Part Three of What They Won’t Tell You and How We Daytrade Crude Oil Against the Machines
“And there you have it, the power of machine AI trading in crude oil futures.”
https://twitter.com/EPICtheAlgo/status/1255927696447737858
In part 2 of this series on day trading crude oil, we left you here (the chart below), price of oil had moved through the structured chart model and had taken out the one price target before the ultimate target at the top of the structure. At each leg in this recent oil rally from lows I’ve shown you in this series the chart model we are using on the one hour time frame (we use all time frames). I also provided screen shots of the oil trade alerts, oil trading room, charting, guidance and various other commentary we provide our clients.On April 30 at 12:01:49 (date stamp on chart below) my commentary was that crude oil had met the second to last or final price target in the structure and that tomorrow (Thursday) we could expect oil to continue rally in to the ultimate price target prediction at 1:00 PM.
Crude oil price target met on 1 hour time frame, should see our pull back now for final run tomorrow.
As this was happening I was tweeting about it live on my public facing personal Twitter feed, below is a link to the thread:
AI school in session
#OOTT $CL_F $USOIL $USO
AI school in session #OOTT $CL_F $USOIL $USO
— Melonopoly (@curtmelonopoly) April 30, 2020
its a massive game of go on various time-frames with entities competing with various amounts of liquidity all competing for dominant positioning, the dominant teams determine the time frame in play through liquidity, they’re in control,
its a massive game of go on various time-frames with entities competing with various amounts of liquidity all competing for dominant positioning, the dominant teams determine the time frame in play through liquidity, they're in control,
— Melonopoly (@curtmelonopoly) April 30, 2020
so the game is find the time-frame and use the model they’re using, but it’s all done with machines making those decisions and computer scientists constantly updating code, its a massive war game of techies competing for dominance, that’s oil trade in today’s world #OOTT $CL_F
its a massive game of go on various time-frames with entities competing with various amounts of liquidity all competing for dominant positioning, the dominant teams determine the time frame in play through liquidity, they're in control,
— Melonopoly (@curtmelonopoly) April 30, 2020
and now the climax
and now the climax
— Melonopoly (@curtmelonopoly) April 30, 2020
Said climax brings time cycle intraday in to completion, if retail wants it to move now they’ll have to go alone #oildaytrading #OOTT $CL_F $USO
Said climax brings time cycle intraday in to completion, if retail wants it to move now they'll have to go alone #oildaytrading #OOTT $CL_F $USO pic.twitter.com/1ycbYZmrSm
— Melonopoly (@curtmelonopoly) April 30, 2020
target met
target met
— Melonopoly (@curtmelonopoly) April 30, 2020
Retail left naked in the time cycle and have no idea why the air just came out #OOTT $CL_F $USO #machinetradingoil
Retail left naked in the time cycle and have no idea why the air just came out #OOTT $CL_F $USO #machinetradingoil pic.twitter.com/vFCUL4J0nQ
— Melonopoly (@curtmelonopoly) April 30, 2020
school done for the day, have a good one
peace
school done for the day, have a good one
peace
— Melonopoly (@curtmelonopoly) April 30, 2020
i know, i know, there are no crystal balls in the markets
none of that just happened
#OOTT $CL_F $USO
i know, i know, there are no crystal balls in the markets
none of that just happened#OOTT $CL_F $USO
— Melonopoly (@curtmelonopoly) April 30, 2020
And then in to the time cycle peak the next afternoon, this happened…
“And there you have it, the power of machine AI trading in crude oil futures.”
Price target hit right on time for the right price, perfectly in to oil settlement at 2:30 PM on Thursday.
NOW, it is important to note that the chart model was originally calling for the 1:00 PM one hour candle and not the 2:00 candle, but if you look at the chart below the time cycle peak (noted with vertical blue dashed line on chart) moved over to the 2:00 timing. This happens with Trading View charting, the timing slowly moves over a period of days.
So the hit was not only perfect to the timing and price but hit at exactly 2:30 which is half way exactly through the 2:00 one hour candle. It couldn’t have been a better alerted price target hit.
What made it even more exciting for us in the oil trading room was that price had started to come off strong as it neared the time cycle and I thought (as I know other traders did) ah okay there we go we’re not going to hit the price target, and then right before 2:30 the price of crude oil took off in grand style and hit the target – price rallied 300 points in about 30 minutes.
Machine programs were identified and the volatile rally ran up and didn’t stop until the price target was hit, right on time. It was a crazy day trading session in crude oil.
“AI’s just finished their task.”
AI's just finished their task pic.twitter.com/D0aV3dLdz3
— Melonopoly (@curtmelonopoly) April 30, 2020
The comment from one observer on my Twitter feed made me laugh:)
“That’s fucking incredible.”
https://twitter.com/vossomsauce/status/1255930112127766534
So we got a rally from 9.90s to 19.60s and it was not only strong but very structured and we called it days in advance.
How does this benefit a trader? Using time cycles and structured chart models help an oil trader (swing trader and day trader) significantly with strategy for bias of trade size, risk management, directional bias of price in trend and more.
Some options traders in our group really like this work. Swing traders like this for trimming profit at all the decisions along the way as the charts are marked for support and resistance areas of trade. How you trade it is up to you.
When we alert the set-up and our trade entries we do our best to provide our day traders and swing traders with guidance to directional bias, support and resistance areas of trade to watch and more. But ultimately it is a much different thing to run the technical analysis than it is to trade it, or even code software to trade the price of oil.
Trading isn’t easy, especially something like crude oil, but with the right critical thinking and best in class chart models to form a solid trade strategy it does help keep you on the winning side.
My goal is to build the best oil trading room and alerts service in the world for traders, it is a large task, but the hardest part of our mission is done, we can trade with the best machines in the world now. The rest should be easier.
Any questions please send me a note via email [email protected].
Thank you.
Curt
Part Two of this article here: “Excuse Me, While I Kiss The Sky”. Part 2 Insider’s Look at How We Daytrade Crude Oil (w/ real-time alert screen shots from oil trading room).
Part One of this article here: What They Won’t Tell You – How We DayTrade Crude Oil Against The AI’s in the Markets, A Sneak Peak. #OOTT $CL_F $USOIL $WTI
Further Learning:
If you would like to learn more, click here and visit our Crude Oil Trading Academy page for complimentary oil trading knowledge – posts from our top crude oil traders that includes learning systems, blog posts and videos.
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Article Topics; daytrading, crude oil, oil, strategies, trading room, alerts, price targets, swing trading