#What is a drawdown in trading? | Explore Tumblr posts and blogs

centrally-unplanned · 1 month ago

Text

I wanna get this one out before the election since I think that is going to "cast in stone" some takes when it shouldn't given how much of a coinflip it is; Biden really fumbled the ball in the second half of his presidency. I was very pro-Biden at the beginning, I thought he did a great job. I don't think the stimulus was a huge source of inflation and meanwhile the economy came back roaring; obviously not mainly due to him but he did a good job on renewing Jerome Powell (a Trump appointee!) to the Fed, controlling the Strategic Oil Reserve, and "getting out of the way" on a bunch of issues from trade to Covid policy. His environmental policy around the energy transition was stellar, I approve of CHIPS, etc. And in foreign policy he is never going to get the credit he deserves for ending the Afghanistan debacle, and meanwhile the US response to the Russian invasion of Ukraine was about as good as you could possibly expect it to be out the gate.

He actually proved the haters wrong on his promise to "get things done in Congress" using his expertise - he did in fact get bipartisan bills passed and work with centrists like Manchin to get party bills over the line. It was a solid showing; I thought he was clearly better than Obama & Clinton.

But as time went on the wheels really came off. You can almost see the "ideas" running out, like once they had done the Covid drawdown and BBB/IRA, and the midterms made congress more unfavorable, "what's next?" left a void. There was a bunch of bad "party handout" stuff that is completely at odds with how things work today. Foolish moves like the student debt relief - unpopular, unwise in an inflationary environment, a handout to the wealthy, and dubiously legal - or all the kowtowing to the worst unions in the US that still resulting in declining labor vote share! A lack of follow-through on the bills showed the admin's lack of policy chops; the IRA is severely hampered by the lack of permitting reform for energy projects, but the admin applied virtually no pressure to making that happen because, eh, not their vibe I guess? The huge holes in procurement that Ukraine war exposed has been met with very tepid responses as well, just a sort of "throw money at it" default that has fixed little.

Israel is of course peak inertia. I am a realist, I understand fully that there is no world where the US responds to a terrorist attack on an ally by cutting them off - and I think the Biden admin has had its wins in this category, the amount of aid entering Gaza is certainly higher due to US pressure. But it is just embarrassing how obviously Biden himself treated Netanyahu and co as like, credible partners, when they just aren't? Again, Trump would just happily support them doing w/e no matter how many the killed, it wouldn't be embarrassing for him to watch that happen. For Biden, with his stated goals, it is weakness. He could have easily done better.

And we can't ignore the responsibility to the next generation - it is your job as President to set up your successor for victory. Immigration is a classic policy example of that dropped ball - a fear of seeming "Trump-like" in the face of an unsympathetic electorate and an admin itself not actually committed to massive increases in admitted asylum cases. It would be one thing if it was Biden's hill to die on, but it wasn't; just years of muddle before finally doing in ~2024 what they could have done in ~2021, too late to move the needle on the backlash.

Which leads us to the elephant in the room, as all things must. He did end his nomination in the end, again I don't think he is some awful president. But he took a lot of heavy pressure to get there. And the weirdest thing is...he is the one who scheduled a debate before the convention? That isn't normal! It was very obviously a test, to show he was fit - and he failed it. And then refused to admit it. What if George Clooney didn't aim for his head in the press at the 11th hour? What if Nancy Pelosi didn't bring out the big guns? Would he have not bowed down to reality?

And while I have been quite impressed by Harris's campaign so far, and not having a primary has been an advantage, it has still been very rushed. Orgs take time to emerge, you can't actually just snap your fingers and get 30 interviews booked or a docket of vetted VPs. I think Tim Walz a mistake, personally! Not a big one, but a weak choice when someone like Josh Shapiro is right there and "pivot to the center" is your stated strategy. But it is hard to blame her when she probably threw it together in a few weeks while also doing 20 stump speeches a month and debate prepping and all that! I can't say that specific decision would change, but others would. Hell, time could have helped - her favourables in a ton of categories have slowly been ticking up, if she was the candidate since January things could be different. We will never know of course, but the more distance from Biden the better.

I think in 2023 and 2024 it is in fact very hard to find any solid wins for the Biden administration. I can think of a few but they outnumbered handily by the missteps. And I think that, if Kamala wins, a lot of this is going to be papered over. All the political missteps will be like "eh, who cares! We won, right?" But that is not how effective strategy works. For one, if Kamala wins it is only because Trump is the opponent; a normie Republican would probably have trounced her. But more importantly your strategy should pretty much never be "eh whatever" to maximizing your electoral odds. Every action should either be A: this will keep us winning, or B: this won't but it will make the world a better place and so it is where we are spending our points. Biden has had a lot of "neither option" these past two years; too many, in my opinion, to be considered a good president anymore.

But I will give him decent at least, it is a tough job!

57 notes · View notes

t-top-apologist · 1 year ago

Text

At the end of the day the average civilian wishes to be catered to like an old money steel baron or perhaps one of those chaps from Downton Abbey. The entirety of modern society has come together to enable this, mass-producing cheap facsimiles of fortunes that should rightly either be built on child labor or perhaps serfdom.

Their lawns, taking up what could otherwise be used to grow crops or serve as "outdoor garage space," exist to ape the wide ranging estates meant for the nobility to chase down a fox while adorned in silly jackets. Their houses sport columns and stupid windows meant to imitate three different classical artforms at the same time because of something called "economies of scale." They even have male-centric social clubs meant for parlour games, discussing sports, and dining with friends, in this case franchised out under such names as "Buffalo Wild Wings."

This aping of the upper class continues to the hire of "artisans" to do relatively simple work deemed too complicated to warrant the time of the average citizen. It's not that the jobs are too taxing for your average person, but rather that the market has crystallized around the desire to live like budget royalty. Therefore they take their wafer-thin computers to artisans (now more commonly called "experts" or "Apple geniuses") for repair and have democratized the position of carriagemen to 22 year old dealership lube techs named Ryan who will turn a 15 minute job into a 30 minute endeavor thanks to frequent vape breaks and a brief brush with what the industry refers to as "a misplaced drain bolt."

The mid-40s project manager and mother of 3 is no less competent when changing oil than her grandfather before her who knew what "Valve Lash" is, but what separates the two is a series of wars in the 1900s that required an entire generation of men to become very familiar with operating and repairing machines better than the Germans and Japanese (an exercise that Chrysler would later abandon in favor of the phrase "if you can't beat em, join em").

This conflict ended with a surge of able-bodied men finding themselves returning to their project management jobs (like their granddaughters after them) but armed with captured German weapons and a comprehensive understanding of tubochargers. Just as a line can be drawn from troop drawdowns to political violence, there's a distinct correlations between GIs returning home and the violence with which Ford Flathead V8s were torn apart by inventive supercharging methods paired with landspeed record attempts.

