Forex slippage - Compare forex brokers execution

IM Academy - Are they/their "Affiliates" breaking FINRA regulations on Communications with the Public?

For the uninitiated, IM Academy, formerly iMarketsLive, is an MLM whose scheme centers around a SaaS model for their forex (foreign exchange) trading software. I'm still early in the research, but I think the way they get around the legal definition of a pyramid scheme is by providing referral commissions to their affiliates, who are the ones ultimately posting about their purported 'success' and the opportunities they want to share with their friends and families and doing the recruiting.
Now, perhaps save for the ballsier MLM brands involved in health and wellness products, where running afoul of the FDA is the primary concern (and having worked as someone designing junk mail for a health food/grocery store [the owner of which was decidedly ANTI MLM, thank apollo] for a decade, I can tell you that the magic "These statements have not been endorsed by the FDA. These products are not meant to diagnose, treat, cure, or prevent any disease." is almost an impervious shield, if you're not a total sketchman and literally saying those things in the ad copy for the product), the SEC and the FTC are the regulatory bodies at play; and FINRA, I believe, is the US regulatory body overseeing forex, specifically.
I dig economics. I like listening to economics shows. I've heard plenty of ads for forex trading solutions on the radio, and one constant is the inclusion at the end of the ad of a disclaimer saying, more or less, that 'Forex trading carries substantial risk and consumers should not trade more than what they can afford to lose', or something along those lines. Of course, the folks peddling IM Academy on facebook are just posting about the opportunity to make money trading forex.
That got me thinking -- if the company is paying these guys commissions on referrals for the software, they are effectively communicating to the public. FINRA has some very specific guidelines on this (emphasis mine):
Communications with the Public
NASD Rule 2210, applicable to all FINRA members, prohibits firms from making any false, exaggerated, unwarranted or misleading statement or claim in any communication with the public. Rule 2210 is not limited to a broker-dealer's securities and investment banking business. A firm's forex-related communications—whether the firm is acting as a dealer or is soliciting forex business for a dealer—must be fair and balanced and based on principles of fair dealing and good faith, and firms must provide a sound basis for evaluating the facts regarding both the forex market generally, as well as the customers' specific transactions. These obligations may not be waived or met by disclaimer.
New FINRA member firms that engage in forex-related activities must file their advertisements with FINRA. Rule 2210 requires any firm that has not previously filed advertisements with FINRA to file all of its advertisements at least 10 days prior to first use; this filing requirement continues for one year from the first submission. Rule 2210's internal approval, filing requirements and recording-keeping provisions also apply to forex-related communications. The rule requires that a registered principal give written approval of all advertisements and sales literature prior to use.
Rule 2210 prohibits predictions or projections of performance, or the implication that past performance will recur. Communications used by firms in connection with retail forex activities may not tout future returns. The rule prohibits the omission of material facts or qualifications that would cause a communication to be misleading. Accordingly, firms' communications must adequately disclose the risks associated with forex trading, including the risks of highly leveraged trading. Firms must also make sure that their communications with the public are not misleading regarding, among other things:
Am I onto something here? Even if IM Academy seems to skirt around the traditional definition of a pyramid scheme, their affiliates are breaking the regulations the company, at least, is obligated to adhere to.
This IM Academy scheme specifically seems particularly predatory. I can see a vast gulf between being out a few hundred bucks on shitty inventory you'll never push and forex leverages, which can sometimes mean you lose more than you put in.
submitted by ItsOtisTime to antiMLM [link] [comments]

Market Making for "Forex Traders"

Hi I am quant. I do most of my research in portfolio and risk management techniques and some stuff in high frequency. A lot of people I knew from high school and college have gone off and become "forex traders / stock gurus". They are always asking me for advice even though I mostly work on stuff that's completely separate nor do use technical indicators (unless high frequency), or trade equity for value. And I got frustrated with people asking me if I think this company is overvalued or if I want to make money trading Forex.
But I became interested in what they do and more importantly how the make their trading decisions. After speaking to a bunch of people, hopping on zoom with them to see how they "mark up" a graph, and watching their videos I have come to the conclusion that they are using complex trading strategies to "leisurely". But it works for most of the time. The reason why it works it that there are less outlier scenarios in FX than other market. And most importantly there is always liquidity to reduce slippage or the chance that the stop loss doesn't get triggered. In theory the best markets to track using TA are either FX or commodities (probably FX).
At first I thought it was funny to talk to these guys, but then it hit me. If I had a market making strategy and followed their trades. I could pick the best prices to provide liquidity at (in my benefit). Here are the problems. The size of these "forex traders" deal flow is probably so small that there ins't that much room for me to make a profit solely reading their future trades and then providing liquidity. But if I paid to be the primary liquidity provider for their retail broker similar to how RobinHood sells trades to give 0 fees, there may be a possibility that the percentage I would get from making the market may be enough. Do you guys think that is possible.
submitted by dial0663 to quant [link] [comments]

Triton Capital Markets — How to Trade with MetaTrader 5

Triton Capital Markets offers the incredible MT5 to its dealers, permitting them to exchange various resources, for example, on forex, fates, and, with adaptable just as no re-cites, no value dismissals and zero slippages.
A center advantage of the MetaTrader 5 stage is that you can exchange from anyplace and whenever from the solace of your cell phone and tablet. This empowers a broker to exchange their advantages of decision from any internet browser and any gadget. Moreover, the MT5 stage offers, exchanging signals and, and all the accessible devices and highlights can be utilized from a solitary incredible.
Here is the thing that to do to encounter the full intensity of the Triton capital Markets MetaTrader 5:
1. Training
As referenced above, MetaTrader 5 is stuffed with various highlights and exchanging assets, which are intended to upgrade your exchanging exercises. It is critical to find out pretty much all the highlights and their pertinence to guarantee that you are well prepared to exploit the full intensity of the stage.
From the accessible 7 resource class types, various exchanging devices, pointers, and graphical items, to 6 distinctive request types, numerous robotized systems, and market profundity, you may have the option to completely misuse the crude intensity of the MT5 stage if you set aside some effort to teach yourself on all the accessible functionalities of this natural stage.
Triton Capital Markets additionally has various instructive materials explicitly on the MT5 exchanging stage that are open for nothing in our ‘ area. Make certain to exploit the educational and amicable eBooks and recordings that disclose in detail how to exchange money related resources online proficiently.
2. Installation
Here are the base framework prerequisites for utilizing Triton Capital Markets MT5 on your PC:
Windows 7 Operating System or higher (64-piece framework suggested)
Pentium 4/Athlon 64 processors or higher (All cutting edge CPUs ought to have the option to help this)
If you mean to be a substantial client (For example, opening different outlines and using numerous EAs), you could think about increasingly incredible equipment choices
Follow the means underneath to download and introduce Triton Capital Markets MT5 on your PC:
3. Add Your Request
If you have just signed into your Triton Capital Markets MT5, it is presently an ideal opportunity to estimate the costs of your preferred resource.
There are a few different ways to put in a request on MT5:
Snap-on Tools on the Menu bar. At that point select ‘New Order’
On the Market Watch window, double-tap on the benefit you wish to exchange (you can likewise right-tap on your ideal resource and afterward select ‘New request’)
Open the Trading tab on the lower terminal and select ‘New Order’
Press F9 for a single tick exchanging on the outline of your preferred resource
At the point when any of the above alternatives is applied, the ‘Request Screen’ will spring up. The screen will have a tick graph on its left side and customizable request subtleties on the right. The tick outline shows the offer and asks costs, and along these lines, the constant spreads (the contrast between the offer and ask costs).
The request subtleties on the privilege are:
Image — This is the benefit you wish to exchange.
Request Type — You can pick between Market Execution and Pending Execution request types.
Volume — This is the amount (in part measures) that you wish to exchange, of the chose hidden resource. On a standard record, 1 part size is what could be compared to 100,000 units, which commonly implies that will be around 10 US dollars (USD) on most resources.
Stop Loss and Take Profit — You will have the option to join stop misfortune and take benefit orders on the entirety of your exchanges. Stop misfortune orders when the advantage value moves against you, while take benefit orders permit you to book benefits when the benefit value moves in support of yourself.
Remark — You can include any notes concerning any exchange of the remark segment. This is perfect for merchants that report their exchanging exercises.
Exchange Any Time and From Anywhere
The Triton Capital Markets MT5 stage likewise has a web form that is open on both portable and work area programs. There is likewise a downloadable versatile MT5 App that is good with both Android and iOS cell phones. This gives the accommodation and adaptability to exchange from anyplace. Besides, you can likewise sign in over the various stages utilizing single login certifications.
MetaTrader 5 — The Benefits of Trading with Triton Capital Markets
Triton Capital Markets is an honor winning and which furnishes brokers with all the devices, administrations, and highlights required to satisfy one’s full exchanging potential.
Guideline — Triton Capital Markets is a managed dealer, giving merchants genuine feelings of serenity that they are joining forces with an agent that works inside the rules as set out by perceived, global administrative bodies.
Natural Trading Platforms — Triton Capital Markets gives its dealers access to a wide decision of top-quality and incredible exchanging stages including the exceptionally famous MT4 and MT5 exchanging stages.
A Choice of Trading Instruments — Traders at Triton Capital Markets can get to a decision of exchanging instruments including digital forms of money, stocks, products, records, forex sets, and securities.
Wellbeing and Security — Safety and Security — At Triton Capital Markets, every one of the customers’ assets are held in an isolated record. Besides, each record has negative equalization insurance to guarantee that a dealer’s record never goes under zero.
Secure Payment Options — For installments, Triton Capital Markets gives access to a wide assortment of, which incorporates charge cards, wire move.
Complete Educational Resources — Triton Capital Markets gives its brokers access to a wide decision of instructive materials including recordings, eBooks, online courses, articles just as access to Sharp Trader, our special exchanging foundation.
Proficient and Responsive Customer Support — You can contact the multilingual Triton Capital Markets client assistance just as access to a committed record director.
submitted by tritoncapitalmarkets to u/tritoncapitalmarkets [link] [comments]

I am a professional Day Trader working for a Prop Fund, Hope I can help people out and answer some questions

Howdy all, I work professionally for a proprietary trading fund, and have worked for quite a few in my time, hope I can offer some insights on trading etc you guys might have.
Bonus for you guys
Here are the columns in my trading journal and various explanations where appropriate:
Trade Number – Simply is this the first trade of the year? The 10th?, The 50th? I count a trade
that you opened and closed just one trade number. For example if you buy EUUSD today and
sell it 50 pips later in the day and close out the trade, then that is just one trade for recording
purposes. I do not create a second trade number to describe the exit. Both the entry and exit are
under the same trade number.


Ticket Number – This is ticket number / order ID number that your broker gives you for the trade
on your platform.


Day of the Week – This would be simply the day of the week the trade was initiated


Financial Instrument / Currency Pair – Whatever Financial Instrument or currency pair you are
trading. If you are trading EUUSD, put EUUSD. If you are trading the EuroFX futures
contract, then put in Euro FX. If you are trading the emini S&P, then put in Emini S&P 500. If
you are trading a stock, put in the ticker symbol. Etc.


Buy/Sell or Long/Short – Did you buy or sell to open the new trade? If you bought something to
open the trade, then write in either BUY or LONG. If you sold(shorted) something to open a
trade, then write in SOLD, or SHORT. This is a personal preference. Some people like to put in
their journals as BUY/SELL. Other people like to write in Long/Short. My preference is for
writing in long/short, since that is the more professional way to say it. I like to use the lingo
where possible.


Order Type – Market or Limit – When you entered the trade was it a market order or limit order?
Some people can enter a trade using a combination of market and limit orders. If you enter a
trade for $1 million half of which was market order and the other half was limit order, then you
can write in $500,000 Market, $500,000 Limit as a bullet points.


