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

centrally-unplanned · 3 months ago

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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!

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t-top-apologist · 1 year ago

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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.

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mariacallous · 11 months ago

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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.

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fuzileirotrader · 5 days ago

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Comprehensive Analysis of Trading Strategies in the Financial Market: A Data-Driven and Risk Management Perspective

By Adriano Vettorel

Introduction

In the financial world, risk management is as crucial as the pursuit of returns. This article aims to demystify the complexity involved in market operations analysis, offering a comprehensive view ranging from data interpretation to the application of risk metrics, with a special focus on drawdown analysis. This approach is part of what I teach my students and apply in consulting for companies, aiming to create informed, robust investment strategies adaptable to each investor's risk profile.

The Data Foundation: A Summary Table

We begin with an analysis of market operation results, summarized in a table. This table not only presents financial performance (gross profit, gross loss, total number of operations, etc.) but also highlights risk metrics such as maximum drawdown, profit factor, and average profit/loss per trade. These figures are the pillars on which we build our understanding of risk and the effectiveness of operations.

Risk Metrics: Understanding What's at Stake

To assess risk, it is not enough to simply look at returns. Metrics such as standard deviation, mean semi-deviation to the left (downside deviation), and the well-known Value at Risk (VaR) are fundamental. They help us understand volatility, the "bad risk" that can affect our capital, and the probability of significant losses. However, it is the profit factor and the average profit/loss ratio that inform us about the sustainability and efficiency of the strategy, indicating whether the profits justify the risk taken.

Drawdown Analysis: The Worst-Case Scenario

Drawdown reveals the resilience of an investment or trading strategy, showing the "peak to trough" of losses. It is a crucial indicator because it prepares us for the worst-case scenario, something the financial market can offer without prior notice. Here, we look at drawdown not only as a measure of loss but as an opportunity to assess the strategy's recovery and robustness. The frequency, magnitude, and duration of drawdowns are analyzed to understand whether the strategy is exposed to unacceptable risks or if it is capable of recovering effectively.

Maximum Drawdown Analysis: The Ultimate Test

Within drawdowns, the maximum drawdown is the "hardest hit." It represents the largest dip that the value of an account or portfolio has suffered, and it is a trial by fire for any strategy. Analyzing the maximum drawdown involves not only quantifying the loss but also evaluating how long the strategy remained in recovery. This analysis is vital for investors and traders, as it reflects the strategy's ability to survive extreme market conditions.

Practical Application: Education and Consulting

In practice, these concepts are applied in both education and consulting. For students, the introduction to these metrics and analyses is fundamental to developing a critical understanding of market operations. They learn not only to seek profit but to manage risk in a way that preserves their capital during inevitable market fluctuations.

For companies, the application of these analyses can transform risk management, making it more proactive than reactive. By understanding maximum drawdown and other risk metrics, companies can adjust their strategies, perhaps adopting a more conservative approach or diversifying more, to mitigate risks without compromising growth.

Conclusion

The analysis of operations in the financial market, centered on risk metrics and drawdown analysis, is vital for creating sustainable investment strategies. This knowledge empowers investors and companies not only to pursue profits but to do so with a deep understanding of the risks, preparing for unfavorable scenarios without losing sight of opportunities. Teaching and applying these principles is fundamental to the development of a more resilient and aware of the inherent risks financial market.

