The Report Below Shows You Exactly How We Day Trade Crude Oil and Win Well Over 90% of Our Trades With EPIC V3.

The thing we have learned using the EPIC v3 Oil Trading Strategy (rule-set for daytrading crude oil) is that it is highly stable, predictable, maintains a high win rate and provides a low stress environment to achieve an excellent return on equity.

Below are the details from today’s trading session, hopefully this will help you improve your trading skill-set.

Included in this Article;

  • Live Oil Trading Room raw video footage (I alert our day trades by voice over microphone),
  • Technical Analysis (Charts) we used to establish the reversal area of trade in oil (most probable low of day price),
  • Oil Trade Alert private feed (Twitter) and Discord private oil trade chat room where we share alerts, guidance, charting and more.

The EPIC v3 system for day-trading crude oil by far provides one of the best oil day-trading system results you will find. We have subscribed to many oil trading rooms and alert services out there (most) and have researched the returns the best funds are obtaining. EPIC’s v3 protocol is by far (as of today’s date) maintaining the best oil day-trading win rate percentage and best ROI we can find.

If you study the system and implement it as intended you will win. 

You have to study the strategies, really know the methods, practice executing the trades and preferably be present in the oil trading room receiving guidance from us as you are trading or at minimum receiving the trade alerts via Discord and/or Twitter private member feed.

Private Member Discord Oil Trade Chat Server (used for alerts, charting, guidance, etc).

Below are screen capture images from the oil chat room server showing you what charts were shared with alert comments. The live oil trading room voice broadcast guidance provides our day-traders with significantly more strategy detail.

First the day-trades as they occurred today:

The trades you see below were executed because we knew that we were near the low of day and that a price reversal was very probable.

You will find that once we know the most probable area of trade on the day that is the low of day then we have a system of trading long in sequence on the 1 minute chart time frame using the other chart models as a guide also.

The five minute charting, 15 minute, 30 minute and 60 minute chart time-frames are all used.

Again, the video from the trading room footage will provide the most detail but the trade alerts, guidance and and charting revealed below will help you along some also.

The key is to not hold too much that you can’t correct your positioning through additional entries and / or surrendering a small loss if required to then enter another long position at the next support (when oil is selling off intra-day).

It is vital that you do not hold a long trade of any significant size in an intra-day sell-off, this will cause significant draw-downs to your account. You can always exit and take another trade if you protect your down-side.

Another key is holding enough in the reversal so that you can slowly release size as the reversal trade is occurring (something we are working on with the EPIC v3 software). 

Curt MelonopolyToday at 7:50 AM
Preferred buys 53.76 trading 54.04 intra day.
Long 1/10 53.75 tight stops
Sell 1/10 53.93 hold 0

Curt MelonopolyToday at 9:50 AM
Long 1/10 53.18 and 1/10 53.35 from earlier test caution tight stops on structured range accumulation trade

oil trading room, alerts, crude oil

Preferred buy area guidance (per chart model supports) and first crude oil daytrade alerts in oil trading room to start the day.

Sold 1/10 53.30 holds 1/10

Curt MelonopolyToday at 10:02 AM
Long 1/10 53.08 add holds 2
Sold 1/10 53.21 holds 1/10

daytrades, crude oil, trading room

Follow-up daytrades in oil trading room as intra-day continues after main sell-off early in the day.

Curt MelonopolyToday at 10:13 AM
Software has a 52.92 add 1/10 long but won’t hold if this range breaks down. Holds 2/10 long.

Curt MelonopolyToday at 10:44 AM
Close 1/10 53.23 holds 1

Curt MelonopolyToday at 10:53 AM
Decent structure here

low of day, oil trading, alerts

More day trade alerted within price range on charting as low of day in oil price is being traded.

Close 53.42 hold 0/10 nice win

oil trades, closed, wins

Screen capture shows last oil trade alert for closed trades for successful wins on the day.

Exactly How We Established The Most Probable Low of Day Oil Price for The Reversal Trade To Win 6 out of 6 Day-trades Explained Below.

The technical analysis (charting) you see in the screen shots from the live trading room are oil trading models that are part of our system. Because crude oil is now widely traded by machines the models are highly predictable and structured, there is a system (rule-set) for planning your trade strategy.

In addition to the chart models (conventional and algorithmic) we also use our proprietary order flow software system (IDENT) which is simply a software code that identifies patterns in order flow much like we do as traders in charting.

Curt MelonopolyToday at 11:12 AM

Channel support machine line area on EPIC 30 Minute Algorithmic Model

10:30 time cycle inflection low on 5 minute model and quad wall support

charts, support, low of day, technical analysis

Lead trader explaining by chart example the strategy used to establish the low of day price range for the oil day trades executed in trading room.

Channel support hit on 30 minute model

oil, technical analysis, trading room, charts

Further guidance from lead trader in oil trading room sharing technical analysis to determine price reversal in crude oil.

How The Price Targets Are Established on the One Minute Oil Trading Time-Frame For Long Trades.

Once you have nailed the bottom area of intra-day trade (LOD) with your long trade positioning, the next challenge in daytrading crude oil is determining your price targets for trimming long positions and/or closing your positions all together.

One method we use (and our software is coded to) is symmetry as it relates to structured symmetry on the various algorithmic models on various time-frames. Below (and in more detail in the oil trading room video) I show our daytraders how to use the one minute oil chart time-frame symmetry to determine areas for price target upside extension for long trades.

Curt MelonopolyToday at 11:33 AM
software closed that sequence on 1 min symmetry (see arrow)

Curt MelonopolyToday at 12:02 PM
Video explains the reversal price target extensions based on 1 minute symmetry

price targets, oil trade, 1 minute time frame

Lead trader explains price target extensions (technical analysis) on one minute oil chart for determing trims or closing positions.

Lead Trader Forward Oil Trade Guidance in Trading Room. Technical Analysis Suggests Further Downside Price Pressure Possible on Charting.

After the win it is important to know where you are going next, the trading strategy continues with forward looking support and resistance. Below is some of my technical analysis specific to the daily, weekly and monthly charting time frames.

Daily implies 51.45 low before decent bounce at TL

Weekly channel support 46.21 so lots of caution warranted

Monthly 47.00 area is support, again lots of caution trading 53.19

technical analysis, trading room, oil, daytrading

Lead trader explains with technical analysis further downside price pressure possible on charting and to use caution.

Miscellaneous other lead trader technical analysis in oil trading room and status of oil machine trading software development and alerts.

Curt MelonopolyToday at 1:14 PM
We’re watching 1:30 time cycle for possible mid intra-day time cycle inflection (possible high of day), trading 53.61 and we have possible HOD around 53.80 – .90 Time cycle on 5 min model runs 12:00 – 3:00 EST

Curt MelonopolyToday at 2:15 PM
Short 53.92 1/10 tight stops
Covered 53.87 1/10 still in HF mode, may re short it

Curt MelonopolyToday at 2:32 PM
Nice move through the quad on the daily reversal, slowly teaching the software to gain more of these moves, its a slow process one tweak at a time

developing a low risk trade sequence to gain accumulated size at the intra-day bottoms has been the priority, that was tricky enough, but slowly one step at a time we’ll get the full range coded, software up well today just on the bottom reversal trades so we’re happy, but the range will be a game changer
the larger the account the easier the sequence becomes to capture the whole move also

oil trading room, technical guidance

Miscellaneous other lead trader technical analysis in oil trading room and status of oil machine trading software development and alerts.