Position Size / Units / Contracts / Shares – How big was the total trade you entered? If you
bought 1 standard lot of a currency pair, then write in $100,000 or 1 standard lot. If you bought 5
gold futures contracts, then write in 5 contracts. If you bought 1,000 shares of stock, then write
in 1,000 shares. Etc.


Entry Price – The entry price you received entering your opening position. If you entered at
multiple prices, then you can either write in all the different fills you got, or specify the average
price received.


Entry Date – Date that you entered the position. For example January 23, 2012. Or you can
write in 1/23/12

.
Entry Time – Time that you opened the position. If it is multiple positions, then you can specify
each time for each various fill, or you can specify the time range. For example if you got
$100,000 worth of EUUSD filled at 3:00 AM EST, and another $100,000 filled at 3:05 and
another $100,000 filled at 3:25, then you can write all those in, or you can specify a range of 3:00
– 3:30 AM EST.


Entry Spread Cost (in pips) – This is optional if you want to keep track of your spread cost in
pips. If you executed a market order, how many pips did you pay in spread.


Entry Spread Cost (in dollars) – This is optional if you want to keep track of your spread cost in
dollars. If you executed a market order, how many dollars did you pay in spread.


Stop Loss Size – How big is your stop loss size? If you are trading a currency pair, then you
write in the pips. If you are trading the S&P futures contract, then write in the number of points.
If you are trading a stock, then write in how many cents or dollars your stop is away from your
entry price.


% Risk – If you were to get stopped out of the trade, how much % loss of your equity is that?
This is where you input your risk per trade expressed in % terms if you use such a position sizing
method. If you risked 0.50% of your account on the trade, then put in 0.50%


Risk in dollars – If you were to get stopped out of the trade, how much loss in dollars is that. For
example if you have a $100,000 account and you risked 1% on a trade, then write in $1,000
dollars


Potential Reward: Risk Ratio – This is a column that I only sometimes fill in. You write in what
the potential reward risk ratio of the trade is. If you are trading using a 100 pip stop and you
expect that the market can reasonably move 300 pips, then you can write in 3:1. Of course this is
an interesting column because you can look at it after the trade is finished and see how close you
were or how far removed from reality your initial projections were.


Potential Win Rate – This is another column that I only sometimes fill in. You write in what you
believe the potential win rate of this trade is. If you were to place this trade 10 times in a row,
how many times do you think you would win? I write it in as percentage terms. If you believe
the trade has a 50% chance to win, then write in 50%.


Type of Inefficiency – This is where you write in what type of inefficiency you are looking to
capture. I use the word inefficiency here. I believe it is important to think of trading setups as
inefficiencies. If you think in terms of inefficiencies, then you will think in terms of the market
being mispriced, then you will think about the reasons why the market is mispriced and why such
market expectations for example are out of alignment with reality. In this category I could write
in different types of trades such as fading the stops, different types of news trades, expecting
stops to get tripped, betting on sentiment intensifying, betting on sentiment reversing, etc. I do
not write in all the reasons why I took the trade in this column. I do that in another column. This
column is just to broadly define what type of inefficiency you are looking to capture.


Chart Time Frame – I do not use this since all my order flow based trades have nothing to do
with what chart time frame I look at. However, if you are a chartist or price action trader, then
you may want to include what chart time frame you found whatever pattern you were looking at.


Exit Price – When you exit your trade, you enter the price you received here.


Exit Date – The date you exited your trade.


Exit Time – The time you exited your trade.


Trade Duration – In hours, minutes, days or weeks. If the trade lasts less than an hour, I will
usually write in the duration in minutes. Anything in between 1 and 48 hours, I write in the hours
amount. Anything past that and I write it as days or weeks as appropriate, etc.
Pips the trade went against you before turning into a winner – If you have a trade that suffered a
draw down, but did not stop you out and eventually was a winner, then you write it how many
pips the trade went against you before it turned into a profitable trade. The reason you have this
column is to compare it to your stop loss size and see any patterns that emerge. If you notice that
a lot of your winning trades suffer a big draw down and get near your stop loss points but turn out
to be a profitable trade, then you can further refine your entry strategy to get in a better price.


Slippage on the Exit – If you get stopped out for a loss, then you write in how many pips you
suffered as slippage, if any. For example if you are long EUUSD at 1.2500 and have your stop
loss at 1.2400 and the market drops and you get filled at 1.2398, then you would write in -2 pips
slippage. In other words you lost 2 pips as slippage. This is important for a few different
reasons. Firstly, you want to see if the places you put your stop at suffer from slippage. If they
do, perhaps you can get better stop loss placement, or use it as useful information to find new
inefficiencies. Secondly, you want to see how much slippage your broker is giving you. If you
are trading the same system with different brokers, then you can record the slippage from each
one and see which has the lowest slippage so you can choose them.


Profit/Loss -You write in the profit and/or loss in pips, cents, points, etc as appropriate. If you
bought EUUSD at 1.2500 and sell it at 1.2550, you made 50 pips, so write in +50 pips. If you
bought a stock at $50 and you sell it at $60, then write in +$10. If you buy the S&P futures at
1,250 and sell them at 1,275, then write in +25 points. If you buy the GBP/USD at 1.5000 and
you sell it at 1.4900, then write in -100 pips. Etc. I color code the box background to green for
profit and red for loss.


Profit/Loss In Dollars – You write the profit and/or loss in dollars (or euros, or jpy, etc whatever
currency your account is denominated in). If you are long $100,000 of EUUSD at 1.2500 and
sell it at 1.2600, then write in +$1,000. If you are short $100,000 GBP/USD at 1.5900 and it
rises to 1.6000 and you cover, then write in -$1,000. I color code the box background to green
for profit and red for loss.


Profit/Loss as % of your account – Write in the profit and/or loss as % of your account. If a trade
made you 2% of your account, then write in +2%. If a trade lost 0.50%, then write in -0.50%. I
color code the box background to green for profit and red for loss.


Reward:Risk Ratio or R multiple: If the trade is a profit, then write in how many times your risk
did it pay off. If you risked 0.50% and you made 1.00%, then write in +2R or 2:1 or 2.0. If you
risked 0.50% and a trade only makes 0.10%, then write in +0.20R or 0.2:1 or 0.2. If a trade went
for a loss that is equal to or less than what you risked, then I do not write in anything. If the loss
is greater than the amount you risked, then I do write it in this column. For example lets say you
risk 0.50% on a stock, but overnight the market gaps and you lose 1.50% on a trade, then I would
write it in as a -3R.


What Type of trading loss if the trade lost money? – This is where I describe in very general
terms a trade if it lost money. For example, if I lost money on a trade and the reason was because
I was buying in a market that was making fresh lows, but after I bought the market kept on going
lower, then I would write in: “trying to pick a bottom.” If I tried shorting into a rising uptrend
and I take a loss, then I describe it as “trying to pick a top.” If I am buying in an uptrend and buy
on a retracement, but the market makes a deeper retracement or trend change, then I write in
“tried to buy a ret.” And so on and so forth. In very general terms I describe it. The various
ways I use are:
• Trying to pick a bottom
• Trying to pick a top
• Shorting a bottom
• Buying a top
• Shorting a ret and failed
• Wrongly predicted news
• Bought a ret and failed
• Fade a resistance level
• Buy a support level
• Tried to buy a breakout higher
• Tried to short a breakout lower
I find this category very interesting and important because when performing trade journal
analysis, you can notice trends when you have winners or losing trades. For example if I notice a
string of losing trades and I notice that all of them occur in the same market, and all of them have
as a reason: “tried to pick a bottom”, then I know I was dumb for trying to pick a bottom five
times in a row. I was fighting the macro order flow and it was dumb. Or if I notice a string of
losers and see that I tried to buy a breakout and it failed five times in a row, but notice that the
market continued to go higher after I was stopped out, then I realize that I was correct in the
move, but I just applied the wrong entry strategy. I should have bought a retracement, instead of
trying to buy a fresh breakout.


That Day’s Weaknesses (If any) – This is where I write in if there were any weaknesses or
distractions on the day I placed the trade. For example if you are dead tired and place a trade,
then write in that you were very tired. Or if you place a trade when there were five people
coming and out of your trading office or room in your house, then write that in. If you placed the
trade when the fire alarm was going off then write that in. Or if you place a trade without having
done your daily habits, then write that in. Etc. Whatever you believe was a possible weakness
that threw you off your game.


That Day’s Strengths (If any) – Here you can write in what strengths you had during the day you
placed your trade. If you had complete peace and quiet, write that in. If you completed all your
daily habits, then write that in. Etc. Whatever you believe was a possible strength during the
day.


How many Open Positions Total (including the one you just placed) – How many open trades do
you have after placing this one? If you have zero open trades and you just placed one, then the
total number of open positions would be one, so write in “1.” If you have on three open trades,
and you are placing a new current one, then the total number of open positions would be four, so
write in “4.” The reason you have this column in your trading journal is so that you can notice
trends in winning and losing streaks. Do a lot of your losing streaks happen when you have on a
lot of open positions at the same time? Do you have a winning streak when the number of open
positions is kept low? Or can you handle a lot of open positions at the same time?


Exit Spread Cost (in pips) – This is optional if you want to keep track of your spread cost in pips.
If you executed a market order, how many pips did you pay in spread.


Exit Spread Cost (in dollars) – This is optional if you want to keep track of your spread cost in
dollars. If you executed a market order, how many dollars did you pay in spread.


Total Spread Cost (in pips) – You write in the total spread cost of the entry and exit in pips.


Total Spread Cost (in dollars) – You write in the total spread cost of the entry and exit in dollars.


Commission Cost – Here you write in the total commission cost that you incurred for getting in
and out of the trade. If you have a forex broker that is commission free and only gets
compensated through the spread, then you do not need this column.


Starting Balance – The starting account balance that you had prior to the placing of the trade


Interest/swap – If you hold forex currency pairs past the rollover, then you either get interest or
need to pay out interest depending on the rollover rates. Or if you bought a stock and got a
dividend then write that in. Or if you shorted a stock and you had to pay a dividend, then write
that in.


Ending Balance – The ending balance of your account after the trade is closed after taking into
account trade P&L, commission cost, and interest/swap.


Reasons for taking the trade – Here is where you go into much more detail about why you placed
the trade. Write out your thinking. Instead of writing a paragraph or two describing my thinking
behind the trade, I condense the reasons down into bullet points. It can be anywhere from 1-10
bullet points.


What I Learned – No matter if the trade is a win or loss, write down what you believed you
learned. Again, instead of writing out a paragraph or two, I condense it down into bullet points. it
can be anywhere from 1-10 bullet points. I do this during the day the trade closed as a profit or
loss.


