This week I walk you through a Crude Oil trade I took back in October.
I explain to you why I shorted Crude Oil, how I scaled in my positions, and finally how I exited it.
My 1 to 45 Crude Oil Risk Reward Trade:
I hope you have enjoyed my weekly market analysis! As always, comments are welcomed and encouraged. Cheers!
Hi Rayner very good trade.I have a question, when you open your 1st position your SL was 2 ATR, but what you did when you open your 2nd position, do you move your SL to new position 2 ATR or you just left the 1st SL to the original position.
I just want to know how you are moving your SL from the 1st trade to last trade.
I left my 1st trade at breakeven and 2nd trade at it’s original stop loss.
When i noticed the daily chart respecting the 20EMA, i trail all based on the daily chart.
Hope that helps!
Hi Rayner! Great video!
I would like to understand your entries better. Assuming for a market u see that price is constantly respecting 20 EMA but occasionally it will breach through and respect 50 EMA. If u notice that the price is approaching 20 EMA again, do u enter or wait for it to test 50 EMA?
When trading break outs, do u set pending orders or do u watch if price is breaching the support/resistance then enter your trade manually? I find there is high risk of break outs turning into fake outs.
P.S: From this video i see that u apply a certain amount of discretion in your trades to be flexible. Truly an eye opener! 🙂
I tend to look at 20 & 50 as a zone, not a specific level. Sometimes I tend to be a cheapskate and want to queue at the 50EMA, but risk missing the move. Thus I do trade breakouts as well to make sure i get into a move.
For trading breakouts, I simply queue a few pips below the low. I don’t wait for close or any sort of confirmation. Yes there are a lot of fakeouts, and to me it is simply the cost of doing business.
Some traders wait for a close below a key level, but there’s no right or wrong here if you ask me.
Thank you for your feedback and I hope you enjoyed it! Cheers.
Hi Rayner, love your video.
Mind me to ask were there any losing attempts (if yes how many R?)when you were scaling in/building up all these positions for this particular trend?
Thanks glad you liked it!
Yes there are losing trades while scaling into my positions. But i don’t think the loss is greater than 5R.
hi rayner, admire you conviction in your trades. does that mean you are effectively out of all your crude oil trade now that there seems to be a trend reversal?
I’m effectively out of my crude oil trades. However i’m not bullish yet. I’m ore neutral right now.
Very nice trend!!
I wish you could explain me, how you calculate your “R” in all the positions together, because in every trade your entries was on a different price..
I simply check what is the net dollar gain from all positions and divide it by the nominal value of 1R.
That will give me the number of R on the trade.
Do you mean that you divide it in your risk in the 1st position?
If no, I wish you could give me please an whole example about it, and also I want to understand how you loss 30R in this trade.
God bless you!
I only scale in my trades when I’m in the money, and my earlier trades can be locked in at breakeven.
This is to make sure I don’t lose more than 1 R on any given position, after scaling in my trades.
My first position is simply 1R, which is 1% of my account size.
It’s so smart way to increase your net dollar gain without to endanger more than 1R in any situation and in any amount of position. You really make me wiser every new day!! 🙂 🙂 🙂
You’re welcome Shlomi, glad to be of help!
What a great hold! 🙂
May I ask how long in total were you riding on this trend?
Thanks for reaching out.
I believe I held this trade for about 3 months.
Hope to hear more from you in the near future 🙂
What strategy do you suggest for Crude oil day trader (time frame, indicator etc). ?
I don’t trade intraday