How to trade Commodities - Gold, Silver, Crude Oil, Natural Gas

[msa5678]

Dear Amit,
please Post your afl here...I think you made many changes from inetial one...

Almost all the AFLs (Mechanical Systems) give more or less the same returns.

I had downloaded one AFL from the net, dont remember from where.I checked this on 2011 data and got 1801 NF points, Seeing good results checked on 2010 data and got 1325 NF points. Again checked on 5 years data (2007- 2011) got 12705 NF points in 1558 trades. Seeing such good performance started applying the AFL to practical trades since last month. Eventhough I have all the back data in front of me, When some whipsaws occur it becomes difficult to stay in the trade.

Take for example the whipsaws started on 10-02-2012,
short @ 5388 on 10-02-2012
long@5407
short@5388
long@5400
short@5386
long@5397
short@5384
long@5405 on 13-02-2012

The long of 5405 is still active with 200 points in the bag. I traded till the short of 5384 and the next long started flying.

The moral of the story is : You need to have a lot of discipline and tons of confidence in the trading system in order to generate profit from it.

 

[myamit]

Almost all the AFL’s (Mechanical Systems) give more or less the same returns.

I had downloaded one AFL from the net, don’t remember from where.I checked this on 2011 data and got 1801 NF points, Seeing good results checked on 2010 data and got 1325 NF points. Again checked on 5 years data (2007- 2011) got 12705 NF points in 1558 trades. Seeing such good performance started applying the AFL to practical trades since last month. Eventhough I have all the back data in front of me, When some whipsaws occur it becomes difficult to stay in the trade.

The moral of the story is : You need to have a lot of discipline and tons of confidence in the trading system in order to generate profit from it.

@MSA

Very true. Almost everybody has faced same issue & stopped using system for the similar reasons. To encounter this...

1. Confidence : Manage risk by keeping stop loss tight to an extent that even serial whipsaws won't take you out of market. In my system I've faced 12 straight loss trades. However total loss booked for these 12 trades is less than 30K. As system keeps position size only 2 lots, I can cover this M2M even with smaller trading capital like 1L.

2. Discipline : To achieve this we need to take two human emotion out of trading i.e. Fear & Trade. Ideal scenario is to make this automated (I guess it is possible with InteractiveBrokers).
However if that is technically/legally not possible than easiest way is to hire a person who trade on your behalf based upon signals. As he is not going to earn or loose, he will be more disciplined. Secondly he will be accountable to action based upon system. Some may feel this is too much of hassel but I guess worth to earn 500% return (that too at very minimum risk).

Regards,

 

[msa5678]

@MSA

Very true. Almost everybody has faced same issue & stopped using system for the similar reasons. To encounter this...

1. Confidence : keep stop loss tight & money manage to such an extent that even serial whipsaw won't take you out of market. In my system I've faced 12straight loss trades. However loss booked is less than 30K. As I keep my position size only 2 lots, I can cover this M2M even with smaller trading capital like 1L.

2. Discipline : To achieve this we need to take two human emotion out of trading i.e. Fear & Trade. Ideal scenario is to make this automated (I guess it is possible with InteractiveBrokers).
However if that is technically/legally not possible than easiest way is to hire a person who trade on your behalf based upon signals. As he is not going to earn or loose, he will be more disciplined. Secondly he will be accountable to action based upon system. Some may feel this is too much of hassel but I guess worth to earn 500% return (that too at very minimum risk).

Regards,

Agree 100% with you . I have taken all the measures outlined by you. Only difference , I hired myself to take the trades. On the next signal I will keep your post in mind and trade.

 

[rkgoyal_98]

Dear Myamit
Can you give afl for your trading sytem it will take some time to write an afl

 

[NTrader42]

Almost all the AFLs (Mechanical Systems) give more or less the same returns.

I had downloaded one AFL from the net, dont remember from where.


I checked this on 2011 data


..............


The moral of the story is : You need to have a lot of discipline and tons of confidence in the trading system in order to generate profit from it.

Hello msa

Did you understand the logic of the system and were you comfortable with the concept?

Is it the case that if we have developed the system from conceptual level (like Amit), then we will be inclined to be more disciplined trading it?

Thanks

 

[hawaisanjay]

I have just opened demo account at GCI..In commodities I can see only Gold..How do I add other commodities? or they allow only gold?

 

[NTrader42]

I have just opened demo account at GCI..In commodities I can see only Gold..How do I add other commodities? or they allow only gold?

Check within the group 'CFD: Futures' for others

 

[hawaisanjay]

Check within the group 'CFD: Futures' for others

thanks..I got it

 

[apdd2003]

Check within the group 'CFD: Futures' for others

I have also opened demo acc in GCI. But MT4 only shows currency pairs. How can I add commodities the list?

 

[uttamkamlesh]

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