Mkt Student

if today’s option volume price is higher than yesterday’s, then buy at the open tomorrow and sell at the close.

Although I think it’s a nothing system. I’ll think about it later.

In the UBS commodity index there seems to be a shift in the correlations among the subsectors. Specifically grains, softs and precious metals are above 0.60 in correlation against the major index. That’s a jump from an average of 0.30 back in V9.

Also energies and industrial metals reduced marginally their dance rhythm against the UBS average as they ticked down 2 points; Like from 0.87 to 0.85.

 

Although the change might no be statistically significant, I want to know if there is a fundamental shift in the fact that tropicals are being more influential on the index. Specially when the DX has been climbing strong during this time.

 

I sense that the answer rocks in the nat gas market. There might be a paradigm change that’s influencing the rest of the commodity complexes.

Options on futures.

 

I am implementing the Trading Drills that Dr Brett posted a few days back on his traderfeed.

Those are three drills: one for a 10 min span. Another for 30 min and one for positional in hours. I have just not implemented the last one because it deals the management of a big position during the intraday and I just have focused in the first two.

The market I’ve been trading is CL, but later on I pretend to extend this drills to simoultaneous markets and I recognize more opportunities.

Today I made one 5min drill with a los of $65 and two 30min trades. Yesterday was a 30 min tryout and profit was $195 (net of everything) and was risking $775. Today’s trade was interesting:

I se two limit orders: one short and another long because the crude seemed pretty quite about 12.20pm CT and I thought that the strategy would be to follow the direction either it was up or down. Market was at 78.35 as I developed to put two limits, one buyer at 78.61 and a seller at 78.04. I give them 30 mins to be filled and they weren’t.

But 1.5 hours later mkt was at 78.81 which would have been an interesting position.

The reason I would put why to follow the uptrend is because my systemd based on the call/put volume, which happens to be a short only signal, has not been active in the last days.

So a drop in price would give me some reward if 30 mins would have been eonough to maitain a low price maybe to buy it back at that very point.

 

Also I am testing a KC system which I found for my birthday and has been very nice in paper. Since 29G to date the evolution would have been like this:

to implement in the market workshops at ufm.

http://traderfeed.blogspot.com/2010/02/training-traders-role-of-simulation-in.html