FTP Day 5: Funded Trader Preparation

Tuesday: September 8th, 2015

FTP Day #5: Funded Trader Preparation

Crude Oil Trading … early trading has us going below the S2 level of support at 1AM CST and off from the lows now. We are currently trading in between S1 and PP before the CL Open Outcry this morning.

We first crossed over S1 at 4:15AM CST. The Volume levels have been very quiet so far … so time will tell which way the market wants to go, if any after the CL Open Outcry at 8:00AM CST.

CLPORT Method Trade #1:Short at 4523 at 8:06AM CST.

We had very close volume bars today as the RBV showed 631 and the BBV showed 553 in early trading. This, humbly, means the market could go either way.

Trade #1 produced a 17 tick stop loss this morning as it reached its 1/2R stop loss target. I was out on the trade at 4540 at 8:20AM CST.

I am now waiting for two things. The market to get beyond 8:30AM CST and a tiebreaker in volume of at least 700.

The CL Market seems to be heating up just a bit here at 8:55AM CST. But still no 700 Volume Bars after getting stopped out on my short this morning.

Any further weakness? Let the VOLUME LEAD the Way!!

We have moved back down to S2 and I am still on the sidelines. I haven’t seen any 700 HVS bars to get me excited about any of the price action at this point in time. Obviously, I wanted to be short during this movement down, but the market took me out and I didn’t see an opportunity to re-enter with low volume.

Right now at 9:10AM CST, it looks like the “floor traders” are looking for stops to the downside.

Finally, the Crude Oil Market shows some signs of life as an LVL HVS 700 volume bar comes into the trading session. (Blue Bar Volume)

I am looking to bracket the market and go whatever the ‘traders’ want to take it.

At 9:25AM CST, the Crude Oil Market finally completed its 1-2-3 bracket for the LVL HVS 700 trade. I am looking to go long at 4497 or short at 4464.

This will be trade #2 … if a loss then DONE on the day … this would then be two losses on the trading day. I am wrong and need to conserve the ammo for another day that will TREND better.

LVL HVS 700 Bracket Trade is under way right now. I was filled on the Long side 4496 at 9:33AM CST.

Are we able to trade all the way up to the Pivot Point today? It is located at 4620 in today’s trading session.

We have been able to reach up to 1P on the trading session on the long trade above the S1 support line located at 4518 in today’s trading.

Today’s profit target on the trading session is 3P, which is right below the Pivot Point located at 4617. The pivot is located at 4620, and 2P Profit Target if runned and gunned is located at 4577.

FYI … after the move to 1P on the trade I had to go to Breakeven on the trade to take away the downside risk. There is no good to take a 2nd loss on the trading session. Obviously, I want to see the Pivot Point rung up today … but I also have to trade smart and within my trading plan on the trading session.

Trade Exit on the Trade was 4598 after we runned and gunned 4612 at 10:10AM CST. I hit the flatten button and got out of the trade to maximize profits between 2P and 3P on the trading session. My trade exit was 4598 at 10:10AM CST.

We also saw some stop running and gunning on this trade as a BBV Skyscraper showed itself with a volume level of 2361 on the trade. All of these conditions, had me running for the exit as it looked as though the market had went to close to target.

Today’s 7P profit target on the trade is 4778 or 4864 depending upon how you view the trade vs the CL Open of the trading session.

In any case, I am happy to have my win and move on to the next day of the FTP. This completes Day #5 of my FTP.


Good Trading and God Bless,

David M. Knight

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.