Fast and Furious Trading - MENA Financial Expo Dubai 2018 · 2015-11-30 · Fast and Furious Trading Long-Term • 100+ pips • Wider target, larger risks • Patience • Quality

Fast and Furious Trading

Boris Schlossberg Director of Currency Research

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GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Futures, FX360, GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N), GFT Global Markets UK Limited regulated by the FSA, GFT Australia (ABRN 103 508 461, AFS License 226625),and GFT DMCC, Registered & Licensed as a FREEZONE Company under the Rules and Regulations of DMCCA, License Number DMCC‐31136 . For Australia, a PDS is available at www.gft.com.au. Please read before making any decision to deal in GFT products. The contents hereof is available or accessible for informational purposes only and is not to be regarded as an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. © 2009 Global Futures & Forex, Ltd. All rights reserved.

This information should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this for your general information. The views of the presenter are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. In addition, any projections or views of the market provided by this presenter may not prove to be accurate. Global Forex Trading and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this presentation. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.CD08M.009.111209

Disclaimer®

http://www.gft.com.au/

1. What qualifies as short-term trading

2. Trend vs. countertrend

3. Improving performance

4. How to trail

5. Trading strategies

Agenda®

Short-Term• 10 pips a day

• 20 - 30 round turns

• Short attention span, low risk tolerance

• Quantity not quality

• 5 minute - 15 minute charts


Long-Term• 100+ pips

• Wider target, larger risks

• Patience

• Quality not quantity

• 60 minute charts or greater

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Short-Term Trading

• You must be quick and fast

• Short targets, tight stops

• Looking for highest probability trades

• Requires precision

Fast and Furious Trading®

Trend Vs. Countertrend

Trend moves

• Tend to develop slowly and require patience

• Every trend has countertrend moves as early winners cash out

Countertrend moves

• Quick

• Require good timing

• Must obey strict money management


Trend Trading Pros:

• Trading with the dominant flow

• Possible large profits

Cons:

• Paying up for position

• Massive risk of reversal

• Requires wider stops allowing other traders to join the move over time

• Amplitude of the move more important than accuracy


Countertrend Trading Pros:

• Controlled drawdown

• Multiple opportunities during daytime

Cons:

• Risk of being run over

• One way moves multiple stop outs

• Accuracy is everything - Need for precision

• Risk control is crucial - Be right or be out


Entry vs. Exit

K


Source: Travelfrance.com.auSource: aftil.tc.faa.gov

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Single Entry / Single Exit

Source: DealBook® 360

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Single Entry / Multiple Exit


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Multiple Entry / Multiple Exit


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Trailing Stops

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Trailing Stops

Equity stop•2% maximum

•$10,000 risk 2% or $200

•20 pips on 1 standard lot


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Trailing Stops

Technical stop


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Trailing Stops

Volatility stop


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Trailing Stops

2-Bar high or low


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Trailing Stops

Moving average


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Trailing Stops

Hard target


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Trading Strategies

• Statistical scalp

• Running for the 00

• Momo


Statistical Scalp

Trading Strategies®

Rule # 1

Trading Strategies

For long trade:

Look for the five minute candle to CLOSE at or below the

3 standard deviation band.

The views of the author are not necessarily those of GFT, its owners, officers, agents or employees. This presentation does not constitute a recommendation to follow a particular trading strategy. All trades should be considered carefully with your personal trading strategy, including risk tolerance. In addition, any projections or views of the market provided by the author may not prove to be accurate.

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Rule # 2

Trading Strategies

For long trade:

•Go long at market on the close.

•Stop is -10

•Target is +10


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Statistical Scalp

Why use 3SD?

Prices generally do not follow normal distribution,

but on an ultra short-term basis mean reversion tends to work.


3SD LONG


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3SD LONG


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3SD LONG


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3SD Short


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3SD Short


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3SD Short


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Statistical Scalp

Variations on the theme:

Controlled martingale


Statistical ScalpControlled Martingale

If you are stopped out and the price ends on 3 SD

again, then enter the trade again at 2X size.

