Use Insider Knowledge To Discover How to Make Money With Automated Trading


There is a very common misconception that all automated trading strategies are scams. The simple truth is they do work. When human traders trade, they scan the marketplace and identify stocks that are good to trade. And after that, they create buy and sell decisions. Automated trading systems are nothing, but calculations which are written in a fashion that allows these systems to scan the marketplace for trading opportunities. Human traders don’t execute orders by simply trusting their instincts. They rely on historical data, identify patterns, study the numerous indicators and after that take a call. That’s just what an automated trading system does but in an autopilot trading manner.

Whenever you turn off the auto-trading function and choose the decisions yourself then you may simply use the system to automate the placement of orders. In any case, these systems do work since they’re carefully based on how human operators perform their trades. The actual question is how much can you make whenever you utilize automated trading systems? There might be many trading robots which send out flashy ads that guarantee that you’d have the ability to make thousands of dollars in a short time. That isn’t the case, however. A real trading system would just make promises it could keep up.

In the end, given the market fluctuations and the numerous external factors impacting the inventory value, even the professional dealers can’t correctly predict how much profits they’d be making in a given amount of time. Set realistic goals and you’d never be disappointed – automated trading systems and trading robots such as QProfit System were designed for one major reason- to assist traders to save time and to assist budding traders to begin their trading journey when they’ve not mastered their trading abilities. Whenever you opt for a trading bot and set realistic expectectations then you’d surely not be disappointed. There may be patterns that you may find hard to identify even as a pro trader. But intelligent strategies are good at identifying patterns. And that is how they help dealers make profits.

If you are interested in Autotrading and would like more information on how to test drive an automated trading system, click here to join our mailing list or join through our contact us page: https://tradingmatrix.gr8.com

When Are Bear Markets Over?


The stock market action during the last couple of years was a story of two halves, bull up then bear down. Investors who’ve failed to comprehend this crucial truth are extremely confused about what to expect from stocks moving forward. You’ve certainly heard either side of the bear debate. The bulls say, needless to say, the bear is over, the S&P 500 has rallied 40% since the low and 20% rally is bull territory. However, the bears claim those lows will not hold, a retest is coming as a result of the economics; that is slowing growth and bloated valuations, saturated labor market and the big one, ballooning national debt staying too high for a classic bear market that started in early March.

Who’s right? Neither and both at the same time. The key to understanding stock market bear cycles is to see there are a set of parallel cycles, a story of two bears. They operate similarly to those Russian Matryoshka Russian matryoshka, a smaller bear cycle present within a bigger bear cycle. The bigger bear cycle is measured in years, whilst the smaller one nesting inside is measured in months. The bigger bears are known as secular bears whilst the smaller ones are cyclical bears. Making this secular/cyclical distinction is absolutely crucial when using the word bear. In case the kind of bear being discussed isn’t explicitly specified, confusion is the unavoidable result.

And confusion always leads to poor investment choices and reduction of capital, both in a literal awareness and in the opportunity cost awareness. So we have to begin by defining each type of bear. The word secular means long time periods, and indeed the secular endure is well deserving of the moniker. All through history, secular bears had an average duration of 17 years each. These great bears follow great bulls, which also occur on average 17 years. One complete secular bull-to secular bear cycle runs 34 years, a 3rd of a century. In the meantime, the smaller cyclical bears are a lot shorter and occur inside secular bulls and secular bears alike.

Usually, a cyclical bear market will average a couple years at duration. While secular bears are led by valuations, cyclical bears are usually driven by sentiment. The former beginning at very overvalued levels, whilst the latter beginning at very overbought levels. This differentiation might seem subtle, but it’s important. Our current secular bear started back in early 2018 because inventory valuations were extreme. The US stock markets were trading at shocking prices relative to that the underlying profits of that the corporations that the stocks represented. Whilst that the long term average price-to-earnings ratio (P-T-E) of that the general stock markets are 14x, as of this secular bear that the SPX P-T-E was nearly 150% that at 20.49x! This disconnection had to be addressed.

