Thread for experienced professional commodity traders

natjay

Well-Known Member
#11
For real time data feed to be used in Amibroker,there are vendors who provide services for as low as Rs.500 per month. Better to subscribe to them rather than getting delayed quote from free providers.
Any specific data vendors you can recommend for commodity trading?

GFDL looks expensive for traders just starting up, or those who trade only 1-2 contracts.
 

toingpoing

Well-Known Member
#12
Any specific data vendors you can recommend for commodity trading?

GFDL looks expensive for traders just starting up, or those who trade only 1-2 contracts.
iwinchart.com can be tried. Though I have no direct or indirect business association with them. Always having real time charts is suggested for trading,irrespective of the number of contracts one trades. Whatever charts provided free by discount brokers are not reliable. Sharekhan Trade Tiger gives excellent charts but brokerage is on the higher side.
 

natjay

Well-Known Member
#13
Sharing a Crude Oil Trading Method (Testing Phase)

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
  • 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.
 
#14
Re: Sharing a Crude Oil Trading Method (Testing Phase)

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
  • 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.
Great natjay ji, this the type of content I want on this thread great going. Great setup.
 

natjay

Well-Known Member
#15
NCDEX Boss,

Some more questions for you, if you don't mind.

Why are you called NCDEX Boss? :)

Have you traded in that segment (agri commodities)? if so then I'm interested to know your experience because there's very little information about trading on that exchange. NCDEX also seems to supply their own charts that look professional (not sure of the quality).

Also, every time I see commodity programs on CNBC, I notice viewers asking about their positions in Guar Gum or Cotton. What's so special about trading these commodities? Hope you can throw some light on this.

Thank you very much in advance :thanx:
 
#16
NCDEX Boss,

Some more questions for you, if you don't mind.

Why are you called NCDEX Boss? :)

Have you traded in that segment (agri commodities)? if so then I'm interested to know your experience because there's very little information about trading on that exchange. NCDEX also seems to supply their own charts that look professional (not sure of the quality).

Also, every time I see commodity programs on CNBC, I notice viewers asking about their positions in Guar Gum or Cotton. What's so special about trading these commodities? Hope you can throw some light on this.

Thank you very much in advance :thanx:
Natjay ji, Great question, Yes, I have traded in agri-commodities in the past, When I first started trading I traded agri-commodities. The reason being that most of the active agri-commodities prices are determined by domestic factors like rainfall and there are specific seasons when the prices are low and high in other seasons due to the supply demand factor. I found it easier to predict prices in them. But due to relatively low volume in NCDEX it's less popular for trading compared to MCX which has 90% share of volume in the commodity market.

I advise to NOT take trading calls from CNBC as they have very low accuracy and no one makes money trading on someone else's calls. It's good if you want to know news and knowledge if your are new, but not for taking calls.
It's better to do your research before trading.

Regarding the NCDEX Boss name. I found it to be a funny name. :) As some of my friends call me boss. And NCDEX as the exchange which I use to love trading on.

I hope I clarified for doubts. If not don't hesitate at all to ask more questions. I am more than happy to help. As every master was once a disaster. :lol:

Regards
 
#17
NCDEX Boss,

Some more questions for you, if you don't mind.

Why are you called NCDEX Boss? :)

Have you traded in that segment (agri commodities)? if so then I'm interested to know your experience because there's very little information about trading on that exchange. NCDEX also seems to supply their own charts that look professional (not sure of the quality).

Also, every time I see commodity programs on CNBC, I notice viewers asking about their positions in Guar Gum or Cotton. What's so special about trading these commodities? Hope you can throw some light on this.

Thank you very much in advance :thanx:
Natjay ji, I would advise that you first trade on MCX, and get comfortable with trading in MCX as it's more liquid and a bit safer due to high volumes. And when you get well versed in trading MCX then you can move to NCDEX and make crores of rupees. Best of luck.

I love helping people and it's makes my day if I solve someone's query on trading.

Regards
:thumb::)
 

Silentshadow

Well-Known Member
#19
Re: Sharing a Crude Oil Trading Method (Testing Phase)

Evening Natjay,
Could you please guide on the parameters over here please ~ Thanks

[1] Commodity Channel Index It seems correct {Do correct If I am wrong}



[2] Keltner Channel {Not sure of the parameters}




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
  • 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.
 
#20
International Market timings for various commodities in Indian Standard Timing(IST) format-
{
London Metal Exchange (LME)
Normal Trading - 4:20 P.M to 9:30 P.M (winter) , 5:15 P.M to 10:30 P.M(summer)

Electronic trading - 12:30 P.M to 12:30 A.M
}
{
New York Mercantile Exchange (NYMEX)
COMEX Copper - 5:40 P.M - 10:30 P.M
COMEX Gold - 5:50 P.M - 11:00 P.M
COMEX Silver - 6:00 P.M - 11:00 P.M
NYMEX Crude Oil - 6:30 P.M - 12:00 A.M
NYMEX Natural Gas - 7:30 P.M - 12:00 A.M
}
 

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