Warrior Trading Blog

Slick Crude Oil Futures Trade +$3,010 | Steve’s Futures Pulse 203


Hey, what’s up, fellow traders? Happy Wednesday. I’ve got my green shirt on and for a good reason. Scored over $3,000 in light sweet crude today. A little after the energy report came out earlier today, I found a nice breakdown trade that I called out live in the Futures Trading chat room. I know you’re probably skeptical and that’s why I recorded all the action so you can see it, complete with the timestamp on the bottom right of my screen as I call out the trade, how we added to it, and we scaled up as the break came to life after we entered the trade.

Well, I’m all done. I’m going to head to the golf course to enjoy the rest of my day. I hope you learn something from today’s Futures post and what better time than now to join us here in the Futures Trading chat room. Come on over to Warrior Trading and use the promo code Labor Day, and you’re going to instantly save 30%. What are you waiting for? Now is the time and you could be joining me tomorrow morning for the next live learning session. Talk to you soon and until then, trade well.

At 56.35, the break’s starting to come to life here. Break a little bit further, we’re going to feeling good. I’m short at 34 here. We are just under that 56.40 area. We’re sitting right under that supply area. Over extension on Navigator on the 10, on the 30, on the 60. The green pastures on the trade don’t occur till we get a little bit further south, so our biggest risk on the trade is actually right here, right now. We’ve got room to navigate even here on the 60, all the way down and getting towards that 56 bucks a barrel mark, we don’t encounter really a whole lot of anything to prop this trade up. So I’m watching this thing down below. If it breaks down below 56.40, I like the short side of the trade.

Just added moments ago to the trade. Where’s my price? I got 56.40 even on that one, actually. So it’s going to split the difference. My average price is 37, that’s a little bit better. Just south. Right up in here. This is where I’m short, right here. Stop sitting right up here at 77. So risk on the trade, 40 cents. Remember, 40 cents in crude oil, $400 a contract in mini crude. Mini crude, just $200 a contract. Symbol QM. QM, okay? We’re on the short side. We’re in this trade. We’re basically at break even. My stop’s up here. X marks the spot up there. That line, where I get out. Okay? That’s my worst case apocalypse prevention plan. If this market pops in the other 40 cents higher, despite being over bought, despite being overbought on 10, the 30, the 60.

Key battle for this market to win is going to be that master point of control. And then this big one here is 56.23. Yeah, I know. This is still on the 60. I wanted to show you guys this year that we’re overbought and exhausted also on that swing timeframe, which is never going to hurt our cause.

Here we go. Market’s starting to make the break here, 56.34. This trade, remember this first trade here, I entered 56.34 and I added at 56.40 which brings again a six cent spread on that. Here we go. We’re making the break here. We’re in the money. Making a break. Here we go. Coming to that 23 zone. We’re sitting right at the 23 zone, covering half my units, just a moment ago. Just closed out $1,200 on … So basically, a hundred bucks times 12 units on that one. Covered at 24, okay? Bought 12 units back at 24. Remember, my cost average brought it up to 37. Nice little break there, okay, so good start on the trade.

You can see what’s running here. Here we go. That’s what I got cooking here. $1,200. We’ve got 18, 19, $2,000 and running. Off to the races here. We’re gonna see if we can penetrate this POC level. Here we go. There goes the penetration, off to the races we go. I’ve got 12 short units still. Having a tough time breaking that POC. Here we go. It’s retreating off that level. Covered six more units right here. I’m going to tell you my price right now but I got those ones back at 26. 56.26. So I realized P and L on this trade here, now $2,040, still got about a thousand dollars in running so 2000 closed and a thousand and running. I’m going to see if I can’t make a run down towards this 56 zone down in here. Here we go. Want to see that close. If I can get that closed, I’ve got a ways to wait here. Still four minutes to see if we’re going to get the close down below 23, getting closer. Here we go.

All right, we’re going to do some risk mitigation here. Going to move my stop to just outside that technical high, which comes in at 48 and stops going to be a 51, right up here. Just took a big chunk of the risk out of the equation right there by moving my stop down. Don’t forget to adjust it. In my case, I’m down to six units. Okay. 12. Added 12, covered 12, covered 6, short 6. Markets have a tough time on this POC. Covered three more units. So let me tell you where I got those. 28. 56.28 so my risk is all the way down to just three units now with a 51 stop, just a beautiful thing, right, because my cost average is in a good spot. Stops at 51 on this, making sure I adjust my quantity here. Bring my stop down again on those remaining units to 41. Again, I’m really basically I’m going into risk mitigation mode, but this is a great way to get a trade here. We’ve closed out profits. It’s going to be a green trade here again today. Closed out $2,400, got 330 and running. Very little give back on this trade.

Let’s see here. That’s what it looks like here now. Closed out 2,400, 270, $300 and running on minus three units. That means we’re short three and our give back is very small here. If we get a little break further, what I’d like to do, of course, is I’d like to start locking in some profits. It’s a little too tight to be doing that right now. Okay. Who wants a little air drums. Come on. Six consecutive winning sessions. What am I going to do to break out some air drums? With a little high hat [inaudible].

Well, I expect every darn one of you to secure your virtual ticket to my Winners Edge Workshop. This, the seats are sold out to my Vegas Bellagio Event. That’s October 18th. Sorry. I am very sorry. I did try to warn you, but the seats are gone for the in person event, but later this afternoon we roll out the virtual ticket. You had a pretty impressive presale discount that we rolled out to the general public and then that’s it. So your best opportunity is today and today only to get yourself an awesome, awesome virtual ticket.

That trade right there that I just showed you in about the last 10 minutes, you’d be net doing very well even after your virtual ticket. Imagine what you’re going to do with all the knowledge I’m going to share with you. An entire day workshop teaching you TAS market profile and to how to find trades just like that and built it into your trading plan. So every day you know exactly. You got your checklist, one, two, three, go, one, two, three, go. And I also teach you not just how to do it the way I do it. In fact, that’s really not my focus. It’s to teach you the different techniques to make it suitable for all kinds of different styles, whether you’re a day trader or a swing trader, whether you’re trading a small account or a large account. Goes out, again, it rolls out later today. We offer a presale to those that are existing clients first and then we make it available to the public. We only sell a limited number of virtual seats and that’s the truth.

So all is not lost. For those of you that can’t get out to Las Vegas. If you can’t get up to Sin City or you weren’t able to secure an in person seat for my workshop. Totally okay. We’re bringing the event to you. No free food and beverage. You’ve got to supply your own, but someone yesterday said, “I’m just going to order Uber eats.” Okay, cool. Great idea.