Crude Oil on high note ..is it?

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In futures trading, there are mainly 2 strategies, one is directional trading and one is relative value trading. Spread trades belong to relative value.

Update on my Oil / Gold spread trade: Oil Trading: Profit for Oil / Gold Trade Turns Higher. Profit is now US$1263.

Trading speads do not means that one is afraid of losing money, it just means that he sees opportunity in this area. Oil / Gold ratio chart shows that this chart has peaked and is coming down, so the rationale is to short oil and buy gold.

Yes I had using a system that I had created to trade forex and commodities. This system is the result from my years of trading, back-testing and experiments.

Another strategy which most traders are not familar is volatility trading. If anyone is interested to learn or find out more, feel free to send a message to me. I often trade volatility on forex on days which there are important US economic announcements, ie Non-farm payroll, GDP, leading indicator.

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Took Profit on Oil / Gold Spread Trade :clap:

On Monday 25 August, I mentioned that Oil / Gold ratio chart looks toppish and has started to move downward. So tap on this downward movement is to sell oil and buy gold.

I had sold 1 lot of supermini oil at 115.00 and bought 1 lot of gold at 822.63.

Currently oil is trading at 97.60, gold is trading at 892.08.

Profit and Loss:
Shorted 1 lot of supermini oil: (115.00 - 97.60) x 100 = +US$1740
Bought 1 lot of gold: (892.08 - 822.63) x 100 = +US$6945
Net profit = 1740 + 6945 = US$8645

If you are interested to view more of my trades, click on my name and go to my Home Page.