Cloud Strategy automatically derives signals from live & historical data to shows a directional signal on the chart. An Ichi Moku style cloud enhances the signal for trend trades. These Cloud Straegy is derived from a combination of live and historical data which allows the code to have increased stabily and reduce the amount of repaint. By visually laying out the signal on the chart Cloud Strategy allows complex Trend levels and also Support & Resistance levels to be identified and used correctly. Cloud Strategy can be used alone for long/short signals or used as a visual aid to assist in identifying levels and trends on the chart. This alert will clearly highlight possible Trends and also Support & Resistance levels based on the daily timeframe and the chart being viewed. Cloud Strategy allows easy determination of levels & trend direction than can assist in identifying trade entry, profit, target or reversal levels for chartists.
Plain english warning about CFD trading, just something I wish someone had told me
tl;dr - trading CFD's is the equivalent of drag racing your drunk mate down the freeway into oncoming traffic. No self respecting adult would bother with them, CFD's are for cocaine-snorting thrill-seeking morons (like me apparently) who have no respect for risk management. Don't gamble with your savings. What are CFDs CFD's are 'Contracts for Difference'. Very simply, if you have a trading account with the right permissions you can trade in CFD's. Why are they dangerous Because say you trade $250, on a normal trade (ie stocks etc) if the price falls by 10% you lose $25, which sucks but isn't world ending. CFD's are NOT like that - they are 'leveraged' which just means that if you put up $50 your exposure is many many many many times larger than that EXAMPLE You buy 50 contracts on a stock that is trading at $100 a share.The stock then drops $10 in value.Your exposure is (50 * 100) = $5,000 BUT because your 'margin' is only 5% of that, the initial amount you put up is a mere $250. So to illustrate: Stock Trading Initial Investment - $250 Value drop - 10% Loss - $25 CFD Trading Initial investment - $250 Value drop - 10% Loss - $5,000 Closing remarks These things are illegal in the US for a good reason. CFD's are for suckers, don't listen to anything that you hear to the contrary. EU regulators say that 76% of CFD accounts lose money. Let me say that again, 76% of these things lose $&*#ing money. If the odds at the casino were 1:4 there is no fkn way anybody would go. When you trade CFD's you are essentially just gambling but with WAY WAY worse odds.Cited: https://www.iexpats.com/76-of-cfd-traders-lose-money-on-their-deals/ You can't make long investments with CFD's, they aren't a long-term strategy and they are not part of ANY investment strategy with a reasonable risk profile. Please don't make the mistake I did and get sucked into trading them, it's stressful as hell and it is pure bravado driven bullshit. Stay safe out there folks, times are nuts Edit 1: Formatting got stuffed up
CFD providers are reporting a significant increase in new clients because of Covid-19. Whilst most seasoned traders understand the difference between DMA (Direct Market Access) and Market Maker pricing, I'm sure many have opened accounts with the likes of CMC Markets, City Index and IG Markets without reading the PDS (Product Disclosure Statement). A CFD or Contract for Difference is an agreement between you and your provider to exchange the difference in price of an asset between when the contract is opened and when it is closed. The CFD product is simple to understand and offers considerable amounts of leverage enabling traders to take out positions much larger than if you purchased the underlying product. Now in the beginning, CFD providers charged a fee for opening and closing a position in exactly the same way a broker would charge in order to buy and sell ordinary equities. If you wanted access to live prices, you needed to pay an exchange fee. As CFDs became more popular, CFD providers began innovating the product in order to generate profit. The providers decided to enter into agreements with real banks and financial institutions in order to hedge their exposure and make more money by taking the opposite position to what was being traded. This still wasn't enough for CFD providers who again changed the product by charging a spread (the difference between the buy price and sell price). The major banks / financial institutions who partnered