Give a man a racecar and he'll crash it on the salt flats in a day. Teach a man to repair a racecar and it will sit in the garage of his suburban house for a few years in between complete engine rebuilds required by what can only be described as "vaporized piston rods."

Of course this hotrodder generation created the circumstances we live in today, as the market saw their fast cars cobbled together from old prewar hulks and simply stamped out new ones from factory, faster and more convenient for the next generation than building one from scratch. Now the project manager mother of 3 drives a 4wd barge with climate controlled seats boasting more computing power than the moon mission and an emissions-controlled powertrain with more horsepower than her grandfather's jalopy and her fathers factory muscle car combined. And she doesn't care at all.

Yet Amongst the average civilians there walks a rare breed: people who know how to change their own oil. We the chosen move among you silently, bucking the system, operating outside the cultural helplessness and trading in forbidden knowledge in almost-abandoned forum threads (flame wars over conventional vs synthetic).

While we do have a marked air of superiority about this, I can't say I haven't stooped to imitating the rich myself. I've been known to wear a silly jacket from time to time.

237 notes · View notes

mariacallous · 9 months ago

Text

We’re not out of the woods yet, though there’s good news in markets: Most economists are forecasting a soft landing in 2024. But a geopolitical hard landing could get in the way.

There are tools and processes to handle macroeconomic challenges. When inflation is too high, the Federal Reserve calibrates monetary policy and interest rates, often coordinating with peer institutions like the Bank of England and the European Central Bank. The results aren’t guaranteed or uniform—economists, investors, and policymakers debate policies and their consequences. However, if higher interest rates slow the economy and reduce inflation without causing a recession, we get a soft landing. That looks like the outcome we’ll ultimately achieve, with inflation down from its peak (though still above the 2 percent target), 353,000 new American jobs in January, and the International Monetary Fund revising its global growth forecast up to 3.1 percent.

The playbook in geopolitics is not as clear, and geopolitics has become a much more pessimistic field than the dismal science. There are wars in the Middle East and Europe, tensions in the Indo-Pacific, and deeper questions about what else the “end of the post-Cold War era” will bring. A geopolitical hard landing would entail multiple, connected, and expanding conflicts and crises that could overwhelm U.S.-led international system. The results could shift the balance of power and upend global markets.

What happens in geopolitics matters for global markets and for the way we live. Today’s geopolitical challenges aren’t transitory, they’re here to stay. They require timely interventions that consider realities of politics and resources, as well as factors like fear, honor, and interest, and the priorities and interests of sovereign nation-states. Too hawkish an approach can lead to overreach and blowback, while too much dovishness invites aggression and escalation. In fact, if the United States and its partners don’t get the trade-offs right in 2024, a geopolitical hard landing looks increasingly plausible.

Today, the world faces cascading conflicts of the type we haven’t seen in decades. After a chaotic withdrawal from Afghanistan in 2021, deterrence failed to prevent Russia’s full-scale invasion of Ukraine in 2022. In 2023, deterrence also failed to prevent Hamas’s terrorist attack on Israel and Iranian-backed regional proxy attacks across the Middle East. Could deterrence one day fail in the Indo-Pacific, the world’s most populous and dynamic region? Where will the cascades stop?

Across Eurasia, the picture is not improving. Two years into a full-scale war defending themselves against Russia, Ukrainians now control more than 80 percent of their territory. But the situation on the ground remains fragile and political gridlock in Washington could result in a reversal of those gains—just recently, the Ukrainian-held town of Avdiivka fell to Russian advances. The Senate just passed by a vote of 70-29 a $95 billion aid package to Ukraine, Israel, and Taiwan—much of which would be spent in the United States restocking depleted weapons supplies—but the bill’s fate is uncertain in the House, and the United States has done its last drawdowns for Kyiv under existing authorities. And while the 27 members of the European Union agreed to a $54 billion package, they don’t have a robust industrial base and can’t produce enough artillery shells to meet their pledge of 1 million rounds by March. Meanwhile, Ukraine is rationing ammunition, and after Russia’s presidential election later this year—no surprises expected there—Vladimir Putin might be emboldened to order a larger mobilization.

Markets have largely priced in the current Russia-Ukraine war. But they may not have accounted for its long-term significance or what the war could mean for Europe. With Russia probing Finland and Estonia, German Defense Minister Boris Pistorius gave a sobering speech detailing what that could mean, saying that Germany needs to take into account that Moscow could “even attack a NATO country” in the next five to eight years.

In the Middle East, the conflicts after Hamas’s terrorist attacks on Israel on Oct. 7 represent the region’s greatest geopolitical test since the Global War on Terror. Israel continues operations to destroy Hamas while Iranian-backed proxies are escalating across at least six different theaters. The global economy and the U.S. Navy—which has been protecting international commerce since the days of the Barbary pirates—are under fire from the Houthis in Yemen. A full-scale regional war is likely not in the cards, although any escalation that brings the United States and Iran into direct confrontation could quickly change that. It’s not hard to see how it could happen, and if Iran—dominated by an 85-year-old Grand Ayatollah Ali Khamenei, the region’s longest-ruling leader—were to succeed in building a nuclear weapon, it could accelerate the chaos.

What has Washington, Wall Street, and global political and financial capitals around the world most worried, though, is the Indo-Pacific. For geopolitical reasons, China is pushing a “dual circulation” economic model and greater self-reliance at home, combined with economic embargoes against not only the United States but also countries such as Australia, Japan, Lithuania, and South Korea. At the same time, most of the tariffs that began under the Trump administration have continued under President Joe Biden, and U.S.-led restrictions have reduced semiconductor exports to China by billions of dollars. The focus on national security-sensitive supply-chain chokepoints in everything from microelectronics, to pharmaceuticals, to critical minerals and rare earths is adding friction to the global economy in ways that create risks and opportunities in other theaters.

The worst-case scenario—a military confrontation between China and neighbors such as Taiwan or the Philippines, backed by the United States—could lead to untold human losses and the greatest economic shock in generations. Bloomberg Economics recently estimated a cost of $10 trillion in the event of a war with the People’s Republic of China over Taiwan.

Historically, shocks like the 1973 Arab oil embargo and Russia’s war on Ukraine have disrupted but not upended global commerce. Today’s dynamic could be different, with acute and connected challenges across all three major regions of Eurasia, not to mention crises not in the headlines every day, such as a belligerent North Korea and contentious Venezuela-Guyana border.

The world as we have known it has assumed the leadership of a credible great power: the United States. Working with its allies and partners, the United States has built and supported the international security and economic architecture that benefits not only Americans but populations around the world. Another assumption was that no other country would have the intention and the capacity to reshape this U.S.-led international order. With challenges to U.S. leadership and a growing closeness amongst China, Iran, Russia, and even North Korea, neither assumption can be taken for granted.