#dowdrown

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starseedfxofficial · 6 days ago

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Mastering the 15-Minute Timeframe with AI Bots: Hidden Forex Secrets Unveiled Are you ready to uncover the untapped potential of trading on the 15-minute timeframe using artificial intelligence bots? Picture this: a trading bot working tirelessly, analyzing market patterns, and executing trades with ninja-like precision while you sip your coffee. It’s not a pipe dream; it’s the future—and it’s already here. Why the 15-Minute Timeframe Deserves Your Attention The 15-minute timeframe strikes the perfect balance between swift decision-making and insightful analysis. Unlike longer timeframes that can feel like watching paint dry or shorter ones that might leave you breathless, the 15-minute chart offers actionable insights with enough breathing room to strategize. And when paired with artificial intelligence bots? It’s like hiring Sherlock Holmes to crack the Forex code for you—except he doesn’t sleep, eat, or binge-watch Netflix. How AI Bots Dominate the 15-Minute Timeframe AI bots have revolutionized Forex trading by automating repetitive tasks, analyzing vast datasets, and identifying trends faster than any human could. But what makes them especially lethal on the 15-minute chart? Let’s break it down: 1. Pattern Recognition AI bots excel at spotting candlestick patterns like engulfing candles, pin bars, or head-and-shoulders formations. While you might spot a pattern after a cup of coffee, your bot already analyzed a hundred charts and executed trades. 2. Data Overload Handling Forex trading involves digesting mountains of economic data, news updates, and technical indicators. AI bots sift through this chaos to deliver actionable insights, ensuring you’re never caught off guard by a sudden market reversal. 3. Emotion-Free Decision Making Ever made a trade because you “felt” the market would turn? AI bots operate without emotions, eliminating impulsive decisions that can derail even the best strategies. Pro Tip: Pair your AI bot with leading economic indicators to give it a sixth sense for market shifts. Check out our curated list of tools here. The Secret Sauce: Setting Up AI Bots for 15-Minute Timeframes Want to optimize your AI bot for success? Follow these ninja tactics: 1. Optimize Indicator Settings - Moving Averages: Use a combination of 20 and 50 EMA to identify trends. Configure your bot to buy when the 20 EMA crosses above the 50 EMA. - RSI (Relative Strength Index): Set thresholds at 30 and 70 for overbought and oversold conditions. - ATR (Average True Range): This ensures your bot calculates the best stop-loss levels based on market volatility. 2. Backtest Relentlessly Think of backtesting as your AI bot’s boot camp. Use historical data to evaluate performance and tweak strategies. 3. Set Realistic Profit Targets The 15-minute timeframe thrives on quick profits. Configure your bot to aim for smaller, consistent gains rather than hunting for home runs. 4. Monitor and Refine AI bots aren’t “set-it-and-forget-it” tools. Regularly review performance metrics and update settings to adapt to market conditions. Need Help? Our free trading journal can help you track your bot’s performance. Download it here. Common Pitfalls (And How to Dodge Them Like a Pro) - Over-Optimization “If it ain’t broke, don’t fix it.” Over-tweaking your bot can lead to poor performance in live markets. - Ignoring Market Conditions AI bots aren’t immune to market black swans. Incorporate news filters to pause trading during major announcements. - Blind Trust Don’t rely solely on AI. Pair its insights with your own analysis for a winning combo. Case Study: The AI Bot That Made $1,500 in a Week Meet Sarah, a part-time trader juggling a full-time job and a toddler. She set up an AI bot using the strategies above and let it trade on the EUR/USD 15-minute chart. Her results? - Initial Capital: $5,000 - Profit: $1,500 - Drawdown: Minimal, thanks to tight stop-loss settings. Sarah’s secret? Continuous learning. She joined the StarseedFX Community to exchange tips with fellow traders. Advanced Tactics: Breaking the Mold 1. Incorporate News Sentiment Analysis Leverage AI bots that analyze market sentiment from news articles and social media. This can give you an edge in predicting short-term market movements. 2. Use Multi-Bot Strategies Deploy multiple bots with different roles: - Trend-Following Bot: For steady markets. - Scalping Bot: For high-volatility scenarios. 3. Dive into Unconventional Pairs Don’t limit yourself to popular pairs. Exotic currencies can offer higher volatility, perfect for 15-minute strategies. Your AI Bot Is Only as Smart as You Are AI bots are powerful tools, but success lies in your ability to set them up strategically, monitor their performance, and adapt to changing markets. Ready to elevate your trading game? Start exploring free Forex courses today. —————– Image Credits: Cover image at the top is AI-generated Read the full article

