Part I of Our Crude Oil Trading Strategies Article for this Week of Trade (UNLOCKED).

Crude oil was trading in an uptrend channel on a sixty minute chart time frame since October 3 2019 until January 7, 2020.

Part II of this oil trading strategy article click here (Premium).

The sell-off is now over 1400 points from high 65.00 dollar range in early January to 51.25 on FX USOIL WTI at time of writing.

The 60 minute oil chart below shows the channel trend lines and sell-off.

https://www.tradingview.com/chart/USOIL/81k9BE4e-The-60-minute-oil-chart-below-shows-the-channel-trendlines-and-s/

60 minute, crude oil, chart

The 60 minute oil chart below shows the channel trendlines and sell-off.

The Set-Up.

At some point oil will bounce, how far it bounces depends on a number of technical and fundamental factors that we will look at in detail in Part II of this article (Premium).

The primary basic set-up as I see it includes an over-shoot to the downside at this point considering historical price extensions for crude oil trade (technically speaking) and obviously the Corona virus scare coming out of China has given oil traders reason to take considerable risk off here.

But it will bounce.

We will be looking for a snap-back trade at minimum in the range of 400 ticks at this point, but this range of snap back could be significantly more if oil continues to sell off this week.

On the swing trade side (consideration) I wouldn’t start a swing until you see a considerable trending channel form on lower time – frames. The time frame you choose depends on your trading style, risk, size management and time-frame. Here again, in Part II of this post we will look at those levels in more detail.

We will also look at daytrading levels to watch closely.

Whichever way you look at it a significant opportunity for a long snap-back trade is setting up here and could occur this week.

The monthly crude oil chart that I shared publicly earlier this evening below shows a probable bounce area in the region of 49.50s on FX USOIL WTI.  

Crude oil monthly chart suggests 49.50s possible for bounce. $CL_F $USO $UWT $DWT $SCO $UCO #OOTT

https://www.tradingview.com/chart/USOIL/E5rtdLT7-Crude-oil-monthly-chart-suggests-49-50s-possible-for-bounce/

Crude, oil, trading, plan, chart

Crude oil monthly chart suggests 49.50s possible, areas of support and resistance noted FX USOIL WTI $CL_F $USO #OOTT

If you have an interest in how our software will be trading and alerting and recent developments with its structure of trading protocols an article was released earlier today you can find at this link here:

EPIC v3 Crude Oil Code Updates: Drawdown & Short Selling Protocols $CL_F $USO #machinetrading

Part II of this Article (Premium) is available here:

Protected: Crude Oil Trading Plan Part II (PREMIUM): Support levels for a possible bounce. How we will trade this move. $CL_F $USO $UWT $DWT $SCO $UCO #OOTT

If you would like to receive more free trading set-up articles like this one, subscribe to our free newsletter service here:

Join our mailing list for free trading set-ups, market news, special events and promo codes.

Any questions please send me a note via email compoundtradingofficial@gmail.com.

Thank you.

Curt

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, Trading, Strategies, FX, USOIL, WTI, $CL_F, $USO, $UWT, $DWT, $SCO, $UCO, #OOTT

 


RE: EPIC v3 Crude Oil Trading Software Updates

Good afternoon traders,

It is Sunday Feb 2, 2020 and futures markets will be opening soon.

In advance of a new week I am communicating our most recent EPIC v3 code updates to keep everyone abreast of changes. I have had a number of email and DM discussions and will encapsulate the question and answer of those discussions below.

Through-out the previous trading week I did communicate much of this content below in summary form via email, in private oil trade member server on Discord and even Twitter. If you prefer the reader’s digest version see this link: https://twitter.com/curtmelonopoly/status/1223755725572378624

The EPIC v3 version software is consistently on the win side to near 100% win-rate, easily above 90% consistently. This goal was the primary challenge for us in development, without this accomplishment everything else is moot – it simply would not matter. Coding the draw-down protocol to a level of comfort is much much less work.

In short, we have coded with success an extremely high win percentage rate and that took extensive work and includes over 8700 instructions of code. This is our concrete footing.

At issue however, is when the software does lose a trade – specifically the drawdown amount.

Also at issue, and not as problematic is the win rate on the short selling side. Per previous communications we may or may not ever find success in this code and it doesn’t really affect the ROI expectations because our code protocol for drawdown on short side trades is extremely throttled so there is near zero potential loss in short trade sequences.

Specific to the drawdown percentage during a loss, the most recent white paper outlines the protocol for percentage of loss allowable here: 

White Paper Updated Dec 29, 2019: How EPIC v3 Crude Oil Machine Trading Outperforms Conventional Trading

So then the question becomes, if we know we can win easily more than 90% then why risk significant drawdown amounts when a trade does not work?

The answer or the balance of thinking is in the potential annual returns, we do not know the answer to the question – if we throttle the software to lower risk how that will affect annual returns.

We know that we can run returns 80% – 150% per year leaving the drawdown protocol as it is, but the problem is that the drawdowns are not just very uncomfortable, with smaller accounts they are more significant in terms of percentage and put at risk the account itself.

So this update is specifically motivated by and to accounts in the 10 contract size category or less, although updates to the code are in effect for all size of accounts.

So as I communicated to our clients last week we have initially throttled the software drawdown protocol to 50% of the previous protocol as outlined in the most recent white paper update (link above).

If this code update (50% of previous) is not performing as we expect we will again throttle to another 50%. I do not think this will be necessary and I am sure the current update is more than acceptable.

What does this mean in real world practical applications?

The expectations of returns are likely to be less than previously expected but this is not known until we see how the near term trade sequences perform. There is the far off chance the annual returns will actually be better than prior.

