We used the unfortunate global environment to pinpoint natural gas as a trading opportunity in early 2022. We then used the Olympus Cloud to define entries and exits.
When we are trading on a longer term time frame, such as the daily, and we are confident our fundamental analysis is on point, we will risk up to 4 times more (5-8%) than we do in our high frequency trading (2%).
In these trades, we required the Olympus Cloud to indicate a higher swing low than the previous low combined with a confirmed bull cloud transition -- it's as simple as that. Our stop loss was under the cloud, and our targets were 2R, and 5R respectively.
As you can see in the data section below this post, our commodity account has grown by over 35% YTD, with 12% in additional gains currently open. The trade accuracy was 80% with an astonishing profit factor of over 9 -- meaning we gained 9 times our risk. Of course, if we had gone all in, these trades could have earned up to 80%, but had the trades not worked out we would have taken huge uncontrolled losses. When you are trading with proper risk management, you will not earn as much, but you will keep your profit margins in check and won't suffer massive losses that are hard to recover from if the trade does not go in your favor.
@DannyFoss, Holding a long position from July 15. That position has seen the first target hit as shown by the labels on the right side of the chart. We will hold that position until the second target is hit or the cloud transitions back to a bear state. We are in a holding state -- I would not recommend long or short at the present moment due to indecisive price action.