I have to do as my rules say so, I did do Put spreads yesterday for short term rebound, been doing these type of trades now for couple years as means to make something in long times of not making anything as markets drifts sideways. I just stay with Trading Plan rules. I can only buy below 2.092 but I am zones now you be to liquidate short positions when I see patterns, this been longest trade for me long term commodities.
But what about copper ?
- Thread starter syswizard
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Am still short, can't buy till Copper gets below 2.092. Made little on Put Spreads from couple weeks ago, will be checking volume patterns to see bout adding Put Spreads.
Been very busy day Long Term trading and options, guess what got under 2.092 ? Yep liquidated in Copper and reversed. Volume pattern occurred at lows on two minute chart, have no idea if lows are in, just taking signals. Original position was early 2011.
geez that is a long term trade
Second that emotion.
I changed my approach to long term commodities around five years ago, been trading zones based on 9 year duration and this year have added 25 year term. I use to get out way too early and only get third of what I get now which is minimum of 75%, but it will take much longer but now can add to positions and use credit and debit option spreads to make more on corrections so I don't get out of main positions cause I am not good at forecasting, just taking signals.
Got stopped out of futures long in Copper, made breakeven in hedge, so guess market going lower and will look for area to go long and do it all again.
Been active in Copper for couple weeks, always this way when trying to find the extreme, all part of the game, nothing new. I have received quite a few PMs regarding my long term approach. I use last 9 and sometimes up to 25 years of monthly charts, finding 10-25% of the extremes, I call these Zones of interest, I can only entry or exit for long term trades. Entries as far a originating trades enter in the zone and add-ons can happen anywhere except other zone extreme. So like right now since 2.09 Copper is in the zone and I switch to weeklies looking for divergences in RSI, then daily charts looking for divergences or extreme readings in RSI, then switch to two minute charts for entries, looking for extreme lows and divergences in volume. I use to just use dailies but now fine tune it. Each position is fully hedged in either long Puts or debit spreads or both. My way of long term trading is very expensive as far as requiring good funds to put them on, but as far as profits, by far more bang for the buck as far as risk to reward over much time, once position gets to breakeven stops, they remain there for months or years, except for rollovers and occasional add-ons and small credit spread play, not much is done. Whereas in day trading, it is either automation or watching each tick on a screen and risking enough to buy a house to get so little. I eventually want to get to 90% automation and 10% manual, all my automated systems are first manually traded by staff for one year then they code them. I figure you can't code sometime well if never traded.
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Patrick Rooney
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I've never traded copper but have watched it for years. Looking at a chart tonight, I'm glad I don't trade it as I couldn't find a directional trade in here to save my life and I imagine vol is so low that writing options is of little relative value.
Options are tough in this market, took me couple years to figure how to buy and sell them without paying too much or unable to sell them. But cause I hedge, have to use them or be really hurt if I have to get out of the futures position.