with the CFD provider in order to hedge were not charged a spread. This, again, was still not enough for many providers. CFD providers began the unthinkable and decided to charge their own price for the underlying instrument! This meant that it was now possible for providers to not only take the opposite sides of the buy / sell price using liquidity partners, but also adjust the price of the CFD to any amount they want. It was now possible to increase the price of a CFD trade to a level high / low enough to hit your stop losses before adjusting it back to whatever the market price was. I would consider the above to constitute fraud if it wasn't so clearly described in their Product Disclosure Statement (PDS), a document that obviously many people do not read. DMA CFDs DMA (Direct Market Access) CFD providers offer a much, much better product. Upon placing an order, the provider typically places the same order into the underlying market. The prices quoted are the same as the underlying and you can even see your trade in the order book. Most DMA CFD providers charge:
Exchange Data Fee
A fee to buy / sell
In my opinion, I would much rather pay the fees quoted if it meant I was actually trading the financial markets instead of a price that can be changed in order to close out my positions at a loss whenever the computers at CMC feel like it. DMA CFD Providers Some DMA CFD providers include: FP Markets Pepperstone IG (DMA)
Developing a new strategy, can I please get some opinions from people familiar with VIX hedges
Intro: I trade CFDs on a MM model, as proof I am not a CFD noob that will destroy my account here is my equity graph with X as trade number and Y as performance in %. The period of obvious change is when I developed my current strategy. I was leveraged 8X long in the March crash and 2X in this weeks one, so my risk control has worked so far, although I took a massive hit to unrealised profits. I have never used a VIX hedge so if anyone has experience with them any help would be great. https://imgur.com/a/xvoGXtJ My new plan: The whole idea is based upon keeping it as simple as possible, whats more simple than S&P longs. In essence the trade is a pyramiding BTFD on SPY with max leverage set at 20X and a VIX hedge. The Products: -CFD on the S&P spot price, there is no expiry or rollover. There is however a holding cost of 2.69%PA paid at 1700h NY time. -CFD on VIX futures contract, furthest out. No holding cost, but expiry will be between 1-2 months depending on entry point. Position Sizing: -Entry 1: Long S&P at 1X account value, Long VIX at 1/4 S&P trade value. The 1/4 comes from this information I found "According to the CBOE Website, on average, the VIX rise 16.8% on days when the S&P 500 index drops 3% or more. This means that if the SPX move down by 10%, the VIX can potentially shoot up by 56%. To play it safe, the fund manager assumes that the VIX will rise by only 40% when the SPX drops by 10%." https://www.theoptionsguide.com/portfolio-hedging-using-vix-calls.aspx#:~:text=To%20implement%20such%20a%20hedge,known%20as%20the%20reverse%20collar. -Entry 2: Repeat of entry 1 which is pyramided on top of it. This makes the trade 2X, all subsequent entries will add 1 the leverage amount. Risk Management: -Upon entry 2 the 'take profit stop' of entry 1 and the 'stop loss' of entry 2 will be set to a position slightly above break even for the trade, including interest and VIX roll over losses. -Profit off VIX will be taken in event of a major crash that shuts down the main position. - In the event of VIX spike >50 VIX may be shorted at an equal level to the long that is open Entry 1 Rules: -VIX >28 -S&P retracing -S&P in uptrend as defined by HHHL in 4h chart -MACD has convergence between indicator line and price action (shows continued momentum) Subsequent Entry Rules: -As per entry 1 rules -Current position profit >5% of position base value, increasing by 2% for every extra entry Exit Rules: -If I hold a strong conviction the market will drop severely -If max leverage has been reached, close down some profitable positions to increase cash balance which in turn lowers leverage value. This will allow the strategy to continue to grow further. -Profit on VIX may be taken if: VIX is in profit, has a declining price, and contract expiry >2weeks. The hedge position will then be rolled onto new furthest contract. I will update this as the thread continues by strike though for removals and italics for admission
