Algorithmic Trading Strategies for Crude Oil (CL) Day Trading, Trend and Swing Trading. Intra-Day, Daily, Weekly, Monthly Time-Frames.

This is a supplemental document for CL trade strategies for and as included in our algorithmic client oil reporting.

The various reporting included for our clients includes and is not limited to; live oil trade alerts (on Twitter, Discord, email and live in our Trading Room), conventional charting, algorithmic chart models, various trade signals, price targets, symmetry, time cycles and various other guidance.

We endeavor to assimilate the vast algorithmic data our computer scientists derive for our oil traders to action for a trader’s edge.

The algorithmic material is suitable for actionable mechanically executed trading and are also the models our coding team reference for our crude oil machine learning trade development.

You will find in the array of documentation and reporting we provide a well developed, time-tested proven rules based system for crude oil trading that is one of the best available.  Oil traders should use all the models together as a structured system of trade for it to work to your best advantage.

With each chart model (in various reporting) we may include “best-use” trade strategy notes and/or “rules-based trade indications” for your consideration. The oil trading room and study of the Discord oil chat room is your best resource for real-time learning.

For perspective, review historical reporting on our blog and the various videos we have published to the Compound Trading YouTube channel.

Much of the structured model discipline developed in our system is similar in concept as discussed in this video; Mathematician Who Cracked Wall Street.

Our “How to Trade Crude Oil” Recommendations.

Crude oil price moves within structured areas (ranges) of trade represented on charting on various time frames (different time cycles of trade) often in symmetrical price extensions or mirrored fractals, historical price support and resistance, channels and simple price ranges.

The structure oil price moves within (the range of price) can be one minute charting (and more recently some machine trade is as low as 15 second time-frame) timing through to monthly charting.

Time-frame set-ups / strategies included in reporting are charted as conventional chart set-ups and/ or algorithmic chart set-ups (structures).

Understanding and having each chart time-frame at your immediate access (both conventional and algorithmic) will increase the probability of profitable trading.

You will find in reviewing the raw recorded video feed or in attending the live oil trading room that in the morning a lead trader will often review on mic the various levels of support and resistance on various oil trade time-frames on the charting to establish the most probable areas of trade for the strategy of trade.

The lead trader will also check with all the chart time-frames prior to entering a day trade at various times through the day.

When multiple time-frames agree to support or resistance (especially symmetrical) areas on the charting (with trend) this becomes your highest probability area of trade execution, we have found this to be one of the best oil trading strategies.

Sizing trades appropriate to your trading account, probability of support or resistance (multiple oil chart time-frames in agreement) and time frame for each set-up is a positive strategy.

Using the correct chart time-frame specific to your trading strategy is critical. Generally, the lower (smaller) the time frame the less predictable the support and resistance areas (or structure) of the chart will be. However, the larger time-frames (monthly, weekly, daily) may also have significant “slippage” but the primary structure will often remain intact.

Generally, the idea is to enter your positions based on the structure for the specific time frame you are wanting to trade referencing the other time frame support and resistance or range within the trend. The basic method is to understand the range of trade and execute trade long bias when price is near support for the appropriate time frame / structure and the opposite is true for short trades.

Our staff use the thirty minute model structures (range within trends) most often for primary areas of support and resistance trading signals referencing all other time-frames in their trading strategy. More recently the 60 minute and 120 minute time-frames are being used by our staff as it provides a wider view of the current structure of oil trade (post COVID black swan machine code updates).

Trade positions should be significantly biased to the trending range of trade. 

Below are recent videos from webinars we recorded in our Oil Trading Room:

“How to Profit With EPIC v3 Crude Oil Machine Trades.”

“How to Use Our Oil Trading Services. Oil Trade Alerts, Oil Trading Room, Oil Reports, Trade Coaching”.

The recently released white paper(s) about EPIC v3 explains also its method of execution of trades and is a great supplemental piece of documentation for live human traders to reference for trading bias, see the report here;

EPIC V3.1.1 Crude Oil Machine Trade Software Update | June 4, 2020 White Paper #OOTT $CL_F $USO $USOIL

EPIC V3.1 Crude Oil Machine Trade Software Update Details | White Paper #OOTT $CL_F $USO $USOIL

White Paper: How EPIC v3 Crude Oil Machine Trading Outperforms Conventional Trading Methods

If you have questions about the models below please email us at [email protected] and if you are a client you can send your Whatsapp phone number to that email and connect direct to our lead trader for intra-day question(s).

