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I'm showing a very nice setup in Coffee for a position trade along with
bullish COT positions. After waxing enthusiastic over the technicals
however, I took a good look at the average daily trading range and limits
(there is no limit). Based on average daily range of 6 cents and large daily
range of 20+ cents, I concluded one should be prepared to risk average one
day moves of $2500 per contract and accept possible one day adverse moves of
$7500 per contract. While I trade the equally volatile S&P, I am able to
limit my risk exposure by day trading. I generally prefer to position trade
other commodities. Do any list members position trade coffee contracts and
if so, how do you manage your risk?
Earl
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