Screen image of private member private oil trading alert feed with trades as alerted through the day.

Below are the time stamped trade alerts from our private member oil trading alert feed and screen shots of the feed.

EPIC Alerts
@OilAlerts_CT
·
10h
Close 53.42 hold 0/10 nice win

EPIC Alerts
@OilAlerts_CT
·
10h
Curt MelonopolyToday at 10:44 AM
Close 1/10 53.23 holds 1

EPIC Alerts
@OilAlerts_CT
·
10h
Curt MelonopolyToday at 10:13 AM
Software has a 52.92 add 1/10 long but won’t hold if this range breaks down. Holds 2/10 long.

EPIC Alerts
@OilAlerts_CT
·
11h
Sold 1/10 53.21 holds 1/10

EPIC Alerts
@OilAlerts_CT
·
11h
Curt MelonopolyToday at 10:02 AM
Long 1/10 53.08 add holds 2

EPIC Alerts
@OilAlerts_CT
·
11h
Sold 1/10 53.30 holds 1/10

EPIC Alerts
@OilAlerts_CT
·
11h
Curt MelonopolyToday at 9:50 AM
Long 1/10 53.18 and 1/10 53.35 from earlier test caution tight stops on structured range accumulation trade

EPIC Alerts
@OilAlerts_CT
·
13h
Sell 1/10 53.93 hold 0

EPIC Alerts
@OilAlerts_CT
·
13h
Long 1/10 53.75 tight stops

EPIC Alerts
@OilAlerts_CT
·
13h
Curt MelonopolyToday at 7:50 AM
Preferred buys 53.76 trading 54.04 intra day.

oil trading alerts, private feed image

Screen image of private member private oil trading alert feed with trades as alerted through the day.

crude oil, daytrading alerts

Second screen image of crude oil trade alerts from private member service feed on Twitter.

Live Oil Trading Room Video.

Please note: The video below is a raw feed only of the oil trading room for the whole day-trading session (we run the live video feed from approximately 7:00am to 5:00pm EST). To listen to comments by the lead trader that contain specifics to his/her oil trade strategy / thinking as he/she and/or the software are trading and sending out alerts, look at the time stamp on the oil trade alert, chart, trading room screen capture image etc in this or any other report and correlate that to the video and go to that part of the video.

Oil Trading Profit and Loss.

For September 3, 2019 Profit & Loss Daily +$796 YTD +$13,764 Projected $86,619 or 87% Per Annum. v3 Oil Machine Trade 100k Sample Account (v4 period excluded) #OOTT $CL_F $USOIL $WTI $USO #machinetrading #oiltradealerts

oil daytrading, profit loss

Sept 3 Profit & Loss Daily +$796 YTD +$13,764 Projected $86,619 or 87% Per Annum v3 Oil Machine Trade #OOTT $CL_F $USOIL $WTI $USO #machinetrading #oiltradealerts

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

If you are struggling with your trading and need some trade coaching go to our website and register for a minimum 3 hours.

And if you’re really serious about learning how to trade crude oil to achieve our consistent v3 win rate and returns, review this particular oil trading room video from today.

Refer to the technical analysis charting and alerts time stamps and cross-reference the timing with the video time stamp and listen to the guidance in the oil trading room. Specifically the analysis of how we established the low range on the day is important. If a daytrader knows with confidence that intra-day trade is near a bottom then he/she can start to execute long trades in a systematic sequence to build size to garner better and better return on the day.

Email me as needed compoundtradingofficial@gmail.com.

Best and Peace,

Curt

Other Reading:

NYMEX WTI Light Sweet Crude Oil futures (ticker symbol CL), the world’s most liquid and actively traded crude oil contract, is the most efficient way to trade today’s global oil markets. https://www.cmegroup.com/trading/why-futures/welcome-to-nymex-wti-light-sweet-crude-oil-futures.html

Further Learning:

Learning to Trade Crude Oil is Like No Other. At this link you will find select articles from our oil traders real life day-to-day experience in our oil trading room. Crude Oil Trading Academy : Learn to Trade Oil

Subscribe to Oil Trading Platform:

Oil Trading Newsletter (Member algorithmic and conventional charting).

Oil Trading Alerts (Private Twitter feed and Discord server).

Oil Trading Room (Bundle: newsletters, trading room, charting and real-time trading alerts).

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

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

Company News:

Oil Machine Trade Software Development Update – v4 vs v3.

SOVORON™ Selects Compound Trading Group Machine Learning Data | Media Release

Free Mailing List(s):

Join Email List for Free Trade Charting Trade Set-ups, Deals, Podcasts and Public Webinars.

Public Chat:

Visit our Free Public Chat Room on Discord.

Follow:

Article Topics; crude oil, trading, strategy, alerts, trading room, technical analysis, daytrading, machine trading, $CL_F, $USOIL, $WTI, $USO, CL


7:49 AM EST Friday Crude Oil Started Sharp Intra-Day Sell-Off Dropping 200 Points in 40 minutes. We Went Long Live in Oil Trading Room and Alerting Buys in To Sell-Off and Nailed the Low Price and High Price of Day.

In the article below (one of the most important we have written) we detail the oil day trading strategy, trade positions (mapped on a chart) we executed short and long, screen capture images of oil trade alerts feed, technical charts, strategy comments, and live oil trading room raw video.

The Strategy Set-Up.

Thursday night going in to Friday morning (in CL futures trade) we alerted members by email and oil trade chat room (Discord server) there was a high probability of a significant sell-off coming in the over-night futures trading session (in to regular US market open). It was a channel resistance and symmetry set-up.

Oil did plunge in to the early morning on USA-China Trade War Escalation;

Oil plunged on trade-war escalation https://finance.yahoo.com/news/oil-plunges-trade-war-escalation-190000557.html?.tsrc=rss.

This set-up strategy we had been alerting to our members for some time as the trading channel resistance on the 30 minute chart time-frame was being challenged by oil bulls.

The key point is that there was also a significant algorithmic chart model symmetrical set-up developing, hence the alerts and trade guidance in the oil trade room (broadcast by voice).

You can see in the chart below the large red arrow and the green lighter arrows pointing down to a support area on the 30 minute chart. The red arrow is the area on the chart model to watch for the possible short selling set-up (as alerted) and the green arrows are the possible trajectory of the short trade.

The symmetry our models identified targeted this area of the chart model and time.

If you review the live oil trading room raw footage you will hear about the short set-up and strategy (which I know is cumbersome because we haven’t had time to splice short time frame snippets for you yet). But if you’re serious about wanting to become an expert oil trader the time is well invested.

Below is one alert to our members (screen shot capture) from the oil trading room. Our software did fire but this set-up is still being tweaked in the code (it was only a small win), but the subsequent long side oil futures buys were exceptional in that we nailed the low of day, each low of day and high of day thereafter.

Thursday night in to Friday (in CL futures trade) alerted members oil trade chat room high probability significant sell-off in over-night futures trade.

oil trading room, alert, oil trade, futures, selloff

Thursday night in to Friday (in CL futures trade) alerted members oil trade chat room high probability significant sell-off in over-night futures trade

As mentioned, we executed a short position prior to the sell-off (see trade locations below) but closed the position shortly before the 200 point tumble in oil price (the v3 EPIC software IDENT program had also alerted us to the order-flow turning down).

