Crude Oil Day Trading

Crude Oil Day Trading Some Days Look Good

Crude Oil Day Trading Some Days Look Good

During my day trading session, I looked at Monday’s market and it looked like a market poised to break down to at least the 50% Fib Retracement level around 4166. This was not to be during my trading day, but I still firmly believe this is the path of least resistance at present.

I had 4 trades today in my funded account and lost 26 ticks during my trading session. This places my funded account around $519 (positive). In other words, this is my second straight loss day in a row I traded.

My thought right now is to wait for the CLPIT Strategy (Inventory Report) on Wednesday and determine if it is a good setup and then take the trade, if available to do so.

Futures Crude Oil Day Trading Charts:

Here is the daily chart in the crude oil futures market showing a possible fibonacci retracement back to the 50% line, as shown above in the daily crude oil chart.

Futures Crude Oil Day Trading Charts: FakeOut

I liked this fakeout trade setup at the S2 line. If there was any strength to the short this was an excellent place to go short and see what happens.

It was not to be on the trading session … I gave it 4 tries during my afternoon trading session, but it was not to be …

Futures Crude Oil Day Trading Charts:

Gann 4th time through … my good old friend Gann showed up today to confirm the short opportunity, but it had no follow through. It was a Monday the market was down and it looked like we would go down into the close to continue to make new lows in the crude oil market.

Futures Crude Oil Day Trading Charts:

Futures Crude Oil Day Trading Charts: Another point to Short Into Close

Crude Oil Day Trading Some Days Look Good

So what can I say … even though … I followed my trading plan I am also wanting to be defensive into the zero line. I expected a pullback on my trading account.

Personally, I don’t think there should be any trailing drawdown against the account, or at the minimum it should be set under your previous swing low (2 back).

Let me demonstate:

Crude Oil Day Trading Some Days Look Good

Now let me explain my thought process as it relates to the funded account at TopStep Trader. I believe I should be able to trade into my last (or previous) swing low (valley) of my funded account. This should be my trailing max stop loss on my funded account.

In other words, if I would drop below roughly minus 429. My last true swing low on the funded trading account, then this is where I would have to go back into redevelopment training at TopStep Trader. But …

We only have the zero line available to us … we cannot allow our funded account to drop below the zero line. This goes directly in front of the ebb and flow of being a trader. There are naturally times when you have drawdown, and there is time when you are making new trading account highs as well.

The goal, at least as I see it, is to make new peaks and not trade below your last valley as a trader. This makes perfect sense to me and has been the way I have always built my trading account. I am not use to have to worry about a particular point, in this case the zero line to play havoc with my trading mind.

Believe me when I say this … it is tough enough to beat the market … but having to beat the market (the house) and the house within the house … makes it very very difficult to tread water here.

So what I am saying is I am at that critical juncture in my funded trading account. The way I see it as I have one more losing trading day available to me in the funded account here at TopStep Trader in this current drawdown.

Trust me when I say this … I am doing my best to remain optimistic … but the reality of the situation is not lost on me.


Good Trading,

David M. Knight

P.S. What is the CLPIT Strategy? Click here to find out …




About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.