Ok… where to start. I have been trading the XAUUSD over the last couple of months because of the large pip (percentage) moves it makes when compared with the normal currency crosses and have posted many exercises on how to profit by just using SW Analytics ie: USD strength against Gold.
I have been interested in trading Oil for quite a while now and have been trying to develop a strategy that is as risk averse as physically possible in the FX Market. Oil with my Broker (IC Markets Aust.) allows a margin as little as ~AUD$30 for a 200 Barrel Lot? (1:400) on both Oil crosses, Brent (XBRUSD) and West Texas Crude (XTIUSD)…against the USD.
I had been more successful when following Gold futures as opposed to just watching the XAUUSD. So I started to follow the WTI Futures for the past few weeks…
Yesterday presented a trade possibility… WTI Futures was about to cross the WMA 200 (for the first time since late Oct.) on the 1 Hour Chart. Now it was either going up and through (40%) or bounce off and continue south (60%). _(Investing.com Futures (Bottom) Charts below)_FREE
So I implemented Rram2’s pending order Steam Roller Strategy and placed numerous sell limit orders at approx. 50 pip intervals below the WMA200 based on the 1 hour chart but placed in the 5 min Chart.
If price broke out and went above the WMA200, no positions opened, no problem… I was wrong.
If price broke below and continued its downward trend on the longer TF’s I will make a dollar or two…
Risk assessment… Margin on each opening position will be ~$30.00, easily manageable for multiple open positions on a $5k account…, Price breaks out and goes over the WMA200 No trades, no risk…
Price breaks below the 200 and retraces back above the 200 I’m out… simple.
So right on the New York Open Bell… Oil price tumbles, don’t ever tell me these markets are not manipulated …ever… The resulting chart displays how I trade my core live accounts… not the $10 to $1000 over 6 weeks, not the 25% in a month… yes… this is an exceptional situation which returned big for very little risk…but hay… make it while the sun is shining…
All trades are displayed in the Chart and the trading statement below. Panel is to show the lot size, margin and dollar value per pip… for those that believe I make this stuff up…
Note: I was trading the XAUUSD (and a couple of other pairs) at the same time so you will see results displayed in the statement over the 12 or so hours and yes there is ~$700 draw down on 3 XAUUSD Sell positions which I will attempt to wash out with some screen time later this week.
No rocket science… just a simple WMA200… A simple and effective grid style strategy care of Rrrm2 and my MA Coloured Slope strategy which I must have shown on BP at least 5 times over the last 12 months…