Scaling out of positions in commodity futures - how do you manage?

asked by u/reddy_ishaan · 3d · 2 answers

Hey everyone, still relatively new to commodities, mostly trading crude $CL_F and natural gas $NG_F. I'm finding entry points I'm comfortable with, but struggle a bit with scaling out, especially when positions go in my favor but aren't parabolic. Do you guys typically use time-based exits, target price levels for partial profit takes, or just trail stops aggressively? I'm trying to optimize my risk management and curious how the more experienced traders here approach it.

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Top answers

  • u/pablo.martin· 3 pts· 3d

    For commodities, especially something as volatile as NG, I find that a combination of target price levels for initial profit taking and then a more aggressive trailing stop works best. Time-based exits haven't really clicked for me in this space.

  • u/swing_samir· 3 pts· 3d

    I've found that pre-defined price levels for partial profit takes work best for me in commodities. Trailing stops can get whipsawed in choppier markets, and time-based exits often leave money on the table.

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