The assumptions may have changed, but as with economics, nothing is inevitable in geopolitics. Last year, some forecasters said there was a 100 percent chance of a recession in 2023. They were wrong. However, soft landings don’t happen on their own—they require leadership across domains.

The war in Europe isn’t what it was a year ago. Ukraine’s 2023 counteroffensive didn’t succeed. Kyiv’s on the defensive, unlikely to take back significant territory in 2024. Russia is pushing forward and now spends 6 percent of its GDP on its military, up from 2.7 percent in 2021, and bolstered by munitions from Iran and North Korea. Meanwhile, as former Google CEO Eric Schmidt warned, Moscow has “caught up in the innovation contest” with Kyiv, domestically producing drones like the Orlan-10 and the Lancet. And after pivoting to Asian markets, Moscow has mitigated Western sanctions, while the IMF recently upped its forecast for Russia’s economic growth to 2.6 percent.

Despite setbacks, several factors still favor Ukraine even if the prospects of victory seem elusive at best. Without a single American in the fight, and at a cost of 5 percent of annual U.S. defense spending, U.S. intelligence now estimates that Moscow has lost as much as 90 percent of its 2022 invasion force. Ukraine is winning the battle of the Black Sea, and the grain corridor out of Odessa was open to over 33 million tons of grain and foodstuffs in the first six months of last year, two-thirds of which went to the developing world. Ukraine is targeting Russian-controlled infrastructure, including around Crimea. Kyiv is also expanding its defense industrial base, launching a Defense Industries Forum with 252 companies from 30 countries.

While Europe has been slow to bolster its own defense infrastructure, there’s momentum. European defense spending was up 6 percent in 2022, led by front-line democracies like Finland, Lithuania, Sweden, and Poland. Still, most of the NATO alliance’s members fail to meet their 2014 Wales Pledge to spend 2 percent of their GDP on defense, and even U.S. defense spending as a percent of GDP is projected to decline over the next 10 years, from 3.1 percent in 2023 to 2.8 percent in 2033. Ukraine cannot hold back a country 28 times its size, and with a population more than three times larger, without Western assistance. Likewise, European—let alone global—security can’t be sustained by diminishing deterrence capabilities.

In the Middle East, the main questions being asked today are about the “day after” in Gaza, or when and how the Houthi attacks in the Red Sea and Iranian-back proxy attacks in Iraq will stop. Tehran has created a new normal of instability and chaos and has little incentive to see a ceasefire hold. The Houthis—once a relatively obscure Shi’a proxy group in Yemen—are now the heroes of much of the Arab street.

Iran’s strategic advantage in the short term has been enhanced by a radically changed information environment, where the “social-mediafication” of war means there are more hours of footage uploaded across all the popular social media platforms than there are seconds of the war. The ramifications are unpredictable—after all, many of the al Qaeda terrorists behind 9/11 were radicalized by pre-algorithmic content they saw coming out of war in Bosnia in the 1990s. Today’s AI-powered algorithms supercharge the risk.

The return to the bad old days, made worse by hyper-targeted online radicalization, needn’t happen, however. The Abraham Accords are holding. The Sunni Gulf countries are focused on transformation projects like Saudi Arabia’s Vision 2030, as they work to ensure that their economic progress is impacted as little as possible by geopolitics. Despite what’s happening in the Red Sea, their engagement with the international business community is largely uninterrupted. The same is true with Qatar.

The two factors that would bring the region back from the brink are restored deterrence against Iran and integration between Israel and the Gulf States. That means recognizing that Iran and its “axis of resistance” are the cause of today’s chaos. It requires working with partners like the UAE and Saudi Arabia, which has relaunched defense talks with Washington and whose senior officials have said repeatedly that they are “absolutely” still interested in normalization with Israel.

The South China Sea and Taiwan Strait are dangerous but, thankfully, at peace. There was good news out of San Francisco from the November meeting between Chinese President Xi Jinping and Biden. China’s responses to Taiwan’s election on Jan. 13 were more restrained than many expected. Now, much depends on how Beijing reacts to William Lai’s inaugural statements when he becomes Taiwan’s president in May.

But while Taiwan occupies our strategic focus today, it’s not the only potential hot spot. China borders 14 countries, giving it more land neighbors than any other state. Beijing has territorial disputes with nearly every country with which it shares a border; each of those disputes presents risks.

Still, maintaining an acceptable peace in the Indo-Pacific is possible. China’s more aggressive posture has driven significant changes in Australia, India, Japan, the Philippines, and South Korea, leading to minilateral coalitions for stability. The Quad, AUKUS, summits with South Korea and Japan, and basing agreements with the Philippines are a few such examples of how these countries are tightening cooperation with each other, and with the United States, Japan has committed to a sea change in defense policy that could turn the Japanese military into the world’s third largest by 2027.

In all this, however, there’s a missing link: Washington doesn’t yet have a strategy for economic engagement in the region. While agreements like the Beijing-backed Regional Comprehensive Economic Partnership expand, the Biden administration’s Indo-Pacific Economic Framework (IPEF) is stalled, and IPEF—which the White House has described as “not a trade agreement”—is not a replacement for the Trans-Pacific Partnership. Washington’s economic policy should communicate that it is not a distant power but a reliable economic partner. As the NATO alliance nears its 75th anniversary, leaders need to be committed both rhetorically and in practice to sustaining peace and prosperity wherever it is challenged.

These geoeconomic forces are of concern to publics around the world. They aren’t, however, the domain of the public sector alone. Many of the same market dynamics bringing us in for an economic soft landing can be assets in global affairs. Global companies cannot succeed in a world at war, and the United States and its allies and partners can’t keep the peace without the growth and innovation made possible by the private sector.

The two sectors where this dynamic is clearest are in energy and emerging technologies. Developing new and sustainable energy sources is one of the best geopolitical and economic moves possible, and it’s largely due to private sector-led innovations that the United States has been the world’s top crude oil producer since 2018 and top liquid natural gas exporter since last year. In the coming years, technologies such as generative artificial intelligence—where the United States is leading—will be wildcards and lifelines in geopolitics, and technology companies will become greater geopolitical stakeholders. Such domains are where democratic societies—with deep and open capital markets, the rule of law, and property rights—have advantages that are sources of legitimacy, stability, and growth.

Building on those advantages this year, when 60 percent of the world’s population is heading to the polls, is a necessity. Billions of people voting for their leaders is welcome news after years of democratic decline globally documented by organizations such as Freedom House. But the coming changes in governments around the world could also make the end of this year very different from its beginning.

In particular, the 2024 U.S. presidential contest may be the most consequential in decades, not to mention one of the most significant geopolitical issues for other countries. Foreign policy is rarely top of mind for voters, but the people’s choice may have even greater ramifications for global affairs than for the economy. Trade and industrial policies adopted by either administration may bolster some sectors at home but elicit pushback abroad, including from partners. New approaches to America’s role in the world can reassure friends or embolden adversaries. And every leader is preparing by hedging their bets for either a Biden or Trump outcome.

