Trading CL with TC in choppy markets, a system I call CTC

#1

I have noticed when I trade CL with Trend Catcher in choppy markets that I inevitably get stopped out right after placing my trades. I also noticed that after that happens, TC entry then moves in my direction. I have been testing this movement for a few weeks now and it seems to happen consistently. What I do is place a trade against the trend catcher direction as soon as it appears, I usually enter a tick or two above or below depending on direction, and price action. Almost without fail it will move in the opposite direction of the TC for at least 10 ticks. I set my ATM for a 10 tick scalp with a 14 tick stop loss. Today was a choppy day and it worked extremely well, 10 successful trades and one unsuccessful trade. Please see the chart attached. Green arrows are winning trades, red losing. The boxes labeled CTC/TC are trades that moved in the direction of the TC after the CTC was successful.

#2

This is really well done, and matches what I have found in Cl over the last few weeks as well. Make some $$$!! Josh

#3

Glad this is working for you. Note I believe beyond marilyns system most traders use 14 on CL charts. However, this is awesome and a great pattern that is working well for you. Also note you said it hits your stop then moves in your direction.

This gives you 2 things you can do

  1. Fade the TC with that tighter stop/target
  2. When its hit stop and reverse with the original TC to get 2x in a row and a better risk/reward.
#4

DM,

Could you explain yourself a little more fully. I am having a hard time understanding your last 2 points and I am really interested in learning what you are saying. Thanks.

Ned