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topinformationforyou · 21 days ago

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Largest Prop Trading Firms in 2024

In the competitive world of financial markets, prop trading firms offer a unique opportunity for traders to access large amounts of capital without risking their own money. These firms fund traders to trade on their behalf, typically in exchange for a share of the profits. As more traders seek ways to scale their operations and increase profitability, the largest prop trading firms have become highly sought after. Among the top firms in 2024, TheTalentedTrader stands out as a rapidly growing leader in the industry. We’ll explore why TheTalentedTrader is considered one of the largest and most successful prop trading firms today and what makes it a top choice for traders worldwide.

What Are Prop Trading Firms?

Proprietary trading firms, or prop trading firms, are companies that provide capital to traders, allowing them to trade on financial markets using the firm's funds. Traders typically go through an evaluation process where they demonstrate their trading skills, consistency, and risk management strategies. Upon passing the evaluation, traders receive a funded account and can trade with larger capital. The firm takes a percentage of the profits in exchange for the capital and resources provided. This allows traders to scale their operations without putting their personal funds at risk.

What Makes the Largest Prop Trading Firms Stand Out?

The largest prop trading firms in 2024 are known for offering substantial funding, high-profit splits, and comprehensive support to their traders. Key factors that set these firms apart include:

1. High Capital Allocation

One of the main advantages of working with the largest prop trading firms is the capital allocation. Traders are typically given large sums of capital to trade, which allows them to take on bigger positions and potentially generate more profits. The Talented Trader offers traders access to substantial funding right from the start, allowing them to scale their trades without using their own capital.

2. Flexible Evaluation Process

The evaluation process is critical when it comes to prop trading firms, and the best firms make this process transparent and achievable. While some firms have strict requirements, The Talented Trader offers a flexible evaluation model that allows traders to select an evaluation plan that aligns with their trading style and goals. Whether you're a conservative trader or prefer to take on more risk, We offers options that work for various trading strategies.

3. Competitive Profit Share

The top prop trading firms offer competitive profit-sharing models, and The Talented Trader is no exception. Traders at TheTalentedTrader can keep up to 80% of the profits, which is a highly attractive offer compared to other firms in the market. This profit split ensures that traders are fairly rewarded for their successful strategies while also incentivizing them to perform consistently.

4. Risk Management and Protection

Risk management is key in trading, and the best prop trading firms offer robust risk management tools to protect both the trader and the firm’s capital. The Talented Trader provides built-in drawdown limits, stop-loss mechanisms, and other safety measures to ensure that traders manage their risk effectively. This helps create a sustainable trading environment where traders can thrive without facing excessive risks.

5. Education and Support

The best prop trading firms understand the importance of education and ongoing support. The Talented Trader stands out with its comprehensive educational resources, including training materials, webinars, and one-on-one coaching. Traders are given the tools they need to continually improve and refine their strategies, leading to long-term success in the Forex and financial markets. Additionally, We offers 24/7 support to help traders with any issues they may encounter.

Why TheTalentedTrader is One of the Largest Prop Trading Firms

As of 2024, TheTalentedTrader is gaining significant traction in the prop trading industry, positioning itself as one of the largest prop trading firms worldwide. The company has made a name for itself by offering flexible funding options, transparent evaluation processes, and high-profit shares. Their dedication to providing robust risk management tools and top-tier educational resources sets them apart from competitors, attracting a large pool of traders looking to scale their operations without using personal capital.

Traders at TheTalentedTrader benefit from a supportive community of traders and a company culture that prioritizes long-term success. As a result, the firm has become a leading player in the prop trading space, making it one of the most attractive options for traders in 2024.