The code in our software is slowly being tweaked to move with the sharp intra-day crude oil sell-offs, it won’t be long and we will be hitting most sell-offs (for those that are unaware we now nail near all low of day reversals so we are tweaking the code for the other side of the trade, the sell-offs).

In the article below we highlight how we hit the low of day trade during the sell-off, how we hit the low in each bounce thereafter and how we closed our final oil long position at the high of day.

Our most recent article to this deals with the opposite scenario, selling in to resistance during an intra-day crude oil rally, read it here.

Before reading this article, please read the introductory article (for context) to this series here: How Oil Day Traders Can Learn to Trade Better Using Success & Failure of Our Trading Development Team – Part 1.

The articles in this series are emailed direct to our mailing list – click here to register.

Recent Trading Profit/Loss Results v3 EPIC Oil Machine Trade For 100K Sample Account:

For August 23, 2019 Profit & Loss Daily +$862 YTD+$11,463 Projected $89,020 or 89% Per Annum. v3 Oil Machine Trade 100k Sample Account (v4 period excluded) #OOTT $CL_F $USOIL $WTI $USO #machinetrading #oiltradealerts

The Power of Compounding Returns With a Systematic Compound Trading Process.

Crude Oil Trading Compound Return Projection Based on Current Results 100K Sample Acct #OOTT $CL_F $USOIL $WTI $USO #OilTradeAlerts #MachineLearning

Friday Oil Trading Room Session.

Please note:

  • When we alert 1/10 that means (for example) on an account of 100,000.00 that would normally execute a trade size of maximum 10 contracts, 1/10 size then represents 1 contract. We use a 100k account for our sample set for simplicity.
  • Trades and the strategy therein are alerted to a live trade broadcast room by voice (by a leader trader) and published as time allows to an oil trading alert feed on Twitter and in a Discord private member server.

The Trade Strategy Set-Up – Buying Crude Oil in to the Intra-day Sell-Off.

As mentioned above, the real key to this oil trade strategy story (the set-up and trades on the day) wasn’t the short side but how we managed to nail the bottom on a vicious sell-off, then nail each subsequent bottom and high of day while buying oil in to the sell-off plunge. 

Key take-away rules for trading long in to the sell-off:

  • Know the technical support on all chart time-frames (conventional and algorithmic).
  • Know which support areas are most probable areas for an intra-day reversal by way of historical back-tested data.
  • When order flow and price action reverse (bulls are buying and shorts are covering during the sell-off) is a key indicator that the low-of-day in oil trade may be in place.
  • When systematic market wide machine liquidity starts progressive buy programs, this is the low of day near 100% of the time (IDENT program). This is by far our best intra-day crude oil trading signal (proprietary and in development).
  • Manage trade sizing and sequence – releasing size of trade, adds, closing position etc.
  • Manage stops properly and know when to hold some or most of your trade size. 

Below is a screen image capture of some oil chat room guidance alerts as the sell-off progressed in premarket and then the buying started at support (see other screen images below).

Curt MelonopolyLast Friday at 8:04 AM
Price target hit on that previous alert, we didn’t hold through the whole range as it was later than predicted, JeremyToday at 5:03 AM
Sell 55.37 1/10 on order flow protocol, 1st price target 54.80 6:30 AM. Will advise.

Example of algorithmic modeling (30 min doodle), symmetry alert at red arrow from earlier, follow green arrows down to bottom of channel.
nice move

chart model, oil, trading room, guidance

Example of algorithmic modeling (30 min), symmetry alert red arrow from earlier, green arrows down bottom channel.

What are the Probabilities of Trading The Low of Day, Each Low at Each Bounce and Closing High of Day?

Machine learning (as it applies to trading) is not like human learning and execution in that once the software begins to master a set-up it will rarely lose that similar set-up in future and it will increasingly extract more profit each time.

If you don’t want to use machine learning to enhance your trading (engaging a firm like our partners at Sovoron) then perhaps you can learn from the machine software (via alerts or oil trading room) to enhance your own oil day trading strategy.

Some of our clients do both – they have machine learning automation and mechanical human executed day trading in their over-all strategy. 

Either way, below is a summary time-line with screen image shots of how it was done.

Below is a chart showing the oil trades for the day that were alerted to the feeds and broadcast live in the oil trading room.

Location (plotted on 1 minute chart) of EPIC v3 crude oil trade alerts. Green arrows on the chart are long entries and red are selling executions of trade #OOTT $CL_F $WTI $USOIL $USO #machinelearning #oiltradealerts

day trades, crude oil, alerts, trading room

Location of EPIC v3 crude oil trade alerts today #OOTT $CL_F $WTI $USOIL $USO #machinelearning #oiltradealerts

Oil Trade Alerts Feed Screen Capture Images for Friday Daytrading Sequence

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 8:39 AM
Sell 1/10 53.66 hold 0

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Sell 1/10 53.65 hold 1

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 8:27 AM
Long 2/10 53.56 tight stops

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Price target hit on that previous alert, we didn’t hold through the whole range as it was later than predicted, “JeremyToday at 5:03 AM
Sell 55.37 1/10 on order flow protocol, 1st price target 54.80 6:30 AM. Will advise.”

EPIC Alerts
@OilAlerts_CT
·
Aug 23
JeremyToday at 7:50 AM
Cover 55.19 1/10 hold 0

EPIC Alerts
@OilAlerts_CT
·
Aug 23
JeremyToday at 5:03 AM
Sell 55.37 1/10 on order flow protocol, 1st price target 54.80 6:30 AM. Will advise.

oil trade alerts, buys

Screen capture image of oil trade alerts signalling buys long crude oil as oil plunged.

As day trading oil continued Friday the image below shows a screen shot of the trade alerts sent out to members. Each low of day in trade was bought by our lead trader and software and profit trimmed and sold as price of oil went up.

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Long 2/10 53.53 sold 1/10 53.61

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 11:04 AM
Long 1/10 54.00

daytrading, alerts, oil

As daytrading oil continued Friday the image shows the trade alerts sent out to members.

Screen shot of oil trade alerts in to the end of the day trading sequence on Friday from oil trading room. The last trade alerted was the high of day which concluded trade for the day in the oil trading room.

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 2:21 PM
Sold 54.11 1/10 hold 0

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 1:11 PM
Sell 1/10 53.47 holds 1

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 1:04 PM
Long 53.32 3/10, sell 1/10 .37, sell 1/10 .40 , hold 1 add and 1 hold for 2/10 hold

EPIC Alerts
@OilAlerts_CT
·
Aug 23
Curt MelonopolyToday at 11:19 AM
Sold 1/10 53.86 hold 1

oil, day trade, alerts, trading, room

Screen shot of oil trade alerts in to the end of the day trading sequence on Friday from oil trading room.

Intra-Day Time Cycles Are Key for Oil Traders.

Curt MelonopolyLast Friday at 11:45 AM
Sell off cam in perfect at 11:00 mid time cycle inflection

crude oil, daytrading, strategy, time cycles

Screen shot from oil trading room shows 5 min model time cycle inflection for buy and sell in daytrade strategy

So How Did We Nail the Short Oil Prediction in Over Night / Premarket Session, Nail The Low of Day Price Target Trade, Subsequent Low of Day Trades and High of Day Trade?

We have thousands of rules in our algorithmic models to which each rule is weighted against the others, so this is no short answer.

But if you read the article above closely, you look at the alerts and if you are a member look at all the other charting and information sent out prior to and during this trade set-up you will begin learning (or add to your oil day trading strategy too-kit) many excellent additions to help you increase your profits.

The live trading room videos also help, reviewing past articles will help you, having all the conventional and algorithmic charts available to you for immediate reference during intra-day trade, trade coaching helps (I’ve never had a complaint) and being in the live trading room is key if you are really serious about learning our rule-set.

The oil trading rule-set that our v3 EPIC machine learning software uses is one of the best in the world, we know this because we did the hard work in back-testing every trading rule it uses and designing a trading strategy that weighs the rules one against the other.

The win rate, the return rate, the stability and the precision of the oil trading software is evidence of this fact.

You now just have to put in your part of the work – we have already done the heavy lifting for you.

Welcome to the matrix.

Live Oil Trading Room Video.

Please note: The video below is a raw feed only of the oil trading room for the whole day-trading session (we run the live video feed from 7am to 5pm EST). To listen to comments by the lead trader that contain specifics to his/her oil trade strategy / thinking as he/she and/or the software are trading and sending out alerts, look at the time stamp on the oil trade alert, chart, trading room screen capture image etc in this or any other report and correlate that to the video and go to that part of the video.

If you are struggling with your trading and need some trade coaching go to our website and register for a minimum 3 hours.

Email me as needed compoundtradingofficial@gmail.com.

Remember also that I am doing an oil trading information webinar once a week for now on (covering our software status and trading techniques) so email me if you would like to attend this next one – you will need a special link and access code to attend.

Thanks,

Curt

Other Reading:

NYMEX WTI Light Sweet Crude Oil futures (ticker symbol CL), the world’s most liquid and actively traded crude oil contract, is the most efficient way to trade today’s global oil markets. https://www.cmegroup.com/trading/why-futures/welcome-to-nymex-wti-light-sweet-crude-oil-futures.html

Further Learning:

Learning to Trade Crude Oil is Like No Other. At this link you will find select articles from our oil traders real life day-to-day experience in our oil trading room. Crude Oil Trading Academy : Learn to Trade Oil

Subscribe to 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).

Company News:

Important Market and Service Updates: Webinars, Reporting, Time Cycles, Live Room, P&L’s, Promos Etc…

Oil Machine Trade Software Development Update – v4 vs v3.

SOVORON™ Selects Compound Trading Group Machine Learning Data | Media Release

Free Mailing List(s):

Join Email List for Free Trade Charting Trade Set-ups, Deals, Podcasts and Public Webinars.

Public Chat:

Visit our Free Public Chat Room on Discord.

Follow:

Article Topics; crude oil, trading, strategy,alerts, trading room, technical support, daytrading, machine trading, $CL_F, $USOIL, $WTI, $USO, CL


Crude Oil Trade Strategies Report June 30, 2019.

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

The strategies that include charts, algorithm models, signals, price targets and guidance included below are suitable for mechanically executed trading and are also the models our coding staff reference for our crude oil machine trade development.

With each chart model we may include trade strategy notes for your consideration.

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

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

Crude oil price moves within structured areas (ranges) of trade / charting on various time frames (different time cycles of trade).

The structure oil price moves within (the range) can be one minute charting timing through to monthly charting.

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

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

Sizing trades appropriate to your trading account and time frame for each set-up is additionally 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.

Positioning should be significantly biased to the trending range of trade. For more information about trend identification for trading various time-frames refer to this article on Investopedia; Multiple Time Frames Can Multiply Returns.

If you have questions about the models below please email us at compoundtradingofficial@gmail.com.

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

Please note, chart links that support the models below are now distributed specific to each user or small group of users. If you are using more than one device to access the charting, 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.

The EPIC algorithm model chart below 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.

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 (not shown on model below),
  • 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),
  • Historical areas of support and resistance (purple horizontal).
  • The intra-week swing trading range is from thick horizontal gray line to the next (commonly becomes a pivot area of trade).
  • 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, 4 hour, daily, weekly and monthly charting should be considered when sizing your trades.

30 Minute Charting.

EPIC 30 Min Crude Oil Trading Algorithm June 30 536 PM FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Algorithm

https://www.tradingview.com/chart/USOIL/EiXqdIA9-EPIC-30-Min-Crude-Oil-Trading-Algorithm-June-30-536-PM-FX-USOIL/

EPIC, Algorithm, Model, Crude Oil

EPIC 30 Min Crude Oil Trading Algorithm June 30 536 PM FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Algorithm

One Minute Oil Trading Model. Ideal for Intra-day Crude Oil Trade.

The one minute oil trading model provides for pinpoint trade entry, sizing and exit points for daytrading oil. It is also used for squeeze scenarios in oil day trading. The main range is between the red / blue areas with thicker dotted white lines. The range is considerably more predictable in a squeeze scenario.

Intra-day diagonal trend-lines should be added by the daytrader.

If you need a recent 1 minute model email the office and a link will be sent to you.

Per recent;

One Min Crude Oil Trading Model (day trade) April 20 1120 PM FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/nDjB9hSd-One-Min-Crude-Oil-Trading-Model-day-trade-April-20-1120-PM-FX/

daytrading, crude, oil, chart

One Min Crude Oil Trading Model (day trade) April 20 1120 PM FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

5 Minute Charting.

The five minute oil trading strategy chart below includes a Elliot impulse 5 wave component for when oil is trading intra-day on this time frame. The horizontal / diagonal / sloping up-trending green lines can be used as support and resistance decision areas.

5 Min Crude Oil Trade Model 717 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/uvYbF4U2-5-Min-Crude-Oil-Trade-Model-717-PM-June-30-FX-USOIL-WTI-USO-CL/

oil, 5 min, chart

15 Minute Charting.

Recent crude oil trade makes a predictable 15 minute model difficult, below are some trend lines to consider until a structured range or channel possibly develops.

https://www.tradingview.com/chart/USOIL/AXAGZH0R-15-Min-Crude-Oil-Charting-Trend-Lines-to-Consider/

15 min, trendlines, crude, oil, chart

15 Min Crude Oil Charting Trend Lines to Consider.

15 minute abstract crude oil model in development, under test.

https://www.tradingview.com/chart/USOIL/Wdh3MUpH-15-minute-abstract-crude-oil-model-in-development-under-test/

15 min, test, chart, crude oil

15 minute abstract crude oil model in development, under test.

60 Minute Charting.

Per recent;

60 Min Trend Channel Trade Box Fork (concept chart) May 29 1:10 PM FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/zvQ2QZmJ-60-Min-Trend-Channel-Trade-Box-Fork-concept-chart-May-29-1-10/

60 min, crude, oil, trend, fork, chart

https://www.tradingview.com/chart/USOIL/zvQ2QZmJ-60-Min-Trend-Channel-Trade-Box-Fork-concept-chart-May-29-1-10/

2 Hour (120 Min) Charting.

Trend Lines Everywhere – 120 Minute Crude Oil Trend line chart.

https://www.tradingview.com/chart/USOIL/2GApDvIG-Trend-Lines-Everywhere-120-Minute-Crude-Oil-Trend-line-chart/

120 min chart, oil, trend lines

Trend Lines Everywhere – 120 Minute Crude Oil Trend line chart.

