After a few days of trading CL, it turns out that a big factor moving the oil market is the FX rate change, specifically, EUR/USD pair. A calendar spread on CL will remove this FX factor so the focus can be on the oil price actions.
CL contract is priced in decimal, which moves pretty fast on a phone screen!
I was bidding 1484.75 during 4:30 and 5PM when there was sudden drop and somehow the market crossed. I was attempting to lower my bids but was also afraid of unknown states that might be causing on my orders at Globex so they were left alone. When the market finally was moving again, my fill reports showed three executions at 1483.25, which were much improved!
ES dropped about 40 points in seconds and then bounced back!
Here’s a link with details.
Nanex had an article on this subject. You can google it.
Apparently it has not killed scalping. I have been doing some in the past weeks and it is working beautifully. It could be new guy’s charm or luck. Definitely it feels much better than years ago.
My current strategy is based on 1 min and 5 min charts plus watching other longer time frames for bigger trends or pending price reversals. I’m also watching other major indexes and futures to sense overall markets.