Conclusion

The largest prop trading firms in 2024 are redefining the opportunities available to Forex and financial market traders. We has quickly established itself as one of the best and largest prop trading firms, offering traders generous capital allocations, competitive profit splits, and comprehensive risk management tools. With its flexible evaluation process, robust education programs, and high levels of support, TheTalentedTrader is well-positioned to continue its rise as a leader in the prop trading space.

For traders looking to take their careers to the next level, TheTalentedTrader offers an ideal environment to scale up trading operations and unlock greater earning potential. Whether you're a beginner or an experienced trader, We offers the resources and capital you need to succeed in today’s fast-paced markets.

#Largest Prop Trading Firms in 2024

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charubhati19 · 23 days ago

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Audacity Capital: The Risk-Conscious Trader's Prop Trading Firm

In the fast-paced world of Forex and proprietary trading, finding the right platform to grow your trading career can be a game-changer. Audacity Capital has quickly established itself as a leading proprietary trading firm, offering traders the chance to scale their trading businesses with access to significant capital while managing risk and focusing on consistent profitability. Whether you are a starter or an experienced trader, this is a great opportunity offered by Audacity Capital. Here, you can actually trade with real capital and not burden yourself psychologically trading with your personal funds.

In this article, we will explore what Audacity Capital is, how it works, and why it's one of the best choices for Forex and prop traders looking to build a successful career.

What is Audacity Capital?

Audacity Capital is a proprietary trading firm that specializes in offering funded accounts to the traders, especially in Forex. Unlike other traditional brokers, it offers an opportunity for a trader to trade with the capital of the firm after he clears an evaluation phase. This will enable the trader to enter bigger positions and make significant profits without risking his personal funds.

The company is known for its flexible trading rules, scalable funding options, and a very strong emphasis on long-term profitability. Audacity Capital focuses not only on immediate returns but on developing sustainable traders who could thrive in the markets over time.

How Does the Funding Program of Audacity Capital Work?

Audacity Capital runs a very simple funding program that is made to enable talented traders gain access to capital while still managing risks. Here is how the program works:

1. Evaluation Phase

Traders first have to pass through a valuation phase in which they trade using a demo account issued by Audacity Capital. In this stage, they are expected to risk-manage, be constantly profitable, and stick to the trading rules of the firm. In general, the trader is usually allowed to achieve certain levels of profit while keeping the drawdown limits as per the firm.

This is a very crucial evaluation since it ensures that traders are prepared for real trading with huge capital, and it safeguards both the firm and the trader from taking too much risk.

2. Profit Sharing and Capital Allocation

Following the assessment, the trader receives a funded account. The level of capital varies depending on the trader's performance as well as the tier achieved in an account. Upon commencing trading with the firm's capital, he or she would earn a percentage of profit made. Generally, a higher percentage of profit tends to be assigned to the trader as a share, whereas Audacity Capital retains a percentage as payback for its capital that was advanced.

3. Scaling Opportunities

One of the most attractive features with regard to Audacity Capital, the ability to scale a traders' account. Scalable accounts are available where top performers and those who demonstrate significant capabilities in managing risk can progress the size of their account with time. This offers progressively larger sums of available capital, more room to grow, and greater opportunity to make profits.

4. Risk Management

The process here in Audacity Capital puts significant emphasis on risk management at every point. Here, the trader is expected to follow very tight drawdown limits. Any form of trading behavior beyond the firm's risk parameters automatically disqualified him or her. In other words, it meant that sustainable trading habits are cultivated among the traders and that the traders do not take undue risks that could put their capital at risk.

Why Trade with Audacity Capital?

There are several reasons why Audacity Capital is a top choice for Forex and prop traders. Let's explore some of the key benefits of trading with this firm:

1. Access to Large Capital Without Risking Your Own Funds

The most notable benefit trading with Audacity Capital is traders can trade in real money without risking any savings at all. In this, they can scale their position and seek to take advantage of profitable markets, and the firm is responsible for all the associated financial risk. This becomes a huge relief for such traders who cannot afford enormous sums of money for investment yet want to engage in larger trades.