Not all charts are updated every week and some concept or test charts are added or deleted on occasion.

Be sure to check the time-stamp of each chart in reporting as the preparation of charts and/or models can take days prior to publication and distribution of this report.

If you are a new client that would like to review historical reports that are still locked on the blog from public view please email the office with your request and we will send you recent report credentials for unlocking reports for review.

Please note, chart links that support the models and unlisted videos from live trade, for reporting set-ups and webinars are now distributed specific to each user or small group of users. If you are using more than one device to access these, to avoid disruption of service, please email us a simple / general description of those devices to assist in controlling dissemination.

EPIC Crude Oil Algorithm Model. 30 Minute Oil Chart Structure (see historical client reporting for the model).

The EPIC algorithm model chart is a proprietary structure that has been back tested sixty months on thirteen time-frames. The model represents the most probable areas of support and resistance in oil trade within this specific time-frame. During a black swan event adjust your trade bias to a larger 60 minute or 120 minute algorithmic model time-frame.

This (the EPIC 30 Minute Oil Algorithm Chart Model) is our most proven oil trading structure / strategy.

The levels noted on the EPIC model are to be used as important areas of consideration for support and resistance (trade signals) for your trading strategy when using conventional charting set-ups / structures and/or other algorithmic charting.

Resistance and support areas on the thirty minute oil trade structure chart are at each line on the algorithmic chart. The primary areas of support and resistance are;

  • Outer quadrant walls / also used as channel support and resistance (orange dotted diagonal lines), the half way point between each is often an executable buy or sell trigger in trade,
  • Mid channel line for uptrend and down trend (white dotted diagonal),
  • Mid quad horizontal (not marked but is at the mid point of the quad),
  • Fibonacci levels (various horizontal colored lines on model),
  • Historical areas of support and resistance (purple horizontal lines on model).
  • The intra-week swing trading range is from thick horizontal gray line to the next (commonly becomes a pivot area of trade). You will find on the larger time frame models of the one hour, two hour and four hour that these key horizontal swing range support and resistance levels are marked as green and gray alternating.
  • The important historical diagonal trend-lines (conventional trend lines) are represented on the chart as thick white lines.
  • Also of note are the price targets for Tuesday 4:30 PM (API), Wednesday 10:30 AM (EIA) and Friday 1:00 PM (Rig Count). The Tuesday and Wednesday targets hit significantly more often than the Friday target (red circles with red or green vertical dotted lines intersecting).
  • At times other indicators are added to the chart such as important trend lines “in play”, moving averages and more.

The video at this link explains How to Use EPIC Oil Algorithm: $USOIL, $WTI, $CL_F, $USO, #OIL, #Trading, #Algorithm, #OOTT as does this video Oil Trading Room – How to Use EPIC the Oil Algorithm Model Chart June 21 #OIL #OOTT and this Webinar 1: EPIC the Oil Algorithm.

When conventional crude oil charting coincides (or agrees) with the EPIC algorithmic model support and resistance this is then considered a significant buy or sell trigger (signal) for crude oil trade.

Be aware (at minimum) of the primary support and resistance areas on the larger time-frames (lower time frames are not as critical) – in this instance (when trading the 30 min time frame) the 1 hour, 2 hour, 4 hour, daily, weekly and monthly charting should be considered when sizing your trades.

Also, more recently we have been adding models for the one hour and two hour time-frames (post COVID black swan event), please be sure to review these models as they are sent out.

This document is sent out to clients for the purpose of “supplemental” to the regular reporting to keep the regular reporting as short as possible. Also, ultimately it is the intra-day or intra-week information provided to our clients that also becomes key for trade bias.

I will also update this document extensively in the near future with a number of live trade video clips to show examples of intra-day trade, swing trade and position trading strategies we are using (for study guide purposes).

Thank you.


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.

Welcome to NYMEX WTI Light Sweet Crude Oil Futures.

Subscribe to Oil Trading Platform:

Standalone Oil Algorithm Newsletter (Member Charting Reports sent out weekly at times in report form or updated on email regularly).

Real-Time Oil Trading Alerts (Private Twitter feed and Discord Private Server Chat Room).

Oil Trading Room Bundle (includes Weekly Newsletter, Trading Room, Charting and real-time Trading Alerts on Twitter and private Discord Chat Room Server).

Commercial / Institutional Multi User License (for professional trading groups).

