Trading Strategy Plan: WTI Crude Oil

Objective: To capitalize on short to medium

$-$

term trends in the crude oil market by leveraging

momentum indicators to identify potential buy and sell signals for WTI crude oil futures contracts.

Instruments: This strategy will be applied to WTI crude oil futures contracts

$($

CL

$)$

$$traded on the New York Mercantile Exchange

$($

NYMEX

$)$

$.$

Time Frame: The strategy will analyze

$4$

$-$

hour and daily charts for signals, aiming for holding periods ranging from a few days to several weeks.

Indicators: Relative Strength Index

$($

RSI

$)$

$$with a period of

$1$

$4$

$$days

Entry Criteria:

$$Buy Signal: A buy signal is generated when the RSI moves above

$3$

$0$

$($

indicating potential

oversold conditions

$)$

$$

$$Sell Signal: A sell signal is initiated when the RSI moves below

$7$

$0$

$($

indicating potential

overbought conditions

$)$

$$

Exit Criteria:

$$Profit Target: Set a profit target at a

$3$

:

$1$

$$risk

$-$

reward ratio from the entry price.

$$Stop

$-$

Loss: Place a stop

$-$

loss order at a level representing a

$1$

$\%$

$$loss of the total trading

capital to limit potential losses.

Risk Management:

Allocate a maximum of

$5$

$\%$

$$of the total trading capital to any single trade to manage risk

effectively.

Adjust the position size to ensure the stop

$-$

loss does not exceed the

$5$

$\%$

$$risk threshold.

Trade Management:

$$Reassess open positions daily, adjusting order to maintain risk management plan

Review and Adjustment:

$$Perform a weekly review of all trades to evaluate the strategy

$$

s effectiveness, focusing on win

rate, average profit versus average loss, and overall profitability.

Adjust the strategy parameters based on review findings.

Documentation:

$$Maintain a trading journal, documenting the rationale, entry and exit points, trade duration,

and outcome.

$**$Provide a Beginner$/$Intermediate Level Strategy Plan for CME GROUP WTI Crude Oil Plan Strategy Plan like the example above.