Some observations on scalping Crude
- Thread starter gurucandidate
- Start date
The last few days have been pretty wild. I actually have been trading more ER2 because of the tension in that market is greater at the moment.
I start trading CL around 7:30 EST and in most days I am well ahead by the time open outcry starts, usually pulling of 5-6 3-4 point scalp trades but this week during the regular session I kept giving it back and I became very conservative. It sure saved me.
I was thinking: why is it that I do uniformly well in pre market? Finally I realized why. One of the tools that I use is OBV and as the regular session approaches the order flow is getting bigger and I guess OBV is showing which way it is swelling.
I have been using IB's TWS for order entry and TS charts (I only use my TS account to make swing trades) but neither of them have the right combination of features. For example over time I realized that the best time scale for my style of trading is the 15 second chart. In TWS it only covers 5 minutes, not enough and TS does not offer second increment charts at all. I started looking at different front end systems like Buttontrader and Ninjatrader but settled on Sierracharts with TWS. Sierra can be set to any second increment. Now I have all three TWS, TS and Sierra open while I trade.
As far as keeping an eye on the spreads, I gave up watching the spreads for scalping purposes.
Regards,
GC
I start trading CL around 7:30 EST and in most days I am well ahead by the time open outcry starts, usually pulling of 5-6 3-4 point scalp trades but this week during the regular session I kept giving it back and I became very conservative. It sure saved me.
I was thinking: why is it that I do uniformly well in pre market? Finally I realized why. One of the tools that I use is OBV and as the regular session approaches the order flow is getting bigger and I guess OBV is showing which way it is swelling.
I have been using IB's TWS for order entry and TS charts (I only use my TS account to make swing trades) but neither of them have the right combination of features. For example over time I realized that the best time scale for my style of trading is the 15 second chart. In TWS it only covers 5 minutes, not enough and TS does not offer second increment charts at all. I started looking at different front end systems like Buttontrader and Ninjatrader but settled on Sierracharts with TWS. Sierra can be set to any second increment. Now I have all three TWS, TS and Sierra open while I trade.
As far as keeping an eye on the spreads, I gave up watching the spreads for scalping purposes.
Regards,
GC
Interesting.
It doesn't surprise me that you do better pre-market. I think it has to do with the number of ticks you scalp. During RTH, I think it would be nearly impossible to control your risk on that tight of parameter. I think the market RTH can move 10 ticks for next to no reason at all.
Pre-market I would think the market is somewhat quieter and tamer.
Personally, I don't see how you can effectively trade for 3-4 ticks. Sounds like you're doing it though.
OldTrader
OldTrader,
I am fading moves that seem to be exhausted.
After a good move you see price vacillating and you would be surprised how many 5-6 point gyrations happen in a period of a minute or two.
Actually the wilder the market is the easier it is to pick the extremes. The hardest is a quiet market that is creeping up or down.
Sometimes I scale into it but then I have to be very careful to take it back if the fluctuations tighten. Lately I have been training myself to trade with the move.
There is a background of technical info in front of me on different time scales: volatiity bands, oscillaltors, obv, etc. which helps to pick these spots.
GC
I am fading moves that seem to be exhausted.
After a good move you see price vacillating and you would be surprised how many 5-6 point gyrations happen in a period of a minute or two.
Actually the wilder the market is the easier it is to pick the extremes. The hardest is a quiet market that is creeping up or down.
Sometimes I scale into it but then I have to be very careful to take it back if the fluctuations tighten. Lately I have been training myself to trade with the move.
There is a background of technical info in front of me on different time scales: volatiity bands, oscillaltors, obv, etc. which helps to pick these spots.
GC
I should have noted above that I am trading ones ands twos, but it adds up. Only when the market is very busy could one do it with size, and then one has to deal with with the management of partial fills.
I am swing trading and scale trading some other futures in a separate account from scalping.
PS: perhaps I should be called the OlderTrader since I am in my 60's.
GC
I am swing trading and scale trading some other futures in a separate account from scalping.
PS: perhaps I should be called the OlderTrader since I am in my 60's.
GC
good day ......
it seems like oil found support around 64.00 so I'm going long @ 65.36 w/ a stop loss at 63.20. The trading range is getting tighter, meaning a potential up side break (or down) is near. Should be very interesting. Enjoy the rest of your long weekend and good trading
www.liofmc.blogspot.com
it seems like oil found support around 64.00 so I'm going long @ 65.36 w/ a stop loss at 63.20. The trading range is getting tighter, meaning a potential up side break (or down) is near. Should be very interesting. Enjoy the rest of your long weekend and good trading
www.liofmc.blogspot.com
Quote from lolo24ca:
good day ......
it seems like oil found support around 64.00 so I'm going long @ 65.36 w/ a stop loss at 63.20. The trading range is getting tighter, meaning a potential up side break (or down) is near. Should be very interesting. Enjoy the rest of your long weekend and good trading
www.liofmc.blogspot.com
Will you buy your position pre-market? Or will it only be during RTH?
Good luck with it.
OldTrader
An interesting view of the CL market at an other board
http://www.traders-talk.com/mb2/index.php?showtopic=70648
Wait for the chart to load.
GC
http://www.traders-talk.com/mb2/index.php?showtopic=70648
Wait for the chart to load.
GC