The code is throttled which manifests as only the highest probability of trade set ups to trigger a sequence, however, when a sequence starts the frequency of trade may be considerably more because the downside / stops are significantly tighter than the previous code.

In practical terms, this means that the software will not likely hold more than a 3/10 size trade for any amount of time at all unless the win side trade is extremely structured and trending up and it also means that any amount of draw-down will be limited to one quad on EPIC 30 minute model (with some slippage allowed pending order flow).

The range of trade is much smaller (limited to one quad on EPIC model or channel of the model), the size is much smaller in a sequence if there is pressure at all and the frequency of trade once it starts firing will be much higher.  

In summary, you will see the software fire predominantly per the EPIC 30 minute model weighted against all other models and order flow within a much tighter size management protocol.

It is difficult to summarize over 8700 instructions but that is my best attempt at a summary.

I encourage you to read the most recent white paper update (link above) and review the new update when released.

For those asking what I expect forward, you can expect a very tight trading protocol with higher frequency and very limited downside at any given time.

When the software gets in to a sequence that is well structured and trending you can expect the previous ROI trajectory to be returned very quickly.

Do I think that will be this week? I am not totally convinced but I wouldn’t doubt it. Structure was returning to trade on Friday and when enough structure is returned to market wide trade it won’t take the software long (as we have experienced in other drawdowns since v3 inception).

In terms of changing the throttle going forward, I wouldn’t expect us to loosen the code throttle any time soon. I know in past on a number of occasions we have discussed this and this has been a challenge for us (the balance of risk vs return). HOWEVER, I can say with utmost certainty that we are at a time in our development where risk cannot be tolerated anytime soon. 

I will be sure to communicate clearly IN ADVANCE if this is going to change in future.

To be frank we have been in development for some time and we have the winning card that we can rely on – the long side win rate that is extremely high. We were simply trying to push our development to potentially garner the largest returns possible. But reality is reality and at a certain point in time you simply have to accept where you have come and let the return rate be what it is.

Watch how the software performs over the next month and we can re-look at it at a later time. Send me your thoughts after a month or so. A month of trade executions will explain much better than I can here.

For now lets enjoy some consistent returns without the stress. 2020 will be stressful enough in the markets, we don’t need to add more.

An updated oil trade report is due out for our clients later this evening also by the way. 

Any questions please send me a note via email compoundtradingofficial@gmail.com.

Thank you.

Curt

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).


Intensive Crude Oil Trade Training Webinar. Also Available on Video Only If You Cannot Attend.

This may be one of the last opportunities the public will have to learn about our crude oil trading success, how we developed software to outperform our best oil traders and how you can use our in depth knowledge to your advantage. 

Spend Two Sessions With Me Jan 5 & 12, 2020 12 PM – 4 PM Eastern Time – I will be hosting a crude oil trading webinar. I will cover everything I know about crude oil trade in a one-time 8 hour (over two sessions) special webinar event.

The webinar will cover my strategies for conventional and algorithmic oil trade and charting, intra-day trading, short term swing trading, longer term swing trading, trade sizing, time cycles, key set-ups and much more.

I will explain in detail how I maintain a win rate of better than 90% in crude oil trade (live recorded in our oil trading room and live alerted to our members).

This Special Webinar Series will also cover our EPIC v3 Machine Trade success, an insiders look in to how we developed the software and why it is on track to achieve 80% – 140% annual return and a win rate of more than 90%. See recent EPIC v3 white paper here:

White Paper Updated Dec 29, 2019: How EPIC v3 Crude Oil Machine Trading Outperforms Conventional Trading. “85%+- Returns: Real-World Trade Performance and Why ROI Is Expected to Grow”. #OOTT $CL_F $USO FX USOIL WTI

Limited online attendance of 25 persons to allow me to take questions and converse as needed to be sure we cover the trading concepts in detail.

Current member clients of Compound Trading Group Oil Trade Alerts / Bundle or Live Trading Room cost: 99.00. Email office compoundtradingofficial@gmail.com direct and Jen will send you a discounted invoice.

To Register for the Crude Oil Trading Webinar Click Here.

The 8 hour special webinar event cost for non members: 799.00.

Early bird registrants – before midnight Jan 3 receive 50% off (399.00). Use Promo Code: early

Current oil trading room clients 99.00 (email office for direct invoice).

Attendees will also receive a free video copy of the webinar via email after we’re done so that you can study the in depth knowledge long in to the future. The video will also be available online at our store (for non attendees).

Attendees (including video only purchasers) will also receive 2 week free access to our Live Oil Trading Room (value 500.00).

For complimentary trade articles, click this link: Crude Oil Trading Academy : Learn to Trade Oil.

For more information about our trading room, alert, coaching services menu click this link: TRADING SERVICES PRICE TABLES

To Register for the Crude Oil Trading Webinar Click Here

Can’t Attend Online? Order the video only here Crude Oil Trading Webinar Video (799.00) and receive two weeks of free access to our oil trading room (Value 500.00).

Questions? Email compoundtradingofficial@gmail.com and Jen or I will answer as needed.

Look forward to seeing you there and a prosperous 2020 oil trading year!

Subscribe (Reports, Alerts, Trading Room):

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

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

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

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

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

Trade Coaching:

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

For intensive training in crude oil trade attend one of our trading boot camps (available for in person attendees and online).

Trading Futures Contracts:

CME – Crude Oil Futures Contract Specs.

CME – E-mini Crude Oil Futures Contract Specs.

Article Topics; crude, oil, trading, webinar, teaching, coaching, strategies, how to


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