10 trades and $32,000 later ... Crude Oil continues to deliver
The price of crude oil (NYMEX_CL) continues to move higher aided by speculative and hedge fund demand. However, this market has exhibited no signs of a blow-off which are typical of commodity market behavior when a top is reached.
We have continued to trade crude oil based on our "Trade Triangle" technology and have been extremely happy with the results. In this short video, I'm going to show all of the past and present signals and the success rate we achieved using MarketClub's technology
Since the beginning of the year, we have traded crude oil ten times.Out of those ten trades we have seen eight winners, one loser and one scratch trade. A scratch trade is when you get in and out at the same price.
The trade signals are based on using our "Trade Triangle" technology for crude oil. The ten trades produced gains of $32,250 for each contract traded. This represents a return of 331% (so far this year) based on the latest margins of $9,788 supplied by NYMEX for a single contract.
How high can crude oil go?
Pick a number, any number and that's how high crude oil can go. Right now world demand, and not just US demand, is driving crude oil prices. The U.S. represents only 5% of the world's population, but the U.S. utilizes 25% of all crude oil supplies everyday. With India and China coming on strong with their own respective economies, there is going to be intense competition to acquire crude oil at any price. Demand coupled with a sharp decline in U.S.Dollar value (last 6 years) are all contributing to higher prices.
The greatest challenge to traders and investors is not the current price of crude, but it is emotion. Emotion will play a big part in the crude oil market in the coming months and years. To be successful trading in crude oil, traders need to eliminate all emotions. The only way I know how to do this successfully is by utilizing a simple market proven strategy like the "Trade Triangle" technology.
Enjoy the video, and if you have any questions please don't hesitate to contact us. We have a willing support staff to help members, and if you have questions about joining MarketClub they can also help you with that as well.
Thanks for taking the time to watch the video,
Co-Founder, MarketClub.com
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Dear Adam,
Please could you explain which exact price of daily bars (Open, Close or else) must be used to enter trades with Triangles?
Valery,
Sorry to disappoint you, but this is not Adam. I hope I can help you just the same though. The price and date that are issued under the triangles are the exact time and price at which algorithm triggered as a change of trend. The triangles are issued intra-day although they are issued on a daily, weekly, monthly or quarterly level. So there is a pre-determined price in the algorithm and when that price is reached a triangle is issued.
Please let me know if you have any other questions. I will do my best to help.
Best,
Lindsay Thompson
Director of New Business Development
INO.com & MarketClub.com
P.S I also trade on all the oil trade triangles so far have been stopped out a couple of times, but looking at the overall picture, I am well and truly up! Not bad for a service that's cheaper than a gym subscription!
Reply to Lisa: whats up with crude will there ever be a roll back say $100 a barrel oil?
With world demand at 87m barrels per day and current maximum output at 85m barrels per day I doubt a major correction to $100 per barrel will occur in the short term. What could prove to be interesting in the medium term is the political stability of Iraq. When the Iraqi political system settles and oil is release onto the market we could see a small downward correction. Forget not that China & Co are at the start of what I gamble to be a industrial revolution like no other seen!
I have my money well and truly piled on Dec 2012 and Dec 2018 crude contracts, (long). With sensible money management stops to ensure security in the event of a major downward correction.
Never second guess the market, manage stops and if all else fails "It's only money".
Will
today crude oil reports
One thing I have noticed of late is a lot of traders want to jump on Oil. They say, why bother trading the stock market when this thing keeps going up and up - but their biggest issue is they wonder if they do get on, it will be when the big correction takes place - i.e. they will get on at the wrong time.
This is why you need a plan and system which tells you to buy or sell an asset and not the news. At the moment the news is driving the frenzy in Oil. This is why everyone is now interested.
Market Club are doing the right thing by giving what 85-90% of traders don't bother to create and that is a system of rules that bypasses the news.
A system tells you to get in to an asset well before the news does!
Well done!
GIVE ME REPORT OF GOLD
How do I get notified of a triangle change - weekly for trend, then each change of a daily for trades? by e-mail as a member? Also, do the triangles change live during the day or just on the close each day?
Thanks, Jeff
Jeff,
We are working on an alert program as I type. The Trade Triangles are dynamic and are not end of day. As a member you will hear about the alerts very soon. In the meantime check out this link:
http://broadcast.ino.com/education/winningtrades/
Adam
Very interesting video. The CRUDE success is probably not typical with other commodities and other markets such as stocks, etc. Or is it?
Also, on trade 8, you showed a $3,900 (or so) loss. Am I right that this is only an illustration? And did you assume no money management techniques for this illustration? Or is this the recommended approach to follow the trade triangle method? My point is that one could contain the loss by employing stops. Or is it that stops are not possible with options (I am not familiar with options).
Lenn.
Lenn,
Thanks for your feed back.
Take a moment and watch this video. I think it will answer most if not all your questions.
http://broadcast.ino.com/education/q1_2008_results/
Cheers,
Adam
How do you know when to transition from one side (short) to the other side (long). On your oil chart, you use the week for direction. How did you know on the second buy, not to wait to get short again, and therefore, missed the up run, or at least missed the first part of the trade? i.e. Why not have gone long on the first buy instead of the first? or the third:
Kerry,
Thanks for your feedback. Good question.
We use the weekly Trade Triangles for trend and the daily Trade Triangles for timing. When the weekly Trade Triangles change direction we use that signal as our original signal. When the weekly Triangle kicked in, in February it turned the trend positive for oil and that was our original buy. Subsequent buy and exit points are all based on the daily Trade Triangles.