4 Hour Charting.

240 Min Crude Oil Chart Structure 1007 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/ubq9VomQ-240-Min-Crude-Oil-Chart-Structure-1007-PM-June-30-FX-USOIL-WTI/

240 min, crude, oil, chart

240 Min Crude Oil Chart Doodle Pad 1011 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/SGBvb0gC-240-Min-Crude-Oil-Chart-Doodle-Pad-1011-PM-June-30-FX-USOIL-WTI/

240 Min, Chart, Oil

240 Min Crude Oil Chart Doodle Pad 1011 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Per recent;

4 Hour Oil Trending Channel Chart with Trading Boxes Moving Averages 123 PM May 19 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/OryQDlVj-4-Hour-Oil-Trending-Channel-Chart-with-Trading-Boxes-Moving-Aver/

4 hr, crude, oil, chart, trending channel

https://www.tradingview.com/chart/USOIL/OryQDlVj-4-Hour-Oil-Trending-Channel-Chart-with-Trading-Boxes-Moving-Aver/

Per recent;

4 Hour Symmetry Chart, Needs to be Cleaned Up May 19 134 PM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

https://www.tradingview.com/chart/WTICOUSD/CjULpMlK-4-Hour-Symmetry-Chart-Needs-to-be-Cleaned-Up-May-19-134-PM-FX-U/

4 hr, crude, oil, symmetry , chart

4 Hour Symmetry Chart, Needs to be Cleaned Up May 19 134 PM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

Per recent;

The 4 hour crude oil concept model below has trend-lines, Fibonacci support and resistance horizontal lines (pay close attention to the gray horizontal lines) and diagonal algorithmic Fib trend lines (orange dotted).

4 Hour Concept Crude Oil Trading Model May 19 154 PM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies.

https://www.tradingview.com/chart/WTICOUSD/NsZhL9MR-4-Hour-Concept-Crude-Oil-Trading-Model-May-19-154-PM-FX-USOIL-WT/

4 hr, concept, chart, crude, oil

4 Hour Concept Crude Oil Trading Model May 19 154 PM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies.

Daily Charting.

The daily time frame provides a larger structure to consider. The diagonal Fib lines are important as are the mid quad horizontal lines. The moving averages (especially the 200 MA) should be considered in your trade strategy. The MACD is a common indicator on the daily oil chart for forward positioning and trend bias.

Daily Crude Oil Trend Line, Range Chart 1019 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/AKqikZGf-Daiy-Crude-Oil-Trend-Line-Range-Chart-1019-PM-June-30-FX-USOIL/

daily, crude, oil, trend line , chart

Daily Crude Oil Trend Line, Range Chart 1019 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Daily Crude Oil Chart, Trend Line Considerations 1026 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/G5TBG0dt-Daily-Crude-Oil-Chart-Trend-Line-Considerations-1026-PM-June-30/

Daily, crude, oil, chart, trendlines

Daily Crude Oil Chart, Trend Line Considerations 1026 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Daily Crude Oil Chart Golden Cross 200 PM May 19 FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/YQqAuPhh-Daily-Crude-Oil-Chart-Golden-Cross-200-PM-May-19-FX-USOIL-WTI-U/

daily, crude, oil, chart, golden cross

https://www.tradingview.com/chart/USOIL/YQqAuPhh-Daily-Crude-Oil-Chart-Golden-Cross-200-PM-May-19-FX-USOIL-WTI-U/

Weekly Charting.

Weekly Crude Oil Time Cycle Chart 1016 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/bi8O93Pc-Weekly-Crude-Oil-Time-Cycle-Chart-1016-PM-June-30-FX-USOIL-WTI/

Weekly, crude, oil, trading, time cycle

Weekly Crude Oil Time Cycle Chart 1016 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Weekly Crude Oil Trend Line, Range Chart 1023 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/Sa5MiLG4-Weekly-Crude-Oil-Trend-Line-Range-Chart-1023-PM-June-30-FX-USOI/

weekly, trendline, chart

Weekly Crude Oil Trend Line, Range Chart 1023 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Per recent;

Weekly crude oil chart perspective May 19 1036 AM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/VvOHyD82-Weekly-crude-oil-chart-perspective-May-19-1036-AM-FX-USOIL-WTI/

weekly, oil, chart, perspective

Weekly crude oil chart perspective May 19 1036 AM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

The most important signals on the weekly chart model are the red historical trend lines. Pay very close attention to them. There are other common indicators included on the model also.

Per recent;

Weekly Trendline Crude Oil Trading Model May 6 118 AM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

May 6 – price nearing an important trend line support (red line on chart below).

https://www.tradingview.com/chart/USOIL/hCwxU92o-Weekly-Trendline-Crude-Oil-Trading-Model-May-6-118-AM-FX-USOIL-W/

Weekly, crude, oil, chart, trend lines

Weekly Trendline Crude Oil Trading Model May 6 118 AM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

Monthly Charting.

Monthly Crude Oil Structure 1029 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/7Aq5RZQp-Monthly-Crude-Oil-Structure-1029-PM-June-30-FX-USOIL-WTI-USO-C/

monthly, crude, oil, chart, structure

Monthly Crude Oil Structure 1029 PM June 30 FX USOIL WTI $USO $CL_F #Crude #Oil #Trading #Strategies

Per recent;

Monthly Structure Crude Oil Trading Model 209 PM May19 FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

https://www.tradingview.com/chart/USOIL/ih0o30Tj-Monthly-Structure-Crude-Oil-Trading-Model-209-PM-May-19-FX-USOIL/

monthly, oil, chart

https://www.tradingview.com/chart/USOIL/ih0o30Tj-Monthly-Structure-Crude-Oil-Trading-Model-209-PM-May-19-FX-USOIL/

Per recent;

Monthly Structure Crude Oil Trading Model 126 AM May 6 FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

Weekly trend line resistance area holding so far.

https://www.tradingview.com/chart/USOIL/19KquYtJ-Monthly-Structure-Crude-Oil-Trading-Model-126-AM-May-6-FX-USOIL/

monthly, crude, oil, chart, structure

Monthly Structure Crude Oil Trading Model 126 AM May 6 FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

Per recent;

https://www.tradingview.com/chart/USOIL/sttZx83M-Monthly-200-MA-Crude-Oil-Trading-Chart-April-8-1247-AM-FX-USOIL/

monthly, oil , chart

Monthly 200 MA Crude Oil Trading Chart April 8 1247 AM FX USOIL WTI $USO $CL_F #Oil #Trading #Strategies

Oil Price Targets

Machines were in control last week. When crude oil sold off Friday it first hit upside price target and then sold off in to lower price target perfect (Price Targets published on weekend prior report) Lower PT shown below. #machinetrading FX $USOIL $WTI $CL_F $USO $UWT $DWT #OOTT

crude, oil, algorithm, price target, alert

When crude oil sold off Friday it first hit upside price target and in to lower price target perfect (PTs published on weekend prior report) FX $USOIL $WTI $CL_F $USO $UWT $DWT #OOTT

crude, oil, price target, alert

When crude oil sold off Friday it first hit upside price target – but not perfectly, and then in to lower perfect (PTs published on weekend prior report) FX $USOIL $WTI $CL_F $USO $UWT $DWT #OOTT

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:

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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: Day Trading, Crude, Oil, Trading, Futures, Strategy, Signals, USOIL, WTI, CL_F, USO

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How to Day Trade Crude Oil – Price Range (Low & Highs), Trends / Channels, Reversals, Sizing (Trims, Adds, Stops) and Timing – Crude Oil Day Trading Strategy (Part 2 Premium).

