10/08/2008

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.

3 comments:

Jules said...

I totally embrace you, Solfest :-)

Welcome aboard!

Anonymous said...

Hi solfest,
where can your "exceptional Irish trader" friend be found these days as I see that his room is no longer available at tradingrooms

Solfest said...

Trading Rooms has shut down, not sure if they are coming back or not.

You will have to post your email address here and I can send you details.

The Irish Wonder has a new room on a site called Mirc.

http://mirc.com/