2. Low Entry Barriers

Most proprietary trading firms charge a very expensive entry fee or a huge amount to invest in order to begin trading. However, Audacity Capital is an exception as this firm provides low entry barriers for traders who seek a chance to prove themselves before investing huge amounts of initial capital. It is thus a very good choice for any aspiring trader looking to break into Forex trading.

3. Adaptive Trading Rules

Audacity Capital offers flexible trading conditions and does not apply harsh time limits or stressful deadlines to the traders. They can trade at their discretion while following their preferred strategies. Flexibility is important for those traders that prefer longer-term positions, or those using particular styles of trading such as scalping or swing trading.

4. Educational Support and Mentorship

Audacity Capital offers more than capital. The company offers educational material, webinars, and mentorship to improve the skills and strategies of the traders. It is the support the trader needs to upgrade his performance and take trading to the next level. Whether at the very basic level or the most advanced, resources at Audacity Capital can guide the trader to the desired destination.

5. Focus on Sustained Profitability

Whereas most other prop trading firms are focused more on short-term profits, Audacity Capital is instead on sustainable profitability. Trading is encouraged to be adopted with risk-conscious habits leading to consistent returns over time as opposed to high-risk methods that may lead to immense losses. This long-term growth allows for a stable trading environment.

Audacity Capital as Compared to Other Prop Trading Firms

While Audacity Capital shines out as the best prop trading house, there are, of course, several quite a few other houses well worth mentioning. For instance, compare and contrast how Audacity Capital is different from other house competitors.

FTMO: FTMO is perhaps one of the most popular prop trading houses as regards a strict selection procedure. Audacity Capital has more lenient trading rules, and they have more significant emphasis on risk management-a factor many traders like it for the long run.

TopStep: Even though it is very famous for its program in futures trading, audacity capital focuses more on the Forex. For currency market professionals, audacity capital appears to provide more applicable tools as well as trade opportunities.

The5ers: The5ers is one of the well-known proprietary trading firms; however, Audacity Capital takes a lead with low barriers of entry and scalable funding options. Further, with emphasis on consistent performance and risk management, the house gives more security to the trader in the volatile markets.

Related Terms in Forex Trading

In order to understand where Audacity Capital stands in the bigger Forex trading scheme, here are some related terms important for the traders:

Proprietary Trading: Audacity Capital is a prop trading firm that funds its traders and splits the profit percentage based on performance. The traders can make use of the firm's capital for trades and bear the risks attached.

Forex Funded Accounts: These are the accounts that the prop firms like Audacity Capital offer to its traders to grant them access to real capital. Hence, the traders do not need their personal money to trade.

Risk Management in Forex: Risk management forms a fundamental part of the trading philosophy at Audacity Capital. The objective is to have the traders limit losses and stay on consistent returns.

Forex Trading Strategies: One of the ways a trader will be successful with the company is by the ability to create effective Forex trading strategies. The firm encourages a sustainable and long-term approach to the strategy.

Scalping and Swing Trading: Scalpers and swing traders are allowed because the company accommodates their style of trading. So much flexibility in trading styles exists within the company.

Profit Sharing: The profit share is how much profit a trader enjoys after the company takes out its share. The firm offers an attractive profit sharing arrangement that favors winning traders.

Conclusion:

Audacity Capital offers an excellent opportunity to Forex traders, trading through real capital, scaling trading business, and taking the benefit of a friendly trading community. Therefore, focusing on risk management, scalable funding, and educational resources, this system provides a great trading ground for those both new in the trade and experienced in making their careers better in the Forex market.

If you’re a trader looking to take your trading career to the next level without risking your own capital, Audacity Capital could be the platform you’ve been searching for. Join today and experience the benefits of trading with confidence.

#audacitycapital #capital trading

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fundedtrader · 1 month ago

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Is It Worth Joining Forex Funded Trading Programs?

