Four Ways to Improve Focus When Trading“Execution is everything.” It’s a phrase you’ll hear time and again in trading circles, and for good reason. Having a solid strategy is important, but it means very little if you can’t stay focused enough to follow through. One moment of hesitation, one distracted click, and the edge you worked so hard to find can vanish in an instant.
Focus is the gateway to execution. Without it, even the best setups fall apart. Yet in a world of constant noise with live charts, endless alerts, social media and background distractions it’s never been harder to stay present and in control. Here are four ways to improve your focus while trading. Two are grounded and practical. Two are a bit more unconventional. All of them can help you sharpen your focus where it really counts in the moment of decision.
1. Start with a Written Game Plan
This is the foundation. Before you even open your trading platform, write down your trade ideas, key levels, and any news or events that could impact your market. It doesn’t have to be elaborate. A simple list of “if this, then that” scenarios is enough.
By putting your plan on paper, you free up mental space and reduce emotional interference. You’re no longer reacting to every tick or candle. You’re tracking a few clear ideas and waiting for price to confirm your bias. That alone can dramatically improve focus. When your brain knows the plan, it doesn’t need to make it up on the fly.
More importantly, a written plan acts as an anchor when the session heats up. If you get shaken by a false breakout or tempted by something that wasn’t in your prep, it’s easy to refer back and reset. The best traders are those who execute simple ideas with discipline, not those who chase every signal that flashes across the screen.
2. Silence the Noise Around You
Multitasking is the enemy of trading. One browser tab for news, another for Twitter, five charts open, notifications popping up on your phone it all adds up to mental chaos.
Clean up your digital workspace before you start trading. Close all tabs that aren’t directly relevant to your session. Mute group chats. Set your phone to silent and put it face down, or better yet, in a drawer. Keep your trading screen as clean as possible. Use one or two key charts. Turn off indicators you don’t need.
If you trade in a noisy household or shared office space, noise-cancelling headphones can be a game changer. Some traders even use ambient sound apps like brain.fm or simple white noise to drown out distractions and stay locked in. A quiet mind is a focused mind.
3. Stand Up Before You Enter a Trade
Here’s something a little unorthodox, but surprisingly effective. Before you click the buy or sell button, physically stand up.
This small physical action creates a moment of separation between your thinking and your doing. It forces you to pause, breathe, and check in with yourself. Am I acting on plan or emotion? Is this trade aligned with my prep, or am I forcing it out of boredom?
We’ve all taken impulsive trades, only to regret them seconds later. Standing up adds a layer of intentionality. It breaks the rhythm of screen-staring and puts your brain back in the driver’s seat.
Think of it as your personal circuit breaker. It gives you a chance to double-check your logic and stops you from slipping into autopilot mode. Some traders even take it a step further and stretch or roll their shoulders before re-engaging with the screen. It might sound silly, but the effect on your mindset is real.
4. Use a ‘Focus Trigger’ to Prime Your Brain
Our brains love routines. You can use that to your advantage by building a simple ritual that tells your mind, “It’s time to trade.”
This doesn’t have to be anything elaborate. It might be playing a song you only use when trading or doing a brief breathing exercise. Some traders even use the act of cleaning their desk or making a fresh cup of coffee as a cue to shift into a focused state.
Over time, these small rituals become associated with mental readiness. They condition your brain to transition from passive scrolling or chatting into active concentration. That’s powerful, especially on days when you’re feeling a bit foggy or distracted.
The goal isn’t to create a superstition. It’s to build a reliable on-ramp into a focused headspace something that centres you and sets the tone for your session.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.24% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Beyond Technical Analysis
4 Powerful, Daily Affirmations for Faith-Based TradersAffirmations make a huge difference.
But why?
It's because they shape our beliefs.
Whatever we think, affects what we say.
Whatever we say, affects what we do.
Whatever we do, is who we become and what our life actual looks like.
Repeat these affirmations daily and watch your life change before your eyes.
Wealth flows to me with ease as I walk in purpose.
I reject scarcity and embrace Kingdom abundance.
I am open to divine provision in expected and unexpected ways.
I have more than enough to thrive and to give.
Happy trading!
For those of you who are trading to make a bigger impact in the world, I am praying for you!
Subtle Trading Challenges: Under-Discussed Psychological and OpsWhile traders often focus on well-known pitfalls like fear, greed, or overtrading , there are other subtle issues that can quietly undermine trading consistency and mindset. Below are a few under-discussed problems – touching on both psychology and day-to-day operations that many traders face.
