Trading Crude Oil Steps Out

I feel a little guilty. The blog is called trading crude oil and today I traded the DOW Mini, the lowly YM, the beginners contract, the slow boring DOW Mini.

Oh the humanity.

My trading plan, the dusty part that is, states that I am following 2 contracts, CL and the ER2. The plan states that I trade the one with the highest daily 5 period ATR. Since the ER2 never came close to the CL I just forgot about it. Then it got ICEd.

So with the market turmoil and the urging of an "exceptional Irish trader" I have been looking at the YM. Low and behold the market is so volatile it's 5 day ATR is higher than crude oils. On a tick basis that is, on a dollar basis the CL is still larger. But as we know we don't trade dollars, we trade ticks.

So, not sure if I have to have a rename the blog contest yet or not.

This market action is just a tad out of the ordinary so I won't be doing anything rash.

Today was all on sim and there are way too many trades to post. I traded a 8 tick renko bar chart, used a 9 tick stop, moved to BE + 1 at 10 ticks, trailed the stop at 21 ticks, and had a 100 tick target. Exit was on the trailing stop or target.

Had 52 trades. LOL. That is not a misprint, that's insane. That is not any where near normal YM action. I also need to confirm a minute bar chart for trend and only trade in that direction, which I didn't really do today.

19 winners, 18 losers, and 15 BE + 1s.

Winning ticks 692 / losing ticks 183 = RR 3.78

A couple of charts.

8 Tick DOW Mini (YM) Renko Bar Charts



I hope you, my loyal readers, can forgive me.