Although there are huge profitable prospects in Forex trading, there are limitations. Risk management, emotional decision-making, and money constraints are problems for many traders, particularly novices. In this situation, financed trading programs come into play and provide ambitious traders with an alternative option. Still, the crucial question is whether it makes sense to sign up for a funded trading program. Let's discuss it;

What Are Funded Trading Programs?

Programs for funded trading let traders use a company's capital rather than their own. Traders usually give the company a percentage of their profits in return. Platforms such as Funded Trader offer an organized method of evaluating traders' abilities through evaluation procedures before allowing them access to substantial sums of capital.

The Main Advantages of Funded Trading Programs

Potential for Profit

The possibility for profit rises dramatically with more capital available. Traders can make more than they would with little personal cash, even after splitting earnings with the funding company.

Development of Skills

Many sponsored trading programs, include training, simulations, and mentorship. This methodical education can turn inexperienced traders into seasoned pros.

Assistance with Risk Management

Strict risk management criteria are frequently included in these programs, which aid traders in gaining discipline. Traders can improve their skills and reduce losses by adhering to predetermined rules.

Capital Availability

Insufficient funds are among the biggest obstacles for novice traders. By giving traders access to significant sums of money, funded trading programs address this issue and allow them to concentrate on their strategies rather than worrying about depleting their personal savings.

Obstacles to Participating in a Funded Trading Program

Although there is no denying the advantages, funded trading programs have drawbacks.

Profit-sharing:

When traders share profits with the company, they are not keeping all of their earnings. This is frequently a little cost, though, in exchange for the availability of substantial capital.

Guidelines and limitations:

Funded programs contain rules that traders have to follow, including daily loss caps or maximum drawdowns. Some traders may believe that this structure is limiting.

Strict Criteria for Assessment:

For most of the programs, traders must pass demanding tests. Access to money may be delayed if criteria are not met.

Who should be the target of funded trading programs?

Programs for funded trading are best for:

Skilled traders who want to grow

Future traders with tested strategies but less funding

Those who are dedicated to rigorous risk management and rigid regulations

Funded trading programs, such as those offered by Funded Trader, are a game-changer for serious Forex traders who want to avoid the difficulties associated with generating funds.

Conclusion: Are They Valuable?

If you are strategic, disciplined, and willing to follow rules, it may be quite beneficial to enrol in a Forex funded trading program. These initiatives reduce financial risks, give traders access to funds, and assist them in honing their craft. Even while there are difficulties, they are frequently outweighed by the possible benefits.

Reviewal of paid trading programs is a step worth taking for anyone hoping to advance in their Forex trading career. To find out more and begin your journey right now, visit Funded Trader!

#funded trading program #funded trading programs #free funded trading accounts #get funded trading forex #get funding for forex trading

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glimcybot · 2 months ago

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Customizing a Professional Trading Bot for Your Trading Strategy

Trading in the financial markets has evolved significantly with the advent of professional trading bots. These bots are not just for institutional investors; individual traders can leverage them to execute trades more efficiently and maximize returns. However, the true power of a trading bot lies in its customization. By tailoring the bot to your specific trading strategy, you can harness its full potential and gain a competitive edge. This article explores the steps and considerations involved in customizing a professional trading bot to align with your unique trading strategy.

Why Customize a Trading Bot?

While many trading bots come with pre-configured strategies, the financial market's dynamic nature requires a personalized approach. Off-the-shelf bots often cater to generic strategies, which might not align with your goals or risk tolerance. Customization allows you to:

Match Your Trading Style: Whether you're a day trader, swing trader, or long-term investor, a tailored bot can optimize its actions according to your preferred timeframes and methodologies.

Implement Specific Indicators: Customization enables the integration of technical and fundamental indicators that you rely on, such as moving averages, RSI, or Bollinger Bands.

Enhance Risk Management: Personalizing a bot ensures that stop-loss, take-profit, and position-sizing mechanisms align with your risk appetite.

