Thread for experienced professional commodity traders
- Thread starter NCDEX Boss
- Start date
- Tags mcx ncdex trading
Re: Sharing a Crude Oil Trading Method (Testing Phase)
Sir can u explain a little more,
HA bar should close above the upper band?.. or within the middle and upperband to go for buy and vice versa for going short?
Here's a trading method I'm testing on crude oil.
It is still a work in progress but it seems practical and workable specially if you're a scalper. I found the basics on a forex site but tweaked a few things to improve accuracy, make it simpler, and also adapt it to the unique challenges of trading commodity futures.
This is an intraday scalping method. Instead of using regular candlesticks, we use Heiken-Ashi candles. I find HA candles to be more telling than regular candles and they work well on lower time frames.
I looked at 5 min, 1 min, 15 min, 30 min and 1 hr. I found 15 min to be optimum. Also, HA candles help you hold trades longer without worrying about stop losses or temporary changes in trend. So if and when the time comes, the candle itself will tell you when to exit.
Here are the rules.
Time frame: 15 mins
Indicators: Keltner Channel, Commodity Channel Index (10-period CCI)
Buy trade
Sell trade
Example of 2 Buy & 1 Sell trades from yesterday (6 May 2016) netting 30 points.
Test it on live sessions but strictly stick to the 10 point scalps. You can look for more but I haven't tried those yet.
Leave any feedback here if you can offer any tweaks or ideas.
Hope this helps and adds to this thread.
It is still a work in progress but it seems practical and workable specially if you're a scalper. I found the basics on a forex site but tweaked a few things to improve accuracy, make it simpler, and also adapt it to the unique challenges of trading commodity futures.
This is an intraday scalping method. Instead of using regular candlesticks, we use Heiken-Ashi candles. I find HA candles to be more telling than regular candles and they work well on lower time frames.
I looked at 5 min, 1 min, 15 min, 30 min and 1 hr. I found 15 min to be optimum. Also, HA candles help you hold trades longer without worrying about stop losses or temporary changes in trend. So if and when the time comes, the candle itself will tell you when to exit.
Here are the rules.
Time frame: 15 mins
Indicators: Keltner Channel, Commodity Channel Index (10-period CCI)
Buy trade
- Wait for HA candle to close green in the upper band of the Keltner Channel
- When it does that, check if CCI(10) is at 100 or above. If CCI(10) is below 100 then no trade.
- Based on this, place a market order at candle close and exit trade at 10 points profit target
- Don't exceed the 10 points target
- Instead of using a fixed SL, simply hold trade till profit target is met (OR) exit trade if Heiken-Ashi candle turns red before your profit target is met.
Sell trade
- Wait for HA candle to close red in the lower band of the Keltner Channel
- When it does that, check if CCI(10) is at -100 or below. If CCI(10) is above -100 then no trade.
- Based on this, place a market order at candle close and exit trade at 10 points profit target
- Don't exceed the 10 points target
- Instead of using a fixed SL, simply hold trade till profit target is met (OR) exit trade if Heiken-Ashi candle turns green before your profit target is met.
Example of 2 Buy & 1 Sell trades from yesterday (6 May 2016) netting 30 points.
Test it on live sessions but strictly stick to the 10 point scalps. You can look for more but I haven't tried those yet.
Leave any feedback here if you can offer any tweaks or ideas.
Hope this helps and adds to this thread.
HA bar should close above the upper band?.. or within the middle and upperband to go for buy and vice versa for going short?
Re: Sharing a Crude Oil Trading Method (Testing Phase)
Thanks for the reply. Parking some thoughts, observation and comparison notes
Comparison notes
There seems to be some variation in the OHLC figures when the chart culled from investing.com was compared with the terminal feed (Kite – Zerodha); In our case I went back and checked candles for 16:45_6 May 2016 where the actual trigger happened via this strategy which kind off threw me offtrack
THOUGHTS
Yes, I did observe the indicator values posted in your chart but again was little confused when I checked Keltner indicator settings that are available at my end. If you look at my screen shot you will observe Keltner being a extension of MA type can further be refined & defined as simple/exponential/time series/triangular/Vidya/Weighted.. so on ((^!^))
[/QUOTE]
Having tried these it was not coming near to the band widths that I see in your screen shot and finally went ahead with MA type = Simple whilst in investing.com its very straightforward.
