Day 2 TST 50K Trading Combine

Wednesday: October 14th, 2015

Day 2 TST 50K Trading Combine: Crude Oil Trading

Today’s Video Training: Using Volume to Determine Trade Entry and Trade Direction

CLPORT Method: Trade #1 LVLTW HVS 700 Bracket Trade overrides CLPORT Method today during the trading session … but still only one trade in the 8:05AM CST to 8:30AM CST time frame.

Trade #1: Short 4610 at 8:15AM CST. I received two ticks positive slippage on trade this morning. This will not happen when I am in the real trading account.

This trade is setup at 1/2R based off the volume of the trade at time of entry. I am only short 1 contract with a 3P profit target initially set on this trade.

Trade Exit Hit Stop Loss 4623 at 8:20AM CST.

Now we wait till after 8:30AM CST for any other trading signal … sit on hands and wait … it’s a tough thing to do when my initial trade is a loss in the trading day.

Trade #2 was a little too early on the trade … I should have waited on it … so this is a mistake of 13 ticks today.

Trade #3 Short at 4656 off a BBV of 1000 plus (highest volume bar of morning) I went short off of it at 8:50AM CST.

Fake Out Here: Profit Target is 3P on the trading day this places the crude oil market at 4568 today.

Still waiting for a breakdown here at 9:11AM CST in the Crude Oil Market … sure looks heavy … but what the heck do I know. What I do know is I am trading short off the highest volume blue bar volume that printed at 8:40AM CST in the amount of 1005.

The market coming into the morning was down overall. I am looking for a continuation of the downward movement in my trade today. Only the Crude Oil Market really knows what it wants to do … after the 13 tick mistake today this has placed my behind the 8 ball on my trading day.

With that being said, I am only trading 1 contract so I can hopefully build up a base to reach the 3K profit target in the 10 trading days for the TST 50K Trading Combine.

The Short Trade in the CL Market finally reaches 1P Profit Target allowing for a breakeven on the trade. Some people call this a free trade from this point forward. I don’t know if that is the correct term when you are trading only one contract. What I know is that I am in position and it will take a lot of energy (momentum) to drive me out now.

Another FAKE OUT Enters the Crude Oil Market on the Way down this morning …

2P Profit Target Finally reached a new low of the day in the Crude Oil Market.

The market went back up after reaching down a little lower than the low of the day. I was able to take out 1P on the pullback, and net of 4 ticks overall on the trading day.

Now, these kind of days are rough as a trader. I had 3 trades overall, and I only came out ahead 4 ticks. But, this is a part of my trading plan. I am always looking to make more on my wins than I am willing to take on my losses.

Today’s Trades:

  1. Loss of 13 ticks
  2. Loss of 13 ticks
  3. Win of 30 ticks

So as you can see from the trades above, I am always looking to make a positive trading day when the market allows me to do exactly that. Obviously, I want to win every trade, but having a plan to take on trading losses versus trading wins will help you overall as a trader.


Good Trading and God Bless,

David M. Knight

P.S. TST 50K Trading Combine Summary



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.