CRUDIFY: The Best Intraday Trading Strategy on Crude Oil

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Discussion Topic: Crude Oil Intraday Strategy


In this article, we will discuss an intraday strategy on Crude Oil Trading. This is a very easy to use strategy and the best crude oil intraday trading strategy for working professionals. Because of its simplicity I have given it a name “CRUDIFY”, i.e. – Crude Oil & Simplify. Hope you will like this Premium crude oil Intraday Strategy.

Before I continue, let me remind you that investing in the stock market is a very risky business. Please read our disclaimer before investing.

What is CRUDIFY - the Crude Oil Intraday Trading Strategy?


CRUDIFY is a profitable intraday strategy on Crude Oil trading which I personally use in real life trading. Since last 2 months, this strategy is giving a good profit at the month end. This is purely a price action and range breakout strategy with a high level of accuracy.

It is very easy to implement and you only have to look at the chart for 1 to 2 minutes. Hence, this crude oil intraday trading strategy is perfect for working professionals who do not have much time to constantly monitor the market.

What Scrip / Instrument is this?


  • Instrument Name: CRUDE OIL
  • MCX ID: CRUDEOIL (100 BBL) & CRUDEOILM (10 BBL)
  • Trading Segment: Futures Market.

In CRUDEOIL (100 BBL) one point move is equal to 100 rupees profit/loss. In CRUDEOILM (10 BBL) one point move is equal to 10 rupees profit/loss.

How to Trade with Crude Oil intraday strategy?


As everything in this world has some set of rules, it also has. You just have to follow the rules with discipline. Also, make sure you do follow money management basics and adhere to the position sizing technique.

Crude Oil Intraday Trading Strategy Rules

Time Frame: 30 Minute Candlestick or Bar Chart.

  • Wait till the closing of 1:30 PM Candle (10th Candle), and mark the High / Low of the day range. i.e.- From 9 AM to 2 PM.
  • Place a BUY order above 2 points of the Current High Price & Place a SELL Order below 2 points of Current Low.
  • Stop-Loss is the Price Range or 20 point whichever is lower.
  • Target will be:
    • 1st Target: Price Range or 25 Points whichever is lower.
    • 2nd Target: 25 points or 40 Points (Depending on 1st Target)
    • 3rd Target: 40 Points or Trailing Stop.

Crude Oil Intraday Strategy Fine Tunes:

  • Target 2 & Target 3 is only recommended for multi-lot traders. Single lot traders go for 1st Target only.
  • Once 1st Target is achieved, trail your stop-loss to entry price. Once 2nd Target is Hit, trail your stop-loss 5 points above / below your entry price.
  • If all the candles till 1:30 PM (i.e. - till closure of 1 PM candle) forms within the High/low range of 1st candle, then ignore the 1st candle while calculating day range.
  • If the range of any single candle formed till 2 PM (except 1st candle) is 20 points or more, then avoid 1st Buy / Sell Entry. And wait for 2nd entry from above / below the new High / Low.
  • If you get 25 points in first trade then cancel the other side's Buy / Sell Order. Else you can take the other side trade also.
  • In any day, if none of the orders get executed within 6:30PM, then cancel all orders.

How to Follow Crudify Crude Oil Trading Strategy in Real Life?


I will give 3 examples of how to trade in this Crude Oil intraday strategy (Crudify Strategy).

Trade Example 1:

Let’s take the example of 15th Mar’19

Watch till 2 PM, i.e. - close of 1:30 PM Candle (10th candle). Mark the High of the day 4077 and low 4050. Hence the day range is 27 points. Hence, we have to place a buy order above 4079 (4077+2) and sell order below 4048. (4050-2). Our Stop-loss will be 20 points (as the range is above 20 points), Target 1 will be 25 points, Target 2 Will be 40 Points, and Target 3 will be trailing-stop.

Crude Oil Intraday Strategy Normal Entry Exit

After a few minutes, the sell order triggers and price went down till 3992. That means it went down 56 points. Hence, Both Target-1 (25 points) & Target-2 (40 points) are achieved and if you trail candle by candle you would have booked your final lots at around 45 points.

Remember, you have to book 70% at the 1st target, 20% at 2nd Target, and rest 10% at 3rd Target.

Trade Example 2:

Let’s take the chart for 05th Mar’19.

Watch till 2 PM, i.e.- closure of 1:30 PM Candle (10th candle).

If you look closely, all candles formed till 1:30 PM (i.e. – till closure of 1 PM candle) was formed within the range of 1st candle. Hence, we need to ignore the 1st candle while calculating day range.

So, the high of day range was 4005 and low was 3990. Hence the day range becomes 15 points.