What I learned after Long Term reflection, several days, weeks, or months – This is the very
interesting column. This is important because after you have a winning or losing trade, you will
not always know the true reasons why it happened. You have your immediate theories and
reasons which you include in the previous column. However, there are times when after several
days, weeks, or months, you find the true reason and proper market belief about why your trade
succeeded or failed. It can take a few days or weeks or months to reach that “aha” moment. I am
not saying that I am thinking about trades I placed ten months ago. I try to forget about them and
focus on the present moment. However, there will be trades where you have these nagging
questions about they failed or succeeded and you will only discover those reasons several days,
weeks, or months later. When you discover the reasons, you write them in this column.
submitted by Fox-The-Wise to Forex [link] [comments]

Concerns on DeFi

Hello,
Just wanted to share some of my legitimate concerns around decentralised finance with the broader community. To be quite clear - I am a huge fan of Ethereum and DeFi and believe this could lead to the future of finance. However, I do worry if there is a circle jerk within the community that could lead to a lack of adoption in the coming months. I will try and keep this as short as possible. By all means, do understand I am coming from the pov of sharing constructive criticism and not dissing on the efforts of those building.
If you are solving for these problems in particular, please ping me and I'd love to talk further with you
  1. On-ramps The largest problem for much of the developing world is the fact that while DAI can without doubt give dollar exposure, acquiring them is quite a difficult task. In fact if DAI demand goes up substantially in a region, it could have premiums of upto 25% which makes it a bad on-ramp tool without necessary liquidity in place. (check Wazir X p2p USDT rates in India for context). This problem is not endemic to DAI alone but is applicable to stable tokens of all kinds. With regional regulations in nations like Thailand, Vietnam, Indonesia, Phillipines, Malaysia and India not being clear on stable tokens in particular, it becomes an uphill task for developers to build on it. More importantly, it becomes less appealing for the average individual to use. Now typically this wouldnt matter if the point of DeFi was to be a niche project aimed at a small community. However, DeFi has the power to be the first mass market blockchain tool for the world. Consider it to be the "e-mail" or "napster" moment for blockchain based applications. IF we are to scale then on-ramps and off-ramps need to be solved for. This can happen only and if the community begins engaging with regional regulators and exchanges begin providing solutions. In an ideal world, acquiring stable tokens should be as easy as venmo'ing someone $10 dollar and receiving say $9.90 (1% fee) in Incento (incento.io seems interesting, not shilling but do check them out!)
  2. Incumbent Efficiency In order for a system to scale past a certain point, the value add it brings needs to be considerably higher than the incumbent. Depending on the size of the remittance market, there exists multiple payments and wire transfer corridors set up by startups today to solve for quick transfers. In fact during times when a blockchain like those of Ethereum's or Bitcoin's are clogged - transferwise can prove to be a cheaper, better alternative than tokens. This is not to diss on the fact that decentralisation and immutability has a price attached to them, but for the average user today alternatives are far better than token based products. The challenge when it comes to scaling - especially towards L2 is whether products can be incrementally better than their incumbents in exchange for some trade offs (eg: relative centralisation in lightning for minimal fees and quicker confirmation). Today's DeFi apps have to make a call between being ideological and efficient because it seems there is a price attached to ideology and retail users aren't willing to pay that price.
  3. Slippage Much props to Kyber and Uniswap for solving for this on most DeFi apps but there remains challenges in how settlements for defi instruments today happen. As the scale of volume on products like DyDx and Nuo increase and the expected accuracy at which trade settlements are anticipated to be limited to, there will come a point in time where traditional market-makers will have to enter the system. At $500 million the DeFi space's largest traders constantly reel from price slippages and a lack of liquidity. How can we scale to $10 billion or $1 trillion without the kind of liquidity that could instill confidence in large whales. In order to solve this, there will come a point in time where hedge funds and dark pool service providers from traditional markets begin targetting DeFi instruments. The community will likely see this as an all out assault on the principles DeFi has been built upon but to be honest, this will be a quintessential requirement for the space to grow. We are seeing an early variant of this already with the likes of Cred raising $50 million to re-issue as debt (yes, not entirely DeFi) or with MakerDAO having VC partners that come from traditional backgrounds. Even in the case of products like Dharma and compound, the market-makers are hedge funds. We will see a convergence of traditional market products and DeFi soon. That will be an exciting phase imo.
  4. Product-Market Fit Debt is one of the oldest financial innovations in the markets. Quite literally. Some of the first ever tablets recorded debt obligations and as such have been quintessential to the growth of human civilisation. MakerDAO's proposition of issuing token backed debt is by all means revolutionary but in order to see true scale, DeFi has to grow beyond the individuals that can give assets as collateral. I reckon there will be a new layer of growth for DeFi soon that will be powered with open-data and AI. One where an individual's credit worthiness could be checked with the individual's permission on basis of on-chain tx activity and self sovereign identity. I also see a market for AI based lending rate predictions and forex management by central banks. Autonomous agents can realistically analyse tx's in and out of a country, account for macro-economic indicators and optimise internal lending rates and foreign currency reserves. Ofcourse it is too early for any of this to take place but within the next decade our markets will be far more (i) closer due to globalisation and (ii) automated due to improvements in AI. DeFi is all well and good but if we are going to beat the same old drums of economic instruments that were created thousands of years back, there may be no real value proposition here. LsDAI, rDAI, CDAI, DAI... are all interesting but the average user sees no value yet. Which makes me wonder if we are sitting around patting each other's back before we see something productive (a unicorn from the DeFi ecosystem perhaps?)
  5. Scale 4.5 billion. That's the number of unbanked individuals that can be catered to with an L2 payments solution powered by Ethereum. Challenges? On-ramp, storage of private keys, user education and bloody hell - marketing and user education. Emphasis on the last 2 because I feel not much focus is given on it. We can no longer build and hope the markets come. We are in an era of Zombie startups where startups with north of $100 million+ valuations in Mcap, that raised north of $10million in 2017 from ICOs are sitting on ~1000 users a month. People think the alts blood seepage is done but it is likely that that bleeding wont stop until we find users. And when we do find users, we cant expect them to be using a gazillion tokens, each with weird token economics and even more complex functioning to be using them. Standardising of token interactions through wallets and interoperability will solve for these challenges but its time we asked what are the biggest problems DeFi can solve today? Here are some hints.. NFT based Income share agreements -Non collateralised debt for gig economy corporations that are registered as DAOs -DAO treasury management -Forex off-ramps for tourists (P2P) More on these later..
Just wanted to share my $0.02.
submitted by WiseAcanthisitta5 to ethfinance [link] [comments]

We built a fee solution for you, and are looking for feedback.

Hey guys, I'm from a company called Morpher. Our goal has been to use blockchain to solve different financial issues, and most notably figure out how to make trading better. My own vendetta however has been to make daytrading more feasible.
I traded for a long time across lots of markets; I've done outright equity trading, options trading, Forex (A Booked and B Booked).
Retail investors face a lot of obstacles in trading; big spreads, high fees, and limitation with time.
Only with Morpher can you short TSLA on a Saturday afternoon with $5.
Now we launched our virtual trading. Got some nice press from Forbes and Cointelegraph earlier this year. What we really want to do next is to work with traders so that we can improve our platform and add all the features that you want to see. We've built the bare bones, and now tell us what we can do to make this perfect! Heres the link to check out: Morpher.
submitted by AnalogTechie to Daytrading [link] [comments]

Finding Trading Edges: Where to Get High R:R trades and Profit Potential of Them.

Finding Trading Edges: Where to Get High R:R trades and Profit Potential of Them.
TL;DR - I will try and flip an account from $50 or less to $1,000 over 2019. I will post all my account details so my strategy can be seen/copied. I will do this using only three or four trading setups. All of which are simple enough to learn. I will start trading on 10th January.
----
As I see it there are two mains ways to understand how to make money in the markets. The first is to know what the biggest winners in the markets are doing and duplicating what they do. This is hard. Most of the biggest players will not publicly tell people what they are doing. You need to be able to kinda slide in with them and see if you can pick up some info. Not suitable for most people, takes a lot of networking and even then you have to be able to make the correct inferences.
Another way is to know the most common trades of losing traders and then be on the other side of their common mistakes. This is usually far easier, usually everyone knows the mind of a losing trader. I learned about what losing traders do every day by being one of them for many years. I noticed I had an some sort of affinity for buying at the very top of moves and selling at the very bottom. This sucked, however, is was obvious there was winning trades on the other side of what I was doing and the adjustments to be a good trader were small (albeit, tricky).
Thus began the study for entries and maximum risk:reward. See, there have been times I have bought aiming for a 10 pip scalps and hit 100 pips stops loss. Hell, there have been times I was going for 5 pips and hit 100 stop out. This can seem discouraging, but it does mean there must be 1:10 risk:reward pay-off on the other side of these mistakes, and they were mistakes.
If you repeatedly enter and exit at the wrong times, you are making mistakes and probably the same ones over and over again. The market is tricking you! There are specific ways in which price moves that compel people to make these mistakes (I won’t go into this in this post, because it takes too long and this is going to be a long post anyway, but a lot of this is FOMO).
Making mistakes is okay. In fact, as I see it, making mistakes is an essential part of becoming an expert. Making a mistake enough times to understand intrinsically why it is a mistake and then make the required adjustments. Understanding at a deep level why you trade the way you do and why others make the mistakes they do, is an important part of becoming an expert in your chosen area of focus.
I could talk more on these concepts, but to keep the length of the post down, I will crack on to actual examples of trades I look for. Here are my three main criteria. I am looking for tops/bottoms of moves (edge entries). I am looking for 1:3 RR or more potential pay-offs. My strategy assumes that retail trades will lose most of the time. This seems a fair enough assumption. Without meaning to sound too crass about it, smart money will beat dumb money most of the time if the game is base on money. They just will.
So to summarize, I am looking for the points newbies get trapped in bad positions entering into moves too late. From these areas, I am looking for high RR entries.
Setup Examples.
I call this one the “Lightning Bolt correction”, but it is most commonly referred to as a “two leg correction”. I call it a “Lightning Bolt correction” because it looks a bit like one, and it zaps you. If you get it wrong.

https://preview.redd.it/t4whwijse2721.png?width=1326&format=png&auto=webp&s=c9050529c6e2472a3ff9f8e7137bd4a3ee5554cc
Once I see price making the first sell-off move and then begin to rally towards the highs again, I am waiting for a washout spike low. The common trades mistakes I am trading against here is them being too eager to buy into the trend too early and for the to get stopped out/reverse position when it looks like it is making another bearish breakout. Right at that point they panic … literally one candle under there is where I want to be getting in. I want to be buying their stop loss, essentially. “Oh, you don’t want that ...okay, I will have that!”
I need a precise entry. I want to use tiny stops (for big RR) so I need to be cute with entries. For this, I need entry rules. Not just arbitrarily buying the spike out. There are a few moving parts to this that are outside the scope of this post but one of my mains ways is using a fibs extension and looking for reversals just after the 1.61% level. How to draw the fibs is something else that is outside the scope of this but for one simple rule, they can be drawn on the failed new high leg.

https://preview.redd.it/2cd682kve2721.png?width=536&format=png&auto=webp&s=f4d081c9faff49d0976f9ffab260aaed2b570309
I am looking for a few specific things for a prime setup. Firstly, I am looking for the false hope candles, the ones that look like they will reverse the market and let those buying too early get out break-even or even at profit. In this case, you can see the hammer and engulfing candle off the 127 level, then it spikes low in that “stop-hunt” sort of style.
Secondly I want to see it trading just past my entry level (161 ext). This rule has come from nothing other than sheer volume. The amount of times I’ve been stopped out by 1 pip by that little sly final low has gave birth to this rule. I am looking for the market to trade under support in a manner that looks like a new strong breakout. When I see this, I am looking to get in with tiny stops, right under the lows. I will also be using smaller charts at this time and looking for reversal clusters of candles. Things like dojis, inverted hammers etc. These are great for sticking stops under.
Important note, when the lightning bolt correction fails to be a good entry, I expect to see another two legs down. I may look to sell into this area sometimes, and also be looking for buying on another couple legs down. It is important to note, though, when this does not work out, I expect there to be continued momentum that is enough to stop out and reasonable stop level for my entry. Which is why I want to cut quick. If a 10 pips stop will hit, usually a 30 pips stop will too. Bin it and look for the next opportunity at better RR.

https://preview.redd.it/mhkgy35ze2721.png?width=1155&format=png&auto=webp&s=a18278b85b10278603e5c9c80eb98df3e6878232
Another setup I am watching for is harmonic patterns, and I am using these as a multi-purpose indicator. When I see potentially harmonic patterns forming, I am using their completion level as take profits, I do not want to try and run though reversal patterns I can see forming hours ahead of time. I also use them for entering (similar rules of looking for specific entry criteria for small stops). Finally, I use them as a continuation pattern. If the harmonic pattern runs past the area it may have reversed from, there is a high probability that the market will continue to trend and very basic trend following strategies work well. I learned this from being too stubborn sticking with what I thought were harmonic reversals only to be ran over by a trend (seriously, everything I know I know from how it used to make me lose).