First day trading on CFD with real money - How my day went
Hey guys, So I wanted to share my experience on CFD since it was something that was kinda scary to me. I finally put in 1000$ on my CFD account this morning. Before that I was training on demo mode and my strategy was working pretty well. MY STRATEGY: So I'm not familiar with leverage yet so I started asking myself what would be the way that I'm the most comfortable trading with leverage. I started looking for a stock that consistently grew since even a 1% a day rise could be good with leverage. That's when I realized that trading with an ETF could work. So I started looking at the S&P 500 and running the numbers. In the last year, on average, there is a a 2,47$ gap between the low and the close of SPY. So I though that if I could figure out the low each day, buy in and sell at the end of the day, I would consistently make money. After 1 week in the demo account, with a 10k practice amount, it worked 4/5 times giving me +300$. MY FIRST DAY: Today was Powell's speech. Basically he didn't say anything new. So the bull trend had no reason to stop today. 9h30: I monitor the opening of the S&P 500. It starts with a slight dip. Unusual since most the time, there is a buy-in at open. But since there wasn't a sell-off at the previous close, I'm thinking it's nothing too alarming. 10h: first dip. I'm hesitant. The last few days the first dip was followed by a deeper one around 11h. 11h: Still no dip. It even hits new highs. I'm starting to rethink my plan. Just the day before, the S&P 500 ran up all day with practically no dips. Then I notice a trend: the price seems to "hug" the EMA 20. I wait for the price to drop under the EMA 20 and decide to jump in with 14 shares. https://preview.redd.it/9qp5q476flj51.png?width=939&format=png&auto=webp&s=5e96a03713169869cf1a18badac5246e7af26102 Well that didn't go as planned. The price kept running down, further and further from the EMA. At that point I made a minor mistake by not jumping out when my plan didn't go as expected. I was lucky enough to hit a break-even price and jumped out of the trade at 0. Scary. I decide to take a little break to clear my mind and come back 30 minutes later. SECOND TRADE: At this point I realize the price is breaking a resistance that I had noticed earlier (the day's high). I think it's a good signal for a significant break out towards higher highs. https://preview.redd.it/6v6j5obxflj51.png?width=1312&format=png&auto=webp&s=8bef020f8689c862478e1bb2d50e0ef5e8e66cb8 Well I was wrong again. The price goes down, and down, and down. Luckily, I had taken a rather small position of 2 shares since I was kinda shook by my first unsuccessful trade. At this point I didn't really know what to do other than watch the price run down. I decide to buy positions on the way down. 2 shares each time during the downward trend (circled in black): https://preview.redd.it/lebrwuk2hlj51.png?width=1312&format=png&auto=webp&s=50dee1eca7c2fc543453daa2ff29722ee34c6caf The SPY keeps going down, and I nearly have no more money. My live result is -20$ and I'm starting to think that I will keep the positions open over night and that tomorrow I might get lucky. At this point I'm starting to get a better idea of the support and resistances of the day. I figure if the price goes bellow the day's low, then I would have to accept the loss and sell. But then 1pm come along and we finally get a nice bounce. I'm up +4$. I sell all my positions and call it a day. The day is not over yet when I'm writing this but I obviously could have sold later. In hindsight, if I had just followed my initial plan (buy at open, or at day's low, sell at close) I would have done much better (maybe 10$ profit?). https://preview.redd.it/6yqr1boijlj51.png?width=1280&format=png&auto=webp&s=a025e9d56fafdc16616bfc489fcd1fec34cadf70 WHAT I LEARNED: -However well you performed with fake money, I will be completely different with real money. -Any plan/strategy you had before hand will disappear once the market opens. -You will make many mistakes. You can't just watch YT videos on trading signals and apply them. No matter what the YT gurus tell you, It's not easy to day trade. -Spreads kill your profits. When I bough in, there was a 0.25$ difference with the actual price and when I sold it was 0.10$! Maybe the spread decreases with low volatility? I hope somebody will find some useful info here! I will answer questions if you have any. If people want to give me advice, be welcome! I'm a beginner!