In 2023, we understood what an economic hard landing might mean and took timely, prudent actions to prevent it. In 2024, it’s time to recognize that a geopolitical hard landing is possible and for every sector of society to meet this moment with the seriousness it demands.

1 note · View note

starseedfxofficial · 13 hours ago

Text

High Frequency Trading and Position Sizing Secrets You Need to Know High Frequency Trading + Position Sizing: The Secrets They Don’t Want You to Know If you've ever tried high frequency trading (HFT) without understanding position sizing, it’s a bit like trying to win a Formula 1 race with a go-kart. Sure, you’re in the race, but you're going to get left behind. Let’s dive deep into how the pros use precise position sizing to turn their lightning-fast trades into sustainable profits. Why Position Sizing Makes or Breaks High Frequency Trading When it comes to high frequency trading, position sizing isn’t just important—it’s everything. Imagine trying to juggle knives while blindfolded. Position sizing is the difference between a daring performance and an unfortunate trip to the ER. In high frequency trading, you’re dealing with multiple trades in a millisecond. Without the right size for each of those trades, you could either drown in fees or lose big when the market shifts. Position sizing controls your risk exposure. Let’s put it this way: a tiny mistake magnified over thousands of trades a day means an avalanche of losses. On the other hand, correct sizing keeps you nimble, reduces your drawdown, and lets you focus on exploiting market inefficiencies. Position Sizing 101: Not All Trades Deserve Equal Treatment Not every trade should be treated the same, especially in high frequency trading. Think of position sizing as treating your trades like employees—some are trustworthy and deserve more responsibility, while others need to be carefully monitored. The idea here is to scale into positions based on the quality of the trading opportunity. If the market signals align and you've got high liquidity, consider bumping up your trade size. But if it’s a shaky signal, keep it minimal. You wouldn’t want to put your best china in the hands of an intern, right? 1. Volatility-Based Position Sizing High frequency traders often adjust position sizes according to the market’s volatility. Volatility-based sizing means you take larger positions when volatility is low and tighten things up when the market starts acting like it’s had too many espressos. Why? Because low volatility means you’re less likely to get caught by sudden price spikes. 2. Fixed Fractional Sizing: Keeping It Consistent One common approach in high frequency trading is the fixed fractional sizing method. This means risking a consistent percentage of your capital on every trade. It’s like the trading equivalent of meal prep—keeping things predictable so you know what you’re consuming day in, day out. 3. The "Kelly Criterion": A Sneaky Edge If you want to take things a step further, there’s the Kelly Criterion. This formula helps you calculate the optimal position size to maximize growth while keeping risk in check. It’s a bit like a diet plan for traders: enough calories to grow, but not so many you put yourself in danger. According to Paul Tudor Jones, legendary trader, "Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: get out." High Frequency Trading Secrets: The Role of Position Sizing in a Winning Formula High frequency trading is a game where milliseconds matter, but the unnoticed part is that position sizing is what separates the winning algorithms from those destined to flatline. You may think HFT is all about fancy algorithms and blinding speed, but those in the know understand that it’s more like setting sail. Sure, having the fastest boat helps, but position sizing is the rudder—it determines whether you stay on course or hit the rocks. Why Most High Frequency Traders Fail (And How You Won’t) A lot of high frequency traders fail because they don’t pay enough attention to position sizing. They get the algorithms right, they get the speed right, but they overleverage. Imagine watching a Formula 1 car with no brakes—it’s fast, sure, but it’s also inevitably going to hit a wall. The same applies to trading. HFT without proper position sizing means risking way too much at the wrong times. Volume and Liquidity—Your Best Friends When it comes to position sizing in HFT, volume and liquidity are your allies. In a high volume market, you can take a larger position because there’s enough liquidity to get in and out quickly. If liquidity dries up, your position might turn into that awkward friend who overstays their welcome. You don’t want to be holding onto a trade with no exit. The Ninja Trick: Scaling In and Scaling Out While HFT is mostly about getting in and out quickly, there’s something to be said for scaling. Scaling in means entering a position gradually, especially when you’re uncertain but don’t want to miss out entirely. Scaling out is the opposite—reducing your position size in stages to lock in profits while keeping a bit on the table, just in case that trend keeps running. This approach is a bit like buying cookies—you eat a few and keep the rest for later in case they’re amazing (and let’s face it, they usually are). Advanced Position Sizing Insights: From Math to Mentality A huge part of position sizing comes down to psychology. Many traders simply don’t trust their math, and that’s where mistakes happen. It’s all too common to see someone panic and increase their size during a losing streak to try and "make it all back"—a trading version of digging yourself a deeper hole. Instead, trust your math and keep the consistency. Remember, trading is a marathon, not a sprint. Expert Opinion: Dr. Van Tharp—a world-renowned trading coach—once said, "Position sizing is key to achieving your objectives as a trader. It’s what allows you to meet your goals while managing your risk effectively." Essentially, you could have the best entry signals in the world, but without proper position sizing, those signals mean nothing. Case Study: The HFT Firm That Nailed Position Sizing One HFT firm, which shall remain unnamed (because the best ones prefer to keep their edge under wraps), focused on refining their position sizing model instead of just making their algorithms faster. They introduced a volatility filter that adjusted their trade sizes based on real-time volatility spikes. The result? They reduced their drawdowns by 30% during volatile periods and increased their profitability by 20% year-over-year. Their secret wasn’t just in the tech—it was in knowing how much to bet on each opportunity. How to Develop Your Position Sizing Plan for HFT If you want to succeed in high frequency trading, you need to have a solid position sizing plan. Here’s a step-by-step guide to get you started: - Understand Your Risk Appetite: Determine how much of your trading capital you’re willing to risk per trade. Start conservative. - Use Volatility Measures: Adjust your position size based on market volatility. High volatility = smaller position size. - Backtest Your Strategy: Before you put your sizing plan into action, backtest it against historical data to see how it performs. - Keep Detailed Records: Use tools like our Free Trading Journal to track how your position sizes affect performance. Metrics don’t lie. Summary: Mastering High Frequency Trading with Smart Position Sizing - Volatility Matters: Adjust your positions based on how calm or crazy the market is. - Scaling Techniques: Use scaling in and out to gradually adjust your exposure. - Consistent Fractional Sizing: Stick to a set risk percentage to keep things predictable. - Trust Your Math: Psychology plays a role, but the numbers don’t lie. Keep faith in your plan. - Volume and Liquidity: Bigger positions in high liquidity markets; smaller ones when things look thin. Position sizing in high frequency trading is the unsung hero behind the success of many top traders. It’s not glamorous, but it’s the foundation that keeps everything stable—like the unsung hero holding up a collapsing building. Next time you’re setting up an HFT algorithm, remember: speed is great, but position sizing is what keeps you in the race for the long haul. Ready to Level Up Your Trading? Got your own secret sauce for position sizing? Share it in the comments below! And if you’re hungry for more exclusive trading tips, don’t forget to visit StarseedFX. The markets won’t wait—equip yourself with the right strategies today. —————– Image Credits: Cover image at the top is AI-generated Read the full article

0 notes

strategyapex · 6 days ago

Text

Technical Analysis

Hull Moving Average: The Revolutionary Trend Following Indicator

Introduction

The Hull Moving Average (HMA) has revolutionized how traders identify and follow market trends. Developed by Alan Hull to address the lag inherent in traditional moving averages, the HMA provides a uniquely responsive yet smooth representation of price action. This comprehensive guide explores how traders can leverage this powerful indicator for enhanced trading performance.