https://preview.redd.it/1ytz2431f2721.png?width=1322&format=png&auto=webp&s=983a7f2a91f9195004ad8a2aa2bb9d4d6f128937
A method of spotting these sorts of M/W harmonics is they tend to form after a second spike out leg never formed. When this happens, it gives me a really good idea of where my profit targets should be and where my next big breakout level is. It is worth noting, larger harmonics using have small harmonics inside them (on lower time-frames) and this can be used for dialling in optimum entries. I also use harmonics far more extensively in ranging markets. Where they tend to have higher win rates.
Next setup is the good old fashioned double bottoms/double top/one tick trap sort of setup. This comes in when the market is highly over extended. It has a small sell-off and rallies back to the highs before having a much larger sell-off. This is a more risky trade in that it sells into what looks like trending momentum and can be stopped out more. However, it also pays a high RR when it works, allowing for it to be ran at reduced risk and still be highly profitable when it comes through.

https://preview.redd.it/1bx83776f2721.png?width=587&format=png&auto=webp&s=2c76c3085598ae70f4142d26c46c8d6e9b1c2881
From these sorts of moves, I am always looking for a follow up buy if it forms a lightning bolt sort of setup.
All of these setups always offer 1:3 or better RR. If they do not, you are doing it wrong (and it will be your stop placement that is wrong). This is not to say the target is always 1:3+, sometimes it is best to lock in profits with training stops. It just means that every time you enter, you can potentially have a trade that runs for many times more than you risked. 1:10 RR can be hit in these sorts of setups sometimes. Paying you 20% for 2% risked.
I want to really stress here that what I am doing is trading against small traders mistakes. I am not trying to “beat the market maker”. I am not trying to reverse engineer J.P Morgan’s black boxes. I do not think I am smart enough to gain a worthwhile edge over these traders. They have more money, they have more data, they have better softwares … they are stronger. Me trying to “beat the market maker” is like me trying to beat up Mike Tyson. I might be able to kick him in the balls and feel smug for a few seconds. However, when he gets up, he is still Tyson and I am still me. I am still going to be pummeled.
I’ve seen some people that were fairly bright people going into training courses and coming out dumb as shit. Thinking they somehow are now going to dominate Goldman Sachs because they learned a chart pattern. Get a grip. For real, get a fucking grip. These buzz phrases are marketeering. Realististically, if you want to win in the markets, you need to have an edge over somebody.
I don’t have edges on the banks. If I could find one, they’d take it away from me. Edges work on inefficiencies in what others do that you can spot and they can not. I do not expect to out-think a banks analysis team. I know for damn sure I can out-think a version of me from 5 years ago … and I know there are enough of them in the markets. I look to trade against them. I just look to protect myself from the larger players so they can only hurt me in limited ways. Rather than letting them corner me and beat me to a pulp (in the form of me watching $1,000 drop off my equity because I moved a stop or something), I just let them kick me in the butt as I run away. It hurts a little, but I will be over it soon.
I believe using these principles, these three simple enough edge entry setups, selectiveness (remembering you are trading against the areas people make mistakes, wait for they areas) and measured aggression a person can make impressive compounded gains over a year. I will attempt to demonstrate this by taking an account of under $100 to over $1,000 in a year. I will use max 10% on risk on a position, the risk will scale down as the account size increases. In most cases, 5% risk per trade will be used, so I will be going for 10-20% or so profits. I will be looking only for prime opportunities, so few trades but hard hitting ones when I take them.
I will start trading around the 10th January. Set remind me if you want to follow along. I will also post my investor login details, so you can see the trades in my account in real time. Letting you see when I place my orders and how I manage running positions.
I also think these same principles can be tweaked in such a way it is possible to flip $50 or so into $1,000 in under a month. I’ve done $10 to $1,000 in three days before. This is far more complex in trade management, though. Making it hard to explain/understand and un-viable for many people to copy (it hedges, does not comply with FIFO, needs 1:500 leverage and also needs spreads under half a pip on EURUSD - not everyone can access all they things). I see all too often people act as if this can’t be done and everyone saying it is lying to sell you something. I do not sell signals. I do not sell training. I have no dog in this fight, I am just saying it can be done. There are people who do it. If you dismiss it as impossible; you will never be one of them.
If I try this 10 times with $50, I probably am more likely to make $1,000 ($500 profit) in a couple months than standard ideas would double $500 - I think I have better RR, even though I may go bust 5 or more times. I may also try to demonstrate this, but it is kinda just show-boating, quite honestly. When it works, it looks cool. When it does not, I can go bust in a single day (see example https://www.fxblue.com/users/redditmicroflip).
So I may or may not try and demonstrate this. All this is, is just taking good basic concepts and applying accelerated risk tactics to them and hitting a winning streak (of far less trades than you may think). Once you have good entries and RR optimization in place - there really is no reason why you can not scale these up to do what may people call impossible (without even trying it).
I know there are a lot of people who do not think these things are possible and tend to just troll whenever people talk about these things. There used to be a time when I’d try to explain why I thought the way I did … before I noticed they only cared about telling me why they were right and discussion was pointless. Therefore, when it comes to replies, I will reply to all comments that ask me a question regarding why I think this can be done, or why I done something that I done. If you are commenting just to tell me all the reasons you think I am wrong and you are right, I will probably not reply. I may well consider your points if they are good ones. I just do not entering into discussions with people who already know everything; it serves no purpose.

Edit: Addition.

I want to talk a bit more about using higher percentage of risk than usual. Firstly, let me say that there are good reasons for risk caps that people often cite as “musts”. There are reasons why 2% is considered optimum for a lot of strategies and there are reasons drawing down too much is a really bad thing.
Please do not be ignorant of this. Please do not assume I am, either. In previous work I done, I was selecting trading strategies that could be used for investment. When doing this, my only concern was drawdown metrics. These are essential for professional money management and they are also essential for personal long-term success in trading.
So please do not think I have not thought of these sorts of things Many of the reasons people say these things can’t work are basic 101 stuff anyone even remotely committed to learning about trading learns in their first 6 months. Trust me, I have thought about these concepts. I just never stopped thinking when I found out what public consensus was.
While these 101 rules make a lot of sense, it does not take away from the fact there are other betting strategies, and if you can know the approximate win rate and pay-off of trades, you can have other ways of deriving optimal bet sizes (risk per trade). Using Kelly Criterion, for example, if the pay-off is 1:3 and there is a 75% chance of winning, the optimal bet size is 62.5%. It would be a viable (high risk) strategy to have extremely filtered conditions that looked for just one perfect set up a month, makingover 150% if it was successful.
Let’s do some math on if you can pull that off three months in a row (using 150% gain, for easy math). Start $100. Month two starts $250. Month three $625. Month three ends $1,562. You have won three trades. Can you win three trades in a row under these conditions? I don’t know … but don’t assume no-one can.
This is extremely high risk, let’s scale it down to meet somewhere in the middle of the extremes. Let’s look at 10%. Same thing, 10% risk looking for ideal opportunities. Maybe trading once every week or so. 30% pay-off is you win. Let’s be realistic here, a lot of strategies can drawdown 10% using low risk without actually having had that good a chance to generate 30% gains in the trades it took to do so. It could be argued that trading seldomly but taking 5* the risk your “supposed” to take can be more risk efficient than many strategies people are using.
I am not saying that you should be doing these things with tens of thousands of dollars. I am not saying you should do these things as long term strategies. What I am saying is do not dismiss things out of hand just because they buck the “common knowns”. There are ways you can use more aggressive trading tactics to turn small sums of money into they $1,000s of dollars accounts that you exercise they stringent money management tactics on.
With all the above being said, you do have to actually understand to what extent you have an edge doing what you are doing. To do this, you should be using standard sorts of risks. Get the basics in place, just do not think you have to always be basic. Once you have good basics in place and actually make a bit of money, you can section off profits for higher risk versions of strategies. The basic concepts of money management are golden. For longevity and large funds; learned them and use them! Just don’t forget to think for yourself once you have done that.

Update -

Okay, I have thought this through a bit more and decided I don't want to post my live account investor login, because it has my full name and I do not know who any of you are. Instead, for copying/observing, I will give demo account login (since I can choose any name for a demo).
I will also copy onto a live account and have that tracked via Myfxbook.
I will do two versions. One will be FIFO compliant. It will trade only single trade positions. The other will not be FIFO compliant, it will open trades in batches. I will link up live account in a week or so. For now, if anyone wants to do BETA testing with the copy trader, you can do so with the following details (this is the non-FIFO compliant version).

Account tracking/copying details.

Low-Medium risk.
IC Markets MT4
Account number: 10307003
Investor PW: lGdMaRe6
Server: Demo:01
(Not FIFO compliant)

Valid and Invalid Complaints.
There are a few things that can pop up in copy trading. I am not a n00b when it comes to this, so I can somewhat forecast what these will be. I can kinda predict what sort of comments there may be. Some of these are valid points that if you raise I should (and will) reply to. Some are things outside of the scope of things I can influence, and as such, there is no point in me replying to. I will just cover them all here the one time.

Valid complains are if I do something dumb or dramatically outside of the strategy I have laid out here. won't do these, if I do, you can pitchfork ----E

Examples;

“Oi, idiot! You opened a trade randomly on a news spike. I got slipped 20 pips and it was a shit entry”.
Perfectly valid complaint.

“Why did you open a trade during swaps hours when the spread was 30 pips?”
Also valid.

“You left huge trades open running into the weekend and now I have serious gap paranoia!”
Definitely valid.

These are examples of me doing dumb stuff. If I do dumb stuff, it is fair enough people say things amounting to “Yo, that was dumb stuff”.

Invalid Complains;

“You bought EURUSD when it was clearly a sell!!!!”
Okay … you sell. No-one is asking you to copy my trades. I am not trading your strategy. Different positions make a market.

“You opened a position too big and I lost X%”.
No. Na uh. You copied a position too big. If you are using a trade copier, you can set maximum risk. If you neglect to do this, you are taking 100% risk. You have no valid compliant for losing. The act of copying and setting the risk settings is you selecting your risk. I am not responsible for your risk. I accept absolutely no liability for any losses.
*Suggested fix. Refer to risk control in copy trading software

“You lost X trades in a row at X% so I lost too much”.
Nope. You copied. See above. Anything relating to losing too much in trades (placed in liquid/standard market conditions) is entirely you. I can lose my money. Only you can set it up so you can lose yours. I do not have access to your account. Only mine.
*Suggested fix. Refer to risk control in copy trading software

“Price keeps trading close to the pending limit orders but not filling. Your account shows profits, but mine is not getting them”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
* Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Buy limit orders will need to move up a little. Sell limit orders should not need adjusted.

“I got stopped out right before the market turned, I have a loss but your account shows a profit”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
** Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Stop losses on sell orders will need to move up a bit. Stops on buy orders will be fine.

“Your trade got stopped out right before the market turned, if it was one more pip in the stop, it would have been a winner!!!”
Yeah. This happens. This is where the “risk” part of “risk:reward” comes in.

“Price traded close to take profit, yours filled but mines never”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
(Side note, this should not be an issue since when my trade closes, it should ping your account to close, too. You might get a couple less pips).
*** Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Take profits on buys will need to move up a bit. Sell take profits will be fine.

“My brokers spread jumped to 20 during the New York session so the open trade made a bigger loss than it should”.
Your broker might just suck if this happens. This is brokerage. I have no control over this. My trades are placed to profit from my brokerage conditions. I do not know, so can not account for yours. Also, if accounting for random spread spikes like this was something I had to do, this strategy would not be a thing. It only works with fair brokerage conditions.
*Suggested fix. Do a bit of Googling and find out if you have a horrific broker. If so, fix that! A good search phrase is; “(Broker name) FPA reviews”.