So, I have been researching some ineicators that may make up for quite the interesting strategy for stock cfd and index trading. First, I plan to use two sets of Bollinger Bands, one with a 1sd and the other with a 2sd. If the price goes above the 1sd upper band I'llconsider it my signal for buy, placing take peofit directly above the 2sd upper band and my stop loss right below the 1sd lower band. Now, I plan to use RSI to gauge the trend, using 50 as a point of reference, only entering the trade with the Bollinger Band strategy mentioned above when it goes above 50. Maybe I can add a MACD to see if there is going to be a soon to happen convergence and have a more solid grasp of how soon the trend will be possibly reversing or if it'll still go on. PD: I'm a novice trader who has recently started practising simulator, please provide me with advice regarding the strategy I came up with.
LONG TIME lurker, first time posting. Profitable trader here wondering how I’d give something back to this community without saying, “buy x company at $1 and sell at $1.2”, or giving up the secrets of my strategy. I’m from a banking/arbitrage trading/risk analysis family...would anyone be interested in information around those areas in regard to day-trading? EDIT: I’ll have a bit of a write up tomorrow and stick it up here. Thinking I’ll post something on the arbitrage topic first as that’s probably the most interesting/provocative. EDIT2: Alright, here goes. Instead of an arbitrage specific write up I want to talk about something else first—inspired by TheLoneComic’s comment. This is just what came out when I sat down to write. If it’s well received I’ll keep writing. This will probably be most beneficial to beginner traders with small capital and individuals struggling with stop losses...I can also go into more detail on this post, I’m typing this up within the time frame I have. Arbitrage traders (also my background) don’t think the world of day traders as individuals—or at least ALL the traders I know don’t. Saying that, the trading world as a whole LOVE day-traders. The brokers do as they get commissions and everyone else does as 80-90% of you lose your money to the swirling pool of money in the market. This dislike or “looking down the nose” isn’t all warranted, I’ll admit, but the trading world has to be filled with many losers—many of whom, unfortunately, are just average Joes or Janes trying to free themselves from the wage-cage. This is a noble pursuit but most people shouldn’t, or don’t, require leverage to be profitable and are in fact endangering their capital by doing so—not to mention cutting their career short. This probably the most mind-boggling aspect of the typical day-trader. The term, “trade within your means” springs to mind. The main point of contention within my arbitrage world is those hung up in the world of technical analysis and how reliable it actually is. Keep in mind these are firms with super-computers that execute and exit trades in the blink of an eye, searching all day across entire sectors for price disparity. There’s little room for human error and emotion...Arbitrage companies are incredibly profitable for this reason. I don’t really want to get in a debate over TA as I know how emotionally invested people are in it. I do want to get beginners to rethink how they buy and sell. I will say this, broadly speaking, TA subscribers tend to mistake their success on patterns when the real winner is discipline and strategy—that’s why I like to read this sub. if you don’t have these you will lose...the same is true for all areas of business. We could easily transplant these people into any industry and I’m sure they’d thrive. I believe there’s a missing link in the arsenal of the day-trader. Particularly for the beginner. And this missing link is combining Share Trading and CFD trading. This is a powerful stepping stone for those who want to wade into the rough ocean of CFD. Especially because it will help you better understand risk management and price movement. I’d like to propose a strategy to the 80-90% of strugglers and losers—not the disciplined with sound strategy as they don’t need much help. I believe this is a far better way to enter into the world of trading and will give you a better understanding of leverage and when/how to better utilise it. First, we’re going to start trading within our means, as protecting our capital is vital. We’re going to do this by combining Share trading and CFD trading. Specifically, we need to look for markets wherein there’s no restrictions on trading both CFD and buying shares outright. This means you’ll also need a broker that allows you to do both. Next step is your strategy, PLEASE NOTE, you’re still going to develop your own strategy and work on your discipline so spend plenty of time on this...the only thing that is going to change is how you BUY/SELL. Don’t mean to do this to you all but I’ll have to leave this one as a to be continued...I’ve run out of time and will continue later today should there still be interest. EDIT 3: I’ve got another short period here to continue on. I would like to share what I believe is the true value in leveraging for a day-trader and I’ll