“So says oil!”
Oil roaring today, and maybe … just maybe … oil VIX is starting to turn back
higher … that would indeed be good news … so far today, Brent with a $1.86
range, and WTI with a $1.89 range [so far. More?] … some great “Traders
Course” [TC] algorithm buy signals today in crude, and depending on your
trading style and aggressiveness, there were at least 3 to 4 good scalp moves to
the upside.
Crypto gets literally mauled today, with some coins down over 10% on the day
… EOS [EOS coin] comes to mind … haven’t seen any big news to account for
the drop, but since when does crypto need a reason to be volatile! … some great
moves in the spreads as well, especially LTC/BTC, which has seen a very large
range today of about 324 points … think of LTC/BTC like you would if you were
trading FX in GBPJPY, or something like GBPAUD … since FX is basically dead
meat, many traders worldwide, especially on the Pacific Rim, have shifted focus
to crypto, and LTC/BTC is a very good pair to trade … I’ll have the 20 Day Range
MA for this market, as well as some analysis for trading it this Sunday on the
blog update … and although I haven’t written the crypto chapter for the TC yet
[but will in a few days], more than likely I’ll be using the LTC/BTC crypto pair for
examples … we’ll see.
Back to oil … with this pick up in OIL VIX, especially intraday for the 7AM EST to
about 3 PM EST in New York, the oil algorithms perform really well … well, better
than that actually, but hopefully you get my drift … ranges that exceed $1.50+ are
prime … and with bid/offer spreads of 1.2 - 1.3 cents per barrel, along with round
turn commissions of approximately 1.2 cents per barrel, given the volatility in oil,
you won’t find a better CFD trading vehicle anywhere … if you can find one let
me know, cuz I’ve scoured the world looking … being able to trade in 100 barrel
increments up to a max position size of 7500 barrels, I think it reasonable to say
this covers the vast majority of CFD traders … and the really good news for oil
traders is that from 0 - 300 barrels it's margined at 100X … meaning, if you trade
100 barrels [a buck per penny move], the margin is about $57 in WTI … from
300 - 1,000 barrels, the margin is 50X … this is especially helpful for smaller
traders, cuz the leverage offered helps build your account faster … who wants to
sit around and make or lose 50 cents from trading? … margins elsewhere in crude
oil are significantly higher … for example, at IG it’s 10x and that’s it … if you
wanted to trade 100 barrels, the margin for WTI would be about $570.
Like I said, it makes a big difference to smaller traders … and so far, I’ve seen
almost no deviation from the spread as the market gets volatile during the day
and runs … we all know what happens at Turnkey or Coinexx, when the spread
goes from 3 cents to 8 cents in a heartbeat just cuz oil went 20 cents straight
up/down … screw that shit, I don’t like getting ripped off from scumbag LP banks,
and it’s the big reason I don’t trade there anymore … how many times have I said
my favorite market in the world is crude oil? … and why? … cuz it frickin’ moves
most of the time! … but I don’t want to trade in 1,000 barrel increments, I want
something smaller … up to now, I couldn’t find it anywhere … well IT’S FINALLY
HERE! [and now, add crypto to this, and you have the very best in volatile market
trading conditions you could ever want … period!]
Tomorrow sees some big & exciting oil & crypto news coming … until then mi
amigos … Onward & Upward!!
Have a great day everybody!
-vegas
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