Do the liquidity stay constant throughout the day from 9am to 11pm in crude?
Do people trade it whole day?
Not people but algos trade more on MCX. So trades happen almost uniformly from 9 AM- 11 PM.
Most contracts are very illiquid on MCX, and see less than one trade in 30 seconds (from my experience). Many see 1 trade in 2-3 minutes …
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I stopped trading crudeoil after the recent negative settlement and mcx imposing higher margins with brokers not allowing mis cover orders for trading it. But before the crash, liquidity was great, on an average 4 lakh futures contracts used to trade which is around 460 lots per minute, so ample liquidity for large orders to get in and get out. After the higher margins by mcx, liquidity is gone in crudeoil nowadays, so could be difficult.
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now what do u trade the most ?
crudeoil is still pretty liquid today, I am talking about other contracts like Gold, Silver and other commodities.
I trade only those instruments where atleast 100 lots could go in one order without significant slippage.
@HSL I only trade Nifty fut now, waiting for cover orders to resume in crudeoil, though I don’t feel it’ll happen anytime soon.
r u making the same or better in it ;what u used to make with crude ? why don’t u also try banknifty ?
Yes Nifty is going great, but playing with small 50-100 lots only, will increase in a couple of weeks after proper one month is done from the day I started trading it. The problem with banknifty is slippage. I see slippage of 3-5rs on an average in Nifty for 50-100 lots in cover orders, in banknifty it is so high, the strategy won’t sustain for large orders, so not trading banknifty.
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On an average how much points you try to get per trade in nifty?
Nifty moves similar to crude.
Do u use market order ?
Why don’t u use limit order ??
Why do not u use slice or icebergs if u trade in 50~100 lots ?
Do u punch this quantity in one shot or at intervals and break?
Do u try to average when it falls down? Is it 100% intraday?
Let me answer one by one.
Market orders because cover orders trade with that. I can’t use limit orders as I have to wait for price to go beyond a certain point for it to trigger my trade.
I want to, interactive brokers provide it, but then they are not providing cover orders yet.
Its all in one shot with a gap of seconds. No averaging or pyramiding, it is 100% intraday.
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I have weekly targets, not targets per trade. I average 150 plus points per week in Nifty, though I will decrease the targets a little as lots increase going forward. My daily average backtesting and paper trading is 40-50 points per day for 18 days in a month out of the working 22 days, and zero in the remaining four. But, the number of trades and slippages that happen trading every single day is not worth it, so after counting for all the expenses, I am down to 500 points a month, so why not make 100-150 per week even if it means working for one day and sit out the remainder of the week.
I loved the volatility in crude, and had optimized my strategy to have a great risk reward ratio. I am still analyzing Nifty while trading it, earlier my stop loss was 50 points in Nifty, then down to 35 and now 20 points with breakeven too at 20 points.
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(1) 20 points is a too close SL ! how do u protect urslf getting the SL hit ? 20 points is bound to happen in any strategy !
(2) how many days do u get to trade in a week or in a month ?
(3) do u use any type of semi or fully algo ?
Thanks for explaining.
Actually this is exactly what I’m also doing, but in Bank nifty as its easier to achieve 500 points a month and 50+ points in a single trade with 25 point SL.
And when I looked at crude chart, I thought its same as nifty but takes more time to move as it trades the whole day.
No, one can’t generalize like that, the reason I am in a strong green zone most of the days is having a low stop loss, near break even points and high probability setups with automatically being out of the markets when it gets choppy. Else, it is difficult to make consistent money trading.
I get a lot of trades, but then I stay out when it gets choppy or volatile. Also the focus is to sit out as soon as possible after the weekly target is met.
No, its all manual. Infact, I have manually backtested on years of data which has taken sleepless nights. I am bad at using or understanding technical stuff, algo, programming and all.
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great !
u mean ; there are also few couple days in the week or month , wherein u r also in red ?
what kind of set ups , u r talking about ?
(3) is this only your profession / full time ? or do u also have other job / business / service / part time etc ?
No, those couple of days are no profit, no loss including expenses and slippages for the day.
Yeah full time.
Suppose u achieve ur weekly target in one single day then the rest 4 days of the week , u keep idle doing nothing?
Most of the times it happens like that so as of now yes, but I am still exploring Nifty if I could trade everyday like crudeoil.
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