Self-Worth Tied to Trading Performance
Some traders unknowingly tie their self-esteem or sense of self-worth to their trading results. When they have a losing day, they don’t just lose money – they feel personally defeated. This can trigger intense negative self-talk and emotional reactions to losses, sometimes causing traders to abandon their strategy or second-guess decisions in the heat of the moment. Because admitting such vulnerability is often seen as a weakness in trading circles, this issue rarely gets openly discussed, even though it can greatly sabotage a trader’s confidence and long-term consistency.
Analysis Paralysis and Decision Fatigue
In the age of overflowing data, traders can fall into “analysis paralysis” – overanalyzing market information to the point where they can’t make a clear decision. With countless indicators, news feeds, and opinions, it’s easy to get bogged down comparing options until no clear choice emerges, and this inaction can lead to missed profitable opportunities. Moreover, the mental strain of constantly dissecting information can cause decision fatigue, quietly diminishing the quality of any trades that are made. Unlike impulsive errors, this problem often masquerades as diligence, so it doesn’t get much attention in public discussions – yet it can erode a trader’s decisiveness and stress levels over time.
Constant Strategy Switching (System Hopping)
Another subtle pitfall is the tendency to jump between trading strategies too frequently, known as “system hopping.” Eager for a perfect method, traders might abandon a system after just a couple of losing trades and immediately switch to a new approach, never giving any strategy enough time to prove its worth. This habit – often fueled by impatience or get-rich-quick expectations – means the trader is always restarting the learning curve and never capitalizing on a method’s long-term edge. It’s an operational inconsistency that traders seldom admit openly, but it quietly undermines confidence and prevents the development of a stable, repeatable trading process.
Each of these problems tends to fly under the radar in trading forums or education, yet they subtly impact consistency and mindset. By recognizing these lesser-discussed challenges, traders can begin to address them and strengthen their overall discipline and performance.
Why the Best Strategies Don’t Last — A Quant TruthOver the years, I’ve built strong connections with traders on the institutional side of the market.
One of the most interesting individuals I met was a former trader at Lehman Brothers. After the collapse, he transitioned into an independent quant. I flew to Boston to meet him, and the conversations we had were eye-opening, the kind of insights retail traders rarely get exposed to.
We didn’t talk about indicators or candlestick patterns.
We talked about how fast and aggressive algorithmic trading really is.
He told me something that stuck:
" People think hedge funds build one algorithm, run it for years, and collect returns. That’s rarely the case. Most algos are extremely reactive. If something stops working, we don’t fix it — we delete it and move on. That’s how the process works."
This isn’t an exception — it’s standard practice.
What stood out most in our talks was how adaptable these algorithms are. If market conditions shift — even slightly — the logic adapts immediately. These systems aren’t built on beliefs or opinions.
They’re built to respond to liquidity, volatility, and opportunity — nothing more.
This level of responsiveness is something most retail traders never factor into their approach, but it’s core to how modern markets operate.
█ How Quant Funds Use Disposable Strategies — And What Retail Can Learn
One of the most misunderstood realities in modern trading is how top quantitative funds like Two Sigma, Citadel, and Renaissance Technologies deploy, monitor, and replace their strategies.
Unlike traditional investors who develop a strategy and stick with it for years, many quant funds take a performance-first, outcome-driven approach. They:
Build hundreds of strategies,
Deploy only the ones that currently work, and
Retire or deactivate them the moment performance drops below their internal thresholds.
This is a deliberate, statistical, and unemotional process — and it's something that most retail traders have never been taught to think about.
█ What This Means
Quantitative firms often run:
100s of models simultaneously,
Each targeting a specific edge (e.g. trend-following, mean reversion, intraday order flow),
With tight risk controls and performance monitoring.
When a model:
Falls below a minimum Sharpe ratio (risk-adjusted return),
Starts underperforming vs benchmark,
Experiences a breakdown in statistical significance…
…it is immediately deprecated (removed from deployment).
No ego. No "fixing it."
Just replace, rebuild, and redeploy.
█ It runs live… until it doesn’t.
If slippage increases → they pull it.
If volatility regime changes → they pull it.
If too many competitors discover it → they pull it.
If spreads tighten or liquidity dries → they pull it.
Then? They throw it away, rebuild something new — or revive an old one that fits current conditions again.
█ Why They Do It
⚪ Markets change constantly
What worked last month might not work this week — due to regime shifts, volatility changes, or macro catalysts. These firms accept impermanence as part of their process.
