NexusFi: Find Your Edge


Home Menu

 





Any idea how to trade CL on Inventories Day?


Discussion in Commodities

Updated
      Top Posters
    1. looks_one noyss with 4 posts (0 thanks)
    2. looks_two adkelley with 2 posts (2 thanks)
    3. looks_3 Quick Summary with 1 posts (0 thanks)
    4. looks_4 IFO Joe with 1 posts (1 thanks)
      Best Posters
    1. looks_one andersjr82 with 2 thanks per post
    2. looks_two FoxKaren with 2 thanks per post
    3. looks_3 adkelley with 1 thanks per post
    4. looks_4 Oil Trader with 1 thanks per post
    1. trending_up 3,709 views
    2. thumb_up 9 thanks given
    3. group 10 followers
    1. forum 11 posts
    2. attach_file 0 attachments




 
Search this Thread

Any idea how to trade CL on Inventories Day?

(login for full post details)
  #1 (permalink)
 
noyss's Avatar
 noyss 
Ibiza. Spain
 
Experience: Intermediate
Platform: MT4
Broker: Darwinex
Trading: EminiSP, Crude, Euro/Dolar, Bitcoin.
Posts: 76 since Jul 2012
Thanks Given: 121
Thanks Received: 32

Hi guys


I'm just seeing that trading on Inventoies Day usually gives me surprises, some good, some bad, but thinking that maybe is better to avoid it:

1- If you trade before the news you could get stuck by a range move

2- If you wait after the news came, which what I do always sometimes the price moves into a big backward move and it's difficult to know when the price is stable to make a good trade...

How do trade this day guys??? or you just don't trade that day???

Thanks to all

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
IQFeed MBO data experience
The Elite Circle
ZigZag displaying ticks
Platforms and Indicators
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Request for MACD with option to use different MAs for fa …
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
GFIs1 1 DAX trade per day journal
28 thanks
Supertradersams Thread Journal on NQ/MNQ
26 thanks
Tao te Trade: way of the WLD
20 thanks
Just another trading journal: PA, Wyckoff & Trends
12 thanks
Deaddogs Stock Trading
11 thanks

(login for full post details)
  #3 (permalink)
wintergasp
London, UK
 
Posts: 29 since Sep 2016
Thanks Given: 1
Thanks Received: 31


That's a question I've asked myself a few months back.

What is your trading style, what do you do ?

My main strategy is to do intraday trend-following and when I look at 40 years of data, trade my strategy every day, or trade it every day at the exception of days that are inventory days, I have the same results, roughly. So for my trading style, on average over a long period of time, inventory day is traded as business as usual.

Reply With Quote
(login for full post details)
  #4 (permalink)
IFO Joe
Chicago IL USA
 
Posts: 8 since Sep 2016
Thanks Given: 3
Thanks Received: 10

This is a tricky one.

I typically am very cautious on report days as any surprises can send prices skyrocketing or dropping like a rock.

Usually you'll see market movement in the days leading up to the market report as to what the report is "expected" to say.

In other words, if traders are expecting a bullish report, you'll see prices moving up prior to the report date. But, if the report turns on to be bearish or not as bullish - not what was expected, then this is when we can see big price moves.

Just be careful trading on report days is the best advice I can give. Use stops and/or futures options to minimize risk.

Best wishes,

Joe

Reply With Quote
The following user says Thank You to IFO Joe for this post:
(login for full post details)
  #5 (permalink)
FoxKaren
New York City
 
Posts: 13 since Nov 2016
Thanks Given: 0
Thanks Received: 7

I usually trade 5 minutes before the Inventory report and resume trading 5 minutes after the report comes out. The report itself provides information on how our stock pile is doing (supply/demand) and the market will move based on the numbers versus what is expected. When the report comes out I usually stay out of the market during this time.

Reply With Quote
The following 2 users say Thank You to FoxKaren for this post:
(login for full post details)
  #6 (permalink)
andersjr82
Cincinnati, Ohio
 
Posts: 8 since Jan 2014
Thanks Given: 5
Thanks Received: 7

My strategy goes a little something like this...

First, I identify the recent (past 5-10 days or so) trend direction based on 30 min or 60 min chart. If the trend is up, I will only be looking to buy, ditto down = sell. I will usually then wait about 7-10 minutes after the report for the initial volatility to settle a bit. Then I'll be looking for price to break a support/resistance level (prior day high/low, etc) in the direction of the trend I previously identified.

It doesn't always trigger a trade; sometimes the move is against the trend or price just sticks in a range. But when it does trigger, I find it can typically spur a 20-30, even 50+ tick move in fairly quick fashion. I will usually put my initial SL at 15-20 ticks and peel off a contract at 10 tick target, leaving one to run and moving SL to break-even or a few ticks profit.

Reply With Quote
The following 2 users say Thank You to andersjr82 for this post:
(login for full post details)
  #7 (permalink)
 
noyss's Avatar
 noyss 
Ibiza. Spain
 
Experience: Intermediate
Platform: MT4
Broker: Darwinex
Trading: EminiSP, Crude, Euro/Dolar, Bitcoin.
Posts: 76 since Jul 2012
Thanks Given: 121
Thanks Received: 32


wintergasp View Post
That's a question I've asked myself a few months back.

What is your trading style, what do you do ?

My main strategy is to do intraday trend-following and when I look at 40 years of data, trade my strategy every day, or trade it every day at the exception of days that are inventory days, I have the same results, roughly. So for my trading style, on average over a long period of time, inventory day is traded as business as usual.

First of al. Thanks to all, good ideas I can take

Yes, I'm intraday trend and discretional trader Wintergasp. In the end, my way in just to wait 10 min more or less until all the excitement or panic has gone and go for the trade, if any, after break the lines or support/ressistance. I try to draw meticulously because the range should appear really big and out of context, but doing and waiting for the right time there is some days that is worthit.


Started this thread Reply With Quote
(login for full post details)
  #8 (permalink)
 
noyss's Avatar
 noyss 
Ibiza. Spain
 
Experience: Intermediate
Platform: MT4
Broker: Darwinex
Trading: EminiSP, Crude, Euro/Dolar, Bitcoin.
Posts: 76 since Jul 2012
Thanks Given: 121
Thanks Received: 32

I leave you a good report about Oil Inventories and its reaction from year 2003 made by Tradestation:

https://www.tradestation.com:443/education/labs/analysis-concepts/crude-oil-inventories-and-price-reactions

Read it, it's curious and good to know

Started this thread Reply With Quote
(login for full post details)
  #9 (permalink)
 Traderjohnsblog 
Tampa florida usa
 
Experience: Advanced
Platform: NT
Trading: CL
Posts: 68 since Jan 2017
Thanks Given: 5
Thanks Received: 76

Hello Nyoss,

I am not a big fan of trading the news but I will on occasion trade the inventories report on the CL. I usually wait until the news comes out. I am of course looking for some surprise in the numbers. Once the report comes out I drop down to either three or five minute bars and look for an inside bar formation. Once I see this I trade in the direction of the move. I will exit when tick volume drops off or the move slows and develops intraday support and resistance levels

Reply With Quote
The following user says Thank You to Traderjohnsblog for this post:
(login for full post details)
  #10 (permalink)
 adkelley 
Park City, Ut USA
 
Experience: Advanced
Platform: NinjaTrader
Trading: CL, ZB
Posts: 27 since Feb 2013
Thanks Given: 4
Thanks Received: 21


I trade the release on a micro timeframe counting usually on at least one reversal and commonly two

Reply With Quote
The following user says Thank You to adkelley for this post:





Last Updated on January 4, 2017


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts