Is This the Worst Time to Trade Crude Oil?

There is great concern today that it is not the best time to trade Crude Oil, what with the price level reaching its lowest in 21 years.

Nothing could be further from the truth.

The Crude Oil Investment Club is an exception in that its method of trading and the strategies in place, making it the best time to generate substantial profits.

How can this be?

Our trading strategies are such that we are risk-averse and we monitor every trade for every second that it is open which enables us to either close the trade to take an immediate profit or to mitigate a loss. We cannot be hurt since we do not keep trades open for longer than seconds or minutes. We are like Air Traffic Controllers in that we have to keep our eyes on our screen continuously.

We always close our trades during the trading day, so we do not leave any trade open overnight to risk what may happen when we cannot control our exit position. And we certainly never, under any circumstances, leave trades open over a weekend.

We do this by sculpting as opposed to scalping.

Scalping, when used about trading in securities, commodities, and foreign exchange, refers to a legitimate method of arbitrage of small price gaps created by the bid-ask spread which is a legitimate method of trading based on quick momentum trades triggered by order flow reading setups. Typically, scalping takes place on trades lasting from seconds to minutes.

Sculpting is a method of trading that is price-based but more surgically precise and trades can take from minutes to hours.

Our trading starts when the Asian markets open. We look at how the prices move during the first half-hour and consider the tools we rely upon as well as our special proprietary keys which tells us if we should open a trade there and then. All of this happens on the CME Globex.

Globex is an electronic trading platform – the first of its kind – used for derivative, futures, options and commodity contracts across all asset classes. Developed for the Chicago Mercantile Exchange, CME Globex (as it is officially known) operates continuously, unrestricted by geographic borders or time zones.

Globex is an open-access marketplace, operating nearly 24 hours a day, from Sunday evening through late Friday afternoon, which allows participants to directly trade and view orders, prices and other data in real-time.

The start of the CME Globex session, which usually occurs in the afternoon or evening, generally marks the beginning of the next trading day.

The next important time to trade is the Pre-European session. If the trend that we saw in Asia continues an hour before the European markets begin their trading, this tells us to trade.

The next important time to trade is the opening of the London trading session. It will enable us to make scalping trades that are a good start to the day and to monitor the trades on the ICE (Intercontinental Exchange).

Subsequently, there are further scalping opportunities at very specific London trading times which give high probability trade setups.

One can determine certain trend patterns in the London trading session, which follow as a consequence of the movement in the Asian trading session. However, sometimes the US market will try to influence the price movement, so we continue to monitor this closely to enable a positive continuation of our trading.

The next important time to trade is the pre-markets in New York on the NYMEX (New York Mercantile Exchange) where WTI Crude is listed. Normally, this will also give us numerous scalping opportunities.

There is a tendency for the trend to pause, post the NY afternoon, after which the volatility in the markets resumes. We then take our longest position of the day. It may be a Sell or a Buy opportunity which we will monitor and normally close at the end of the trading day.

We are risk-averse and expose very few trades outside of this definition, so our Club Members are thus protected.

Our Club Members not only have the above protections and profit-making opportunities but also should any Member decide to withdraw from Club Membership we deal with it without delay.

All Members have the Club’s guarantee that they will not suffer losses that diminish their initial investment. That is our expression of how confident we are that our strategies and proprietary keys will work. Where else can a potential Member enjoy the same protections?

In summary, now is the best time for new members to join.

If any additional information is required, please contact sunil@bretcrown.com or me at neil@bretcrown.com

Neil G Van Luven

Neil G Van Luven signature

President of the Crude Oil Investment Club