Ok, NQ and APPL that is easy, but what about APPL and CL? I thought I noticed something between the two, watched, made notes, took a few paper trades, and for the past month have taking real trades. These are short term day trades and I am using APPL as a lead for some of my CL trades, or confirmations. I know I am nuts, but so far this is working. While I probably shouldn't have posted it, I am interested in a theory of why these might be coupled in some fashion. For the trades themselves, I am sticking with what I see as the trend based on my longer term time frame, and then watch price action on APPL. As long as CL is moving, I guess another subjective opinion, I will look to trade CL based on APPL. I wish I were a genius, but I don't see why this is working. Maybe simply I am watching price action more closely, or is there a possible connection? Be interested to read any thoughts. I also am one to close down an edge as soon as I see it not working. This one only has just over a month under the belt, so obviously not anywhere near valid, other than I am averaging 3 trades a day with it. That includes days with no trades. A fair amount of trades, but a very short lifetime.
An example sold $86.10. I did this as I was typing and was probably a mistake as AAPL is ahead of where I would have normally gone in. Trying to $86.17.
Shouldn't have taken, as I was posting. Was a fail either way, went to my stop and APPL is still falling.
Well, it did come back to BE to plus 6 ticks, but for me with a wider stop I would have still only had 1 off at 5 ticks, and the other 2 would now have been hit for a loss. Yet, APPL continued to fail. Well that shows how it doesn't always work, but I actually thought as hard as APPL was dropping a reentry would have been justified. I didn't and that's trading.
Had another signal, but it may have only worked because Boehner came on tv. Made my loss back and then some, but it was influenced by something other than the basis of the trade. Cripes, now I'll be thinking too much and miss the trade.
Having traded AAPL and CL extensively, and possessing a knack for finding similarities in seemingly disparate things, my first thought was "apples are a light, sweet snack and CL is light and sweet". But you must always keep a tight reign on risk when trading CL because it's also quite crude.