One-on-One Trade Coaching (Via Skype or in person).

Article Topics; Crude Oil, Day Trading, Swing Trading, Algorithm, Algorithmic, Trading, Trend, Position, Intra Day, Machine Trading, Supplement Article




A Real-Life Simple to Reproduce, Consistent Example of a Winning Crude Oil Day Trading Strategy From Our Lead Trader.

How Algorithmic Trading Can Help You Win Consistently (from our trading room on Friday). Man and Machine.

Day trading crude oil futures is not easy… but it is at the same time. The most difficult for me is executing trades based on what I know is right – the most probable winning trade set-ups for buy/sell signals as provided by our algorithmic oil trading model.

This is why I always tell our clients to study the rule-set and use trade alerts only for a heads-up and to use your own trading plan based on your understanding, sizing, comfort area etc. Behind the alerts is a real trader too (at least as it applies to my alerts, our machine trading alerts are a different story going forward).

The buy/signals provided by our algorithm provide structured day trading that increases my win rate greatly – but only when I respect the rules of the model.

I have published a number of articles now detailing the basic rules of the model to assist traders with a better win rate. My personal win rate went from (at best) 60% to approximately 90% (it fluctuates between 80%-95% on an annual basis – there is an ebb and flow). All time stamped live trade alerts.

In our oil trading room last Friday I was triggering trades as was our machine trading technician – man vs. machine (again).

The bottom line: the machine (without effort) won (following the rule-set), and I won – that is until I got greedy.

Both the machine trading technician and I were triggering long side positions near the same time in to the Friday regular market open (my long entries were adds to the previous night futures trade I was already in).

The trade worked well and when the trade met its price target area of the algorithmic model structure (resistance) the machine trade trimmed and then closed on some pull-back and I closed completely.

But I started looking for a further break-out above the algorithmic model signal of resistance as provided by EPIC the Crude Oil Algorithm (after I already had a winning trade). This was the error.

But I started looking for a further break-out above the algorithmic model signal of resistance as provided by EPIC the Crude Oil Algorithm (after I already had a winning trade).

So yes, my day was affected negatively (not that bad because I recovered some by trading bounces during the intra-day reversal sell off), but not good because my trading day could have been very positive vs. negative / stressful on the day.

There is a low stress easier way – just follow the rules of the model. The algorithmic trading model provides a consistent, simple, highly profitable structure for day trading (and even swing trading) crude oil.

Below I explain what I did right and what I did wrong, how easy it is to trade crude oil using proven strategies (with EPIC Oil Algorithm) and how easy it is to get greedy – hopefully my real-life experience helps your trading.

#CrudeOil #AlgorithmicTrading #TradingStrategy FX: $USOIL $WTI $CL_F $USO 

The Trade Details (actual screen shots of the alert feed, charting and commentary).

Below is the initial alert (screen shot from our trade alert feed on Twitter) by our oil machine trading technician at 9:17 AM on Friday October 19, 2018. The technician alerted a trade signal long machine buy program in to the regular market open at 69.25 on the algorithmic charting.

Our algorithmic charting is produced on crude oil FX USOIL WTI and this can be used for trading oil futures CL, ETNs / ETFs such as United States Oil Fund (USO), SCO, UCO, UWTI, DWTI and more.

algorithmic, trading, buy, program, oil

Crude Oil Trade Alert (screen shot) – Machine Trade Buy program initiated in to open 69.25 917 AM – 19 Oct 2018.

At 9:20 PM October 18, 2018 in futures trade the night prior (Thursday night) I alerted to the feed a long side trade entry at 68.93 as a test trade for the break of upside resistance area. So at this point I was in at 68.93 long and the technician was in the trade at 69.25 the next morning.

Oil Trade Alert (Lead Trader) Screen Shot. Long test 68.93 tight, break res upside test 920 PM – 18 Oct 2018

Less than one minute later (after the technician alerted) I was alerting adds to my existing trade (we were obviously loading our trades and alerts at near the exact same time).

oil ,trade, alert, market open

Oil trade alert (screen shot) Adds in to open – lead trader (watch open, will close fast if it fails but it does look like it will squeeze possibly).

