Crude Oil Performance


Weekly Newsletter #1044 Day Trading Commodities with Crude Oil Futures & Trading Levels for Week Ahead 3.22.2021

March 19th, 2021 Filed under Crude Oil, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1044

Dear Traders,

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Trading 102: 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:
By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP
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 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.
Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.
One last pointer to touch on is the API (American Petroleum Institute) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). 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. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand) and the market will move based on the numbers versus what was expected. 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 time..Fill out the form below to read the full article.
Weekly chart of Crude Oil futures for your review below. Click here for Larger image.
Crude Oil Weekly Chart
Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

 

Futures Trading Levels

3-22-2021

 

Weekly Levels

Reports, First Notice (FN), Last trading (LT) Days for the Week:

https://mrci.com

Date Reports/Expiration Notice Dates

MRCI Reports

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein 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


Futures Trading Levels, Crude Oil Performance

April 1st, 2011 Filed under Crude Oil, Futures Trading | Comment (0)

Cannon Trading / E-Futures.com

Below you will see two different tables for Crude Oil since we are now executing the system for more than a few clients, using two different trading engines with two different clearing house. Since the system is only executed “semi Automatically” you will see some differences in the results. This is simply part of REAL LIVE, REAL TIME TRADING versus hypothetical trading. In hypothetical trading and/or back testing, computers assume perfect conditions, getting filled on all limit orders etc.
in REAL LIVE trading, there are times when you limit gets hit but you don’t get filled, there is room for human or machine errors etc.

NET RESULTS AFTER COMMISSIONS BELOW:

Group A:
Commodity Futures trading levels Oil March 31th, 2011
Group B:
Commodity Futures trading levels Oil March 31th, 2011

* Past performance is not indicative of future results.

About NZL Crude Oil Day-Trading system:

The computerized trading system, “NZL-Crude Oil Day Trading” is based on a mathematical algorithm that tries to identify exhaustion in either selling or buying along with a possible short term trend reversal. This system trades the Crude Oil future contract only. The system uses volume charts to determine entry and exit ( rather than the more familiar time charts). The algorithm takes into consideration volume, momentum and speed of market in an attempt to recognize situation where “fear and greed” are at extremes. It is followed by measuring possible targets for profits along with stops. This specific system takes the approach that statistically the percent of winning trades is larger than losing trades but in return it uses larger stops than targets.

We recommend $7500 of risk capital per 1 contract traded

Futures and options trading is risky and not suitable for everyone. There is a substantial risk of loss in trading commodity futures, options and off-exchange foreign currency products.
Past performance is not indicative of future results. Read the rest of this entry »

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