Ok, NQ and APPL that is easy, but what about APPL and CL? I thought I noticed something between the two, watched, made notes, took a few paper trades, and for the past month have taking real trades. These are short term day trades and I am using APPL as a lead for some of my CL trades, or confirmations. I know I am nuts, but so far this is working. While I probably shouldn't have posted it, I am interested in a theory of why these might be coupled in some fashion. For the trades themselves, I am sticking with what I see as the trend based on my longer term time frame, and then watch price action on APPL. As long as CL is moving, I guess another subjective opinion, I will look to trade CL based on APPL. I wish I were a genius, but I don't see why this is working. Maybe simply I am watching price action more closely, or is there a possible connection? Be interested to read any thoughts. I also am one to close down an edge as soon as I see it not working. This one only has just over a month under the belt, so obviously not anywhere near valid, other than I am averaging 3 trades a day with it. That includes days with no trades. A fair amount of trades, but a very short lifetime.
crude, APPL, NQ I have imagined a corellation
- Thread starter tango29
- Start date
Well, it did come back to BE to plus 6 ticks, but for me with a wider stop I would have still only had 1 off at 5 ticks, and the other 2 would now have been hit for a loss. Yet, APPL continued to fail. Well that shows how it doesn't always work, but I actually thought as hard as APPL was dropping a reentry would have been justified. I didn't and that's trading.
Having traded AAPL and CL extensively, and possessing a knack for finding similarities in seemingly disparate things, my first thought was "apples are a light, sweet snack and CL is light and sweet". But you must always keep a tight reign on risk when trading CL because it's also quite crude.