Basic Information for Commodity Newbies: Slippage, Filter, TFs, etc.

[rdev1]

Dear Friends,

I am brand new to commodities but am interested in exploring opportunities in them, beginning with Crude Oil.

I searched long and hard in this forum for a few basic questions but could not really find precise answers.

I thought instead of asking individually in various threads, perhaps I could post this thread so it will be helpful for newbies like me to find these basic answers in one place.

I see there are many experienced commodities traders here and it would be very kind of them if they could help us out.

Here are my questions:

1)What is the typical Slippage you see in Crude Oil? Is it 1 rupee or 2 or more?
For e.g if your entry price is Rs. 3100, will the order fill most of the time at 3100 or 3102 or 3103, etc?

2) I am looking at trading 5 min to 15 min charts on an intraday basis. What filters would you suggest for entry and SL? Should it be 1 rupee or more or less?

3) Is 5:30 PM to 11:30 PM the best time to trade only Crude Oil or all commodities?

4) Some say Crude Oil and commodities in general are very dangerous to trade and one should stick to Nifty. Is this true?

5) Any other advice you can provide on Crude Oil trading will be greatly appreciated.

In case you don't trade Crude Oil, it would still be helpful if you can give information on Slippage and Entry/SL Filter on a commodity or commodities of your choice and any related advice.

Thanking you all in advance and wishing you all continued success in your trading.

RDev

 

[marimuthu13]

Dear Friends,

I am brand new to commodities but am interested in exploring opportunities in them, beginning with Crude Oil.

I searched long and hard in this forum for a few basic questions but could not really find precise answers.

I thought instead of asking individually in various threads, perhaps I could post this thread so it will be helpful for newbies like me to find these basic answers in one place.

I see there are many experienced commodities traders here and it would be very kind of them if they could help us out.

Here are my questions:

1)What is the typical Slippage you see in Crude Oil? Is it 1 rupee or 2 or more?
For e.g if your entry price is Rs. 3100, will the order fill most of the time at 3100 or 3102 or 3103, etc?

2) I am looking at trading 5 min to 15 min charts on an intraday basis. What filters would you suggest for entry and SL? Should it be 1 rupee or more or less?

3) Is 5:30 PM to 11:30 PM the best time to trade only Crude Oil or all commodities?

4) Some say Crude Oil and commodities in general are very dangerous to trade and one should stick to Nifty. Is this true?

5) Any other advice you can provide on Crude Oil trading will be greatly appreciated.

In case you don't trade Crude Oil, it would still be helpful if you can give information on Slippage and Entry/SL Filter on a commodity or commodities of your choice and any related advice.

Thanking you all in advance and wishing you all continued success in your trading.

RDev

hi
1. crude oil slippage is almost nil (99.99%) if u r trading with 1-10 lots...always use LIMIT or SL-Limit to entering trade, Stop loss always SL-M, and target as usual LIMIT order..

2. u can use filter of 3 points if u trade 5 min to 1 hours timeframe...but u should do backtesting with ur system to conclude filter points.

3. IMO, gold and silver trade-able all times, from 10 am to 11.30 pm..
Base metals, during NSE currency market (10 AM to 5.30 PM.. or so)
crude and natural gas - mostly US sessions..

4.....

5...........

 

[rdev1]

hi
1. crude oil slippage is almost nil (99.99%) if u r trading with 1-10 lots...always use LIMIT or SL-Limit to entering trade, Stop loss always SL-M, and target as usual LIMIT order..

2. u can use filter of 3 points if u trade 5 min to 1 hours timeframe...but u should do backtesting with ur system to conclude filter points.

3. IMO, gold and silver trade-able all times, from 10 am to 11.30 pm..
Base metals, during NSE currency market (10 AM to 5.30 PM.. or so)
crude and natural gas - mostly US sessions..

4.....

5...........

Thank you very much marimuthu13 for taking the time to provide this very valuable information. It really helps as I have no idea about commodities.

I am sure it will help others as well.

Regards,

RDev

 

[vijkris]

Dear Friends,

I am brand new to commodities but am interested in exploring opportunities in them, beginning with Crude Oil.

I searched long and hard in this forum for a few basic questions but could not really find precise answers.

I thought instead of asking individually in various threads, perhaps I could post this thread so it will be helpful for newbies like me to find these basic answers in one place.

I see there are many experienced commodities traders here and it would be very kind of them if they could help us out.

Here are my questions:
RDev

1)What is the typical Slippage you see in Crude Oil? Is it 1 rupee or 2 or more?
For e.g if your entry price is Rs. 3100, will the order fill most of the time at 3100 or 3102 or 3103, etc?

