A trade on CL and Scaling in at every 10% Increase ........

Discussion in 'Commodity Futures' started by md2324, Dec 15, 2016.

  1. Just so you know, the CL stochastic were below the 20 line, the GC stochastic were ripe, is why i held the gold short. Thank you BTW
     
    #21     Dec 16, 2016
  2. algofy

    algofy

    Go Grizzybull!!!!!!!!
     
    #22     Dec 16, 2016
  3. Overnight

    Overnight

    That may be math, but it is not average reality. It's gonna' destroy him/her/it, that mentality. No no no. Just make it go away! Lalalala!
     
    #23     Dec 16, 2016
  4. md2324

    md2324

    NoBias ,

    Thank you for running the Math :)
     
    #24     Dec 17, 2016
  5. md2324

    md2324

    Another Question is ....... Can you ( in Theory ) stay in THE SAME trade for Months and even years at a time , even through all of the Contract Expirations/Roll Overs ?

    Meaning ,
    would you NOT have to close out of the Position and then re-enter into the same trade, when it's Roll Over time, etc. ??

    I understand that my initial question is far fetched , but I was just curious as to what it would look like in a sense, Scaling-In 1 contract per 10% increase in CL
     
    #25     Dec 17, 2016
  6. algofy

    algofy

    You have to sell out of current contract and roll to the next.
     
    #26     Dec 17, 2016
    md2324 likes this.
  7. NoBias

    NoBias

    The questions you are asking are easily answered by performing some due diligence. Suggest drilling down investopedia . Google is your friend...

    rollover
    contango
    forwardation
    backwardation
    contract expiration
    etc...
    etc...

    Once exhausting other research options, a well formulated question will receive more insightful responses, than those which exhibit a lack of effort or basic understanding.

    Not a disparagement, just a tip...

    Internet forums are not an appropriate source of reliable information. Especially those which consist mostly of multi-alias trolls, beginners, wanna-bee gurus, stealth vendors and narcissists. (ET)

    The majority of experienced traders have given up interacting on the site, and visit it mainly for comic relief...

    In regards to your last question, as algofly pointed out. At expiration you need to sell and enter into a new contract (rollover) it is now a new trade, albeit a continuation of your directional bias.
     
    #27     Dec 18, 2016
    md2324 and algofy like this.
  8. comagnum

    comagnum

    The fact is you would not be able to handle the huge draw downs that are inevitable with this concept which you completely ignored looking only at the gains. Even traders with multi million accounts would not have the stomach for the draw downs that are inherit with such an absurd concept of scaling in at 10% intervals.
     
    Last edited: Dec 18, 2016
    #28     Dec 18, 2016
    md2324 likes this.
  9. dealmaker

    dealmaker

    #29     Dec 21, 2016
    comagnum likes this.
  10. dealmaker

    dealmaker

    #30     Dec 22, 2016