Trading Strategies


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Variant


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Variant


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Variant


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Running the 00


Rule # 1

Trading Strategies

For long trade:

If currency makes a move through 80 level

go long, targeting the round number.


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Rule # 2

Trading Strategies

For long trade:

Take half the trade off at 00 level and

trail the rest by 20 points.


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.00 Long


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.00 Long


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.00 Long


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.00 Long


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.00 Long


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.00 Short


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.00 Short


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.00 Short


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.00 Short


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.00 Short


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Five-minute “Momo” trade


Rule # 1

Trading Strategies

For short trade:

Look for currency pair to move from above

to below the 20-period EMA.


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Trading Strategies


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Rule # 2

Trading Strategies

Check to see if MACD moved into negative

territory within the last 5 bars.


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Trading Strategies


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Rule # 3

Trading Strategies

Go short 10 pips below 20-EMA.


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Trading Strategies


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Rule #4

Trading Strategies

Place stop 20 pips above 20-period EMA.


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Trading Strategies


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Rule # 5

Trading Strategies

• Exit half of position at entry plus amount risked.• Move stop on second half to break even.


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Rule # 6

Trading Strategies

Trail stop on remainder of position.


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EUR/USD

Five-minute “Momo”

Source: DealBook® 360 July 1

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Five-minute “Momo” Long

USD/CAD

Source: DealBook® 360 June 30

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Five-minute “Momo” Short

EUR/USD


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USD/JPY


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NZD/USD


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• Trading two lots

• Focus on majors

• Trade only London/NY

• Have funda at your back

K

Optimizing Strategies


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Trading two lots allows you to let profits run.

B



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Trading EUR/USD, GBP/USD and/or USD/JPY keeps spread costs to a minimum, which is

critical for short-term trading.



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Trading London/NY offers the best liquidity and the strongest trends –

vital for Momo plays.

B



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It’s always best to have fundamental news support the move, providing you with a much higher probability trade.

B



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• Limitless Flexibility:– More than 120 currency pairs.– Seek profit potential in rising and falling markets.– Choose the timeframe that best fits your trading style.

• Powerful Features– Trade from almost anywhere with our DealBook® suite of desktop,

web and mobile trading platforms.– Watch the markets and react quickly with advanced, real-time

charting with more than 100 indicators* to help you analyse market movements. (*Account minimums apply.)

– Sophisticated order types designed to help you manage risk and protect potential profits, including automated trailing stops.

• Support anytime you need it– Dealing desk, customer service and technical support available 24

hours a day, 5.5 days per week.– Contact us by phone, email or live text chat.

Trading with GFT®

Trading with GFT

GFT: Where technical traders trade

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Trading with GFT

GFT: Where technical traders trade

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Trading with GFT - Fundamentals

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Join Us!

Premium PresentationThursday November 19, 6:30PM

The Monarch DubaiForex Master Class

Limited seating. Inquire at GFT Booth.

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Disclaimer

GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Futures, FX360, GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N), GFT Global Markets UK Limited regulated by the FSA, GFT Australia (ABRN 103 508 461, AFS License 226625),and GFT DMCC, Registered & Licensed as a FREEZONE Company under the Rules and Regulations of DMCCA, License Number DMCC‐31136 . For Australia, a PDS is available at www.gft.com.au. Please read before making any decision to deal in GFT products. The contents hereof is available or accessible for informational purposes only and is not to be regarded as an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. © 2009 Global Futures & Forex, Ltd. All rights reserved.

This information should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this for your general information. The views of the presenter are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. In addition, any projections or views of the market provided by this presenter may not prove to be accurate. Global Forex Trading and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this presentation. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.CD08M.009.111209

®

http://www.gft.com.au/

Documents

Fast and Furious Trading - MENA Financial Expo Dubai 2018 · 2015-11-30 · Fast and Furious Trading Long-Term • 100+ pips • Wider target, larger risks • Patience • Quality