⚪ They don’t seek universal truths
They look for temporary edges and exploit them until the opportunity is gone.
⚪ Risk is tightly controlled
Algorithms are judged by hard data: drawdown, volatility, Sharpe ratio. The moment a strategy fails to meet these metrics, it’s shut off — just like any risk engine would do.
⚪ They don’t fix broken models — they replace them
Time spent “tweaking” is time lost. New strategies are always in the pipeline, ready to rotate in when older ones fade.
█ Research & Real-World Validation
"Modern quantitative funds must prioritize real-time adaptability and accept that any statistical edge has a short shelf life under competitive market pressures." Adaptive Trading Agents” (Li, 2023)
Donald MacKenzie’s fieldwork on HFT firms found that algos are treated like disposable tools, not long-term investments.
Studies on adaptive algorithmic trading (e.g., Li, 2023; Bertsimas & Lo, 1998) show that funds constantly evaluate, kill, and recycle strategies based on short-term profitability and regime changes.
A former Two Sigma quant publicly shared that they regularly deploy hundreds of small-scale models, and once one fails risk thresholds or decays in Sharpe ratio, it’s immediately deprecated.
Walk-forward optimization — a method used in quant strategy design — is literally built on the principle of testing a strategy in live markets and discarding it if its forward performance drops.
█ Why Retail Rarely Hears This
Retail traders are often taught to:
“Stick with a system”
“Backtest 10 years”
“Master one setup”
But in the real quant world:
There is no perfect system. There are only edges that work until they don’t. And the moment market structure shifts — new volatility, different volume profile, regime change — the strategy is gone, no questions asked.
█ What This Means for Retail Traders
⚪ Don’t idolize “one perfect system.”
What worked in April might not work in June. Treat your strategies as temporary contracts, not lifelong beliefs.
⚪ Build modular logic.
Create systems you can tweak or retire quickly. Test new regimes. Think in frameworks, not fixed ideas.
⚪ Learn from regime shifts.
Volatility, spread, volume profile, macro tone — track these like a quant desk would.
⚪ Use metrics like:
- Win streak breakdown
- Market regime tracker
- Edge decay time (how long your setups last)
█ Final Thought
The best traders — institutional or retail — understand that there’s no such thing as a permanent edge. What matters is:
Having a repeatable process to evaluate strategy performance,
Being willing to shut off or rotate out what’s no longer working,
And staying adaptable, data-driven, and unemotional.
If you start treating your strategies like tools — not identities — you’ll begin operating like a professional.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
#AN010: De-Escalation, ECB, Oil Prices and more
Hi, I’m Forex Trader Andrea Russo and today we’re going to take a look at this week’s news. Thank you all for the great number of readers I’m receiving these days.
Don’t forget that by visiting my website, you can also connect with me on other platforms and you can also find exclusive Benefits for my readers.
🔶 Key Highlights of the Week
ECB’s Villeroy Confirms Rate-Cut Bias Amid Energy Volatility
Governor François Villeroy de Galhau signaled that the European Central Bank remains open to further rate cuts—even with recent oil-price volatility—due to a strong euro and controlled inflation
Oil Prices Surge—and Recede—on Iran Tensions and Ceasefire News
U.S. strikes on Iran triggered at 5–7% spike in crude, pushing Brent above $77/barrel, before plummeting as ceasefire sentiment returned
Dovish Shift at the Fed
Multiple Fed officials (Bowman, Waller, Goolsbee) openly support a July rate cut, shifting dollar sentiment
Emerging-Market Pressure: Indian Rupee in Focus
Rising oil costs and geopolitical instability weigh on the INR, prompting potential RBI intervention
Geopolitical De-escalation Eases Market Risk
A U.S.-Iran ceasefire triggered a sharp retreat in oil, boosted equities globally, and weakened safe-haven USD and gold
-Forex Market Reactions: What Traders Need to Know
EUR/USD:
Rate-cut window in Europe: The ECB's dovish tone softens EUR's upside, while oil volatility now has less impact.
USD weakness: Dovish Fed commentary has dented dollar strength
Key chart signals: A sustained break below 1.0670 could open further downside toward 1.0600–1.0535.
USD/JPY:
Choppy action off failed breakouts near 148.00—watch for JPY resilience risk amid risk-off repricing
AUD/USD & Other Emerging Currencies:
Oil-driven FX pressure affecting the AUD—tracked via crude sensitivity.