Introduction:

This article is part 2 of the previous public post, “How to Know & How We Alerted (In Advance) Crude Oil Intra-Day Bottom Price, Day High, Trend (PT 1)“.

I apologize for the detail in these posts, but the reality is that it takes a detailed systematic rules-based process to day trade crude oil.

You want to win in a way that provides the highest probability of win rate and return? It takes skill. Skill requires knowledge and refinement of execution.

We have been developing machine trade software for some time – this has taught us a lot, and I’m not talking about a simple trading bot kind of development.

The process of development had us trading and back testing in every time frame, every structure, every set up, every range, sequence within all, trend, order flow and more.

As we learned we shared much of this information with our clients (yes learning, after 30 years of experience).

You can read a recent client memo that explains the multi-month process we embarked on, where we are at now with development and where we are going in future here, “Crude Oil Machine Trade Software Complete | Rule-Set Strategies, Alerts, Accounts Traded, What’s Next?

The goal now is to simplify the processes (the most probable crude oil trading set-ups) and provide our clients with the most simple, clear, systematic how-to documents, videos, coaching, trading room guidance etc so that traders can duplicate what we are doing to achieve success in day to day trade.

In short, we have coded our machine trade software to trade only that which we know has the highest probability of win rate success and we will endeavor to share this with our community.

We know where we can and where we cannot win, and going forward we will only be trading that which we know with high probability that we will win.

Our machine trading software will now consistently improve its win rate (we are not experimenting going forward, we are done).

Our machine trading software will now consistently improve its return rate and over all success.

We expect this process to take about 90 trading days. After this, we expect to only be doing maintenance to the software.

So how do you duplicate what we learned? See below.

General Requirements of a Successful Oil Day Trader:

Strategy is Mandatory: When you sit down to day trade crude oil futures you need a clear plan.

  • Your trading plan has to be based in reality.
  • Reality is the nature of the instrument you are trading.
  • You can have all the plans you want, but if you do not know the nature of the instrument you are trading, you will lose.

Trading Edge: This article is a study of the nature of crude oil intra-day price action and how to execute trades so that you maintain the highest probability of success – your trading strategy edge.

  • When you acquire a trading edge for a specific instrument of trade then you become profitable. This requires knowing the nature of the instrument better than your competition, refining your process and then executing the process without thinking.
  • This is not unlike a professional tennis, football, hockey or whatever player. Think warrior, think training, think skills.You have to be able to execute – pull the trigger, without thinking. After all, your primary competitors are now machines, more specifically many are AI, and they don’t hesitate to pull the trigger.

Nature of the Instrument of Trade and Associated Returns: Crude oil embodies one of the most complicated (abstract) natures of trade (structure of instrument) – but also possesses one of the most profitable opportunities for a trader.

  • The structures of trade on various time-frames for crude oil are complicated but at the same time they are not, they are logical, mathematical, geometric and follow a natural order. You just need to know what that order / structure is and what the nature of trade is within each time-frame of structure.
  • Oil trading provides significant return potential because it is so structured (yet complicated for the casual observer or trader). Trade set-ups can be repeated over and over again on each time-frame daily, weekly, monthly and so on.
  • Crude oil can be traded with CL futures contracts, ETN’s on the regular equity markets (leveraged instruments of trade such as DWT and UWT) and with various other FX products and instruments. Most of which provide opportunity for leverage.

Welcome to the World Cup: I often say that if you can trade crude oil successfully, you can trade anything.

  • I am instantly bored day trading equities and swing trading equities, commodities etc now that I’ve been schooled by the best of the best AI’s and traders in crude oil futures. I still day and swing trade equities (always will), but it is like going back to grade school.

Success! So You’re an Expert Oil Trader Now.

  • An expert oil trader knows (with weighted probability) when and where to enter and exit trades (when and where to size in to his/her entries), when and where the trade should be trimmed or see adds, what the likely price trend is to be (on various time-frames), when and where price trend is likely to reverse and how to allow for appropriate variance on stops.
  • In short, an expert oil trade understands when structured timing is or is most likely to be in play for the most predictable trades and what each time-frame will look like (the nature of the structure within each time-frame). Various market timing becomes key.

Oh Wait: Fundamentals are Required.

  • Add to all the above requirements… an expert oil trader also needs a keen understanding of fundamental and geopolitical frame-works.

The Competition: Welcome to the Matrix.

  • The majority of crude oil is now traded by machine (and much of that is now sophisticated AI, and I’m not talking simple bots that you see advertised for retail traders in FX markets).
  • In short, the goal is to know what the machines (that control the most liquidity) are doing, how they trade, what decisions they are executing their trades to, etc.
  • If you know what the machines are doing you can then join the ride. You can be (with high probability) on the right side of the trade.

Master the above requirements and you then have some of the primary skills that make for a successful oil trader.

High Priority Signals / Associated Skills Needed For A Successful Crude Oil Day Trading Strategy:

Below I list in point form the signals you will need to know and then need to execute with precision. It is important to note here that the points below intertwine – in other words, the various points relate to each other symbiotically, they affect each other and become the nature of trade.

For simplicity I numbered them to assist with your study, your focus. You can use this like a check-list before entering a trade or before starting your day. Or, if you lost a trade (your discipline is off) you can review the numbered list below before taking another trade.

The information will provide you clues as to how the machine software is now coded, coded specifically to the highest probability win rate and being tweaked over the next 90 days to increase size and return to point of losing and then will be trimmed back and then idle.

The information below will provide a manual human trader the highest opportunity of success if you focus on the study needed and the repetitive training to then execute trades without thinking (with limited emotion).

The conventional and algorithmic charting required to execute the set-ups explained below are included in our client oil trading bundle (newsletters, alerts, trading room).

# 1 – Range of Trade.

Knowing the trading range is really critical for your trading strategy. Having a plan for the most probable high & low area of trade for the time-frame you are going to trade is paramount. This is accomplished with conventional and algorithmic charting.

This is the range on charting time-frames if you draw a simple horizontal line at top and bottom. Approximately where is the range?

Your positioning bias is then to be short at the top of the range and long at the bottom of the range (with many other considerations that make up your position size, where you trickle out, whether you trade the ebb and flow within the range, your stops and more).

If the over all trend is bullish you won’t size in as much on the short side of the upper range of trade on the time frame you are trading and the opposite is true if the over all trend is bearish.

It may be that you 1. enter your trade at the range limits and don’t touch the trade and exit at the opposite range. Or, 2. you may trickle out size as the trade progresses. Or, 3. you may (expert level here) even trade the ebb and flow of the range.

And then boom! you catch the trend reversal and repeat the process… over and over. Some days many times a day. This is the opportunity for an oil trader that equity traders don’t have available to them.

