Some observations on scalping Crude

Aren't CL pit traded only? What about options on CL, are they available through Interactive Brokers and if yes, what is the liquidity like compared to pit volume? Similarly, what is the CL futures's bid/ask spread like compared to pit traded ones?
 
I've been watching CL crude. Really like the day range, seem like there are a lot of good opportunities. The fact that it trades $10 ticks like the er is another plus. When people talk about 2:1 or 3:1 risk reward, it's actually possible with crude on a daily basis unlike the er or es. er/es, perhaps due to its efficiency, do not "mini-trend" well during the day. Many times, you need to take your profits quickly.

My current issue with crude is the difficulty in tracking the move. er/es, you can use pivot points, ema, rsi, macd, stochastics, trin, vix. These indicators don't seem to apply as well to crude. The indices also can be tracked in parallel ie russ being a leading indicator for the dow/es. When crude skips to 59 then back to 57, there doesn't seem to be any rhyme or reason.

Right now, I'm looking for the current trend and going with it since I think it's too dangerous to fade a move that could trend 50 ticks in a heartbeat.
 
NYMEX and CME agreed to host CL electronically on Globex last Nov/Dec. The liquidity is quite good which equates to tight spreads. IB is a top option shop, hard for me to believe they wouldn't have it. Electronic is the future. Pit volume has been shrinking versus the globex volume.

Quote from tyrant:

Aren't CL pit traded only? What about options on CL, are they available through Interactive Brokers and if yes, what is the liquidity like compared to pit volume? Similarly, what is the CL futures's bid/ask spread like compared to pit traded ones?
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Huh, not sure how you're coming up with only 50 cents. CL has been, rough estimate, good for about $2 move on most days. It equates to a 20 pt range on the er. Now if the er had that type of range on a daily basis, I would never leave.
Quote from Scalper007:

I am looking at cl at this site:

http://www.nymex.com/lsco_fut_cso.aspx

and the spread between the high and the low is only 50 cents... How is that supposed to equate to big moves? I don't get it...
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Maybe I'm looking at the wrong data. This is what I see when I click on cl on the nymex website:

Last 61.44
Change -0.35
Previous 61.44
Most recent settle 61.79
High 61.95
Open Interest 331101
Low 61.43
Volume n/a

Since volume says n/a, I am indeed looking at the wrong data.
 
Quote from Scalper007:

I am looking at cl at this site:

http://www.nymex.com/lsco_fut_cso.aspx

and the spread between the high and the low is only 50 cents... How is that supposed to equate to big moves? I don't get it...
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You're looking at the March 1 data, which is showing the overnight range up to now. What you need to look at is the previous session....just use your link then click on previous session. That shows the 24 hour range. I show the low today (2/28) during RTH at 60.30, high 62.05. That's a range of 1.75, or $1,750 per contract.

OldTrader
 
I'm also a technical cl trader with IB, and have found them to be quite good.

I do try and trade with the general market trend, if there is one.

I will be buying on dips for friday...at least...that is the plan :)
 
Thanks for the responses.


I find the following comment interesting.

Quote from lwlee:

My current issue with crude is the difficulty in tracking the move. er/es, you can use pivot points, ema, rsi, macd, stochastics, trin, vix. These indicators don't seem to apply as well to crude. The indices also can be tracked in parallel ie russ being a leading indicator for the dow/es. When crude skips to 59 then back to 57, there doesn't seem to be any rhyme or reason.

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CL may be a bit of a loose cannon and I imagine that the profile of the variety and numbers of participants and techniques would not make a perfect bell curve as it would with a mature market like ES. That is why I like it. As an experienced trader with trusted tools I have an edge. I could not say that in trading ES I would have any kind of an edge.

We traders are supposedly an adaptable bunch. The sooner we adapt to a wild market the sooner we benefit.

In addition I like that there is good action before the indices get busy and after hours. From about 4 am EST CL is tradeable and it gets real busy from about 6 am EST.

Thursday evening as I post this ER2 had a range of $150 since 6pm and CL had a range of $330.

Regards,

GC
 
IMHO
- eMini Light Sweet Crude is SCREAMING it wants to CHALLENGE 57.125 and if it blows that away then 50.525.

Sell, Market open (If 62.200 isn't Breached) - Stop 62.450
 
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