Only during Inventory data which comes every week on wednesday, during that 3,4 minutes you will face slippage etc. Most of the time there is high liquidity and there is no slippage at all.

2) I am looking at trading 5 min to 15 min charts on an intraday basis. What filters would you suggest for entry and SL? Should it be 1 rupee or more or less?

No idea..
3) Is 5:30 PM to 11:30 PM the best time to trade only Crude Oil or all commodities?

During this time more voloatility is seen due to International Markets opening. but sometimes action takes place regularly at morning session also..
Most part time traders log in after 5pm, so if u r full time, trade from 10 am, or else after 5pm is also equally good.

4) Some say Crude Oil and commodities in general are very dangerous to trade and one should stick to Nifty. Is this true?

:lol:
If your strategy works for Nifty, it will work for crude also, but here wild moves happen frequently.. in morning u can see that new highs is made and by 8pm, just opposite may also happen and lower circuit can also be touched.. :lol:

Just follow the trend..

5) Any other advice you can provide on Crude Oil trading will be greatly appreciated.

Always keep sl-M as stoploss, Marimuthu also said correctly..

 

[rdev1]

1)What is the typical Slippage you see in Crude Oil? Is it 1 rupee or 2 or more?
For e.g if your entry price is Rs. 3100, will the order fill most of the time at 3100 or 3102 or 3103, etc?

Only during Inventory data which comes every week on wednesday, during that 3,4 minutes you will face slippage etc. Most of the time there is high liquidity and there is no slippage at all.

2) I am looking at trading 5 min to 15 min charts on an intraday basis. What filters would you suggest for entry and SL? Should it be 1 rupee or more or less?

No idea..
3) Is 5:30 PM to 11:30 PM the best time to trade only Crude Oil or all commodities?

During this time more voloatility is seen due to International Markets opening. but sometimes action takes place regularly at morning session also..
Most part time traders log in after 5pm, so if u r full time, trade from 10 am, or else after 5pm is also equally good.

4) Some say Crude Oil and commodities in general are very dangerous to trade and one should stick to Nifty. Is this true?

:lol:
If your strategy works for Nifty, it will work for crude also, but here wild moves happen frequently.. in morning u can see that new highs is made and by 8pm, just opposite may also happen and lower circuit can also be touched.. :lol:

Just follow the trend..

5) Any other advice you can provide on Crude Oil trading will be greatly appreciated.

Always keep sl-M as stoploss, Marimuthu also said correctly..

Thank you very much Vijay k for sharing your valuable inputs. Really wonderful information coming in from both you and Marimuthu.

Yes, I too am noticing that there is movement during day time as well, so it is encouraging to know from you that we can trade during daytime as well. Very helpful to know about the Inventory data and clarification on Nifty vs Crude Oil.

Regards,
RDev

 

[rdev1]

hi

3. IMO, gold and silver trade-able all times, from 10 am to 11.30 pm..
Base metals, during NSE currency market (10 AM to 5.30 PM.. or so)
crude and natural gas - mostly US sessions..

Hi Marimuthu,

I have a follow up question. You mentioned gold, silver, other base metals and natural gas.

I just wanted to know if in your knowledge they too don't have any slippage? I will try to figure out the filters for them by backtesting as per your suggestion, but if you can suggest minimum filters for any of the above, I can use that as a starting point for my backtesting. I know you may have a busy schedule so it's okay if you are unable to provide the information.


Thanks and Regards,

RDev

 

[marimuthu13]

Hi Marimuthu,

I have a follow up question. You mentioned gold, silver, other base metals and natural gas.

I just wanted to know if in your knowledge they too don't have any slippage? I will try to figure out the filters for them by backtesting as per your suggestion, but if you can suggest minimum filters for any of the above, I can use that as a starting point for my backtesting. I know you may have a busy schedule so it's okay if you are unable to provide the information.


Thanks and Regards,

RDev

based on my experience, below are filter for various commodities..

aluminium, copper, zinc and lead- 10 paise..
gold - 5 rs, and silver - 10 rs

moreover i dont know why are you so much interested in filter points??

better use limit order if u r pull back trader, or SL-L if u r brakeout trader...so that u need not to worry about slipagges..

for SL , better to use SL-M always, dont try your hand in SL-L while putting SL order..

 

[Subhadip]

Crude is like BNF.

COPPER is like Nifty.

 

[vagar11]

Crude is like BNF.

COPPER is like Nifty.

Gold is like NF
Silver is like BNF.

 

[marimuthu13]

Crude is like BNF.

COPPER is like Nifty.

Gold is like NF
Silver is like BNF.

what i feel is..crude is like NIFTY..

Silver is like BNF