And of-course I am using Henkanshi
Thoughts
Having Used Commodity Channel Index Period = 10
Keltner Channel – >> Period 20 | Shift 1 | Moving Average type = Simple
Time Frame = 15 this is how crude chart looks
Thanks for the reply. Parking some thoughts, observation and comparison notes
Comparison notes
There seems to be some variation in the OHLC figures when the chart culled from investing.com was compared with the terminal feed (Kite – Zerodha); In our case I went back and checked candles for 16:45_6 May 2016 where the actual trigger happened via this strategy which kind off threw me offtrack
Here's a trading method I'm testing on crude oil.
THOUGHTS
Yes, I did observe the indicator values posted in your chart but again was little confused when I checked Keltner indicator settings that are available at my end. If you look at my screen shot you will observe Keltner being a extension of MA type can further be refined & defined as simple/exponential/time series/triangular/Vidya/Weighted.. so on ((^!^))
Having tried these it was not coming near to the band widths that I see in your screen shot and finally went ahead with MA type = Simple whilst in investing.com its very straightforward.
And of-course I am using Henkanshi
Thoughts
Having Used Commodity Channel Index Period = 10
Keltner Channel – >> Period 20 | Shift 1 | Moving Average type = Simple
Time Frame = 15 this is how crude chart looks
Re: Sharing a Crude Oil Trading Method (Testing Phase)
Natjay,
Have posted my chart how does it look? Any error you can cite?
And sure I am going to test this strategy already posted feedback regarding settings
Natjay,
Have posted my chart how does it look? Any error you can cite?
And sure I am going to test this strategy already posted feedback regarding settings
Here's a trading method I'm testing on crude oil.
Example of 2 Buy & 1 Sell trades from yesterday (6 May 2016) netting 30 points.
Test it on live sessions but strictly stick to the 10 point scalps. You can look for more but I haven't tried those yet.
Leave any feedback here if you can offer any tweaks or ideas.
Hope this helps and adds to this thread.
Example of 2 Buy & 1 Sell trades from yesterday (6 May 2016) netting 30 points.
Test it on live sessions but strictly stick to the 10 point scalps. You can look for more but I haven't tried those yet.
Leave any feedback here if you can offer any tweaks or ideas.
Hope this helps and adds to this thread.
@mcxinvest
For a buy trade, the candle should close above the midline of the Keltner Channel. The candle should have just closed about this line, foraying into the upper band (it should be below the extremity of the upper band but above the middle line).
@Silentshadow
Your settings look about right and I do see at least 2 profitable trades on there. I don't have access to Zerodha's platform so can't confirm about their data or chart quality.
About the charts on Investing.com, I've noticed that even though the commodity charts are delayed, they very closely correspond to the price movement on MCX's own market watch page during regular trading hours.
Since I'm demo testing several strategies on multiple commodities, these charts have been useful and robust enough for that purpose. Of course, with every strategy, there are no absolutes and there is always room for improvement. So please don't consider my indicator parameters as lines in the sand. If you come up with better tweaks and numbers that work on your platform, more power to you. The method I've proposed is just to get the ball rolling and get active traders to chip in with suggestions and improvements while keeping things simple.
For a buy trade, the candle should close above the midline of the Keltner Channel. The candle should have just closed about this line, foraying into the upper band (it should be below the extremity of the upper band but above the middle line).
@Silentshadow
Your settings look about right and I do see at least 2 profitable trades on there. I don't have access to Zerodha's platform so can't confirm about their data or chart quality.
About the charts on Investing.com, I've noticed that even though the commodity charts are delayed, they very closely correspond to the price movement on MCX's own market watch page during regular trading hours.
Since I'm demo testing several strategies on multiple commodities, these charts have been useful and robust enough for that purpose. Of course, with every strategy, there are no absolutes and there is always room for improvement. So please don't consider my indicator parameters as lines in the sand. If you come up with better tweaks and numbers that work on your platform, more power to you. The method I've proposed is just to get the ball rolling and get active traders to chip in with suggestions and improvements while keeping things simple.
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