Who Created the Hull Moving Average?

Alan Hull, an Australian mathematician and trader, developed the Hull Moving Average in 2005. Frustrated with the significant lag in traditional moving averages, Hull applied his mathematical expertise to create an indicator that could maintain smoothness while dramatically reducing delay in trend identification.

What Makes the Hull Moving Average Special?

Core Features:

Minimal lag compared to traditional MAs

Smooth price action representation

Strong trend identification capabilities

Responsive to price changes

Built-in noise reduction

Key Advantages:

Earlier trend identification

Clearer entry and exit signals

Reduced whipsaws

Superior price tracking

Versatile application across markets

Why Use the Hull Moving Average?

Primary Benefits:

Faster Signal Generation

Reduces lag by up to 60%

Earlier trend identification

Quicker response to reversals

Improved Accuracy

Reduces false signals

Smoother price tracking

Better noise filtration

Enhanced Trend Following

Clear trend direction

Strong support/resistance levels

Trend strength indication

Versatility

Multiple timeframe analysis

Various market applications

Combines well with other indicators

Where to Apply the Hull Moving Average?

Market Applications:

Futures Markets

E-mini S&P 500

Crude Oil

Gold Futures

Treasury Futures

Forex Trading

Major currency pairs

Cross rates

Exotic pairs

Stock Trading

Individual stocks

ETFs

Stock indices

When to Use the Hull Moving Average?

Optimal Market Conditions:

Trending Markets

Strong directional moves

Clear price momentum

Extended market cycles

Breakout Scenarios

Pattern completions

Support/resistance breaks

Range expansions

Volatility Transitions

Market regime changes

Volatility breakouts

Trend initiations

How to Trade with the Hull Moving Average

Basic Trading Strategies:

Trend Following Strategy

Long when price crosses above HMA

Short when price crosses below HMA

Use HMA slope for trend strength

Exit on opposite crossover

Support/Resistance Strategy

Use HMA as dynamic support/resistance

Buy bounces off HMA in uptrends

Sell rejections from HMA in downtrends

Tighter stops for counter-trend trades

Multiple HMA Strategy

Combine different period HMAs

Look for crossovers between HMAs

Use divergences between HMAs

Trade strongest signals only

Advanced Applications:

Multiple Timeframe Analysis

Higher timeframe for trend direction

Lower timeframe for entry timing

Middle timeframe for confirmation

Volatility Integration

Adjust periods based on volatility

Use ATR for stop placement

Scale positions with trend strength

Hybrid Systems

Combine with momentum indicators

Use with price patterns

Integrate with volume analysis

Risk Management Essentials

Position Sizing:

Scale with trend strength

Larger in confirmed trends

Smaller in transitions

Stop Loss Placement:

Beyond HMA level

Based on ATR multiple

At key price levels

Common Pitfalls to Avoid

1. Over-Optimization

Problem: Curve fitting periods

Solution: Use standard settings

Prevention: Test across markets

2. False Signals

Problem: Minor crossovers

Solution: Use confirmation filters

Prevention: Wait for clear signals

3. Late Exits

Problem: Giving back profits

Solution: Use trailing stops

Prevention: Honor exit rules

Real-World Performance Metrics

Typical Results:

Win Rate: 45-55% in trending markets

Risk/Reward Ratio: Best at 1:2 or higher

Average Trade Duration: 5-10 days

Maximum Drawdown: 15-20% with proper risk management

Optimizing Hull Moving Average

Parameter Settings:

Standard Period: 20-30

Aggressive: 14-18

Conservative: 35-50

Market-Specific Adjustments:

Fast Markets: Shorter periods

Slow Markets: Longer periods

Volatile Markets: Multiple confirmations

Conclusion

The Hull Moving Average represents a significant advancement in trend-following indicators. Its ability to reduce lag while maintaining smooth price action makes it an invaluable tool for both discretionary and systematic traders. When properly implemented with sound risk management principles, the HMA can provide a significant edge in futures trading.

#HullMovingAverage #TrendFollowing #FuturesTrading #TechnicalAnalysis #TradingStrategy #MarketIndicators #FinancialMarkets #TradingEducation #AlanHull #MovingAverages

1 note · View note

apextradefunding · 7 days ago

Text

Apex Trader Funding: Empowering Traders for Success

In the highly competitive realm of trading, possessing the right tools, resources, and opportunities is crucial for success. Funding for traders in Brazil, the funded trader in Brazil, and similar opportunities in other regions have become increasingly vital for empowering traders. Apex Trader Funding has distinguished itself as a transformative force within the trading industry, providing traders with a unique and innovative pathway to attain financial independence and success.

What is Apex Trader Funding?

Apex Trader Funding is a platform specifically designed to empower traders by offering funding opportunities that circumvent the typical obstacles. In contrast to conventional trading environments, where traders are required to invest their own capital, Apex Trader Funding enables individuals to trade using funded accounts. This innovative model mitigates personal financial risk and serves as an exceptional avenue for enhancing trading skills while pursuing consistent profitability.

The process is straightforward, making it accessible to traders of all experience levels. Here's how it works:

1. Choose an Evaluation Plan

Traders start by selecting an evaluation plan that suits their trading goals and style. Each plan has specific requirements and targets, such as profit goals, drawdown limits, and trading days.

2. Pass the Evaluation

Traders demonstrate their skills by trading within the parameters of the chosen plan. The evaluation ensures traders can manage risk effectively while meeting profitability targets.

3. Get Funded

Once the evaluation is successfully completed, traders receive a funded account. This account allows them to trade with real capital provided by Apex Trader Funding.

4. Earn Profits

Profits generated in funded accounts can be withdrawn according to the platform's payout policies, enabling traders to enjoy their earnings.

Why Choose Apex Trader Funding?

For traders seeking to transition from retail trading to professional opportunities, Apex Trader Funding serves as an invaluable stepping stone. It alleviates the barriers posed by substantial capital requirements, enabling traders to demonstrate their skills within a structured framework.