“Price hit the stop loss but was going really fast and my stop got slipped X pips”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
If my trade also got slipped on the stop, I was slipped using ECN conditions with excellent execution; sometimes slips just happen. I am doing the most I can to prevent them, but it is a fact of liquidity that sometimes we get slipped (slippage can also work in our favor, paying us more than the take profit would have been).

“Orders you placed failed to execute on my account because they were too large”.
This is brokerage. I have no control over this. Margin requirements vary. I have 1:500 leverage available. I will not always be using it, but I can. If you can’t, this will make a difference.

“Your account is making profits trading things my broker does not have”
I have a full range of assets to trade with the broker I use. Included Forex, indices, commodities and cryptocurrencies. I may or may not use the extent of these options. I can not account for your brokerage conditions.

I think I have covered most of the common ones here. There are some general rules of thumb, though. Basically, if I do something that is dumb and would have a high probability of losing on any broker traded on, this is a valid complain.

Anything that pertains to risk taken in standard trading conditions is under your control.

Also, anything at all that pertains to brokerage variance there is nothing I can do, other than fully brief you on what to expect up-front. Since I am taking the time to do this, I won’t be a punchbag for anything that happens later pertaining to this.

I am not using an elitist broker. You don’t need $50,000 to open an account, it is only $200. It is accessible to most people - brokerage conditions akin to what I am using are absolutely available to anyone in the UK/Europe/Asia (North America, I am not so up on, so can’t say). With the broker I use, and with others. If you do not take the time to make sure you are trading with a good broker, there is nothing I can do about how that affects your trades.

I am using an A book broker, if you are using B book; it will almost certainly be worse results. You have bad costs. You are essentially buying from reseller and paying a mark-up. (A/B book AKA ECN/Market maker; learn about this here). My EURUSD spread will typically be 0.02 pips or so, if yours is 1 pip, this is a huge difference.
These are typical spreads I am working on.

https://preview.redd.it/yc2c4jfpab721.png?width=597&format=png&auto=webp&s=c377686b2485e13171318c9861f42faf325437e1


Check the full range of spreads on Forex, commodities, indices and crypto.

Please understand I want nothing from you if you benefit from this, but I am also due you nothing if you lose. My only term of offering this is that people do not moan at me if they lose money.

I have been fully upfront saying this is geared towards higher risk. I have provided information and tools for you to take control over this. If I do lose people’s money and I know that, I honestly will feel a bit sad about it. However, if you complain about it, all I will say is “I told you that might happen”, because, I am telling you that might happen.

Make clear headed assessments of how much money you can afford to risk, and use these when making your decisions. They are yours to make, and not my responsibility.

Update.

Crazy Kelly Compounding: $100 - $11,000 in 6 Trades.

$100 to $11,000 in 6 trades? Is it a scam? Is it a gamble? … No, it’s maths.

Common sense risk disclaimer: Don’t be a dick! Don’t risk money you can’t afford to lose. Do not risk money doing these things until you can show a regular profit on low risk.
Let’s talk about Crazy Kelly Compounding (CKC). Kelly criterion is a method for selecting optimal bet sizes if the odds and win rate are known (in other words, once you have worked out how to create and assess your edge). You can Google to learn about it in detail. The formula for Kelly criterion is;
((odds-1) * (percentage estimate)) - (1-percent estimate) / (odds-1) X 100
Now let’s say you can filter down a strategy to have a 80% win rate. It trades very rarely, but it had a very high success rate when it does. Let’s say you get 1:2 RR on that trade. Kelly would give you an optimum bet size of about 60% here. So if you win, you win 120%. Losing three trades in a row will bust you. You can still recover from anything less than that, fairly easily with a couple winning trades.
This is where CKC comes in. What if you could string some of these wins together, compounding the gains (so you were risking 60% each time)? What if you could pull off 6 trades in a row doing this?
Here is the math;

https://preview.redd.it/u3u6teqd7c721.png?width=606&format=png&auto=webp&s=3b958747b37b68ec2a769a8368b5cbebfe0e97ff
This shows years, substitute years for trades. 6 trades returns $11,338! This can be done. The question really is if you are able to dial in good enough entries, filter out enough sub-par trades and have the guts to pull the trigger when the time is right. Obviously you need to be willing to take the hit, obviously that hit gets bigger each time you go for it, but the reward to risk ratio is pretty decent if you can afford to lose the money.
We could maybe set something up to do this on cent brokers. So people can do it literally risking a couple dollars. I’d have to check to see if there was suitable spreads etc offered on them, though. They can be kinda icky.
Now listen, I am serious … don’t be a dick. Don’t rush out next week trying to retire by the weekend. What I am showing you is the EXTRA rewards that come with being able to produce good solid results and being able to section off some money for high risk “all or nothing” attempts; using your proven strategies.
I am not saying anyone can open 6 trades and make $11,000 … that is rather improbable. What I am saying is once you can get the strategy side right, and you can know your numbers; then you can use the numbers to see where the limits actually are, how fast your strategy can really go.
This CKC concept is not intended to inspire you to be reckless in trading, it is intended to inspire you to put focus on learning the core skills I am telling you that are behind being able to do this.
submitted by inweedwetrust to Forex [link] [comments]

[Not my post] The Structure of Forex Brokers

Originally posted by Darkstar at Forex Factory.
Disclaimer: I did not write this. I found this post on ForexFactory written by a user called DarkStar, which I believe a lot of redditors will benefit from reading.
________________________________________________________________________________________________________
There has been much discussion of late regarding borker spreads and liquidity. Many assumptions are being made about why spreads are widened during news time that are built on an incomplete knowledge of the architecture of the forex market in general. The purpose of this article is to dissect the market and hopefully shed some light on the situation so that a more rational and productive discussion can be undertaken by the Forex Factory members.
We will begin with an explanation of the purpose of the Forex market and how it is utilized by its primary participants, expand into the structure and operation of the market, and conclude with the implications of this information for speculators. With that having been said, let us begin.
Unlike the various bond and equity markets, the Forex market is not generally utilized as an investment medium. While speculation has a critical role in its proper function, the lion’s share of Forex transactions are done as a function of international business.
The guy who buys a shiny new Eclipse more then likely will pay for it with US Dollars. Unfortunately Mitsubishi’s factory workers in Japan need to get their paychecks denominated in Yen, so at some point a conversion needs to be made. When one considers that companies like Exxon, Boeing, Sony, Dell, Honda, and thousands of other international businesses move nearly every dollar, real, yen, rubble, pound, and euro they make in a foreign country through the Forex market, it isn’t hard to understand how insignificant the speculative presence is; even in a $2tril per day market.
By and large, businesses don’t much care about the intricacies of exchange rates, they just want to make and sell their products. As a central repository of a company’s money, it was only natural that the banks would be the facilitators of these transactions. In the old days it was easy enough for a bank to call a foreign bank (or a foreign branch of ones own bank) and swap the stockpiles of currency each had accumulated from their many customers.
Just as any business would, the banks bought the foreign currency at one rate and marked it up before selling it to the customer. With that the foreign exchange spread was born. This was (and still is) a reasonable cost of doing business. Mitsubishi can pay its customers and the banks make a nice little profit for the hassle and risks associated with moving around the currency.
As a byproduct of transacting all this business, bank traders developed the ability to speculate on the future of currency rates. Utilizing a better understanding of the market, a bank could quote a business a spread on the current rate but hold off hedging until a better one came along. This process allowed the banks to expand their net income dramatically. The unfortunate consequence was that liquidity was redistributed in a way that made certain transactions impossible to complete.
It was for this reason and this reason alone that the market was eventually opened up to non-bank participants. The banks wanted more orders in the market so that a) they could profit from the less experienced participants, and b) the less experienced participants could provide a better liquidity distribution for execution of international business hedge orders. Initially only megacap hedge funds (such as Soros’s and others) were permitted, but it has since grown to include the retail brokerages and ECNs.

Market Structure:
Now that we have established why the market exists, let’s take a look at how the transactions are facilitated:
The top tier of the Forex market is transacted on what is collectively known as the Interbank. Contrary to popular belief the Interbank is not an exchange; it is a collection of communication agreements between the world’s largest money center banks.
To understand the structure of the Interbank market, it may be easier to grasp by way of analogy. Consider that in an office (or maybe even someone’s home) there are multiple computers connected via a network cable. Each computer operates independently of the others until it needs a resource that another computer possesses. At that point it will contact the other computer and request access to the necessary resource. If the computer is working properly and its owner has given the requestor authorization to do so, the resource can be accessed and the initiating computers request can be fulfilled. By substituting computers for banks and resources for currency, you can easily grasp the relationships that exist on the Interbank.
Anyone who has ever tried to find resources on a computer network without a server can appreciate how difficult it can be to keep track of who has what resources. The same issue exists on the Interbank market with regard to prices and currency inventory. A bank in Singapore may only rarely transact business with a company that needs to exchange some Brazilian Real and it can be very difficult to establish what a proper exchange rate should be. It is for this purpose that EBS and Reuters (hereafter EBS) established their services.
Layered on top (in a manner of speaking) of the Interbank communication links, the EBS service enables banks to see how much and at what prices all the Interbank members are willing to transact. Pains should be taken to express that EBS is not a market or a market maker; it is an application used to see bids and offers from the various banks.
The second tier of the market exists essential within each bank. By calling your local Bank of America branch you can exchange any foreign currency you would like. More then likely they will just move some excess currency from one branch to another. Since this is a micro-exchange with a single counterparty, you are basically at their mercy as to what exchange rate they will quote you. Your choice is to accept their offer or shop a different bank. Everyone who trades the forex market should visit their bank at least once to get a few quotes. It would be very enlightening to see how lucrative these transactions really are.
Branching off of this second tier is the third tier retail market. When brokers like Oanda, Forex.com, FXCM, etc. desire to establish a retail operation the first thing they need is a liquidity provider. Nine in ten of these brokers will sign an agreement with just one bank. This bank will agree to provide liquidity if and only if they can hedge it on EBS inclusive of their desired spread. Because the volume will be significantly higher a single bank patron will transact, the spreads will be much more competitive. By no means should it be expected these tier 3 providers will be quoted precisely what exists on the Interbank. Remember the bank is in the business of collecting spreads and no agreement is going to suspend that priority.
Retail forex is almost akin to running a casino. The majority of its participants have zero understanding how to trade effectively and as a result are consistent losers. The spread system combined with a standard probability distribution of returns gives the broker a built in house advantage of a few percentage points. As a result, they have all built internal order matching systems that play one loser off against a winner and collect the spread. On the occasions when disequilibrium exists within the internal order book, the broker hedges any exposure with their tier 2 liquidity provider.
As bad as this may sound, there are some significant advantages for speculators that deal with them. Because it is an internal order book, many features can be provided which are otherwise unavailable through other means. Non-standard contract sizes, high leverage on tiny account balances, and the ability to transact in a commission free environment are just a few of them…
An ECN operates similar to a Tier 2 bank, but still exists on the third tier. An ECN will generally establish agreements with several tier 2 banks for liquidity. However instead of matching orders internally, it will just pass through the quotes from the banks, as is, to be traded on. It’s sort of an EBS for little guys. There are many advantages to the model, but it is still not the Interbank. The banks are going to make their spread or their not go to waste their time. Depending on the bank this will take the form of price shading or widened spreads depending on market conditions. The ECN, for its trouble, collects a commission on each transaction.
Aside from the commission factor, there are some other disadvantages a speculator should consider before making the leap to an ECN. Most offer much lower leverage and only allow full lot transactions. During certain market conditions, the banks may also pull their liquidity leaving traders without an opportunity to enter or exit positions at their desired price.