Therefore, we have to place a buy order above 4007 (4005+2) and sell order below 3988. (3990-2). Our Stop-loss will be 15 points (as the range is below 20 points), Target 1 will be 15 points, Target 2 Will be 25 Points, and Target 3 will be 40 points.

Crude Oil Intraday Strategy Narrow Range

After a few minutes, the sell order triggers and price went down till 3965. That means it went down 23 points. Hence, The Target-1 (15 points) was achieved and the price reversed. As per rule, after 1st target you have to trail your SL to entry price, therefore no loss occurred after price reversal.

As we have not achieved the 25 points mark in this trade, therefore we are eligible for a 2nd trade on the opposite side, i.e. – on the buy side.

And what a consequence, after price reversal it provided us with a buy entry and price went up to 4045. That is 38 points above from our buy entry price. Hence, we again achieved Target-1 (15 points), Target2 (25 Points), and for Target-3 we got 5 points because of our trailing stop-loss method.

Remember, you have to book 70% at the 1st target, 20% at 2nd Target, and rest 10% at 3rd Target.

Trade Example 3:

For this final example, we will look at the chart of 25th Feb’19.

Watch till 2 PM, i.e.- closure of 1:30 PM Candle (10th candle).

If you look closely, this day also all candles formed till 1:30 PM (i.e. – till closure of 1 PM candle) was formed within the range of 1st candle. Hence, we need to ignore the 1st candle while calculating day range.

So, the high of day range was 4080 and low was 4058. Hence the day range becomes 22 points.

Therefore, we have to place a buy order above 4082 (4080+2) and sell order below 4056. (4058-2). Our Stop-loss will be 20 points (as the range is above 20 points), Target 1 will be 22 points, Target 2 Will be 25 Points, and Target 3 will be 40 points.

Crude Oil Intraday Strategy Valid Entry

But the range of the 10th candle alone was more than 20 points. High was 4080 low was 4058, so, the range of this candle was alone 22 points. Therefore as per the rule, we need to ignore the 1st buy sell entry.

After a few minutes, the 1st buy order triggers but we ignored it as a rule. And the rule has saved us from one stop-loss because the price only moves 8 points above the buy entry price.

We got the 2nd entry on sell-side after 2 hours and this time price went down till 3922. That means it went down a whopping 34 points. Hence, we achieved Target-1 (22 points), Target2 (25 Points), and for Target-3 (40 points).

Remember, you have to book 70% at the 1st target, 20% at 2nd Target, and rest 10% at 3rd Target.

Please do some backtest before working with this strategy. Also, you may do paper trade or trade in small quantity to gain confidence in this strategy. Don’t put a big amount in trading unless you are 100% confident.

We hope that you have enjoyed the above article explaining the intraday strategy on Crude Oil trading. Be with us to explore forex trading, stocks trading, and other money-making opportunities.

Leave us some comments if you have any questions or doubts about this Crude Oil intraday strategy, we will be happy to help you.

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I'm an MBA Professional and just want to share my knowledge & experience about online earning opportunities. I have 8+ Yrs of experience in Forex/Stock Trading & 10+ Yrs in online home-based earning.
I wish you all the best !!! Happy Earning !!!!

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Ankita
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Ankita
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I just loved your strategy. Thank you for sharing it.
Is there anything else which we should know about crude oil trading

Kunda
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Kunda

Seems like there is less importance to maintain 1:2 Risk-Reward Ratio,

Rama
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Rama

I have tested this strategy. Found to be no good.
Duration: 01-01-2019 to 28-02-2019
# of trades = 68
% win 42%
% Loss 58%

JEMIN BHARATH
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JEMIN BHARATH

Good one sir..

Prasad
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Prasad

Sir will it works on Wednesday

Aravind Chakravarthy
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Aravind Chakravarthy

Looks like a good strategy for working professionals. Can I know how successful the strategy is as of today in terms of % win and overall accuracy? Do you have any other strategies left for crude oil

Kinjol
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Kinjol

I am not able to understand the concept of new High/Low in the following context –
If the range of any single candle formed till 2 PM (except 1st candle) is 20 points or more, then avoid 1st Buy / Sell Entry. And wait for 2nd entry from above / below the new High / Low.

In your 3rd example, what is the new high/low?

Ram Kumar Rama Krishnan
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Ram Kumar Rama Krishnan
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Ayan, I ‘ve a question. Everything is clear, except for one – I am not able to understand the concept of new High/Low in the following context –
If the range of any single candle formed till 2 PM (except 1st candle) is 20 points or more, then avoid 1st Buy / Sell Entry. And wait for 2nd entry from above / below the new High / Low.
What is the new High/Low in your last example? Can you elaborate it better and re-post?

Ram Kumar Rama Krishnan
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Ram Kumar Rama Krishnan

I joined the Telegram Group, and got this clarified. Thank you Ayan, for the ‘Live’ guidance today.