The Indian rupee weakness hints at broader emerging-market stress in risk-sensitive currencies
🛠️ Strategy & Outlook for Traders
Theme Implication for FX
Fed dovishness Dollar softness → supports EUR, JPY, EM currencies
ECB policy flexibility Cap on EUR gains → neutral bias until data confirms
Oil volatility Medium-term risk for AUD, CAD, NOK, RUB
Geopolitical calm Risk-on sentiment → pressure on safe-haven USD & JPY
🎯 Trade Setups:
EUR/USD: Short on fall below 1.0670—target 1.0600–1.0535; stop above 1.0760.
AUD/USD: Short biased if oil sustains above $75; aligned with broader commodity-driven themes.
USD/JPY: Watch for continuation short if risk appetite returns; else, trade reversals at 148.00 key.
Mechanical rangesMany traders will talk about things like "Smart Money Concepts" (SMC) and think they have found something new.
The truth is, everything in trading stems back to Liquidity.
There is no "Algo" nobody is out to get you specifically. The market is always right, where you position yourself is your own choice.
I have written several posts on mechanical trading, recorded a number of streams. The more mechanical you can make the process, the less the emotions have a chance to kick your ass.
Let me give you a very simple method of being able to identify the ranges. Ignore the timeframes as this will work on any of them, on most instruments. (I say most, as some behave differently due to how it attracts liquidity). Lets assume high end crypto such as Bitcoin (BTC) and of course Forex in the general sense, stocks, commodities etc.
This is simple - only 2 rules.
You start by zooming out and giving yourself a general feel for the trend.
Let's say this looks to be an uptrend - we now need to understand the rules.
An opposing candle can simply be defined by a different colour. If the trend is up (Green) and we see a red candle - then it's an opposing candle.
The inverse is true, if we are down and the trend is Red. Then a Green candle would be opposing.
This is only half of the story. The second rule is a pullback candle or even a sequence of candles. This simply means either the very same opposing candle that doesn't make a new high or low (depending on the trend up not making fresh highs or down not taking new lows).
In this image, you can see we have in one candle both an opposing and pullback in one candle. This means we can now mark the high of the range. Working backwards to identify the swing range low.
This easy method means I can draw a range exactly the same and mechanically every single time.
Giving me a mechanical range.
We could then get a lot more technical by looking for liquidity, 50% of the range or places such as supply or demand areas.
But these are all for other posts.
For now, getting a range on the higher timeframes means you can work down and down into a timeframe you are likely to want to trade on.
These ranges will give clues to draws and runs of liquidity.
This will also help identify changes in the character and fresh breaks of structure.
Here's another post I posted on the mechanical structures and techniques.
More in the next post.
Have a great week!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principal trader has over 25 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
How to Manage Emotions in Trading? One Word: DisciplineHow to deal with emotions?
If you don't feel like reading a long explanation — here's the short answer: Discipline.
There are two typical emotional traps in trading:
1. After a big loss:
You feel the urge to recover quickly. Emotions kick in: despair, paralysis, frustration, snapping at loved ones — the classic downward spiral.
2. After a big win:
You feel like a king. “I’ve figured out the market. I’m unstoppable.” This leads to overconfidence, oversized positions, increased risk, and careless spending of profits — all while forgetting that black swans do exist.
What’s the cure in both cases? Discipline.
That’s your weak spot in both scenarios.
When you lose a lot, you shouldn’t even allow deep drawdowns to begin with.
Set clear exit rules:
1. Hard stop-losses.
2. A maximum loss limit (ideally 5–10% of capital), after which you completely exit all positions and take a minimum one-month break from charts and trading activity.
This protects your capital and — even more importantly — your mental health.
If you can’t follow your own stop-loss or take breaks when needed — then you don’t need emotional advice. You need to work on discipline.
When you feel euphoric from profits, this is trickier, but also manageable.
Reduce your position sizes after a major win or take a 2–3 day break to reset your brain and step back from emotional excitement
Again — the tool that helps here is discipline.
So how do you build that discipline?
Discipline isn’t just about trading. It’s a life skill that touches everything — from health to finance to habits. Here's how to develop it:
Start with physical training
Yes, really.
If you’re new, aim for 30 minutes of exercise, 3 times a week.
Even if you’re tired halfway, just walk in place — finish the 30 minutes. This trains your brain to complete what it starts, no matter how you feel.
The self-discipline from training your body will spill into every other area of your life — including trading.