So… is the current bear market over? My opinion is a No….we have two things to consider. Firstly, as discussed, the average duration for a Secular bear hasn’t been met yet…from that perspective, expect more downside. Secondly, the valuations by P-T-E are elevated(not to historical levels by any means) but earnings acceleration is not(cannot) exceed sovereign debt acceleration and I assure you that is a monster problem.

In our next Article, we will discuss Sovereign Debt Acceleration in great depth. Be sure to signup to our mailing list to receive this and other useful market information in your inbox including information on how we are trading this bear market.

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Advantages Of Trading Derivatives


This article attempts to explain the benefits of Trading Derivatives. Here the evaluation assumes a basic understanding of Trading Derivatives from an international financial Market standpoint. Derivatives may not exactly indicate possession of the assets, however, these financial tools serve as a promise for the traders to a controlling interest in or towards the ownership like for example call options on shares or indexes. Fundamental benefits of these instruments are that traders may select conservative(like hedging) or speculative strategies. They’re able to purchase a position based on their very own trading circumstances. Dealers could make trades using derivatives to defend their investments from fluctuations in market prices and concurrently increase their gain they profit from their current inventory holding.

Even though trading derivatives like options and futures might be very profitable, it also might not be suitable for all those who’re not able to cope with the associated risks. These trading vehicles are regarded as advanced types of investments so people who want to trade using these investment tools have to be experienced operators with a good understanding of the inherent risks. Those who’re used to riskier investments and would like to be able to expand their trading landscape beyond stocks or bonds; may find trading options or trading futures is a suitable choice for them.

Speculators have to be able to assess the risk levels involved per deal in relation to profit expectancy. This differs from participants looking to hedge based on attempting to protect their long-term investments from the downside risks. This type of trader needs to focus on the overall cost-to-protection ratio(which indicates the cost per dollar of loss saved by the hedge). Alternatives might, for example, be a kind of hybrid strategy. Traders use concepts like hedging, which can aid a position’s downside risks; in conjunction with more speculative strategies like buying or shorting outright in lieu of underlying securities such as stocks or indexes. Hence, strategies such as spreads come into play, which are very powerful strategies in trading derivatives. Being able to offset some of the risk associated with trading derivatives (Like for example time decay vs expiration dates)can be extremely helpful in improving the profit/Risk curve of derivatives as an investment for those that want to add these instruments to their trading portfolios. The biggest problem they have to cope with, volatility can be effectively neutered thereby creating very sensible risk to reward ratios.

Once risk is under control with derivatives, their major advantage over other asset classes needs to be examined. The major plus of derivatives is the lower price point for entry. Basically, it’s cheaper to participate in any given asset through its derivatives than through outright exposure. Traders don’t have to invest considerable amounts of cash, to a position to gain exposure and explore their thesis on where it’s headed. They don’t really have to purchase the commodity or assets per se but get to benefit from its movement in relation to their derivative position. This, in turn, amplifies the return achieved where a single digit percentage move in the underlying asset, translates to double and triple-digit gains in the derivatives.

As can be seen here, the 3 major advantages of derivatives; Relative Affordability, relative substitutability, and relative flexibility make them a valuable asset for short term traders and investors alike. Providing hedging capabilities and providing the possibility for amplified returns they are an essential component of any portfolio.

Trading Tricks the Pros Use – And You Can Too!

Blending Stocks With Bonds & Other Asset Classes


Assume its 1984, and you have 3 investment choices in front of you: Stocks: Buy the S&P 500 Index and pay 50 bps in fees per annum. Bonds: Perpetually purchase 10-year bonds and cover 30 bps in fees per year. Managed Futures: Build a trend following portfolio around 4 futures contracts: S&P 500 futures, 30 Year Bond futures, Crude Oil Futures, and US$ futures, since each represents a different asset class. At each month end, for every one of the four contracts, you go long a contract when its 1-year monitoring return is favorable, and short when it is negative.