The Buy Signals Triggering a Long Oil Trade Alert:

On a conventional crude oil 1 minute chart for FX USOIL WTI, the long side trade entry alert signal sent out to members of our oil trading service was based on a number of signals that combined (in momentum and confirmed with the algorithm model) provide high probability to a winning day trade – the signals are as follows:

  1. Intra day trade in to regular market open breached the Fibonacci trend-line resistance (grey dotted line),
  2. Trade breached the trading box to the upside (red box on chart),
  3. The Squeeze Momentum Indicator turned green again,
  4. The MACD turned up again,
  5. The Stochastic RSI had turned back up after near bottom (the closer to bottom the better in most instances),
  6. Trade was above the 200 MA (moving average) having just retested its support (pink on chart),
  7. Trade was above VWAP (orange on chart),
  8. Trade was above the intra-day trend support line (yellow line on chart).
  9. Positive buy flow volume was increasing in to open (volume bars on chart with blue highlights),
  10. The momentum of trade was subsequently on the bullish side,
  11. The algorithmic model was also in agreement (shown below and to understand the model takes some study).
crude, oil, chart, trading, signals

On conventional USOIL WTI chart, trade entry based on Fib, trading box, SQZMOM, MACD, Stoch RSI, 200 MA, VWAP, vol, momentum.

On the crude oil algorithmic charting model the following reasons were in play to confirm the long trade:

  1. The upside price target area on the chart that had a time cycle concluding on Friday at 1:00 PM (see white arrow on chart) was most probable considering the fact that trade was above the mid trading quadrant horizontal support line (thick grey horizontal line). Which in this instance was also a primary support line for the wider time-frame for swing trading oil (which makes it a significant support area on the chart).
  2. In futures trade the night before, oil trade had broke to the upside of the mid quad resistance area (grey horizontal line as described above and shown on chart below).
  3. There was a hidden pivot (not shown on the algorithm charting but highlighted here for demonstration purposes in bright yellow – horizontal dotted yellow line on chart). The idea being that if trade momentum was turned up in to open that this hidden pivot was likely to be breached to the upside and would then become yet another support confirming the bias to the upside target on the model.

The algorithmic charting model price target described above is the “easy” trade signal I refer to in the title of this post. At any given time of trade intra-day we can provide the most probable price target for the coming time cycle conclusions. I won’t go in to detail here (that is a completely different article). You can read our other oil trading posts, become a member, watch our videos on how to use the oil algorithm, get some trade coaching or attend a boot camp for more details to this process.

The algorithmic charting model price target described above is the “easy” trade signal I refer to in the title of this post.

Another thought (off-topic a tad), consider the trading quadrant – there were four or five excellent long and short entry points on the model at the quad wall resistance and support areas. This week our machine trading technician is alerting to the EPIC Private Member Twitter Feed those trades (I will also continue as normal). 

AND if you look at my original long entry the night prior in futures trade, that trade signal is an even easier trade signal – price was breaching the mid pivot on the trading quad of the model (gray line) which is also the wide swing trading support and resistance area of the charting.

algorithmic, trading, crude, oil, alert. chart

On algorithmic oil charting trade was based on momentum in to pivot with most probable price target up.

I then provided our members with the trade strategy (guidance) with price targets at 69.70, 69.78 and 69.80 at 9:24 AM (right after the market opened). The price targets are where there are resistance areas of the algorithm chart provided above.

daytrade, oil, alert

Crude oil trading alert twitter feed screen shot – price targets for daytrade 69.70, 69.78, 69.80 in upside scenario.

At 9:35 AM I provided further trade strategy / guidance explaining that I was looking for a reversal in the recent trend of crude oil trade (I had distributed a 4 hour chart to our membership by email the night before that I reference in the alert).

oil, trade, alert, perspective

Perspective – reversal trade scenario, if it fails extreme caution to next level down 4 hour chart (yellow TL).

At 9:40 I publish the 4 hour oil chart with intra day trade and the two trend line support areas of the chart I was watching. Providing trade guidance that if the current support was lost in trade that we were likely turning down to the next support area on the chart in the 67’s.

oil, chart

If this area fails 67s are in play #crude #oil #tradealerts FX $USOIL $WTI $CL_F $USO.

Below is the 4 hour USOIL WTI chart provided to members that shows the general trend line support area of crude oil trade.

premarket, trading, plan, crude, oil

Crude oil lines on 4 hour chart FX $USOIL $WTI $CL_F $USO #Oil #OOTT.