Trade Mechanics:
It is convenient to believe that in a $2tril per day market there is always enough liquidity to do what needs to be done. Unfortunately belief does not negate the reality that for every buyer there MUST be a seller or no transaction can occur. When an order is too large to transact at the current price, the price moves to the point where open interest is abundant enough to cover it. Every time you see price move a single pip, it means that an order was executed that consumed (or otherwise removed) the open interest at the current price. There is no other way that prices can move.
As we covered earlier, each bank lists on EBS how much and at what price they are willing to transact a currency. It is important to note that no Interbank participant is under any obligation to make a transaction if they do not feel it is in their best interest. There are no “market makers” on the Interbank; only speculators and hedgers.
Looking at an ECN platform or Level II data on the stock market, one can get a feel for what the orders on EBS look like. The following is a sample representation:
You’ll notice that there is open interest (Level II Vol figures) of various sizes at different price points. Each one of those units represents existing limit orders and in this example, each unit is $1mil in currency.
Using this information, if a market sell order was placed for 38.4mil, the spread would instantly widen from 2.5 pips to 4.5 pips because there would no longer be any orders between 1.56300 and 1.56345. No broker, market maker, bank, or thief in the night widened the spread; it was the natural byproduct of the order that was placed. If no additional orders entered the market, the spread would remain this large forever. Fortunately, someone somewhere will deem a price point between those 2 figures an appropriate opportunity to do something and place an order. That order will either consume more interest or add to it, depending whether it is a market or limit order respectively.
What would have happened if someone placed a market sell order for 2mil just 1 millisecond after that 38.4 mil order hit? They would have been filled at 1.5630 Why were they “slipped”? Because there was no one to take the other side of the transaction at 1.56320 any longer. Again, nobody was out screwing the trader; it was the natural byproduct of the order flow.
A more interesting question is, what would happen if all the listed orders where suddenly canceled? The spread would widen to a point at which there were existing bids and offers. That may be 5,7,9, or even 100 pips; it is going to widen to whatever the difference between a bid and an offer are. Notice that nobody came in and “set” the spread, they just refused to transact at anything between it.
Nothing can be done to force orders into existence that don’t exist. Regardless what market is being examined or what broker is facilitating transactions, it is impossible to avoid spreads and slippage. They are a fact of life in the realm of trading.

Implications for speculators:
Trading has been characterized as a zero sum game, and rightly so. If trader A sells a security to trader B and the price goes up, trader A lost money that they otherwise could have made. If it goes down, Trader A made money from trader B’s mistake. Even in a huge market like the Forex, each transaction must have a buyer and a seller to make a trade and one of them is going to lose. In the general realm of trading, this is materially irrelevant to each participant. But there are certain situations where it becomes of significant importance. One of those situations is a news event.
Much has been made of late about how it is immoral, illegal, or downright evil for a broker, bank, or other liquidity provider to withdraw their order (increasing the spread) and slip orders (as though it was a conscious decision on their part to do so) more then normal during these events. These things occur for very specific reasons which have nothing to do with screwing anyone. Let us examine why:
Leading up to an economic report for example, certain traders will enter into positions expecting the news to go a certain way. As the event becomes immanent, the banks on the Interbank will remove their speculative orders for fear of taking unnecessary losses. Technical traders will pull their orders as well since it is common practice for them to avoid the news. Hedge funds and other macro traders are either already positioned or waiting until after the news hits to make decisions dependent on the result.
Knowing what we now know, where is the liquidity necessary to maintain a tight spread coming from?
Moving down the food chain to Tier 2; a bank will only provide liquidity to an ECN or retail broker if they can instantly hedge (plus their requisite spread) the positions on Interbank. If the Interbank spreads are widening due to lower liquidity, the bank is going to have to widen the spreads on the downstream players as well.
At tier 3 the ECN’s are simply passing the banks offers on, so spreads widen up to their customers. The retailers that guarantee spreads of 2 to 5 pips have just opened a gaping hole in their risk profile since they can no longer hedge their net exposure (ever wonder why they always seem to shut down or requote until its over?). The variable spread retailers in turn open up their spreads to match what is happening at the bank or they run into the same problems fixed spreads broker are dealing with.
Now think about this situation for a second. What is going to happen when a number misses expectations? How many traders going into the event with positions chose wrong and need to get out ASAP? How many hedge funds are going to instantly drop their macro orders? How many retail traders’ straddle orders just executed? How many of them were waiting to hear a miss and executed market orders?
With the technical traders on the sidelines, who is going to be stupid enough to take the other side of all these orders?
The answer is no one. Between 1 and 5 seconds after the news hits it is a purely a 1 way market. That big long pin bar that occurs is a grand total of 2 prices; the one before the news hit and the one after. The 10, 20, or 30 pips between them is called a gap.
Is it any wonder that slippage is in evidence at this time?

Conclusions:
Each tier of the Forex market has its own inherent advantages and disadvantages. Depending on your priorities you have to make a choice between what restrictions you can live with and those you cant. Unfortunately, you can’t always get what you want.
By focusing on slippage and spreads, which are the natural byproduct of order flow, one is not only pursuing a futile ideal, they are passing up an enormous opportunity to capitalize on true inefficiencies. News events are one of the few times where a large number of players are positioned inappropriately and it is fairly easy to profit from their foolishness. If a trader truly wants to make the leap to the next level of profitability they should be spending their time figuring out how identify these positions and trading with the goal of capturing the price movement they inevitably will cause.
Nobody is going to make the argument that a broker is a trader’s best friend, but they still provide a valuable service and should be compensated for their efforts. By accepting a broker for what it is and learning how to work within the limitations of the relationship, traders have access to a world of opportunity that they otherwise could never dream of capturing. Let us all remember that simple truth.
submitted by Cross_Game to Forex [link] [comments]

Newer traders should read this - (R Multiples)

I've seen that a lot of traders don't understand how to properly measure their gains on trades, so I'm making this post as a quick primer on how to correctly do so.

Here's the problem:

Lots of newer traders say things like "I made 20 pips yesterday". With just that information, it's impossible to effectively judge the gains on that trade.
For example, if the trader made 20 pips and their stop loss was 100 pips away, then you can see that the trade was not so good and they would need to win that trade 5 times out of 6 just to break even.
Now suppose the trader made 20 pips and their initial stop loss was 4 pips away. You can confidently say that the trade was much better than the previous example.

Here's the solution:

Use R multiples to express gains and/or compare trades. Just divide the gain (or loss) by the initial SL distance to get the R multiple. Eg. If your TP was hit for a 52 pip gain, and your initial SL was 10 pips, then the trade return is 52/10 = +5.2R
Comparing R multiples of different trades gives you a way to compare across different timeframes/currency pairs/trading instruments/whatever.

How R multiples may be useful to you:

1 - Assessing performance on different currency pairs - Say you make 20 pips on EURJPY and 30 pips on AUDUSD. Which trade was better? Who knows. But a 4.3R win on EURJPY is clearly better than and a 1.6R win on AUDUSD.
2 - Tracking different exit strategies - in your trading journal you can track the R return of various exit strategies (eg TP at next S/R level, or market exit when price hits a 50 SMA, etc.) over time to assess which gives the best expectancy.
3 - Deciding whether or not to take a particular set up - eg if you know that a trade set up works 50% of the time, but on a potential set up that you're considering, the market structure dictates that your TP would be 0.8R - it's easy to see that the trade has a negative expectancy and should thus be skipped.
4 - Bragging to people on anonymous forums about how good your recent trade was without sounding like a fucking noob.
5 - Come up with your own uses, I'm getting sick of typing.

Other notes

TL;DR - The vast majority of traders should be using R multiples as a framework for thinking about trade returns. Gain/Initial Risk = R return.
submitted by confluencefx to Forex [link] [comments]

Choosing the right broker

Hello!
I am ready to dive in the world of trading and after my basic education I am starting to pappertrade. I figured out that I sould choose from now the boroker I am gonna use in the future to get used to the platform. The problem is that there are WAY to many brokers out there and its hard to choose. I need your help reddit!

What I need:
- I am mainly gonna daytrade forex, maybe some stocks and futures at the future.
- Low commisions, fees & spreads! I'm thikning of taking trades on small timeframes (5-20 mins , or a few hours). I am looking for a true ECN with comission model. I dont want conflict of interests with my broker
- A good platform. I don't like MT4. I liked cTrader.
- No requotes - No slippage - Fast executions!
- Leverage. I need at least 1:200 , so I probably need a broker in Australia (?)
- No problems with withdrawals.
- Regulation and good reputation! I don't want to loose my money!
- Low minimum deposit! I'm thinking about starting with 1000 euros, maybe 2000 max.

Brokers I have found surfing the net:
- Interactive Brokers
- Saxo bank
- IG
- Dukascopy
and the cTrader brokers:
- IC markets
- Pepperstone
- FxPro
- Roboforex

What do you guys think? Have you got any experience with those guys? What would you suggest? All comments and extra info are welcome!
submitted by geomad26 to Daytrading [link] [comments]

Trading with lowest fees/expenses possible?

I'm thinking to try trading day trading forex, but my strategy relies generally relies on having really low fees/expenses.

How much should I expect to pay on an average trade in fees, spread, slippage, etc.?
And what brokers/trading techniques can I use to make those expenses as low as possible?

I'm based in Germany and would probably be starting with an effective account size of 1,000usd, trading with 1-2% risk (10-20usd) per trade, but could deposit more if absolutely necessary.
submitted by Spanki003 to Forex [link] [comments]

Valid and Invalid Complaints.

