CL Redux

Hi folks, My experience with trading CL has been limited. If community can provide some guidance, it will be helpful.

I like to try different indicators and see how their performance look like in backtesting. I understand that following any one indicator can't yield to profitable strategy. However, if some indicator has a little bit of alpha, then it can be used in conjunction with other ideas to develop something more interesting.

So, In your experience, which one indicator works best on CL, if you do have to choose one? Thanks.
 
Quote from gmst:

So, In your experience, which one indicator works best on CL, if you do have to choose one? Thanks.
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The only indicator I use is a 20EMA on both the 5min and 1min charts. If the 5min 20EMA is rising, I look to go long on pullback toward the 1min 20EMA; if the 5min is falling, I look to short pb to the 1min. If it flattens, I sit on my hands until the more powerful team emerges.
 
Thanks for your comments Visaria and Nodoji. I was hoping to get more responses. But I think you two are very experienced so its good to hear from you two guys.
 
A rarely discussed indicator is the parabolic stop in Reverse also known as the PSAR.

this indicator will help you see how price in CL moves in waves.

I also like the Macd histogram for measuring momentum and change of momentum.

Of course CL sometimes chops which leads to whipsaws or missed reversals. CL is very good at convincing traders to sell when they should buy and vice versa.
 
Quote from riskaddict:

As usual I took profits way to soon And only added one put up here an apr 90 at 1.40 but I'm proceeding slowly as 95 looks possible for tomorrow morning. If we get a upward breach of whatever consolidation takes place for the next couple of hours I sell back the puts and not try to scalp with the outright as that only leads to getting chopped up.
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Just bought another at 1.18.
 
Quote from gmst:

Hi folks, My experience with trading CL has been limited. If community can provide some guidance, it will be helpful.

I like to try different indicators and see how their performance look like in backtesting. I understand that following any one indicator can't yield to profitable strategy. However, if some indicator has a little bit of alpha, then it can be used in conjunction with other ideas to develop something more interesting.

So, In your experience, which one indicator works best on CL, if you do have to choose one? Thanks.
More...

the best hint for CL you can get is OHLC in several periods.
Don't let my lack of postings # fools you.
Ohh 99% chance you will ignore this ;)
 
Quote from roreilly:

CL is very good at convincing traders to sell when they should buy and vice versa.
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For this very reason, I'd recommend that any CL newbie come up with rules for trading this contract because it can spin your head around without a well-researched trading plan (unless you have massive capital and trade tiny size, in which case you can just trade like emg over at Volente's).

ES Price Action:

http://www.youtube.com/watch?v=vdbSikEtjDQ


CL Price Action:

http://www.youtube.com/watch?v=Hpdd_dC8hzc


:cool:
 
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