CL - nice little contract to trade

Discussion in 'Energy Futures' started by brownsfan019, Nov 29, 2007.

  1. I've watched and traded Oil off and on over the years, but the CL recently has really gotten my attention again. I just like that this thing moves and it can move in substantial ways. Such a breath of fresh air from the ES which at times can take hours to move.

    Just wanted to see who else is trading this contract (CL or GCL on some platforms) and what you like/dislike about it...

    So far, I'm enjoying this contract much more than any other contract I've traded in recent memory. I guess I just like that it let's you know real quick if you are right or wrong.
  2. it has huge daytrade margins compared to the ES...CL is $2,900 and the ES is $ opinion...
  3. i trade CL and have done for 6 months or so. volatility has gone insane recently - i've had to cut my trading size by approx 1/3 to adjust to my risk parameters. i trade a mechanical breakout strategy which has been doing great but we'll see what happens next - the market is changing and with that comes changes in behaviour.

    what i like -
    - volume had massively increased over the last 3-4 years
    - as you say, the swings are sizable and can happen quickly - great for my strategy
    - the market is largely uncorrelated with equity markets (i trade both)

    not so keen on -
    - the trickiest time to trade is over the inventory figures on a weds. slippage here can be annoyingly large.
    - i see the huge change in volume participantion (advantage above) as a double edge sword. i rely on back-testing and such increases in participantion (and now volatility) makes me nervous as it could exacerbate the non-stationarity of the maarket. still, i'll let the future performance of my systems tell me that.

    other thought: market activity is not restricted to the pit session. again, plus and minus points to this but it requires a different outlook to ES etc where pit hours + eco figs dominate the volume and volatility.
  4. Sponger


    Trade the QM mini contract
  5. I like trading CL intraday because it trends well and doesn't chop around. You can tell within a minute or two if your position is the right one. If it isn't, you'll know!

    It is the Robert DeNiro of contracts: it doesn't f$%^ around!
  6. doyin13


    At the risk of sounding like a complet novice. . .what do CL and es stand for?
  7. hsmc1970


    CL is the Symbol for Crude Light oil Futures and ES is the SP 500 Futures contract
  8. Zanatos


    Who is your broker? IB was charging 7,800$ a its about 7100$, as per the Nymex non-member rates
  9. Hi Brown

    Where else do you get an annual range of 100% , from $50 to $100.The minimum annual range I have seen is 30%.It is very volatile and the stops need to be kept at a distance.

    I think it is very trendy and it is very liquid and there is no broker/insider manipulation.

    I don't think there is anything better to trade

    Love it ,love everything about it.

  10. Brown

    Would you reccomend any strategy to us?

    If you could please write a set of mechanical rules and I will write up a EXPERT ADVISOR for metatrader for automated trading.

    Search the net and you will find another of my strategies .Search for OILTRADER MACBOS.Maybe I can improve it

    #10     Dec 6, 2007