Valid and Invalid Complaints.
There are a few things that can pop up in copy trading. I am not a n00b when it comes to this, so I can somewhat forecast what these will be. I can kinda predict what sort of comments there may be. Some of these are valid points that if you raise I should (and will) reply to. Some are things outside of the scope of things I can influence, and as such, there is no point in me replying to. I will just cover them all here the one time.
Valid complains are if I do something dumb or dramatically outside of the strategy I have laid out here. won't do these, if I do, you can pitchfork ----E
Examples;
“Oi, idiot! You opened a trade randomly on a news spike. I got slipped 20 pips and it was a shit entry”.
Perfectly valid complaint.
“Why did you open a trade during swaps hours when the spread was 30 pips?”
Also valid.
“You left huge trades open running into the weekend and now I have serious gap paranoia!”
Definitely valid.
These are examples of me doing dumb stuff. If I do dumb stuff, it is fair enough people say things amounting to “Yo, that was dumb stuff”.
Invalid Complains;
“You bought EURUSD when it was clearly a sell!!!!”
Okay … you sell. No-one is asking you to copy my trades. I am not trading your strategy. Different positions make a market.
“You opened a position too big and I lost X%”.
No. Na uh. You copied a position too big. If you are using a trade copier, you can set maximum risk. If you neglect to do this, you are taking 100% risk. You have no valid compliant for losing. The act of copying and setting the risk settings is you selecting your risk. I am not responsible for your risk. I accept absolutely no liability for any losses.
*Suggested fix. Refer to risk control in copy trading software
“You lost X trades in a row at X% so I lost too much”.
Nope. You copied. See above. Anything relating to losing too much in trades (placed in liquid/standard market conditions) is entirely you. I can lose my money. Only you can set it up so you can lose yours. I do not have access to your account. Only mine.
*Suggested fix. Refer to risk control in copy trading software
“Price keeps trading close to the pending limit orders but not filling. Your account shows profits, but mine is not getting them”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
* Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Buy limit orders will need to move up a little. Sell limit orders should not need adjusted.
“I got stopped out right before the market turned, I have a loss but your account shows a profit”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
** Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Stop losses on sell orders will need to move up a bit. Stops on buy orders will be fine.
“Your trade got stopped out right before the market turned, if it was one more pip in the stop, it would have been a winner!!!”
Yeah. This happens. This is where the “risk” part of “risk:reward” comes in.
“Price traded close to take profit, yours filled but mines never”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
(Side note, this should not be an issue since when my trade closes, it should ping your account to close, too. You might get a couple less pips).
*** Suggested fix. Compare the spread on your broker with the spread on mine. Adjust your orders accordingly. Take profits on buys will need to move up a bit. Sell take profits will be fine.
“My brokers spread jumped to 20 during the New York session so the open trade made a bigger loss than it should”.
Your broker might just suck if this happens. This is brokerage. I have no control over this. My trades are placed to profit from my brokerage conditions. I do not know, so can not account for yours. Also, if accounting for random spread spikes like this was something I had to do, this strategy would not be a thing. It only works with fair brokerage conditions.
*Suggested fix. Do a bit of Googling and find out if you have a horrific broker. If so, fix that! A good search phrase is; “(Broker name) FPA reviews”.
“Price hit the stop loss but was going really fast and my stop got slipped X pips”.
This is brokerage. I have no control over this. I use a strategy that aims for precision, and that means a pip here and there differences in brokerage spreads can make a difference. I am trading to profit from my trading conditions. I do not know, so can not account for, yours.
If my trade also got slipped on the stop, I was slipped using ECN conditions with excellent execution; sometimes slips just happen. I am doing the most I can to prevent them, but it is a fact of liquidity that sometimes we get slipped (slippage can also work in our favor, paying us more than the take profit would have been).
“Orders you placed failed to execute on my account because they were too large”.
This is brokerage. I have no control over this. Margin requirements vary. I have 1:500 leverage available. I will not always be using it, but I can. If you can’t, this will make a difference.
“Your account is making profits trading things my broker does not have”
I have a full range of assets to trade with the broker I use. Included Forex, indices, commodities and cryptocurrencies. I may or may not use the extent of these options. I can not account for your brokerage conditions.
I think I have covered most of the common ones here. There are some general rules of thumb, though. Basically, if I do something that is dumb and would have a high probability of losing on any broker traded on, this is a valid complain.
Anything that pertains to risk taken in standard trading conditions is under your control.
Also, anything at all that pertains to brokerage variance there is nothing I can do, other than fully brief you on what to expect up-front. Since I am taking the time to do this, I won’t be a punch-bag for anything that happens later pertaining to this.
I am not using an elitist broker. You don’t need $50,000 to open an account, it is only $200. It is accessible to most people - brokerage conditions akin to what I am using are absolutely available to anyone in the UK/Europe/Asia (North America, I am not so up on, so can’t say). With the broker I use, and with others. If you do not take the time to make sure you are trading with a good broker, there is nothing I can do about how that affects your trades.
I am using an A book broker, if you are using B book; it will almost certainly be worse results. You have bad costs. You are essentially buying from reseller and paying a mark-up. (A/B book AKA ECN/Market maker; learn about this here). My EURUSD spread will typically be 0.02 pips or so, if yours is 1 pip, this is a huge difference.

These are typical spreads I am working on.

https://preview.redd.it/8qk052gvrw721.png?width=589&format=png&auto=webp&s=5fc779675dde2f260a79d7c58520245885a271dc
Check the full range of spreads on Forex, commodities, indices and crypto.
Please understand I want nothing from you if you benefit from this, but I am also due you nothing if you lose. My only term of offering this is that people do not moan at me if they lose money.
I have been fully upfront saying this is geared towards higher risk. I have provided information and tools for you to take control over this. If I do lose people’s money and I know that, I honestly will feel a bit sad about it. However, if you complain about it, all I will say is “I told you that might happen”, because, I am telling you that might happen.
Make clear headed assessments of how much money you can afford to risk, and use these when making your decisions. They are yours to make, and not my responsibility.
submitted by inweedwetrust to ForexCopy [link] [comments]

Market Making and all of its benefits – Genesis Vision Blog

fintech #trading #algotrading #quantitative #quant #quants #forex #fx #banks #hedgefunds #hft #marketmaking

Market Making and all of its benefits – Genesis Vision BlogWe wanted to take a moment to talk with you about something that you are going to bump into quite regularly while using the platform and that is ‘conversion’.A lot of questions are still in the air about how exactly the conversion mechanisms are going to work, so we will do our best to outline everything before the release.The basic mechanics of the conversion are laid out in the whitepaper: you invest your GVT into the investment program, where it converts to the currency of the manager and subsequently back to GVT when the profit is withdrawn.The conversion will happen at the current price.However, as many of you in the community have rightfully noticed — such an approach would cause sharp price fluctuations and noticeable slippages. You were absolutely correct in thinking so, with one exception: that would only happen if you perform conversion by putting market orders in the current market books.But we have thought of a solu..... Continue reading at: https://blog.genesis.vision/market-making-and-all-of-its-benefits-b258c54f645f
submitted by silahian to quant_hft [link] [comments]

What are the disadvantages of futures vs spot forex?

I've been trading spot forex for a while, and have been looking to move to futures. From everything i've gathered, there arn't many cons to trading futures vs forex. I'm wondering if there are things i'm overlooking or not considering? I was thinking of using data from forex (since its the bigger market and i get higher resolution on price), and trading with futures. My primary reason is because spreads are so high on the spot forex market for trading its difficult to take lower timeframe scalp trades while managing risk.
Edit: may have found something, how bad is slippage?
submitted by joomla00 to Forex [link] [comments]

HOW TO TRADE CRYPTOCURRENCY: BITCOIN AND ETHEREUM CFD’S ON THE FOREX MARKET

Cryptocurrency Trading is easier than you think, and OctaFX provides a range of tools to make a profit from cryptocurrency into a reality.
If you have any interest in trading and investment at all, it would be hard to miss that cryptocurrency tradingis the hottest ticket in the market at the moment. Cryptocurrencies such as Bitcoin, Ethereum, Litecoin and many others have excited investors with the possibility of substantial profits and a completely new way of thinking about what a currency is and how it works.
What Exactly is a Cryptocurrency? Oddly enough, the first cryptocurrency, Bitcoin, didn’t start off to create a whole new way of thinking about currency, but as a technology to prevent the same amount of regular electronic cash being sent twice to two different people.
The process of validating transactions to prevent this, via a system known as a blockchain, became known as mining, as those doing the validating received Bitcoins as a reward for validating traditional electronic transactions. These coins soon took on a value of their own, and have now become a trading juggernaut.
What Do You Need to Know About Trading Cryptocurrency? Trading cryptocurrencies don’t require any specialist knowledge, and in fact, it’s not all that different to trading in Forex, commodities or many other markets. Despite its unusual nature, crypto still rises and falls like any other market, and is still subject to predictable external factors in a way that gives you the opportunity to make substantial profits.
It’s especially easy to get into crypto with OctaFX because you can trade Bitcoin, Ethereum and Litecoin in MetaTrader 4 and 5, alongside Forex and commodities. You needn’t rely on guesswork to predict which cryptocurrencies are worth investing in and which aren’t, as our free Trading Signals plugin offers detailed technical analysis and some of the best crypto price predictions in the market.
Low Costs and Buying Power A sensible approach to any sort of investment is to minimize initial outlay to maximize the potential for profit, especially one so volatile as investing in cryptocurrency. OctaFX will set you up well in this regard, by offering some of the lowest spreads in the business, and the opportunity to trade micro-lots as small as 0.01 lot, so you don’t need a huge initial outlay to profit from Bitcoin, Litecoin or Ethereum.
OctaFX will also provide you with added muscle for your crypto trades with free leverage to maximize your profit potential, and there’s no commission to be paid for trading volume, and no deposit or withdrawal fees.
Don’t Miss the Perfect Moment When investing in something quite so volatile as a cryptocurrency, maximizing your profits relies on buying and selling with pinpoint accuracy, at the second the market offers the most potential. OctaFX will allow you to do this thanks to some of the fastest execution on the market.
Buy and sell for the price you see, with no delays, and make deposits and withdrawals instantly. Both fiat currencies and Bitcoin are accepted, without commission or delay, and the process is smooth and completely straightforward. OctaFX also maintains an excellent record of minimizing slippage, with 97.5% of all orders completed without any slippage at all.
How to Predict the Biggest Cryptocurrencies’ Price? So now you’re fully briefed on trading cryptocurrencies, maybe you’d like to know a bit more about the currencies themselves. Three of the biggest, most volatile and most exciting are Bitcoin, Ethereum, and Litecoin.
BITCOIN – THE DIGITAL GOLD Bitcoin is the first digital currency, created back in 2009. The main difference from traditional currencies (EUR, USD, JPY, etc) is that transactions are decentralized, highly secure, and what’s more, completely private. Bitcoin is one of the most volatile, discussed and popular instruments among cryptocurrencies.
Bitcoin trading mainly happens on news, for example, a bullish trend before Bitcoin forks (this is the separation of Bitcoin when cryptocurrency owners get part of a new crypto). A bearish trend is usually seen after news regarding the ban of Bitcoin in some countries (China, for example). Bitcoin can be easily predicted using technical analysis figures, making your trading more profitable. Bitcoin is the most profitable instrument for trading in USD.
Right now, the leverage for Bitcoin and other cryptocurrencies at OctaFX is set to 1:2, which is more than enough considering the high volatility of that instrument. Apart from that, you also can trade Bitcoin in micro lots (0.01) which allows planning your trading budget effectively. OctaFX sets the amount of 1 lot to 1 Bitcoin, which is comparatively low and requires less investment.
ETHEREUM – INVEST IN THE FUTURE Ethereum is the second most interesting instrument to trade in USD. Nowadays there are more and more ways to buy Ethereum for fiat without changing it into Bitcoins. That means that the price of Ethereum is now less dependent on the Bitcoin price compared to other cryptocurrencies. It can be considered an independent instrument.
Ethereum is a system to support smart contract technologies to invest in the ICOs of new start-up companies. The more start-ups are interested in Ethereum – the more expensive it becomes.
To analyze the price of the Ethereum it’s wise to research how many ICO contracts are about to be issued in exchange for Ethereum. Compare results with existing data – the more contracts, the higher the price. It’s also good to pay attention to news about other cryptocurrencies supporting ICOs and competing with Ethereum. The most important competitors are Waves and Bitshares. Technical analysis figures work well with Ethereum too.
Combining that information with the Ethereum’s volatility of the last few months, Ethereum can sometimes lead to more profit than with Bitcoin.
LITECOIN – CRYPTO SILVER Litecoin was first issued in 2011 and is quite similar to Bitcoin. If Bitcoin can be defined as the ‘gold’ of today’s cryptocurrencies, this makes Litecoin the ‘silver’.
Litecoin provides secure and fast transactions inside the blockchain, with the ability to purchase goods on the internet. The main difference from Bitcoin (and the central benefit of Litecoin) is the capability of processing much higher volumes in one transaction. While Bitcoin can only have up to 21 million coins, Litecoin offers four times as many – 84 million.
The Litecoin price now greatly depends on Bitcoin. That makes it possible to use the Pairs trading strategy with Bitcoin as the main currency to successfully forecast Litecoin changes.
One lot at OctaFX equals 100 Litecoin.
There’s currently a lot of talk around cryptocurrencies – some predict a fast rise and a dramatic fall, while others are confident that they are the currency of the future.
Sounds interesting? You can keep reading the hottest news and best articles on cryptocurrency, but you’ll get much closer to understanding how it works by cryptocurrency trading. So what are you waiting for? Start getting profit from crypto right now!
https://www.fxempire.com/news/article/trade-cryptocurrency-bitcoin-ethereum-cfds-forex-market-485383
submitted by wcriptnews to u/wcriptnews [link] [comments]

Noob'ish questions - What's wrong with these two tactics?

