CRUDE OIL GOES TAPIOCA

“Crude oil trading today … look Ma, no bottom!”

Well, that escalated quickly to the downside, didn’t it? … traders finally

getting the hint that the China trade deal is/was a scam, and that global

economic growth is headed south … and that means lower crude oil demand.

Add to the list of oil woes, is the fact everybody and their brother was

positioned long crude oil, on stock market hopium and a China trade deal that

was a “slam dunk” … well, Jordan missed the dunk!

It’s been a while since we’ve seen a days range in excess of $3.50+, but here

it is … and that added volatility means higher bid/offer spreads … in today’s

case, I’m not blaming the LP’s for a higher CFD spread, simply cuz the

futures spreads blew out as well … anytime this happens, you can expect

this, simply cuz price is moving so fast in one direction, traders want more

of a premium for the risk … a risk premium that evaporates like a fart in

the wind, and leaves them breathless.

I want to announce today the release, this upcoming weekend on the Sunday

blog update, our newest & most updated crude oil algorithm [WTI / Brent]

… many hours of work & analysis too high to mention … it works great with

either front month futures and/or CFD’s … Cousin It, CoS [Chief of Staff]

Milton Waddums, and myself, use it and love it … it’s clean, simple, and

totally visual in design, and works both on the MT4 & MT5 trading

platforms. The manual will be released in “Download Links”, which will be

over in the right hand column on Sunday, and can either be viewed online or

downloaded.

I’m going to do things a little differently than before with this algorithm, in 2

entirely different aspects than before. First, I’ve created a Coinexx demo

account with $1,000 in it … starting Monday, I’ll trade every signal from

5 AM EST - 2 PM EST, with a 0.10 lot CFD of WTI crude oil [100 barrels]

… the demo account will capture each algorithm trade as it happens, and

after each month, I’ll archive all trades for readers to see from the demo

account “trade history” function … I’m simply going to take each signal,

without thought or analysis, and let the chips fall where they may according to

the algorithm rules. Secondly, the algorithm is free to my readers with the

following stipulation … after you’ve followed it and used it in live trading, I

expect at some point in time, users to donate via crypto back to us what they

think it’s worth … so, I’m doing the reverse of what everybody else in the

industry does, which is charge you for the algorithm first, and then let you

have it … well, we do things a little differently here at Red Glass Capital, LLC

… we let you have it, and leave it up to you at a later date, to give back to us

… if you think it’s a pile of dogshit, then don’t donate … if you like it and

make money with it, which we know you will, then it’s up to you and your

conscious to do the right thing … so, no bitching and whining from the small

accounts crowd about never getting a break in trading … here’s your break,

so take the ball and run with it … and after you do well, do the right thing

… and if you don’t, it’s your problem not ours!

I will mention also, that we tried to make the algorithm work with NADEX  

call spreads, but it didn’t work out for 2 very big reasons; 1) optionality

premiums built into the call spread price, were disproportionately skewed by

moves in the futures, and 2) the evaporation of premiums hurt profits when

the market simply chopped and went nowhere. And, like I’ve said before, I’ve

had it with NADEX.

A brief glance over at the oil CFD, and the carnage continues unabated, with

now a greater than $4.00+ range on the day … last time I saw this kind of

action was in 2013, when oil got raped & pillaged after it broke the $100 mark

on the downside … so, it’s been a while. And for the record, this morning at

5 AM EST, right out of the gate, there was on oil algorithm sell signal at 60.35

in WTI … the liquidation signal came at 7:30 AM EST at 58.15.

Onto tomorrow mi amigos … let’s see how low this thing can go

… Onward & Upward!!

Have a great day everybody!

-vegas