Anyone have comments on trading Crude vs Index futures… I have not done crude in over a year… very frustrated with the indexes ES / NQ / TF / YM… looking for a change
The problem with trading oil is the weekly inventory #, No one knows how it will react, the instant the report comes out, oil can jump 1-2 points. You would have to stay out of the market on inventory day.
yup… when I traded before on Crude I would be flat about 20 mins before announcement and 20 after… or just stay out for rest on the day… it is still 10:30 EST time every Wednesday…
or is it 1:00PM ESt when the remainder of the info is put out… I think it is the 1:00pM
It’s still in the the morning, PST, also got the weekly rig count. The Oil markt is rigged, the Saudi front running every week.
EIA report is Wednesday 10 30 EST; except when holiday is on Wednesday. Then it moves, either to Tuesday or Thursday.
You also have API report (that is 16 30 EST; each Tuesday) and Rig count on Friday.
CL is more volatile when comparing to index futures.
Too much slippage on CL. In real trading I have had 6, 10 and even 24 ( $240 ) tick slippage. 4 to 6 ticks were common, decided to stay away from it !
In most cases, CL is 1 or 2 tick slippage.
Huge can happen during EIA or API. When price moves very fast.
But even today, if you check DOM of CLQ18, you will find only 1 tick slippage.
I don’t know CL particularly, but @Biks might be referring to real trading of CL with market orders placed for autotraders. Bound to be more slippage there.
You should familiar for each market characteristics. If you feel very frustrated with index futures, you must not involve in Crude Futures. The movement is very volatile, it can moves up and down significantly before even you blink your eyes during the news report. It does not matter if you have big pocket, when you are in wrong direction for this market, you can significantly loss your money. Usually, when someone has big pocket, they will put more contracts. You also need to think when you follow at C2, the slippage in CL can be another crucial factors for your trade and make HUGE different. It seems. you are interested with high flier products in here, many strategies are disappear or loss significant money for that characteristic and always there is always new strategy with big return in very short time period and disappear.
These were actual slippages on my TOS system, 24 ticks were actually happened after news but other’s were normal fast market movement slippages. It doesn’t happened all the time but about 6 ticks happens quiet commonly in a fast move, funny though they never give you positive slippage. Hard enough getting an edge but losing that much in slippage is too much, for me anyway.
