“Of course, he was referring to crude oil trading!”
For a market that isn’t really going anywhere from day-to-day, week-to-week, WTI
Crude Oil has a very high 20 Day Range MA … directly below, the current week.
click on chart to enlarge
Averaging a $2 range every day isn’t easy when you’re not going anywhere on
the dailies, but then factor in all the political bullshit taking place and you end
up wondering why it isn’t higher!
Lately, and it isn’t by any means restricted to oil, the market has been extremely
volatile to breaking news events … love ‘em, hate ‘em, it doesn’t really matter cuz
they end up moving oil violently … the trading action we’ve been seeing makes
the oil trading algorithm almost obsolete in its effectiveness to capture profits
without risking the farm … in the days ahead after the September Labor Day
Holiday, we’ll be releasing a new oil trading algorithm … we’re beta testing it now
in real time, and it’s a better trading algorithm for oil.
As many of you know, the biggest problem in trading oil [WTI and/or Brent] is
finding the right offshore brokerage house to trade a CFD that doesn’t rip you off
… and the cold hard facts are 99.9% of all of the oil CFD’s are JUNK … sky high
spreads with some larded up with commissions as well … the two offshore
brokerage houses we are most familiar with, COINEXX & TURNKEY, used to have
decent oil trading CFD’s … today they are a cruel joke and a complete rip off. If
you live outside the U.S. and/or are a non U.S. citizen, the two best places to trade
oil are PLUS500 [Israel] and CMCMarkets [UK] that we have checked out … that’s
not to say there aren’t others, but we know these two have 3 cent spreads or
LOWER with no commissions … if you’re paying more than 3 cents bid/offer
spread, you’re getting ripped off, and even if the brokerage house quotes 3 cent
oil spreads, make sure you know if there are round turn ECN commissions as well
or not … many houses will quote a good spread, and then completely rip you off
with a commission that makes your net cost to trade oil 7+ cents a barrel or even
MORE.
For U.S. citizens it boils down to, do you want to trade in the U.S. via the futures
market with the standard 1,000 barrels per 1 lot and/or the emini 500 barrels per
1 lot contracts, and put up with higher margins and the generation of a 1099 to the
IRS for your account, OR do you want to trade these futures offshore, e.g. at
Investors Europe, or someplace else and have no reporting requirements?
… right now, there is NO offshore brokerage house, that I know of, that accepts
U.S. clients and has anywhere near decent trade conditions in oil CFD’s … they are
all complete rip offs … sadly, U.S. citizens join North Korea, Yemen, & Syria on the
list of forbidden countries most offshore brokers refuse to deal with … thank you
Nanny state government and all the bullshit you bring to the table.
When we release the new oil algorithm, we’ll be uploading M1 charts to the blog
that utilize 3 cent bid/offer 🙶net cost🙷 pricing … this way, whether you trade
futures or CFD’s, you’ll be right on the market for whatever platform and
brokerage house you’re using, and everyone will only be fractions of a penny off
the market no matter how you trade oil … this to us seems the best solution to
handle everybody.
Onto next week, and we’ll see what political bombs drop to make oil go up/down
like a roller coaster … that’s pretty much all there is to markets anymore … and
oh yes, the oil inventories roulette games on Tuesday late afternoon &
Wednesday morning … other than that, sit back and wait for the ChiComs and/or
Trump tweets … until tomorrow mi amigos … Onward & Upward!!
Have a great rest of your weekend everybody!
-vegas
