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The idea here is to pick one that is slow enough to reduce the noise. I say an EMA no less than 20 or perhaps a WMA set to 15 or 20. I like longer ones too but they reduce the number of signals.....which can be a good thing depending on what you are trying to accomplish. The CMA here on the forum has no settings so it can be good to start with. I personally use a WMA at 15 on my range chart and a TEMA set to 150 on my tick charts. These provide a nice confluence when used to filter each other....I only take trades when they agree.
Simplicity is the ultimate sophistication, Leonardo da Vinci
Most people chose unhappiness over uncertainty, Tim Ferris
Indeed. CL is not for inexperienced traders. You also need at least a $20,000 account to have a chance, just trading 2 contracts with a 2% risk and 20 tick stop per.
CL has less chop, moves smoother and quicker than almost any other instrument I've seen. If a person trades it well for say 60 days on sim, is able to make money or at least not lose any, why not trade it. ES is a bear to trade. The only reason to be there is massive size. YM, $5 a tick?
I agree with the account size thing for the most part, but still, CL is a great instrument. I don't think people should be so scared of it. Break out traders need a 20+ tick stop, but other systems don't. Gary trades it with a 12 tick stop. Thats reasonable for more people and there are many of us who are not break out traders. It makes sense to me that you would want to trade an instrument that moves like CL IF and its a big IF, you have a good system with a defined edge and that system has stops you can live with.
The fact that CL moves so fast sometimes is a good thing. Both for stops and profit targets. Why wait for 30 minutes in ES to find out you got stopped out or your profit target is hit when CL can do it in seconds or minutes? As long as you are reading price action well.....and this is true for all instruments, CL is superior in many ways.
Anyway, regardless of the reasons, if you are new to CL, trade it in sim no less than 30 days and preferably 60. If you can do it well during that time, you have at least $5-10K to trade 1 contract, (depending on your normal stop size) then I say go for it. Carefully!
Simplicity is the ultimate sophistication, Leonardo da Vinci
Most people chose unhappiness over uncertainty, Tim Ferris
Up early to see what the the London session is doing to oil. Not bad movement.
One trade, One win... Profit target met.
I had time to do my sit-ups while this one worked....
I have big faith in this MA based system... Fib lines are fascinating.
Will try a few more for practice during pit session. But if I were live, (come on savings!!!) I would be out for the day,
in accordance with my first week plan.
I plan on using my Christmas bonus to finish off the funding of my account.
That means I will be live to begin the new year...
