“Walter Sobchak … official poster boy of WTI Crude Oil!”
Directly below, this week’s 20 Day Range MA in WTI Crude Oil.
click on ANY chart to enlarge
For a market that hasn’t really gone anywhere, aside from the Saudi Arabia drone
attack bullshit, it remains remarkably volatile … this week’s 20 Day Range MA
comes in at $2.10 per barrel … given a market price of approximately $53 per
barrel, that’s daily volatility of approximately 4% of the entire notional value of a
barrel of oil … the daily candlestick for the last 3 months directly below.
To put this into perspective, the current volatility of oil would equate to the
DOW30 having 1,000+ index point ranges every day … gold would be seeing $60
per Oz. range days … and Cable [GBPUSD] would be enjoying 500+ PIP ranges
every day … the difference of course, is that oil isn’t and can’t be manipulated by
government … the rest of the lot most definitely manipulated.
Now, that doesn’t mean oil isn’t jerked around by manipulators … it most certainly
is … just not government via the FED and/or other major central banks … truth be
revealed, there’s a BIG reason why between WTI and BRENT, approximately 2
million futures contracts per day are traded at 1,000 barrels a 1 lot … and that
reason is, every scumbag dictator with oil in the ground, every major oil company
& refiner, and every Cocaine Cowboy looking for action with a few dirty bucks, is in
the game and playing every day … welcome to the casino everyone, we’re open
24/5!
The “Traders Course” will be done next weekend, and with a solid, most of the
time, 3 cent spread with no commissions, FX CHOICE is a solid choice [no pun
intended] to trade either WTI or Brent crude oil. FX CHOICE is domiciled &
regulated by the IFSC in Belize, the modern day equivalent of Switzerland, and
you can enjoy the highest level of privacy, security, and safety of funds, with a
multitude of deposit and withdrawal options … they also have a very good 4 STAR
rating at Forex Peace Army, the internet’s largest anti scam website that tracks
and reviews forex brokers. Opening an account here is easy … sign up, log into
the back office, create a demo or live account and you’re done … for live accounts,
all you need is government ID to be verified and ready to trade.
It doesn’t matter which type of account you choose on the MT4; either MT4 Pro
demo/live OR MT4 CLASSIC demo/live … they both are the same with regards the
bid/offer spread and no commissions … as an aside, ALL of FX CHOICE CFD’s
are the same in either type of account … they have an excellent DOW30 CFD
which usually has a bid/offer spread of between 1.8 - 2.4 index points with NO
commissions, and their DAX30 spread of 0.70 - 0.85 index points with no
commission is one of the best in the offshore brokerage world, and as a further
aside the DAX30 opens each day at 03:30 server time, which is 8:30 PM EST, a
half hour before markets open in China, versus most houses [like Turnkey],
which open the DAX30 each day at 09:00 [2 AM EST] … so, if there’s news
affecting the DAX30, you got an extra 5 ½ hours where the market is open to
trade, and the bid/offer spread is only marginally higher during this time, maybe
1 index point higher than during the European day.
When the TC is finished, you can get the algorithms for crude oil … there are 2
scenarios for oil traders; 1) short term trader/scalper, and 2) position trading
DURING THE WEEK using the HR1 … currently, FX CHOICE has NO VIG, or
rollover charge for carrying a long/short position through rollover into the next
day [Turnkey & many others do!], so there are ZERO charges for that … FX
CHOICE servers are set to 00:00 at 5 PM EST, and the market is open daily from
01:00 - 24:00, except for Friday, where the market closes at 23:45 [4:45 PM EST]
… so, your exposure for carrying positions through rollover lasts one hour.
I’m not a position trader kind of guy, but I know there are traders who are … and
so, staff and I worked very hard to create a workable algorithm for position
traders in oil … although, I gotta say, with a 4% per day volatility of the entire
notional value of crude, I really don't think anybody has to hang onto anything in
this complex overnight … but whatever.
Onto the week at hand … until tomorrow mi amigos … Onward & Upward!!
Have a great rest of your weekend everybody!
-vegas
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