that CL punch to 105.20 seems ALGOs work to trap bulls to next LEG down to 104.20 if SPY holds this -0.5% DOWN line for next two hours .. let us see
CL Redux
- Thread starter schizo
- Start date
yup good observation , if we go by UP leg 104 near BARS shown in that chart , the down leg punch needs at one more day to punch thru 104 which seems inline with current CL price action .
it seems ALGOs finished the bull trap job, LONG 104.16
Gasoline RBOB futtures are positive for the day even with this Crude Sell off
Gasoline RBOB futtures are positive for the day even with this Crude Sell off
out 104 .75
long 104.47
That price was just a few ticks shy of a near term down trend line on the hourly chart. I imagine algos are programmed to buy until that level is neared, then take their cyber foot off the gas and see what happens. Must be insane to be one of the really big players having to work these fine edges with such large positions. I wonder how often they tweak their programs trying to outsmart each other...
NoDoji good to see you around here after long time .
I myself is in programming line of work ( Business applications Programming , not ALGOs) . In the programming world the way things work is as follows ( If I extend my Business application knowledge to ALGOs )
They will have multiple ALGO based systems for different Market environments , say for OIL Markets , the parameters to the system may be:
- Equity Markets Bullish
- Equity Markets Bearish
- Equity Markets Range Bound
- Strong Dollar/Weak Dollar
- OIL Contango environment
- OIL Backwardation environment
I guess big money mangers will choose set of systems for given time period which are designed with above FUNDAMENTAL based DATA , and lots of " AL BROOKS style Bar analysis Real-Time analysis of Market Profile Data" also goes into these ALGOs .
In my personal opinion OIL Markets ALGOs are still have Human INPUT (which one to Keep , bi-weekly basis?? ) compared to Equity ALGOs , where ALGOs needs to handle hundreds of STOCKS to search for opportunities .
Coming back to your question , how often they change. My hunch is it is like human employee , when employee is NOT doing well , he gets fired. In the case of ALGOs I guess at any given time there will be SET of ALGOs working , the one which are performing BAD will be sent on 'Leave of Absence' and a new set of ALGOs will be added to the pool . Mean while programmers try to fix the ALGOs or make a modified New one out of it.
I myself is in programming line of work ( Business applications Programming , not ALGOs) . In the programming world the way things work is as follows ( If I extend my Business application knowledge to ALGOs )
They will have multiple ALGO based systems for different Market environments , say for OIL Markets , the parameters to the system may be:
- Equity Markets Bullish
- Equity Markets Bearish
- Equity Markets Range Bound
- Strong Dollar/Weak Dollar
- OIL Contango environment
- OIL Backwardation environment
I guess big money mangers will choose set of systems for given time period which are designed with above FUNDAMENTAL based DATA , and lots of " AL BROOKS style Bar analysis Real-Time analysis of Market Profile Data" also goes into these ALGOs .
In my personal opinion OIL Markets ALGOs are still have Human INPUT (which one to Keep , bi-weekly basis?? ) compared to Equity ALGOs , where ALGOs needs to handle hundreds of STOCKS to search for opportunities .
Coming back to your question , how often they change. My hunch is it is like human employee , when employee is NOT doing well , he gets fired. In the case of ALGOs I guess at any given time there will be SET of ALGOs working , the one which are performing BAD will be sent on 'Leave of Absence' and a new set of ALGOs will be added to the pool . Mean while programmers try to fix the ALGOs or make a modified New one out of it.
very good aritlce for any body interested in 'OIL Fundamental Analysis'
http://www.cmegroup.com/education/market-commentary/energy/2013/07/pre-open-crude_10352.html
In the EIA "This Week in Petroleum" report Crude oil inventories, which had been above their five-year range all but one week since March 2012, fell by a record 27 million barrels over the past three weeks and are back within the five-year range.
- Despite the record draw over the past three weeks, average 2013 inventories through July 12 remain
- 6 percent above the same period last year and
- 11 percent above the five-year average.
Robust total U.S. inventories have been largely the result of high inventories in the Midwest (PADD 2) which, despite recent declines, remains 22 percent above the 5-year average for the week ending July 12.
Inventories declined for three reasons:
(1) an increase in U.S. refinery runs;
(2) a decrease in crude oil imports; and
(3) an increase in backwardation (a reduction in price for future months) on the West Texas Intermediate (WTI) futures price curve that has encouraged reducing inventories rather than buying crude at current market prices.
http://www.cmegroup.com/education/market-commentary/energy/2013/07/pre-open-crude_10352.html
In the EIA "This Week in Petroleum" report Crude oil inventories, which had been above their five-year range all but one week since March 2012, fell by a record 27 million barrels over the past three weeks and are back within the five-year range.
- Despite the record draw over the past three weeks, average 2013 inventories through July 12 remain
- 6 percent above the same period last year and
- 11 percent above the five-year average.
Robust total U.S. inventories have been largely the result of high inventories in the Midwest (PADD 2) which, despite recent declines, remains 22 percent above the 5-year average for the week ending July 12.
Inventories declined for three reasons:
(1) an increase in U.S. refinery runs;
(2) a decrease in crude oil imports; and
(3) an increase in backwardation (a reduction in price for future months) on the West Texas Intermediate (WTI) futures price curve that has encouraged reducing inventories rather than buying crude at current market prices.