OR noodling on a rainy weekend

Most of us it seems are trading some version of an OR breakout. Some are trading only ES and some, like I am trading ES and CL.

CL has been a revelation so I went back and looked at a few random months in the past to see how it would fare compared to ES.

The rules I used are as follows. 1M OR. All in/All out.

1st ES target equals extension of OR range. If that was a win, done. If that was a loser, the next break was taken with a target of 2X OR range extension (gets between +/- 2-4 range). If 2nd trade failed, 3rd breakout was taken, again 2X target. OR > 2 points was passed on.

1st CL target was 5 ticks. If that was a win, done. If it failed, next trade was taken with target of 1/2 OR range (larger than 5 ticks). 3rd trade never came into play.

3 months worth of trades comes in with ES having 50 winners and 33 losers for a gross total of $1,035 per contract.
The same time frame for CL comes in with 48 wins and 4 losses for a gross total of $1,880 per contract.

The kicker is that for my account the margin required for CL is slightly more than 50% of the margin required for ES. So for every 1 ES that I can trade, I am able to trade 2 CL contracts. So for equal margin the totals are $3,760 for CL to $1,035 for ES.

Food for thought, enjoy today's football!

Hi Big Mike, can you please tell me the parameters of the size of the CL O/R to take the trade,,, ie:- greater or less than?? as in ES is less than 2 points ....
regards Brent.T

Great stuff big Mike...thanks!!

Over 20 ticks was precarious for CL, and those trades were passed.

A little more study on CL OR breakout has led to the revelation that RTH has a great propensity to "cover" the 1M OR for the European open.

More study will be needed but it looks like taking trades toward the Euro OR will lead to significantly larger targets.

Maybe over the weekend I'll get to it, after the Bears wax the Pack!

11/8/17

CL hit the high of Euro OR in 3 minutes for +.06.

More patient traders hit the low of Euro OR in 37 minutes for +.10

Hi Mike I,m trying to follow this ,, euro being the euro /usd ?? and trading the Cl O/R @9am ny time target is the high of the euro O/R ??? did I get that right or am I way off track here?

I,m obviously really off track here...lol......part of the problem being in different time zones for me for starters....my basic research is telling me that cl opens 9.30am ny time which compares to my time of 9.30 pm and euro opens 7.20am central time So with that.. I,m totally confused...........can you shed some light on this for me.. Thanks....Brent.T

Boom, CL right through the Euro OR for .12

I use 2:00 AM Central time as the Euro open. So OR is 2:00-2:01 Central time

thanks for that Mike,, So for today I have the euro o/r @ 1.16715 h & Low @1.16685 so a .30 range with open price @ 1.16710 So now I,m trying to figure out what you are looking at to take trades from there on the CL....can you please elaborate thanks.......regards Brent.T

The European open of trading CL

Range was 57.11 to 57.06 CL RTH open@ 8:00 AM central time was 57.24, so above the EURO OR. Looking to take shorts only to 57.11 took,
29 minutes but it got there. +.08

At 9:14 it "covered" the Euro open range for +.12

Originally posted by brent.t

thanks for that Mike,, So for today I have the euro o/r @ 1.16715 h & Low @1.16685 so a .30 range with open price @ 1.16710 So now I,m trying to figure out what you are looking at to take trades from there on the CL....can you please elaborate thanks.......regards Brent.T

That was for 2/14

2/15 was a loser twice