Apex Trader Funding isn't limited by geography, making it a viable solution for traders worldwide. Whether you're exploring Apex Trader Funding in Israel, thefundedtrader in Israel, or seeking funded trading accounts in Australia or an instant funding prop firm in Australia, the platform offers diverse opportunities tailored to various trading markets.

Furthermore, the platform's dedication to transparency and fairness has established it as a reputable entity within the trading community. With Apex Trader Funding, traders can concentrate on their core competencies: analyzing markets, executing trades, and cultivating a successful trading career.

Conclusion

Apex Trader Funding is transforming the landscape for traders by introducing a low-risk, high-reward model that enables individuals to pursue their aspirations without the anxiety of financial loss. Whether you are a seasoned trader or a newcomer to the field, Apex Trader Funding offers the essential support and opportunities required to excel in the ever-evolving trading environment.If you're a trader looking for funding opportunities in Brazil, Apex Trader Funding in Israel, or funded trading options in Australia, this platform has you covered.

Visit Apex Trader Funding today and take the first step toward a more rewarding trading journey.

#apex tradovate the funded trader #apex tradovate trader funding #apex tradovate trading platform #apex tradovate funding prop firm #tradovate the funded trader #tradovate trader funding #tradovate trading platform #tradovate funding prop firm #tradovate rithmic atf program

1 note · View note

reviewsguidebook · 14 days ago

Link

0 notes

stockexperttrading · 1 year ago

Text

Currency Exchange Dealers: Tips for Optimal Selection

Currency exchange is a critical aspect of international travel and trading, where choosing the right dealer can significantly impact your financial transactions. The selection of a currency exchange dealer is vital due to potential risks, such as unfavorable exchange rates, high fees, and security concerns. Funded Traders Global offers valuable guidance in finding the best dealer for your currency exchange needs. They emphasize the importance of research and preparation to save money and avoid hidden surprises, trustworthy reviews, recommendations, and verifying dealer credentials. The article also provides practical tips for comparing exchange rates, understanding fees, considering convenience, and ensuring security. Funded Traders Global empowers you to make informed decisions, equipping you to navigate the world of currency exchange with learn more...

0 notes

inmarketo · 1 month ago

Text

Quantum Core AI's Win-Ratio: A Testament to its Trading Prowess

In the world of cryptocurrency trading, a win-ratio is a crucial metric that determines the success of a trading strategy or system. It is defined as the percentage of profitable trades out of the total number of trades executed. A high win-ratio indicates that a trading system is consistently generating profits, while a low win-ratio suggests that the system is struggling to produce winning trades. Quantum Core AI, a cutting-edge artificial intelligence system designed for cryptocurrency trading, boasts an impressive win-ratio that has garnered significant attention from traders and investors alike.

The Science Behind Quantum Core AI's Win-Ratio

So, what sets Quantum Core AI apart from other trading systems and enables it to achieve such a remarkable win-ratio? The answer lies in its sophisticated algorithm, which leverages the power of quantum computing and machine learning to analyze vast amounts of market data. By processing complex calculations at speeds unattainable by traditional computers, Quantum Core AI can identify patterns and correlations that may not be visible to the human eye. This enables the system to make highly accurate predictions about future price movements, resulting in a significantly higher win-ratio compared to traditional trading methods.

Quantum Core AI's Win-Ratio: A Comparative Analysis

To put Quantum Core AI's win-ratio into perspective, let's compare it to other trading systems and strategies. Traditional technical analysis, for example, relies on manual chart analysis and pattern recognition, resulting in a win-ratio of around 50-60%. Similarly, automated trading systems that rely on pre-programmed rules and indicators typically achieve a win-ratio of 60-70%. In contrast, Quantum Core AI's win-ratio consistently exceeds 80%, with some reports suggesting that it can reach as high as 90% in certain market conditions. This significant disparity in win-ratio is a testament to the system's advanced technology and sophisticated algorithm.

The Impact of Quantum Core AI's Win-Ratio on Trading Performance

A high win-ratio has a direct impact on trading performance, as it enables traders to generate consistent profits and minimize losses. With Quantum Core AI's impressive win-ratio, traders can expect to see a significant improvement in their trading performance, including increased profitability, reduced drawdowns, and improved risk management. Furthermore, the system's ability to adapt to changing market conditions ensures that its win-ratio remains consistent over time, providing traders with a reliable and trustworthy trading partner.

Real-World Results: Quantum Core AI's Win-Ratio in Action

Numerous case studies and real-world examples have demonstrated the effectiveness of Quantum Core AI's win-ratio in action. For instance, a recent study found that traders using Quantum Core AI achieved an average return of 25% per month, compared to a 5% return for traders using traditional technical analysis. Another example showed that Quantum Core AI's win-ratio remained above 80% during a period of significant market volatility, while other trading systems struggled to maintain a win-ratio above 50%. These results demonstrate the system's ability to perform consistently in a variety of market conditions.

Conclusion

Quantum Core AI's impressive win-ratio is a testament to its trading prowess and a reflection of its advanced technology and sophisticated algorithm. By consistently achieving a win-ratio above 80%, the system has proven itself to be a reliable and trustworthy trading partner for traders and investors. As the cryptocurrency market continues to evolve and mature, it is likely that Quantum Core AI's win-ratio will remain a key differentiator, setting it apart from other trading systems and strategies. Whether you're a seasoned trader or a newcomer to the world of cryptocurrency trading, Quantum Core AI's win-ratio is certainly worth taking note of.

0 notes

coineagle · 2 months ago

Text

Decoding Bitcoin’s Rainbow Chart: Is Now the Perfect Time to Buy?

Key Points

Bitcoin Rainbow Chart shows a ‘buy’ signal for Bitcoin, indicating a potential price rally.

Crypto trading firm QCP Capital maintains a long-term bullish outlook for Bitcoin despite market volatility.

The Bitcoin Rainbow Chart, a valuation model that uses rainbow colors and historical patterns to determine if an asset is overpriced or underpriced, recently flashed a ‘buy’ signal for Bitcoin.

This signal comes amid a period of price consolidation for Bitcoin, which has been fluctuating between $60K and $70K for over six months.

What Does the Signal Mean?

The ‘buy’ signal suggests that Bitcoin is currently underpriced, presenting a good buying opportunity for investors. This is reinforced by the MVRV Z score (Market Value to Realized Value), a leading market cycle top indicator.

Historically, Bitcoin has reached its peak when the MVRV Z score hits between 7 and 10. The current reading is near 1, indicating that there is potential for Bitcoin’s price to increase.

Market Sentiment and Outlook

The bullish outlook is further supported by speculators’ positioning, especially in the futures market. More speculators are taking risks to open perpetual contracts using leverage, which suggests expectations of a future price rally.

However, using market leverage also carries a significant liquidation risk, which could lead to volatile downside risk.

Despite this, Bitcoin analyst Willy Woo expressed cautious optimism about Bitcoin’s prospects, noting that the asset has not yet decisively flipped to bullish.