tie it in to where I left off. My algorithm will spit out roughly 20 strong trades a day across many different markets. Some of these trades will require being open for several days, weeks, or even a month (I know, this takes them outside the realm of a “day trade”). Herein lies a risk of capital being tied up in multiple long term holds and open positions. Two things here on why I like to actually use buying stocks as a DT strategy: brokers usually charge you a fee to leave a position open over multiple days...this cost adds up—especially if like me you set a price target and don’t exit a trade until it is hit. And secondly, clear stop loss positions are not always clear. So my solution was to just BUY shares of the stock, commodity, or ETFs if I’d projected the trade to be longer than a day or if I couldn’t find a solid stop-loss point (please note my average position size is $15,000-$20,000 per trade so I don’t need the leverage to make money). I could write a whole essay on hedging, as it can be very powerful when combined with this method correctly. It’s roll to play is so important that I will have to divulge more at some point...maybe in a future post. I use leverage mostly to hedge and play some short game while I’ve got my longer term, bigger plays in the ground. Leverage is not a method I use for playing large positions for quick money. I think this is a far better attitude for beginners as the emphasis is always going to be on price targets and exit points, risk management, and money management/allocation. More to come. EDIT 4: To summarise my viewpoint, those seeking to enter the world of trading should first learn to share trade and hedge. Learn to walk before you run. Not only will you gain better experience, be more controlled and methodical, be less frustrated and have a lower chance of bottoming your account, you’ll also have another weapon in your arsenal for when you decide to use leverage. Learning this skill will also allow you to understand when you can increase your stake/risk. Some parts of this have been left a bit vague due to either time constraints or they require a thread/discussion of their own for further explanation. If there is anything I need to dive into a bit deeper please let me know. I’d like to post another thread on hedging and a “turning $1000 into $2000” play-by-play if such things are allowed? Also thinking about posting some of my algorithm’s picks, price entry, and price target. I like discussing such things but don’t have a very wide circle outside of work to share with at the moment.
Binary Options Recovery: Scammed Traders, Fake Brokers, and Funds Recovery
Following the “permanent temporary” measures against binary options and CFDs (contract for difference), the body in charge implements its own set of limitations that simply forbids regulated houses to offer such product in the UK, hence increasing the risk of pushing retails traders towards illegal brokers and outright scams. Fortunately, a new solution is now available to UK traders via a new United Kingdom Financial regulatory ruling. More scrutiny from UK banks about financial transactions, even to binary optionsIn short, banks will have to take more responsibility about the financial transactions they facilitate. This new ruling should lead to the creation of a new code of conduct that will help defrauded people to have their funds recovered by their bank, unless it is proven they acted recklessly. As a popular Financial blog puts, it, “It is likely that should a bank or credit card company be either impersonated by a fraudster in order to gain money, or trick a client into depositing, and the bank allows the transfer, a client will be able to take recourse. The broad protection should kick for many online scheme and scams, whether it is fake investment companies, fraudulent binary options brokers or those scammers who promise to help you recover your stolen funds…only to steal from you once again. On the other hands, it means the banks will be more likely to forbid transactions to legit businesses, such as reputable cryptocurrency exchanges or honest smart options platforms. The regulating bodies and financial institutions are taking a number of measures to prevent financial fraud. Binary options trading, in particular, is being controlled with a greater degree of robustness to protect the unwary general public being drawn into a situation where they suffer financial losses. Many hundreds of people around the world are targeted each day. ![img](prwn4ha2ecf51 " ") Frequently they are novice investors who are unfamiliar with the markets and do not recognize that the so-called trading platform and its way of working are actually bogus. The individual only realizes the extent of the fraud when eventually when the fraudsters finally decide that there is no more money to be had and shut down the account and promptly vanish without trace. Spotting Fraudulent Binary Options Broker Some lawyers in the financial fraud division are very familiar with the pattern of behaviour demonstrated by the fraudulent brokers and the distress caused by their dealings with inexperienced investors. There is a track of record of recovery in relation to