Adapt to Market Conditions: A customized bot can incorporate dynamic strategies that shift with market volatility and trends.

Steps to Customize Your Trading Bot

Define Your Trading Goals

Start by clearly identifying what you want to achieve. Are you aiming for steady income, capital preservation, or aggressive growth? Your objectives will guide the bot's overall design and functionality.

Choose the Right Platform or Framework

Select a platform or framework that supports customization. Popular options like MetaTrader, TradingView, and cryptocurrency-specific platforms like Binance or KuCoin offer APIs for building custom bots. Alternatively, you can use programming languages such as Python, which provides libraries like `ccxt` for crypto trading and `pandas` for data analysis.

Identify Key Metrics and Indicators

Determine which metrics and indicators align with your strategy. For example:

Technical Indicators: Moving averages, MACD, Stochastic Oscillators, etc.

Fundamental Data: Earnings reports, economic indicators, or news sentiment.

Sentiment Analysis: For cryptocurrency traders, integrating social media sentiment can be valuable.

Develop Entry and Exit Rules

Clearly define the conditions under which the bot should enter or exit trades. For instance:

Entry: Buy when the RSI is below 30 and the price crosses above the 50-day moving average.

Exit: Sell when the price reaches a 10% gain or when the RSI hits 70.

Implement Risk Management Parameters

Incorporate robust risk management measures, such as:

- Position Sizing: Limit trades to a specific percentage of your portfolio.

- Stop-Loss and Take-Profit: Automate these to minimize losses and lock in gains.

- Diversification: Avoid overexposure to a single asset by setting allocation limits.

Backtest Your Strategy

Before deploying the bot, run it through historical market data to evaluate its performance. Analyze key metrics such as:

Win Rate: The percentage of profitable trades.

Drawdowns: The largest portfolio decline during testing.

Profitability: Overall return on investment (ROI).

Optimize Based on Backtesting Results

Based on backtesting results, fine-tune your strategy. Adjust parameters like indicator thresholds, timeframes, or stop-loss levels to improve performance.

Test in Live Markets with Minimal Capital

Begin with a demo account or a small amount of capital to test the bot in real-time market conditions. Monitor its performance and make adjustments as needed.

Monitor and Update Regularly

Financial markets are ever-changing. Continuously monitor your bot’s performance and update it to adapt to new market conditions or refine its strategy.

Challenges in Customizing a Trading Bot

Overfitting: Over-customization to historical data during backtesting can lead to poor performance in live markets. Avoid overfitting by ensuring your bot works well across diverse market scenarios.

Technical Expertise: Customizing a bot often requires programming knowledge. If you're not a coder, consider hiring a developer or using platforms with user-friendly customization interfaces.

Data Quality: Accurate and up-to-date data is crucial for a bot's success. Ensure your data source is reliable and has low latency.

Emotional Interference: One advantage of trading bots is their lack of emotional bias. Resist the temptation to interfere manually unless the market scenario drastically changes.

Tools and Resources for Bot Customization

Python Libraries: `pandas` for data analysis, `ccxt` for crypto exchange APIs.

Trading Platforms: MetaTrader, TradingView, Binance API.

Backtesting Tools: QuantConnect, Backtrader.

Data Sources: Alpha Vantage, Quandl, Yahoo Finance.

Conclusion

Customizing a professional trading bot is a powerful way to enhance your trading efficiency and outcomes. By aligning the bot with your specific strategy, you can navigate the complexities of financial markets with confidence. However, remember that success requires a balance between technical expertise, disciplined strategy development, and ongoing refinement. With the right approach, your customized trading bot can become a valuable tool for achieving your financial goals.

#best professional trading bot for beginners #professional trading bots

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stockexperttrading · 1 year ago

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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...

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strategyapex · 2 months ago

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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

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apextradefunding · 2 months ago

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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

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reviewsguidebook · 2 months ago

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mariacallous · 2 years ago

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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.”

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