1) Is "averaging" ask/bid data to tweak algo problematic?
Im sure you guys know, but forex data comes in pair - ask (price / volume) and bid (price / volume)
Currently, im taking the average (ask + bid / 2) to calculate OHLC for both price and via pandas. What is the fundamental problem with using the average to write your algo? I would think that it might be smarter to calculate long entry position based on ask price & volume... and short position on bid price / volume, but this would mean keeping "two" copies of data stream
2) What are known problems using stop limit orders to minimize slippage, other than missing out on potential orders in markets with low volume and fast moving markets? THe only thing I would guess is that creating the stop limit order "gives" hints to the broker... who might be using it against you if their not None-Dealing-Desk broker.
submitted by taewoo to algotrading [link] [comments]

About to start trading for the first time. Anyone wanna talk?

I don't really have any specific questions, just looking for general advice. Well, maybe one...see the bottom.
I've gone through most of the babypips school, and just finished reading Courtney Smith's book.
I have somewhat of a bit of background in game theory due to hobbies (I was one of the better players in the country in the national tournament scene of a certain video game, and have close friends who have been ranked in chess and poker who I have been playing with and learned a lot of game theory from), and tend to prefer boring, "turtle" strategies.
I considered scalping, but I don't think it will fit my lifestyle (time consuming). So, I'm probably going to look at position trading the daily charts, and I'll start mostly with the methods from the book I was reading. I want to be as disciplined as possible- picking entry/exit points before entering the trade, doing as much of it automatically via stops as possible (which I will look at and adjust only according to TA), and looking at my positions once per day. No emotion.
On a long flight yesterday I finally sat down and wrote up a trading plan, buying on a few techniques, all of which have set stops.
I'll calculate my position size so that if I am stopped out (stops based on technical analysis) I will lose 1% of my account value. This also means that positions with wide stops will not be very profitable.
I will write down every trade and what signal I used to make the trade. Every thirty trades, I'll eliminate my worst-performing signal and replace it with a different one, and see how I do.
I did some backtesting on EUUSD over the first few months of 2009. Trading on inside days seemed profitable, as well as reversal days. Channel breakouts were iffy...I used the ADX filter to exit, and that let me exit at really good times, but because the stops were too wide (for long position, I was buying at 55 day high breakout and setting stop to 20-day low breakout) I was barely making any money off of it and that was wiped out by the bad trades. I need to figure out where I can place tighter stops on Channel Breakouts without removing too many winning trades. My biggest concern is that inside days seemed too consistent...I usually made almost as much money as I was risking on my stop every time I did it, barring one or two times where I basically broke even. Seems like a couple losing trades could've set me back pretty quickly and I should be seeing more.
I should probably do more backtesting, but I feel a trial by fire would work better. I'll probably just set the risk to 0.5% instead of 1% and start a very small account and see how it does (I'd have to lose hundreds of trades in a row to get wiped out).
Am I doing this right?
And, the real question- what broker should I use?
Right now I'm looking at Oanda. I saw a poster saying good things about IB and I'd rather use Ninjatrader because I hate MT 4, so I might look at shifting over to them when I have more money, but I don't have $25k liquid cash available to open an account with them. Oanda's flexibility with position size seems ideal for my ~1% risk on stop plan.
However, the more I read about Forex brokers, the more nervous I get...they seem to make money when you lose and engage in all kinds of unscrupulous tactics like stop-hunting, slippage failing to trigger stops, and raising the spreads during big moves. Feels more like playing against the house than trading. This alone makes me feel tempted to go trade stock options instead with the same plan and see if that works. Thoughts?
submitted by NPPraxis to Forex [link] [comments]

What Is A Robust Trading System?

When it comes to mechanical type trading systems an extremely important concept to understand is whether a trading system is robust. What robustness basically means is whether a system is designed to work in a number of different markets, be it stocks, bonds, forex, futures, options and whether it will generate a reasonable amount of tradeable signals. The reason this is important should be obvious but unfortunately there are many of these guru’s out there trying to push their systems which backtest well (think of forex day trading robots and binary options systems) but in the real world are either not robust or are completely curve fitted (over optimized) and do not work at all. You have to be careful and ask the proper questions or else you can end up in a lot of trouble with a system that doesn’t provide enough/any profitable opportunities. If you start trading the wrong system and hit a rough patch from the beginning, you could end up losing your entire account in one trade and this is obviously something you need to prevent at all costs.
My system works in any market and on any time frame and is therefore very robust. If you want to day trade it will produce a number of profitable signals. As the time frame you use to trade increases, so will the number of setups that will present themselves. If you decide to go out to a daily, weekly or even monthly chart for swing trading or position trading, it will work exactly the same. This means if you are like most people who currently work a 9-5 job or are a student without access to the market for 6 hours a day, you can begin to swing or position trade utilizing my system. As your account size grows and your wealth increases perhaps you will choose to make trading a full time profession and begin to day trade on a short time frame.
Tip offs to an optimized system.
  1. Unrealistically good looking performance
  2. Only trades one market or sector well
  3. Uses different rules for each market
  4. Uses different inputs for each market even if the rules are the same
  5. Uses different rules or inputs for initiating buys vs. sells
  6. Does not factor in realistic transaction costs like slippage & commissions
  7. Uses money management methods that don’t include market normalization
  8. Uses static numbers for all markets like a $2000 stop or $5000 profit target (some markets could hit those in an hour and others could take weeks). This may seem to contradict #3 but it does not. Its ok if markets have different stops and targets etc. as long as they were all dynamically computed and inputs (as opposed to a static predetermined number across the board).
submitted by beatstockpromoters to stocks [link] [comments]

Interesting anecdote on cross border transfer - does Bitcoin help here or not?

From the Australian website macrobusiness (see the comments):
A mate of mine is a real estate agent in Balwyn – the epicentre of Chinese investment in Melbourne property. He tells some interesting stories. The new restrictions are really having an effect. One Chinese buyer had to go to extraordinary lengths to settle on a property last week. Apparently they used to be able to get lots of people in China to transfer $50k each to a single bank account here in Australia ($50k was the max you could transfer out in 3 or 6 months or something from a Chinese bank account). Now China is also tracking the account receiving the money – the same overseas account cannot receive more than $50k from Chinese accounts. Anyway, the Chinese buyer tried the ‘old’ approach and was rung by the Bank of China advising her that the attempted money transfers were illegal. The buyer needed about $2m. What they ended up doing was flying their whole family out (10+ people) to all set up bank accounts here in Australia. The flights would have cost of fortune. Plus they contacted people they knew in Australia to help out. They then used multiple accounts in China to transfer to multiple accounts in Australia, before putting the money into a single account in Australia. So it’s much harder to get money out – but still possible. Has to stop some buyers, at least. More generally my mate tells me that expressions of interest are down, there are fewer Chinese turning up to open for inspections, etc – all in the past 2 or so weeks. Will be interesting to see what happens when the ATO steps up later this year.
It interests me to consider: does Bitcoin help the person in this case? It doesn't make the transfer any less illegal to the CCP, but let's put that to one side for the moment.
Consider that a $2 million dollar (this is AUD not USD so it's actually 30% less but let's pretend it's $2m for simpler numbers) buy would be about 10K BTC. Given that there are multiple fairly big exchanges and a lot of USD and RMB liquidity, I guess you could buy this fairly quickly, but once the market gets wind of such a big buyer the offers will start disappearing rapidly. In other words, you might get a lot of slippage on price and might end up paying a few percent more than the starting price. (Doing a special deal with a miner might make some sense, but that would be seriously hard if not impossible).
Then consider liquidating into AUD. Much less AUD liquidity of course, but you could liquidate into USD and transfer to an arbitrary international account; after all, a wire transfer fee into Australia is basically zero compared to everything else discussed here. Another problem might crop up there: wire transfers of $2m into a new account could create AML/KYC flags, at the Bitcoin exchange, and at the one or two bank accounts involved.
Add to that the general volatility risk of the Bitcoin exchange rate; it's more of a risk than a certain cost, but if BTC moves against fiat by more than 5% in all this, it could be quite a big hit.
Compare all that to the cost of flying 15 people to and from Australia and doing it that way. I would ballpark that at $40K (also huge hassle, which is not so quantifiable), even imagining you can find that many people amongst friends and family that can do this for you.
Overall? I doubt the person involved even considered Bitcoin, but on balance I think they would still go with the flights approach, because the limitations/costs of it are more certain.
But, I see scenarios which would skew it more in Bitcoin's favour:
submitted by waxwing to Bitcoin [link] [comments]

what is slippage in forex  How to trade with them - YouTube FOREX Slippage Think Markets STP Forex broker Honest unbiaised review 3 on 3 Leverage, Spread, Slippage, Scalping Slippage explained  Trading concept to know - YouTube What is forex market slippage and why should you care? What is Forex Slippage? - YouTube Options Explained: Slippage, Middle Price, Natural Price ...

Hello every one I wanna share my experience with Think forex. this week I was having open buy position on GBPNZD. with release of NZD news the pair went down more than 200 pips. my Stop loss was 1.7900. Think forex closed my open position at 1.7779. I lost around 1000 USD on total. what do you... You might think the high-end brokers are charging higher fees. Though it’s true if you trade with the low-end brokers you will never get a professional trading environment. You are going to lose a big sum of money due to the slippage problem. Today, we are going to give you critical information regarding the Forex market slippage. Read this article carefully because it will help you to ... Slippage inevitably happens to every trader, whether they are trading stocks, forex (foreign exchange), or futures. Slippage is what happens when you get a different price than expected on an entry or exit from a trade. If the bid-ask spread in a stock is $49.36 by $49.37, and you place a market order to buy 500 shares, you may expect it to fill at $49.37. In the fraction of the second it ... Slippage ist die Differenz zwischen dem Kurs, zu dem der Auftrag gegeben wurde, und dem Kurs, zu dem der Auftrag tatsächlich ausgeführt wurde. Je weniger Slippage, desto besser werden Ihre Ergebnisse ausfallen. Unsere ThinkForex Slippage-Daten wurden aus den 10 beliebtesten Forex Trading-Strategien auf Zulutrade.com abgeleitet. Forex slippage. Slippage is the difference between the price at which an order is placed, and the one at which it is actually filled. It often occurs during highly volatile markets, during news releases or when a large order is placed and there is no interest at the desired price level to maintain the requested price. Let's say you want to buy EURUSD at 1.3000 and place the order at that price ... When mentioning slippage most traders only think of negative slippage, where the price they receive is worse than the one they were attempting to buy at. However positive slippage also occurs and is actually quite common with limit orders. Positive slippage is when you receive a price that is better than the one you were attempting to buy at. For example, you might be buying GBP/USD with a ... When you start trading with Forex, you’re flooded with a lot of new terms. One of those you will surely encounter is what is known as "sliding" or slippage. In short, sliding is the difference between the price you see and the price you pay. For example, you can find…

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what is slippage in forex How to trade with them - YouTube

what is slippage in forex How to trade with them Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex s... I you 'd like to open a Demo or live account with Think Markets please follow this link https://tinyurl.com/ThinkSTP A nice article explaining the diference ... What is Slippage in Forex Trading? 🤔 - Duration: 8:00. UKspreadbetting 3,545 views. 8:00. Warning! Market Spread Affects Trade Entry & Exits. Learn To Setup Trades Correctly. In this video we explain what the middle price (mid) and natural price (nat) are and where to see them on your thinkorswim desktop software. We also discuss ... What is Slippage in Forex Trading? 🤔 - Duration: 8:00. UKspreadbetting 3,405 views. 8:00. Forex Rollover and Swap - Duration: 33:25. Shaun Overton 20,055 views. 33:25. XRP-Bitcoin Decoupling ... In this video, we will learn how to avoid slippage in forex, how to trade during high volatility, and what does deviation mean in MT4. All detail you can rea... Giving a name to the perils of market orders; slippage. Links: https://en.wikipedia.org/wiki/Slippage_(finance)#Concrete_Example 🕒🦎 VIDEO SECTIONS 🦎🕒 00 ...

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