  • Intra-Day Trading Range. Right Now What is the Trading Range? Where is Trade Likely To Trend Next When it Reverses?
    • What is the playing field today? Knowing where the range of trade is right now on the charting, where it has been recently, where it is likely to be near future. What is the current range of trade? What is the likely trend going forward?
  • Wider Trading Range Time-Frames.
    • Knowing where the trading range is intra-day is important but also know where it has been on a wider time frame is also important to know. This is important because if trade leaves the current range you then know where the next range is likely to be.
    • Why is it important to know the trading range on various time-frames and where the trend is likely to reverse?
      • Support and Resistance. The key support and resistance areas on intra-day and wider trading ranges become key for decisions in the trade range itself – areas for entry, exits, adds, trims, sizing and more.
      • Precise Entry and Exit. Knowing the range of trade is important for high probability trade entries and exits and this can significantly increase your return on each trade (if you can enter and exit with precision).
      • Managing Stops and Sizing. Range of trade is also important for sizing your initial trade entry, trimming your trade size and / or adding to your trade. The idea here is to enter trades at the outside edges of the most probable areas / range of trade, weighing your entry size and stops more so when you are trading the most probable trend of trade and it is also important for knowing when to trickle out / trim positions as the range trade progresses.
  • Using Conventional Charting and Algorithmic Models to Determine Range.
    • Check your conventional charting on various time-frames (1 minute, 5 minute, 15 minute, 30 minute, 4 hour, daily, weekly and monthly) and do not ignore the algorithmic models (these are where the machines will bias sizing).
    • Generally an oil day trader is trading the range of the 1 minute through to 4 hour hour. I most often am using the 1, 5, 15 and 30 minute structured algorithmic models.
    • When you have an understanding of the range frame-work on conventional and algorithmic charting you are now prepared with your range trading bias for the day. You are also ready for the most probable areas of trend reversal.

# 2 Trend of Trade and Channels.

Where are the general trends of trade on various time-frames? Is price trending up or down? This can be difficult to assess when you consider the nature of crude oil – this is why the static range (as above in #1) is so important. Also, are there channels of trade in play on various time-frames?

  • Price Trends. Know What the Current Trend Is.
    • Is there a channel of trade or a range to work with? Are there channel set-ups within various time-frames of charting and times of day or week that tend to repeat?
  • Reversals. Where and when is the trend likely to end / reverse.
    • Key support and resistance areas on various time frames. Here again, range of trade, trend and trading channels.
    • Algorithmic structured time cycles. There are time cycles on each algorithmic model. You need to know these well. The machines are coded to bias trades at these time cycles. This is critical.
    • Time of day or week considerations for various markets in play or events such as EIA and daily settlement for example) and what the likely trend will be next for the continuation of your trading plan.

# 3 – Time of Day.

Time of day is critical. You need to bias your trade size, your expectation of key support and resistance being respected, your expectation of trends finding continuation etc.

  • Early futures trade. Early futures trade is usually sloppy unless there is a geopolitical event. It usually has near zero range. It usually does not respect any of the conventional or algorithmic structures on charting. Use extreme caution.
  • As Global Markets Open. As markets in Asia and Europe etc open then trade starts to get more and more structured. Usually around 3 am Eastern trade become more structured. This can start earlier at around 11:00 PM the night prior but I like to avoid trade until at least 3:00 AM Eastern.
  • The session between 3:00 AM to 7:30 AM (all approximate ranges of time) typically is a session in of itself and a reversal is very possible around 7:30. Quite often if trade has been trending up during this session then the air is slowly let out of the balloon for the hand off that occurs around 8:00 AM for the US day traders.
  • Then around 8:00 AM you will start to see volume increase significantly, especially on the half hour marks leading in to the regular US Market open.
  • At 8:30 AM, 9:00 and 9:30 this is where the trend for the morning session for the regular US market is usually determined.
  • Around 11:00 AM the trend is then consolidated for a further move up in the afternoon session, or sideways range bound trade or a reversal. The opposite of course is true.
  • Prepare for some volatility around settlement at 2:30 PM and around API Tuesday 4:30 and EIA Wednesday at 10:30 AM.
  • Friday afternoons can trend price in a way that is not possible on most days.
  • Many days you will find that late afternoon is a slow melt up, melt down or sideways. Shorting the melt up is foolish.
  • Above are just some examples.

# 4 – Intra Day Time Cycles.

Time cycles have been discussed some above. The basic consideration here is that each algorithmic model (on various time-frames) includes time cycles that are foolish to ignore. The larger the time-frame the more important the time cycle.

  • For example, there is a large time cycle on the weekly model that expired (or peaked) last week. On such a large time cycle a week either way is considered and then trend thereafter becomes weighted heavily in bias of trade.
  • Another example is the 5 minute algorithmic charting model, there are time cycle peaks every 3 hours within a specific structure. These are key to understand for a day trader. Not just where the time cycle peaks are, but the nature of trade around each peak.

The algorithmic reports and the discord member chat room are key for learning how to take advantage of the time cycles.

# 5 – Cut Losses Fast. Using Stop Losses. Sizing.

Crude oil trade is vicious. It can ruin a trader’s confidence fast. It can also destroy a trader’s account.

If you have the rules in place, you know the structure of trade, you are sizing in accordance to your threshold appropriate to your account size then you will be fine. Capital protection is by far one of the most important skills you can acquire.

For my personal account this is critical. This changes somewhat when you know that you can make up the bad trade(s) – you have the skill-set and just have to reset. But until you have the proven experience it is important to protect your capital. This discipline can also be different if you are developing software as in our case (we achieved 63% returns and then lost up to 30% in a month developing the software). But this again is different because (as in our case) when you stop developing and simply deploy software to execute to only trade what is most probable you know it will make up the losses.

But for a human trade executing mechanically (manual trades) the cut losses fast is a critical skill-set. You need to know what trade structure is in play, you need to execute to the outside ranges of that structure and you need to size appropriately. If the structure, the plan goes against you, you then need to close your position fast.

  • Stops should be set in accordance to the time-frame structure in play.
  • Understanding that the machines will hunt stops is critical. This then highlights the necessity to place stops outside that range and consider trading a range of trade with increased sizing as the trade proves itself or size in at inflections of time cycles and increased volume and immediately close if it goes against you.
  • If trading range it is better to consider giving the range room to work itself out. Add to the position as it proves out at the outside of the range and then trickle out / trim your position as it moves through the range.
  • If trading a channel on a day trading time-frame then you should be more static about your entries and exits. More rigid. The channel on lower time frames will typically work or not work. A trading range has much more “give” to the range. The edges of the range are more blurred as the time-frame gets larger and larger.

Real World Trading Examples:

Below are excerpts from Part 1 of this article (in italics) to highlight the points discussed above.

I then also include charting and explanation about how we knew where price would likely bottom on the day and reverse (to provide one example).

Future posts will focus us down on real world examples from the live trading room and we’ll refine each trade set up and trading discipline skill one at a time, over and over again until you are winning at least 80% of your trades and over time you can then increase your trading size and returns.

I will include chart / screen shot (captures) but won’t provide charting links for proprietary algorithmic models in this post, members receive these regularly on email.

Low of Day Price & Reversal Trade Signal / Set Up .

Knowing with high probability where the low or high of day price will likely be is a great skill to have as an oil day trader. It will provide confidence in trade, allow for sizing considerations and so much more. Below is an example from our private oil trading chat discord server, trading room and oil alert feed.

Our traders learn how to set up their strategy, watch for the signals on the charting etc from the newsletter reports, charting updates continually sent out, guidance in the discord chat room, voice broadcast in oil trading room and alerts on the Twitter private feed.

At 10:54 AM I alert the oil trading room (with voice broadcast and charting), the oil chat room (see screen capture image below) and alert to the member Twitter feed (screen shot below) that we are looking at the 50.84 area of FX USOIL WTI for possible long trade (trend reversal) for a possible bottom price area on the day. We trade CL futures but alert on USOIL WTI for consistency between instruments of trade for crude oil.

