The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course social media communities
Hi guys, I have a question that might be a bit silly.
As a learning experience I opened an evaluation for a funded account with a company I've been using for a while, but told myself to only trade crude oil futures (CL) on this account. I've been having a lot of fun doing this, and it's been a fun exercise to trade something other than ES and NQ.
I'm dutch, and I'm trading dutch afternoons (15.00 to 18.00), which is basically 9am to lunch Eastern Time in the US. Part of the reason that I've been having more fun is that I feel more of a personal connection with the instrument I'm trading? I know CL is still very much an American commodity, but it's price does affect my every day life.
So the question I have is this; what is an instrument you would recommend me to try out next? I've been contemplating the EURO STOXX (FESX) or maybe even the EURO FX (6E). I'm looking for instruments closer to home that still have most of the volume traded during the NY open. Actually while I'm typing this out 6E makes the most sense for sure.
My main account is still going to be ES for the foreseeable future, but I'm starting to venture out a bit.
I absolutely love trading CL as well. Find something you love and trade it. It sounds like you've done that already.
The day session for Deutsche Börse (Frankfurt Stock Exchange) ends at 1730 CET. You could trade the Dax, Stoxx Indices or Bund during the times you mention. The Dax is a better Index to trade than the STOXX. In the afternoons the European Indices tend to follow the American ones whereas the mornings the European ones have a mind of their own.
You'll need to ask your broker to enable Eurex routing and data on your account, I don't know of any prop firms who offer Eurex.
Something that's very easy to trade and is good for the US session is Soybeans. Use the CBOT Agricultural RTH template. I'd recommend any beginner to try it; great for "always in".
6E is good, but can be very boring at times, other times it has some epic trends. If you see 6E trending in the late American session you have to jump in it will usually keep going to the finish. Make sure you've done the Forex course (particularly the times of day). There are quirks about Forex you need to know.
I love Crude Oil its definitely my thing. You could also try Gasoline (RB) or Diesel (HO) - use the Nymex Energy RTH Template.
I find commodities a but more predictable than Indices. They have a mind of their own. They're not driven by the average price action of 500 stocks.
Feel free to reach out on discord if you wanna chat about CL.
Can you comment on if trading in the CL or the EUR futures is as precise as the ES? Those markets can easily go 3-5 ticks below/above the prior low/high. I am new to the course so I'm still trying to figure out if any modifications would have to be made to the price action methodology being discussed here, especially on stop entries/exits.
You trade them exactly the same. Your stop entry/exit goes 1 tick above/below the bar.
I have asked Al a couple of times over the years about whether it might be good to use 2 ticks, or 3 ticks instead. I've asked this question in relation to increased volatility on ES as well as for instruments that move in more granular tick increments. I was worried about getting triggered into a bad trade by a 1 tick trap, or stopped out by a tick.
He's always given the same response. Which is, using 2 ticks or 3 ticks will occasionally keep you out of a trap or prevent you getting stopped out for a loss (This applies on On Emini, 6E, CL or ANY instrument).... However if you average it out over 100 trades, giving away those two extra ticks on 100 trades results in the same net balance as using 1 tick and occasionally taking a loss.
He has always been adamant about 1 tick. Mathematically it works out the same.
I hope I've understood your question correctly.
Thanks. You have answered my question. I've always thought that the Euro and CL markets are not as precise but if Al says he wouldn't change his methodology, I have to go with that.
Thanks Kevin, I think you might be right, I really do like trading CL. I might just make it my main instrument to trade. Need to gain some more experience with it for now though.
I am also really surprised how much I'm learning from just getting to know the ins and outs from this different instrument as well. The way it moves, the price action, the times there is the most volume.. It's all just a little different from ES.
So trading different instruments is definitely something I'm going to keep on doing, albeit not with my own money but either in the sim or with a funded account, just to be safe. I'll have a look at Soybeans next, I hadn't considered that option yet. I agree with you on 6E from scanning it in the past. Price action looks like it's boring to me and my style of trading.