At 9:42 AM Oct 19, 2018 (25 minutes after the trade alert long oil) the machine trading alert was posted to the Twitter feed with guidance to trim at 69.58 in trade and then possibly add to the long position at 69.58 (obviously if the indicators provided a buy signal).

machine, trading, crude oil, alert, buy

Machine Oil Trade Alert – Trims initiate 69.58 with adds on intra day pull backs 942 AM – 19 Oct 2018.

The reason for the trade alert issued to members to trim long positions on oil algorithm was that trade intra-day was nearing the Fibonacci trend-line resistance area on chart model (trading quadrant wall). Trade was also nearing the peak of the algorithm trading range intra-day (the apex of the model.) These are the same reasons I exited my long trade as provided below in the next section.

Notice on the chart below trade had hit 69.75’s and the trade alert (as above) price targets for the trade strategy for the day in crude oil based on the algorithmic model were published as price targets for day trade 69.70, 69.78, 69.80 in upside scenario.”

resistance, oil, trade, algorithm

Reason for trim trade alert on oil algorithm – Fibonacci trendline resistance area on chart model.

At 9:45 AM I closed my trade at 69.57. Not a bad trade considering my entries at long crude oil at 68.93 with adds in 69.25’s. A 45 tick trade average in oil is a decent day trade (450.00 on 1 contract or in this instance about 4x that).

oil, trade, alert

Oil trade alert – Closed 69.57 will re-renter on pull back in price or squeeze.

At 9:58 the technician trade closed on a pull back (the other half of the trade) at 69.43 – a 26 tick average. A decent trade profit, especially considering it lasted just over 30 minutes and it was low stress. It took me 12 hours to close a 45 tick trade and the tech 35 minutes to close a 26 tick trade – obviously the technician’s use of time was more efficient.

It gets worse for me though, because I thought I’d try and get a break upside primary resistance on the algorithmic oil charting. The technician followed a simple rule-set (wait for trade to prove out and then enter) and didn’t follow me in to my trade (he can’t because he is obligated to a specific rule-set for triggering trades).

oil, machine, trading, alert

Oil machine trading alert – Stop adjusted to 69.43 USOIL WTI CL_F.

The additional trade I entered I won’t detail here with screen shots etc, but I will say that it turned against me almost immediately and I should have exited the trade immediately.

As oil sold off some intra-day I held my position and added on a bounce and sold on the bounce and chiseled my way to a small loss – but a loss nonetheless. It was a waste of time.

The two primary mistakes I made in my second trade:

  1. I entered a long trade at the resistance of the algorithmic trading model. That is not a correct way to position a trade. I closed the previous trade properly but did not start the new trade properly.
  2. When intra day trade went against my position I should have closed for a small loss, but I did not.

There are other details and reasons for the trading decisions that were made, however, for simplicity and to keep this instructional post to a digestible size I will leave it here.

To increase your crude oil trading skill-set we have a number of tools you can use.

  • There is a link below to our oil trading academy page that has a number of links to articles on our site,.
  • You can book private online trade coaching via Skype.
  • Join our live trading room.
  • Sign on to our oil trading alert feed subscription, (alerts are on a private member Twitter feed).
  • Sign on to our weekly algorithm reporting that provides the algorithm model, conventional charting, guidance for the week etc.
  • Attend a trading boot camp (in person or online).
  • Request via email the videos of our most recent trading boot camp or the master class series videos (both sets are approximately 20 hours each). They are available only by email request at this time by emailing [email protected]. Soon they will be posted to our shop on website.



Any questions let me know!

Further Reading On Our Website That Will Help You Trade Oil Successfully:

Find more posts like this one on our Oil Trading Academy Page – there you will find links to numerous oil trade strategy reports.

Subscribe to Our Oil Trading Platform:

Standalone Oil Algorithm Newsletter (member charting sent out weekly).

Real-Time Oil Trading Alerts (Private Twitter feed).

Oil Trading Room / Algorithm Newsletter / Alert Bundle (includes weekly newsletter, trading room, charting and real-time trading alerts on Twitter).

Commercial / Institutional Multi User License (for professional trading groups).

One-on-One Trade Coaching (Via Skype or in person).

Click here to find all information and pricing on Oil Newsletter, Trading Chat Room, Oil Alerts and more.

Curtis Melonopoly (@curtmelonopoly) is rated Top 250 Stock exchanges authority, covering also Mathematical finance and Economy of the United States


Article Topics: Crude Oil, Algorithmic, Trading, Strategy, Day trading,Trading Room, Alerts, Signals, USOIL, WTI, CL_F, USO