financial fraud and has a number of strategies and tactics to compel the fraudulent broker or associated financial service providers to restore funds to those who have been deceived. Needless to say, the fraudsters are accomplished at hiding their tracks and frequently there are myriad inter-connected limited liability companies, often some are registered in different countries, with some dormant and some active. It is hardly surprising if the complexity of the situation results in a failure to discover a single person who can be challenged and held accountable. However, there are various channels financial fraud lawyers use when attempting to retrieve money for clients and each avenue is investigated. Whilst an individual may be alarmed and confused at the prospect of navigating through the complex structures that have been deliberately set up to confuse, Financial fraud lawyers are usually quite familiar with strategies fraudsters use, and frequently can steer a course to the recovery of some or all of the lost money. https://preview.redd.it/daa505b3ecf51.jpg?width=600&format=pjpg&auto=webp&s=b27aa7697b0bf1afbd238964166ce40c693db2e3 The step of last resort, legal action, is understandably daunting for a person who often has lost significant amounts of money to the fraudulent brokers. It is fully understandable that such a situation will leave the victim decidedly risk-averse. There have been experiences with class actions against the fraudulent brokers and has developed links with litigation funding organizations in order to offset the risk in respect of class actions. The lessons that can be drawn from the experiences of those individuals who have had the misfortune of losing their investments to fraudsters are to be extremely cautious. Always consider every offer or investment for at least 48 hours before making a decision, a genuine broker will understand the caution that a new investor will view a proposition. All investments carry a risk and anything that promises a return on your initial investment seems to be significantly higher than normal it is almost certainly not to be trusted. Do not allow yourself to be hurried into a decision, it is highly unlikely that an authentic broker would try to rush you into an investment, especially if you demonstrated reluctance; their reputation would suffer by such behaviour. You can now recover all money lost to bitcoin, binary options, cryptocurrency, investment, scam by hiring any one of these Verified Wealth Recovery Experts. To recover money lost to binary options, forex, bitcoins, cryptocurrency, and investment, get all the information you need here; https://bitcoinbinaryoptionsreview.com/binary-options-uk-scammed-traders-fake-brokers-and-funds-recovery/
Here's the 3 Best CFD trading strategies for beginners Have you ever wondered what exactly is a CFD? Investopedia describes a CFD as “a tradable contract between a client and a broker, who are exchanging the difference in the current value of a share, currency, commodity or index and its value at the contract’s end”. CFD Trading Strategies Conclusion Strategies play a vital roles and following your most profitable ones plays its role; keeping the discipline and sticking to the plan might play even bigger role. It’s one thing to have a strategy and deviate from it and it is a totally different thing when you have something that works for you and you follow ... CFD Trading Strategies _x000D_ _x000D_ The majority of commonly used CFD Trading Strategies have similarities to the time tested methods used by traditional shares traders, with the main difference being that smaller amount of capital are required to open positions of the same size. CFD Trading Strategies – Trading Tips for Beginners. CFDs or Contracts for Difference belong to the derivatives asset class, allowing traders to speculate on financial markets like forex, indices, commodities and cryptocurrencies, without having to own the underlying asset. CFD Trading Strategies. Trading in financial instruments involves a high return on investment, but also bears high risks. The key task that any trader faces is to find algorithms that will increase profits, while reducing losses. Such algorithms in professional language are called strategies. Strategies are understood as a set of rules that ...
Quality trades in CFDs, Forex, Shares, Intraday, Short Term, Long Term. Advanced Technical Analysis Strategies for sophisticated Day Traders and Investors. Online Trading Signals, Management, ASX ... CFD Trading Strategies - A NASDAQ Strategy With Brilliant Results ... El Trading con CFDs, lo que Debes Saber y Nadie te Contara de los CFDs // Josan Trader - Duration: 15:36. CFD Trading Strategies These CFD Trading Strategies are called Robo2 (DRS2) they are used as an end of day cfd trading strategies on share CFDs to trade long and short. You can get a better idea ... CFD Trading Strategies for Beginners : http://lp.adzvault.com/btc/3/ - This is the Best Trading Strategy for CFDs, Forex and Cryptocurrencies I´ve tried so f... Here I place a couple of CFD trades. (one long, one short), to show you the basics of trading on a CFD platform. Alpha Broking https://www.jbalpha.com/ Subsc...