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mini corn example Monday 2/08/2021 11:41:00 AM CST Tweet

This is another example of trading mini corn futures. Mini corn $xc_f are good for trading with smaller capital or for strategies with bigger contract size. Once we have a valid break out, we enter 2 contracts. In our case long 2 March mini corn contracts. Setting stop loss and take profit targets. If the trade is in our favour, we can exit 1 contract at profit and reset second contract's stop loss at break even and let the order run in profit as much as possible. 

In below case there both take profit contracts were triggered too early and I didn't manage to let half of the trade run; It was a good runner though..

If you can't trade, trade corn 2/01/2021 05:51:00 PM CST Tweet

It is well-known saying. If you can't trade, trade corn. That's all about me. As many traders, I've been all around the world of trading. Starting with forex and CFDs, going through stocks, finding the universe of options and finally settling at futures. At first trading ES minis and in the end ending with grain futures.

End-of-Day price quotes for Mon, February 1, 2021 

Symbol    Last    Change    %Chg    Open    High    Low    Volume    Time
ZCH21    549-2s    +2-2    +0.41%    549-0    555-6    539-0    202,570    02/01/21

I've been trading corn futures today. Especially the minis of corn. First of all when it comes to mini grain futures, it is good for trading with less capital but one always has to have in mind the lower liquidity and and bigger spread. 

They say that grains are easier to trade as there is less noise compared to indices for example and trends and break-outs are easier to identify. Mini grains are even more less noisy and quite slow-paced markets.

On the first chart of mini corn March 21 contract, after pit open, we are staying in side-lines and in first hour of trading, setting support and resistance levels at the low and the high of the day. As soon as the either one is broken out, we are placing an entry order. In our example it is sell to open limit order at $5.45 1/2. I also placed a stop loss order at high of the day of $5.55 and take profit somewhere at $5.30; however as price action showed signs of reversal, I decided to exit at $5.42 3/4.

From below chart it is clearly visible how market proceeded trading and bounced higher from the lows of the day.

What is needed to say that grains are not that easy as it is said and it is the same market as all others with it's own rules and flow. The most important is to find the market that appeals the best and stick with it. 

Today's trades:

Sell    1    XCH1    Limit    545 2        Filled    Entry    1    02/01/2021 17:32:10    545 2
Buy     1    XCH1    Limit    542 6        Filled    Exit     1    02/01/2021 17:43:25    542 6

Gross P/L    $25.00
Fees Comm    $(2.28)
Net  P/L     $22.72

Last post for the year Thursday 12/31/2020 02:40:00 AM CST Tweet

This would be the last post for the year. There will be no pictures or charts and it's going to be rather more textual as I like it. Back in the days of trading when there were no charts or computers, it'd been more about the craft and connection between the traders and the market, information flow, data and careful analysis. Nowadays everybody with a smart phone in their palm and some questionable app may invest or even day trade which seams to me a non-sense. My resolution for the upcoming year and the traders out there is to pay more attention and learning the craft, paying respect to the market and the other participants and master their trading as art.

Wheat breaking down - first trading hour Wednesday 11/18/2020 09:57:00 AM CST Tweet

Wheat (ZWZ20) December contracts opened with a slight push up and after hitting high of the day went lower during the first trading hour. Here's a great example of drawing support line and waiting for price action to break lower for an enter and profitable trade.

From the very open of the market the price hit support at $5.97/bu and tested it going lower after the first 30 mins of trading. A small pull up and second test of the support and the break down for an instant entry. 

Grains tend to trend 11/11/2020 02:57:00 PM CST Tweet

What is interestng about grain futures is that comparing to intices there is not much noise and they tend to trend intraday much often and much clearer. It is quite easier to recognise intraday trend and breakouts as to enter for a trade. For example today 11.11.2020 wheat and cron

Mini wheat at open Tuesday 11/10/2020 09:35:00 AM CST Tweet

This is a very simple and good working strategy for day trading grain markets. Once the grain futures market opens at 8:30 am Chicago time (16:30 which is the time in my case), we tend to stay in the side lines waiting to see for direction. It is good to wait for an hour or so as to let the market trade. After the first hour, I draw support and resistance lines simply at the low and high of the day and waiting for a valid breakout. If the price breaks out either direction, we enter and put take profit at 10 points and stop loss at 6 points. In case the trade is a runner, we can move stop loss above break even and let the trade run. 

B/S    Qnty Contract   Price    Date & Time

Buy to open   1 XWZ0 Limit $604 5 Filled 11/10/2020 17:06:24 
Sell to close 1 XWZ0 Limit $605 7 Filled 11/10/2020 17:13:04 

Chicago skyline Monday 11/02/2020 03:31:00 AM CST Tweet

Chicago - the centre of futures trading. The skyline is amazing. It's early Monday morning and we're all looking forward to the start of the trading day.

Mini-sized grain futures Wednesday 9/23/2020 04:07:00 PM CST Tweet

Tomorrow I am getting a closer look into mini-sized grain futures. It was introduced by CBOT in 2007 and since then it gained a lot of traction increasing volumes and interest. Ag minis mirror their respective contracts - corn, wheat and soybeans; however there are a few nuances to point out.

The main is the margin requirement. This could be the main drive force which could drag you into grain minis. The mini-sized contracts are 1/5th the size of the standard one; which means while there are 5,000 bushels of corn or wheat in standard contract, as to trade a mini one, there is only 1,000 bu per contract. Thus there is less equity needed to open or to hold a position. This makes the minis attractive to test trades or to hold positions over night which could be too risky with real size ags.

If a tick move in standard grains is $12.50, in mini grains it would be $1.25.

On the contrary the volumes in mini-sized grains is dramatically less than in normal ones and it could only appeal to those who like very slow paced markets. The most unpleasant thing is the spread, which for standard grains is as less as one tick, seldom two, but in minis it could be up to 3 to ticks which makes mini-sized grains quite hard or almost impossible to day trade but could be good for swing trades.

NJ ATM 9/16/2020 01:42:00 PM CST Tweet

Ninja Trader is well known for its easy-to-use automated trading strategies. There are many traders who use some quite complicated automation; however I am a beginner in that and currently playing with it as to get deeper into it. Here the most useful is shown as how to set up profit target and stop loss. 

From the DOM simply need to select strategy --> Custom and from there set profit and loss targets and save the strategy. After that you can select this strategy and once entry trade executed, the exit targets are automatically set as well.

Corn Tuesday 9/08/2020 05:15:00 PM CST Tweet

Corn is the most less volatile and trendy instrument among grains and that is why it makes it so appealing to trade. There is still not that much alogs involved there and more human interaction, physical commodity supply and demand, weather conditions and other commodities influence such as ethanol for instance. 


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