Looking 50.84 area possible longs (bottom of quad) trading 51.26 intra. Shorting all pops thereafter in to quad area resistance.

oil, trade, alert Looking 50.84 area possible longs (bottom of quad) trading 51.26 intra. Shorting all pops thereafter in to quad area resistance.[/caption]

How Did We Know Where Oil Trade Was Likely to Bottom on The Day?

We have structured models on all time frames. In this instance the EPIC Algorithmic Model on the 30 Minute provided the primary structure. Oil trade was trading down after the EIA numbers were released and we simply looked to the bottom of the current trading quad structure. We then cross reference the structure of support with trading models for larger time-frames and lower time-frames and as price nears the target area we look at time frames on smaller and smaller models.

When price action confirms on the 1 minute model, increasing volume is apparent, the order flow is confirmed (machine liquidity is entering from the markets in to the trade) then we start our trade and/or our machine software begins to trade.

Below is the EPIC Oil Algorithm 30 Minute Model. Many areas of structured support were hit and then price ran up approximately 150 ticks for a complete move from the bottom of the quadrant to the top of the trading quad. Perfect set-up.

The orange arrow is where price hit the machine execution line (where the larger liquidity players normally have machines coded to begin large entries), then trade confirmed above the swing trading wider range indicator on the model (the thick gray horizontal line) and then further confirmed at a considerable historical support (purple horizontal line).

low of day, price, reversal, crude, oil

Determining low of day crude oil price for reversal. Algorithm area of support, swing support, historical support.

Then at 11:54 the price of oil drops in to the area previously alerts, spikes down with a flash and trade reverses. In the oil chat room screen shot below you can see I alerted our long oil trade (machine trade in this instance) in the 50.70s and then the machine trade closed and fired a few other times. This ended up in fact being the low of day in trade. I had alerted that I was looking at the 50.84 area and price hit 50.70s and reversed.

Software fired in there 50.70 s to closing 50.90 s, I didn’t but we’ll see if it holds the range for a bounce.

oil trading room, alert, bottom price, trend reversal area Looking 50.84 area possible longs (bottom of quad) trading 51.26 intra. Shorting all pops thereafter in to quad area resistance.[/caption]

You can also see in the screen shot that I was sharing various chart set-ups to help our traders with their trading strategies for the day so they knew where the structured areas of support, resistance etc were.

Then at 12:07 PM I alerted to the oil trading room by voice broadcast, chat room with charting and on live alert feed that the structure of trade had improved and that we expected that the low of day for trade had in fact been put in confirming a reversal.

improved structure, likely near term low in

oil, trade, alert, price, reversal

Oil trade alert, trading room alert low of day price crude oil reversal trend in play.

Then shortly after 12:00 I alerted (to live trading room, chat room, alert feed) that there was a time cycle peak coming at 2:15 (in other words if you are long on the reversal from the day lows that 2:15 would be the area of time on the day for a high for your price targeting on the trade).

I also gave the resistance levels between where trade was at near the bottom of the trading quad (near the reversal area at bottom) and where we seen the top price target of trade. In other words, if you are long the trade watch for the 20 MA on the 5 minute chart above and the mid quad (mid channel) resistance on the 30 minute EPIC model chart.

2:15 time cycle should be the top on any retrace up on the day
20 MA on 5 min overhead
2:15 PM time cycle most bullish scenario we have is 51.90 (mid channel on EPIC quad) trading 51.32
body of 30 min candle at machine line

Then after the resistance areas are overcome in uptrend trade on the day at 1:20 PM (in advance of the 2:15 time cycle peak) I alert in more detail the various price target areas that represent various model charts on different time-frames so that our traders know exactly what levels to watch as price nears both time and region of trade for our trending price targets for the day trade.

Resistance we are watching intra 51.86 mid channel EPIC, 52.14 5 min, 52.10 on 1 min, 2:15 time cycle peak, just hit 51.81 intra. Nice reversal intra in the EPIC quad from just below support of area we had marked. Also watching for signals for longer term trend reversal possibilities.

oil trading room, trade alert, reversal, price target

Screen shot oil trading room trade alert high of day price target timing for reversal for oil trading strategy.

Image capture below from oil trade chat room shows 1 min crude oil model trend and 5 min chart with oil trade trending in to time cycle peak as alerted.

oil trade alert, trend, price target, time cycle

Image shows 1 min crude oil model trend and 5 min chart with oil trade trending in to time cycle peak as alerted

Image below from oil trading room alerting that price reversal strong structure expect possible trend reversal and possible price targets. The first image is the 30 minute EPIC algorithm chart model showing a strong bounce off the bottom area of the quadrant (the alerted price reversal area).

Strong signal the trend on wider time frame is in reversal mode with action seen in this quad today really clean

And because the bounce is so strong and structured properly in the quad that traders could start possibly looking at larger time frame charting for a possible trend reversal and possible price targets in that scenario.

maybe one quad more down but that would be it if so imo
60.41 would be trend reversal target, trading 51.91, 850 ticks ish
sorry its 59.22

trading room, oil trade alert, price targets, reversal, trend

Image from oil trading room alerting that price reversal strong structure expect possible trend reversal and possible price targets.

Image showing oil trade room signals on 1 minute chart for confirmation of intra day trend from HFT trade action. Normally we would explain or alert this as it was happening live, however, in today’s scenario I was doing double duty coding so I was sure to show our traders where / how they could confirm that the intra-day trend (for in future trading strategy) was still in play.

After two hits to the trend then the HFT programs set their confirmation pivot and continue trend. This confirms that a trade can continue looking in to the trend for the day, the price targets for day high and time cycle peak for the day.

this is where the HFTs hammered down today, after two hits to 1 min channel support and hit to 1 min range they hammered down

oil trading room, signals, HFT, confirmation of trend, alert

Image showing oil trade room signals on 1 minute chart for confirmation of intra day trend from HFT trade action.

Two chart images below of crude oil trade from trading room comparing last week trade action and this week in 30 Minute EPIC model. This week the trade is much more structured confirming signals that I will include in Part 2 of this report.

Last weeks quad action

This week quad action

oil charts, models, signal, confirmations

Two chart images for crude oil trade from trading room comparing last week trade action and this week in model. Confirming signals.

The final two images below show that price did in fact spike in to the time cycle peak for 2:15 PM and did reverse in this area of oil trade for a short opportunity as we had alerted much earlier in the day.

peaking in to time cycle intra

trend reversal, alert, oil, trading room, charts

The final two trading room images below show that price time cycle reversal oil trade short alerted earlier.

Below is the raw oil trading room video feed, if you are learning to trade oil you can correlate the time stamp you see on the images above to the time stamp on the video so you can scroll through the video to specifically what I was saying in the trading room during each alert period. The video below is only a raw feed and I am not broadcasting on mic all day – only when there are alerts and or trades in play (this is why I mention the time stamps). I only include the video because newer students of trade can utilize the live video (and associated comments and charting) to learn, but it is not packaged in short form so you have to dig a bit.

 

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

Article Topics: Day Trading, Crude, Oil, Trading, Trading Room, Strategy, Signals, Reversals, Trend, Time of Day, Time Cycles, Channels, Trims, Adds, Stop Orders.

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