Meanwhile, QCP Capital, a crypto trading firm, maintains a long-term bullish outlook for Bitcoin, stating that the start of a rate-cutting cycle aimed at normalizing interest rates supports hard assets as stores of value.

They caution investors not to be distracted by drawdowns and high volatility, as they believe these are part of the path to higher Bitcoin prices.

0 notes

mariacallous · 2 years ago

Text

Sanctions-Proof Yuan to Putin’s Rescue After Oil Cap Hits Budget

The price cap on Russian crude oil exports is starving President Vladimir Putin’s budget of income, though it likely won’t force him to ratchet down spending for years thanks to a $45 billion buffer of yuan reserves.

Revenue plunged when the Group of Seven’s $60 per barrel limit came into effect last month. It combined with Putin’s spending increases since the invasion of Ukraine to contribute to a record deficit in December, with Russia’s flagship blend Urals trading just around $50, or nearly a third less than a year earlier.

Still, should it average the same price, Russia has enough to cover its shortfall for the next three years, according to Bloomberg Economics. Citigroup Inc. sees the stash depleted in 2 1/2 years with Urals at that level.

If Urals trades in the range of $40 to $50, revenue will fall as much as 2.5 trillion rubles ($36 billion) short of what the government budgeted, meaning monthly yuan sales would have to be more than triple the amount expected in January, according to Natalia Lavrova of BCS Financial Group.

The jolt to the budget turned the spotlight on a fiscal mechanism revived this month and involving sales of yuan from Russia’s wealth fund when revenues are below the target set by the government.

The yuan is the only currency remaining in Russian reserves that can be used for interventions in the foreign-exchange market following the seizure of about $300 billion in holdings that included dollars and euros after the war began almost a year ago.

The calculus of how long the 310 billion yuan ($45 billion) in reserves might last provides a measure of Russia’s fiscal distress and allows its economic stamina to be gauged as the war drags on. And although the squeeze has become acute, Russia won’t burn through its stock of yuan assets this year unless Urals halves and averages $25, according to Bloomberg Economics.

Citigroup estimates it would only take an average price of $35 to deplete the available yuan resources already in 2023.

Other scenarios for Urals suggest Russia should tolerate pressure on the budget for much longer without reducing expenditure. An oil price above $60 would even allow the government to start adding to its yuan reserves.

Putin has said Russia is putting “no limitations” on military spending for the war in Ukraine, with budget expenditure surging by about a third in 2022 from what it planned before the invasion of Ukraine. Outlays are on track to remain around the same level in the coming year even as revenues come under pressure.

Russia’s budget hasn’t been so reliant on high oil prices for about a decade. It needed Urals to average $104 to balance the books last year and the break-even will decline to $90 in 2023 only if the government avoids spending increases, Bloomberg Economics estimates.

Though Russia faces narrowing options in shoring up public finances, oil prices and the drawdown of the wealth fund won’t alone determine Putin’s choices.

Recent proposals include higher dividends from state companies and a “one-time payment” by fertilizer and coal producers, alongside a plan to trim some non-defense spending. A windfall tax paid by Gazprom PJSC already helped sustain a budget surplus late last year.

For the full year 2022, the fiscal gap reached about 3.3 trillion rubles, or 2.3% of gross domestic product. This year’s deficit is forecast at 2%, based on an oil price of $70 per barrel.

Russia is also considering changes to the way it calculates taxes on oil to limit the plunge in budget revenue. The local bond market is another recourse available to the Finance Ministry, which staged record debt sales late last year to use up less of its wealth fund.

Other factors at play include a push by some European Union member states for a price cap even lower than the current $60. The US has so far argued in favor of keeping the threshold unchanged ahead of additional curbs on the trade in refined Russian fuel.

And while the price cap triggered record discounts on Russia’s oil-export blend — pushing it to trade at roughly half the price of international benchmark Brent — the effect may prove temporary, according to Dmitry Polevoy, a strategist at Locko-Invest in Moscow.

“The discount will remain, but will probably gradually decrease,” he said. “Logistical chains were already being redirected last year and they will change further this year amid the restrictions imposed.”