Hedge the prospective Risk of 4 contracts, and reduce your returns by supposing you pay 1% per year in commissions, rolls, and fees, and ignore your yield on the money that’s not being held as margin, which has considerably boosted your yields. The simple portfolio of investing 50% of the cash in stocks and 50% in bonds turns out to be rather attractive over the last 30+ years. Your returns are just 0.8% lower than if you’d held equities alone since long-maturity yields fell dramatically during this period, so your both blended portfolio achieves the same return with a small percent of the risk of loss if you define risk as yearly standard deviation or maximum percentage loss.

The only real downsides to this portfolio are going forward your bond yields are amazingly unlikely to be this high, and at any stage across the investment path, you still might anticipate to lose 25% of your money. S&P – 500 – 10 Year – Bond – 50\/50 – Port – Avg Annual percent Return – 8.9% – 7.3% – 8.1% – Annual Volatility – 14.8% – 7.8% – 8.3% – yield to Vol Ratio – 0.60 – 0.93 – 0.98 – Maximum percent Drawdown – -54% – -11% – -25% – This is the 50\/50 portfolio compared to equities alone.

This is the max percentage drawdown or reduction you’d experience in each portfolio. Consider adding the 3rd strategy, which just requires trading once a month. First, compare the performance stats of all 3 strategies within the last 33 years in isolation. A simple managed futures strategy has volatility and yields that fall between stocks and bonds, and per yield to risk between the two asset classes. S&P – 500 – 10 Year – Bonds – Mngd – Futs – Avg Ann percent Return – 8.9% – 7.3% – 8.0% – Annual Volatility – 14.8% – 7.8% – 11.2% – yield to Risk Ratio – 0.60 – 0.93 – 0.71 – Max percent Drawdown – -54% – -11% – -18% – Putting the 50\/50 portfolio side by side with a portfolio that puts 1\/3rd in each strategy, an investor ends up with pretty much the same return, but the risk is mitigated, as measured by volatility .

If you want to learn how to trade a system like this….. connect with us on the contact page or pay us a visit here

Profitable Trading Strategy

The London Open Trade Strategy is a game-changer for new and experienced traders seeking a consistently actionable strategy to grow their Forex account.

WHAT IS THE LONDON OPEN STRATEGY?

LONDON OPEN TRADE STRATEGY (LOTS) is a 100%, rules-based Forex trading setup strategy created by Darko Ali and Vic Noble to help Forex traders locate and enter trades in a pre-defined way. This unique yet simple trading system offers 100% objectivity in how a trade is validated, with rules for entry and stops, and strict guidelines for trade management, all resulting in trades with high accuracy and favorable risk-to-reward. Click here to see the  Forex Trading Video Course

Darko has been trading this setup for several years now, and in addition to that, he has back-tested this very objective strategy for over 5 years. The results have been outstanding!. The LO trade strategy is not only Darko’s favorite strategy, but it’s also the one that has been responsible – many times – for turning a potentially losing month into a profitable month. It is a simple and straight-forward pattern that is very easy to learn. You can literally get up to speed in one day and trade it the next. In fact, Darko even trades this setup from his smartphone! The London Open Trade Strategy could even be the only setup you trade. If so your trading life just got a whole lot simpler!

100% RULES-BASED

100% objective rules mean it is easy to learn and apply. It takes the guesswork out of searching for high probability Forex trades. That means that 100 out of 100 traders must agree whether or not there is a valid trade setup.

TIME/PAIR SPECIFIC

This is a pair and time specific strategy so you don’t have to scan the markets all day long for a London Open trade (just a 4 hour time window). You simply wait for these trade setups to come to you.

SIMPLE

Easy-to-understand rules make the L.O. strategy easy to learn and simple to implement. No more “paralysis by analysis”. The process to look for these trades is always the same. This creates a routine in your trading and builds confidence.

POWERFUL

Darko has personally back-tested this strategy over the last 5 years. He’s extremely confident that this system is a game-changer for new and experienced traders seeking a consistently actionable strategy to grow their Forex account The London Close Trade Daily Update Service  has earned 47,200+ pips since Jan. 2010.

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