Trading Order Out of Chaos
Market timing refers to the fact that by judiciously choosing entry and exit methods in a given market you can out-perform buy-and-hold. The first question of course is why you should buy-and-hold in the first place. The idea stems from the equity markets. Historically they have risen. The famous chart of course is the S&P […]
This XLS accompanies my guest article on RectitudeMarket.com describing the performance of short option strategies on EURUSD. It includes the relevant formulas and data so that you can replicate the results or apply them to your own option strategies.
I’ve been asked lots of questions as to how to determine the next moves in GBPUSD. There have been many arguments for a bottoming out at the current levels, as well as for a continuation given the strength of the downward move experienced post Brexit. In this article I’ll try to get a handle on possible outcomes, by looking at some fundamental indicators and see where they point to for sterling over the next couple of months. The longer term perspective will be more difficult to gau…
PBOC fixings have become a fixture (at least for the last couple of days). With the big sell-off in the CSI China is trying to inject liquidity into the market and doing so in different ways. For the FX market it’s been a weakening of the reference rate. Here are the rates over the last couple of days (versus the USD):Of course the market cottoned on to the PBOC’s desperation, and the rout continued. The effect on the Asian time-zone currencies was worth noting. We already covere…
This indicator will average the bid / ask spread over the last N ticks. The purpose is to be able to monitor the behavior of the currency pair during fast markets, such as occur before and during news announcements. It’s useful for indicating times of increased danger, and can be used as a possible flag to square positions. The parameters are:
- MA: the number of ticks to average the bid/ask spread over. The default is set to 30 ticks
- showTickCount: a boolean flag, which when set t…
Over the last four articles people have been writing in, asking, “How do you deduce leverage from your backtests?” “How do you actually implement leverage in your trading?” “How do you calculate position size?” “How often do you rebalance?” So, to keep this series as hands on and close to reality as possible, this article focuses on the practical aspects of implementing leverage on your account (and no, the margin your Broker indicates, such as 1:400 doesn’t coun…