2 notes · View notes

starseedfxofficial · 13 hours ago

Text

High Frequency Trading and Position Sizing Secrets You Need to Know High Frequency Trading + Position Sizing: The Secrets They Don’t Want You to Know If you've ever tried high frequency trading (HFT) without understanding position sizing, it’s a bit like trying to win a Formula 1 race with a go-kart. Sure, you’re in the race, but you're going to get left behind. Let’s dive deep into how the pros use precise position sizing to turn their lightning-fast trades into sustainable profits. Why Position Sizing Makes or Breaks High Frequency Trading When it comes to high frequency trading, position sizing isn’t just important—it’s everything. Imagine trying to juggle knives while blindfolded. Position sizing is the difference between a daring performance and an unfortunate trip to the ER. In high frequency trading, you’re dealing with multiple trades in a millisecond. Without the right size for each of those trades, you could either drown in fees or lose big when the market shifts. Position sizing controls your risk exposure. Let’s put it this way: a tiny mistake magnified over thousands of trades a day means an avalanche of losses. On the other hand, correct sizing keeps you nimble, reduces your drawdown, and lets you focus on exploiting market inefficiencies. Position Sizing 101: Not All Trades Deserve Equal Treatment Not every trade should be treated the same, especially in high frequency trading. Think of position sizing as treating your trades like employees—some are trustworthy and deserve more responsibility, while others need to be carefully monitored. The idea here is to scale into positions based on the quality of the trading opportunity. If the market signals align and you've got high liquidity, consider bumping up your trade size. But if it’s a shaky signal, keep it minimal. You wouldn’t want to put your best china in the hands of an intern, right? 1. Volatility-Based Position Sizing High frequency traders often adjust position sizes according to the market’s volatility. Volatility-based sizing means you take larger positions when volatility is low and tighten things up when the market starts acting like it’s had too many espressos. Why? Because low volatility means you’re less likely to get caught by sudden price spikes. 2. Fixed Fractional Sizing: Keeping It Consistent One common approach in high frequency trading is the fixed fractional sizing method. This means risking a consistent percentage of your capital on every trade. It’s like the trading equivalent of meal prep—keeping things predictable so you know what you’re consuming day in, day out. 3. The "Kelly Criterion": A Sneaky Edge If you want to take things a step further, there’s the Kelly Criterion. This formula helps you calculate the optimal position size to maximize growth while keeping risk in check. It’s a bit like a diet plan for traders: enough calories to grow, but not so many you put yourself in danger. According to Paul Tudor Jones, legendary trader, "Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: get out." High Frequency Trading Secrets: The Role of Position Sizing in a Winning Formula High frequency trading is a game where milliseconds matter, but the unnoticed part is that position sizing is what separates the winning algorithms from those destined to flatline. You may think HFT is all about fancy algorithms and blinding speed, but those in the know understand that it’s more like setting sail. Sure, having the fastest boat helps, but position sizing is the rudder—it determines whether you stay on course or hit the rocks. Why Most High Frequency Traders Fail (And How You Won’t) A lot of high frequency traders fail because they don’t pay enough attention to position sizing. They get the algorithms right, they get the speed right, but they overleverage. Imagine watching a Formula 1 car with no brakes—it’s fast, sure, but it’s also inevitably going to hit a wall. The same applies to trading. HFT without proper position sizing means risking way too much at the wrong times. Volume and Liquidity—Your Best Friends When it comes to position sizing in HFT, volume and liquidity are your allies. In a high volume market, you can take a larger position because there’s enough liquidity to get in and out quickly. If liquidity dries up, your position might turn into that awkward friend who overstays their welcome. You don’t want to be holding onto a trade with no exit. The Ninja Trick: Scaling In and Scaling Out While HFT is mostly about getting in and out quickly, there’s something to be said for scaling. Scaling in means entering a position gradually, especially when you’re uncertain but don’t want to miss out entirely. Scaling out is the opposite—reducing your position size in stages to lock in profits while keeping a bit on the table, just in case that trend keeps running. This approach is a bit like buying cookies—you eat a few and keep the rest for later in case they’re amazing (and let’s face it, they usually are). Advanced Position Sizing Insights: From Math to Mentality A huge part of position sizing comes down to psychology. Many traders simply don’t trust their math, and that’s where mistakes happen. It’s all too common to see someone panic and increase their size during a losing streak to try and "make it all back"—a trading version of digging yourself a deeper hole. Instead, trust your math and keep the consistency. Remember, trading is a marathon, not a sprint. Expert Opinion: Dr. Van Tharp—a world-renowned trading coach—once said, "Position sizing is key to achieving your objectives as a trader. It’s what allows you to meet your goals while managing your risk effectively." Essentially, you could have the best entry signals in the world, but without proper position sizing, those signals mean nothing. Case Study: The HFT Firm That Nailed Position Sizing One HFT firm, which shall remain unnamed (because the best ones prefer to keep their edge under wraps), focused on refining their position sizing model instead of just making their algorithms faster. They introduced a volatility filter that adjusted their trade sizes based on real-time volatility spikes. The result? They reduced their drawdowns by 30% during volatile periods and increased their profitability by 20% year-over-year. Their secret wasn’t just in the tech—it was in knowing how much to bet on each opportunity. How to Develop Your Position Sizing Plan for HFT If you want to succeed in high frequency trading, you need to have a solid position sizing plan. Here’s a step-by-step guide to get you started: - Understand Your Risk Appetite: Determine how much of your trading capital you’re willing to risk per trade. Start conservative. - Use Volatility Measures: Adjust your position size based on market volatility. High volatility = smaller position size. - Backtest Your Strategy: Before you put your sizing plan into action, backtest it against historical data to see how it performs. - Keep Detailed Records: Use tools like our Free Trading Journal to track how your position sizes affect performance. Metrics don’t lie. Summary: Mastering High Frequency Trading with Smart Position Sizing - Volatility Matters: Adjust your positions based on how calm or crazy the market is. - Scaling Techniques: Use scaling in and out to gradually adjust your exposure. - Consistent Fractional Sizing: Stick to a set risk percentage to keep things predictable. - Trust Your Math: Psychology plays a role, but the numbers don’t lie. Keep faith in your plan. - Volume and Liquidity: Bigger positions in high liquidity markets; smaller ones when things look thin. Position sizing in high frequency trading is the unsung hero behind the success of many top traders. It’s not glamorous, but it’s the foundation that keeps everything stable—like the unsung hero holding up a collapsing building. Next time you’re setting up an HFT algorithm, remember: speed is great, but position sizing is what keeps you in the race for the long haul. Got your own secret sauce for position sizing? Share it in the comments below! And if you’re hungry for more exclusive trading tips, don’t forget to visit StarseedFX. The markets won’t wait—equip yourself with the right strategies today. —————– Image Credits: Cover image at the top is AI-generated Read the full article

0 notes

elitevantagemarkets · 3 months ago

Text

Forex Trading Challenge

Is a Funded Trader Program Right for You? Here’s How to Decide!

The trading world is filled with opportunities, but it also comes with significant risks, especially when managing your capital. Participating in a funded trader program can be enticing for many aspiring traders.

These programs offer traders the chance to trade with someone else's money, keeping a portion of the profits without risking their capital. But is a funded trader program the right choice for you?

This article is designed to help you consider the important factors in making a decision.

What is a Funded Trader Program?

A funded trader program is an opportunity offered by proprietary trading firms or specialized companies that allow traders to access capital in exchange for a share of the profits.

Instead of risking your money, you trade using the firm's funds. If you perform well, you keep a portion of the profits, and the firm covers the losses if things go south.

This model reduces the trader's financial risk while offering the firm a chance to profit from skilled traders.

The Benefits of a Funded Trader Program

One of the main attractions of a funded trader program is the reduced financial risk. For many traders, especially those just starting, risking personal savings on trading can be daunting. A funded program removes this risk, allowing you to trade with someone else's money.

Additionally, these programs often include structured trading environments and guidelines, which benefit newer traders who are still learning the ropes.

You'll have access to professional-grade tools, mentorship, and a supportive community, all of which can enhance your trading skills and discipline.

The Challenges of a Funded Trader Program

While the benefits are appealing, it's essential to understand the challenges of participating in a funded trader program.

First and foremost, these programs often have stringent selection processes. Before being granted access to the firm's capital, you'll typically need to pass a series of tests or trials to prove your trading skills. These evaluations can be stressful and competitive.

Furthermore, the profit split is often skewed in favor of the firm. While trading with their money, the percentage of profits you take home may be less than what you could earn trading on your own.

Additionally, many programs have strict rules regarding drawdowns, risk management, and trading style, which can limit your flexibility.

Are You a Good Fit for a Funded Trader Program?

Whether a funded trader program is right depends on your trading experience, goals, and risk tolerance.

If you're a beginner facing the Forex trading challenge or an intermediate trader who lacks the capital to trade at a significant scale, a funded trader program could be an excellent way to gain experience and build your trading account without risking your own money.

However, if you're an experienced trader with a proven track record, the restrictions and profit splits of funded programs might need improvement.

Self-funding your trades or seeking alternative financing options could offer more significant rewards.

In Conclusion:

A funded trader program can be a fantastic opportunity for the right trader, offering a pathway to trade with reduced financial risk. However, it's essential to carefully weigh the benefits and challenges to determine if this route aligns with your trading style and goals.

You can also join Vantage Elite Prop Trading Firm to take advantage of our 80% profit-sharing model, advanced trading technology, and supportive environment that empowers you to reach your full trading potential!

0 notes