CL Redux

[Visaria]

Interesting...cheers ammo

 

[NoDoji]

Quote from Swan Noir:

Currently trading a 5 min ES chart and hoping to transition to a fast tick chart on either CL or GC. I would like to trade a 70 or 90 or whatever tick chart in CL or GC but I'm concerned about slippage and spending time in sim won't tell me much about that reality.

Any comments, advice etc. will be greatly appreciated. I'm a New Yorker. No need to be all that polite just tell me straight if I am barking up the wrong tree here. Not interested in reinventing the wheel but before I do the work to figure out MAE, stops etc. I want to have some input. Not trying to duck slogging through the hard, tedious work needed to understand reality in these instruments but trying to figure out if others have been down this road and what they think.

Thanks in advance.

The 70-tick chart during oil pit trading hours is equivalent to the 1-min chart. I personally use a 5-min chart for my setups and a 1-min chart for precision entries. Trading strictly off a 1-min chart with no 5-min guidepost is beyond my expertise because that's not how I developed my personal trading plan.

Slippage is unpredictable, but if you place your stop orders quickly, you'll be earlier in line. Like if you want to trade the breakout of the last low in a strong trend because price isn't engaging in nice clean textbook pullbacks (trend is too strong), the best thing to do is as soon as the low prints in a strong trend and price begins pulling back, place the sell stop 1 tick below the low. I had a trade like that today and only got slipped 2 ticks. In the past, I've occasionally thrown on a stop order for a breakout play at the last second and got slipped between 8 and 20 ticks.

On average if you're nimble slippage is a tick or two, often none at all, even with multiple contracts. But pure breakouts (of high/low, or breaks out of tight consolidation) usually results in worse.

 

[ammo]

Quote from Visaria:

Interesting...cheers ammo

thats where i covered my short...some days you feel like a nut, some days you are

 

[Swan Noir]

Risk ... can I assume you meant GC , not KC?

Quote from riskaddict:

the ole' KC is a scalpers paradise. It moves big and clean!

 

[Visaria]

http://uk.finance.yahoo.com/news/9-oil-falls-economic-fears-201034484.html

 

[riskaddict]

Quote from Swan Noir:

Risk ... can I assume you
meant GC , not KC?

Nope, coffee is by far the easiest thing to scalp.

 

[Tonkadad]

Quote from ammo:

depends on the time frame ..9 mo

That is funny, the long term chart I was referring to was a 2 day chart. Maybe i need to expand my horizons.

 

[Tonkadad]

Quote from riskaddict:

Nope, coffee is by far the easiest thing to scalp.

tick = .05 = $18.75?

Would you mind posting a 1 min. chart.

 

[riskaddict]

Quote from Tonkadad:

tick = .05 = $18.75?

Would you mind posting a 1 min. chart.

If i was only paying attention at 8am

 

[Tonkadad]

Thanks for the chart.

It appears that the tick size is .01, is that correct? Also what is the value per tick, on the ICE website I thought the tick size was .05 with a value of $18.75 per tick.