistic on oil since oil is trading in the 50s. To tap on rising oil price, I had bought oil stocks and long super mini oil contract.

For oil stocks investment: I had bought into the oil drillers Transocean Inc (listed in US), and some smaller oil services stocks in Asia.

As for oil futures trading: I'm just a normal employee, and I have bills to pay, I don't want to gamble to big on oil futures. I use this platform call ForexYard to trade super mini oil futures. $1 represents US$100 only. For Nymex oil futures, $1 represents US$1000, this is too risky for me.

 

[advfntrader]

guys take it from me unless you have DEEP pockets and are willing to LOSE all your money stay clear from Oil futures. it swings 600 points in a day, at £1pp thats £600 A DAY. I have personally lost £10k in 3 months trying all sorts of strategies to beat it. I couldn't. its too volatile. you could be 200 pips in profit to see it swing to a 200 point loss in minutes. then you panic and think it will come back, next day you are 500 pips in the red. a fast way to lose money and blow your account.

the margin requirements are also horrendous. £450 for Nymex at £1pp. a couple of trades and you are taling SERIOUS exposure. you could lose your house chasing this

 

[DC STOXX]

guys take it from me unless you have DEEP pockets and are willing to LOSE all your money stay clear from Oil futures. it swings 600 points in a day, at £1pp thats £600 A DAY. I have personally lost £10k in 3 months trying all sorts of strategies to beat it. I couldn't. its too volatile. you could be 200 pips in profit to see it swing to a 200 point loss in minutes. then you panic and think it will come back, next day you are 500 pips in the red. a fast way to lose money and blow your account.

the margin requirements are also horrendous. £450 for Nymex at £1pp. a couple of trades and you are taling SERIOUS exposure. you could lose your house chasing this

Don't say you cant make money trading oil just because YOU cant; it just means you are not good enough. I know people who make their living trading oil.

 

[advfntrader]

yes I am not good enough...yet. I will take a break and learn more with a demo account before returning

 

[Hook Shot]

Don't say you cant make money trading oil just because YOU cant; it just means you are not good enough. I know people who make their living trading oil.

With this kind of volatility and a clear uptrend* not sure why we don't hear more about oil trading.

*[My view is until we have more than 4d sell off we should still go up].... despite the parabolic slant.

I saw 133/134 nymex as extension target so not surprised to see slippage this week - but it did not last long

 

[tar]

I think Crude Oil will selloff maybe 30% after a big rally

 

[contango]

My style is as attached... When the red line (moving average of oscillator) is negative and the white line (oscillator) moves negative then you sell. When the white line is moving in the opposite direction you take profits. And vice versa for buying. Simple yet effective. The bollinger helps you to know if the move has gone too far and is due a bounce back inside.

 

[Hook Shot]

Are we there yet ?

With this kind of volatility and a clear uptrend* not sure why we don't hear more about oil trading.

*[My view is until we have more than 4d sell off we should still go up].... despite the parabolic slant.

I saw 133/134 nymex as extension target so not surprised to see slippage this week - but it did not last long

I'm starting to think the blow off top is in since we have now pulled back more than 4d.
Furthermore, the rallies last only one daily candle which is not bullish. What I'd like to see now/soon is the classic failed rally on the daily chart to give the second bite of the short side. It's around 1000pts to the highs so I'm torn between playing the upswing or 1/2d scalping. But with daily ranges in the 100's of points it probably does not really matter :cheesy:

 

[minx]

guys take it from me unless you have DEEP pockets and are willing to LOSE all your money stay clear from Oil futures. it swings 600 points in a day, at £1pp thats £600 A DAY. I have personally lost £10k in 3 months trying all sorts of strategies to beat it. I couldn't. its too volatile. you could be 200 pips in profit to see it swing to a 200 point loss in minutes. then you panic and think it will come back, next day you are 500 pips in the red. a fast way to lose money and blow your account.

the margin requirements are also horrendous. £450 for Nymex at £1pp. a couple of trades and you are taling SERIOUS exposure. you could lose your house chasing this

Sorry but you are talking our your a r s e. I know plenty of people making money trading oil futures. The futures are $10 a tick, not £1, you're talking about spreadbetting the futures. Yes it moves a lot so either you trade it longer term or you trade it very short term. Either way, with a good system and proper money management you can make a fortune in it.

 

[de_cooky]

I do make my living trading nothing but oil...but i trade only spreads ..brent as well as gasoil on ice..It has been 3 years..and so far i have survived..

 

[advfntrader]

de_cooky what system do you use ?

 

[advfntrader]

minx, yes I'm sure a few can and do make a fortune....but many more must lose it for them to make it! I am looking into some systems now and backtesting and demoing them. I am determined to get my losses back over time

 

[combotrader]

the schork report

have any of you guys heard of the Schork report for crude oil and energy ? Heard some good things about it, its quite expensive, but wondering if anyone has any experience of it.
Ta
CT.

 

[gonnamakeit]

Does anyone here also trade the WTI-Brent spread, and if so what are your trading styles...?

I am trading the spread as a home and would really like to hear from anyone who trades this from home or institution....thanks