Common futures trading strategies
The Futures Trader's Destination for Over 25 Years. When it comes to Commodities Trading, Crude Oil futures is one of my preferred futures markets as 'fear and greed' are heightened in this market. Crude Oil is one of MY favorite futures market for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures. Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation. Next is the contract size. Crude Oil futures are based on 1, barrels. That means that a move from Another factor is trading hours. At the time I am sharing my thoughts with you, April 8thcrude oil futures trade on the CME Globex platform and trade from 5 PM CDT until common next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don't recommend day trading this market 23 hours Trading in crude oil futures is pretty good to trade in my opinion. Averaging aboutcontracts per day. One futures pointer to touch on is the Energy Information Administration EIA report that normally comes out Wednesday at 9: I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this futures. What makes Crude Oil futures attractive for me in terms of day trading is the fact that fear and greed are intensified in this market. That creates a ground for spikes, sell offs and many times a volatile, two sided type of trading range. I have also seen trading moves happen in crude oil futures VERY FAST. Strategies that to markets like mini SP futures or T Bonds futures and you will see higher volatility on average. Maybe its the lack of patience I have noticed about myself at times that attracts me to this market but I like the fact that my day trades in crude oil don't last long I either get stopped out or hit my profit target, normally within minutes. Sometimes faster than that. This may not be a fit for everyone and there are so many ways to day trade futures subject for a whole book Being on the west coast, I like the times of 6 Am to 10 AM Pacific Time for day-trading this market. I think it usually provides for enough moves, these are the times with the most active volume. If you are an overseas trader, perhaps European time zone, you may want to look at the North Sea Crude Oil which trades on ICE with nice volume and MUCH action during the European session. I then look for what we call the counter trend move. So what do I do? I set up my crude oil futures chart with Crude oil Support and Resistance levels. I like to use an indicator similar to RSI and normally I will use either volume charts or range bar charts. I like volume charts better for the short term day-trading because I feel that when the market moves fast you will get a better visual picture using volume charts that waiting for a 3 minutes chart to complete for example. Also if the market is "dead", low volume and not much movement, you may get false signals on the time charts just because time has passed and the bars complete. I like to set up my future trading platform futures automated target and profit to be sent to the market as soon I enter my trade. We have more than a few FREE trading platforms that will accomplish that. Below is an example of a good day trading set up from Strategies 8th I used 18 ticks range bar chart: What I was looking for is an exhaustion in selling, let the "red bars" change to green. Common was also looking for the REL study to go below 15 and then cross back above When that happened I received my signal in the form of the green triangle. That for me triggered a buy right around In my settings I like to have 21 ticks profit target and 27 ticks stops loss. In this example I was able to take my profit target. Very similar set up to the one above, except this time the counter move did not happen and I got stopped out pretty close to the low of the day -: Past results are not necessarily indicative of future results. The risk of loss futures futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. If strategies like a free trial of the charting software and the studies used in the examples I shared, please visit: To summarize I hope I was able to share with you: Crude Oil as another possible market to look at for day-trading. Briefly touch on the use of counter trend moves in day trading crude oil futures. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. Any statement of facts common contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading! You should be prepared to lose all of the funds that you use for day trading. And more importantly, you should not fund day trading activities with funds required to meet your living expenses or change your standard of living. You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses. Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and you will pay commission on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. Day trading on margin may result in losses beyond your initial investment. Trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the markets. The past performance of any trading system or methodology is not necessarily indicative of future results. You and your broker will work together to achieve your trading goals. We develop long term relationships with trading clients so that we can grow and improve together. Please click on one of our platforms below to learn more about them, start a free demo, or open an account. All Common Reserved Futures Brokers About Cannon Risk Disclosure Privacy Statement Contact CFTC NFA Sitemap. Cannon Trading Company, Inc. Day Trading Crude Oil Futures When it strategies to Commodities Trading, Crude Oil futures is one of my preferred futures markets as 'fear and greed' are heightened in this market. TransAct AT E-Futures Trade Navigator. Back To Man vs Market Day Trading Commodities with Crude Oil Futures Crude Oil Futures volatility offers a "different market personality" than stock index futures. Here is some of the things you need to know about day trading crude oil futures: I set up my crude oil futures chart with Crude oil Support and Resistance levels I like to use an indicator similar to RSI and normally I will use either volume charts or range bar charts. If you like this Newsletter, Please share! Cannon Trading Reviews What do our customers say about us: Services Why Cannon Trading?
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