Build simple habits
Start small:
Get up at the first alarm
Make your bed right after waking up
Put away clothes properly
Clean your shoes after coming home
Pick 2–3 micro-habits, and once they stick, your "discipline muscle" will grow. Over time, it becomes a natural skill.
Don’t expect results in the first week
Give yourself 30 days, and you’ll see real change.
Your Edge Isn’t Just Technical, It’s PersonalMost traders obsess over their strategy: Which indicator? What session? What entry signal?
But very few stop to ask the question that could change everything: “Does this style actually fit who I am?”
The Truth Most Don’t Talk About
Trading success is not about copying someone else’s edge. It’s about discovering your own edge, and that begins with self-awareness .
And it hit deep because this is the part of trading psychology we often skip.
Some Real Talk
If you’re naturally calm and risk-averse, trying to scalp news spikes will drain you.
If you’re fast-thinking, decisive, and love volatility, swing trading might feel like watching paint dry.
If you thrive on rules and structure, discretionary trading might feel chaotic.
If you're intuitive and adaptive, being forced into mechanical rules may kill your edge.
You’re not underperforming because you lack discipline, you’re likely just misaligned.
What Changed for Me
I stopped trying to “be the trader” everyone said I should be. And I started trading like me.
I built a system that fits my mental rhythm.
I gave myself permission to simplify.
I became consistent not because of a new setup, but because I removed internal friction.
Final Thought:
Your best trades don’t just come from the chart. They come from a place of alignment, when your mindset, risk tolerance, and system flow together. So before chasing another strategy, ask yourself: “Is my trading style in tune with my personality?”
Luxury, War, and Clarity – This Is the Golden Reset.🟨 The Real Gold Era: Clarity While the World Burns 🟨
"While some bleed in the streets, others sip cocktails in the Bahamas. This is not a coincidence. This is the new world."
Right now, we live in a time like no other.
People are dying in wars they never chose.
Currencies collapse. Nations threaten each other.
And yet — capital flows, gold climbs, and the rich get richer.
🕰️ A war started long ago — and most never saw it:
2020–2022: They printed trillions. COVID shut down the world. Fiat was silently devalued.
2022–2023: Russia was cut off from SWIFT. BRICS started buying gold. The dollar was no longer untouchable.
2023–2024: Gold broke $2100… then $2400… now $3400+. Even high interest rates can't stop it.
2025: U.S. and Israel strike Iran. BRICS discuss a gold-backed currency. Trust in fiat? Gone.
The Gold Era is no longer just metaphor. It’s the new battlefield.
💣 "War is loud. Wealth is silent."
While bombs fall in the East,
✨ capital quietly moves to safe havens.
While families flee,
✨ smart money finds gold, data, and sovereign positioning.
While headlines scream chaos,
✨ traders make decisions in silence.
🌍 But here's the paradox:
We also live in a world of unmatched abundance:
You can build a brand from a phone.
You can trade gold from a beach.
You can learn SMC, AI, geopolitics — and use it to build freedom.
You can escape the system, if you understand the structure.
In this gold era, the true asset isn't just metal.
It's mental clarity. Information. Sovereignty.
The gold is you.
📉 This isn’t just about trading.
It’s about knowing where we are in the timeline of collapse and rebirth.
The markets don’t lie — they expose what’s really coming.
And those who read them… can rise while others fall.
🧠 Final note:
Not everyone survives a reset.
But those who think in structure, who lead with clarity — they don’t just survive.
They reposition.
They build.
They lead.
🟡 Welcome to the Real Gold Era.
Where charts speak louder than news.
Where truth is a position.
Where you don’t wait for safety — you create it.
—
✍️ GoldFxMinds – where structure meets truth.
📢 Disclosure: This analysis was created using TradingView charts through my Trade Nation broker integration. As part of Trade Nation’s partner program, I may receive compensation for educational content shared using their tools.
#AN009: US attacks IRAN, what will happen?
On June 22, 2025, the United States launched air strikes on three Iranian nuclear sites (Fordow, Natanz, Isfahan), using bunker-buster bombs and Tomahawk missiles, some dropped by B-2 stealth bombers
President Trump declared that the facilities were “completely and totally obliterated”
📈 Tensions and geopolitical context
Tehran responded with missiles aimed at Israel and promised “tough responses”
The UN and key figures such as Guterres and Medvedev have defined the action as a dangerous escalation with the risk of a new conflict on a regional scale.
Israel supported the attacks, while Iran convened the UN Security Council to condemn the aggression.
💥 Market Impact
⚡ Energy Sector
Oil prices jump towards $90–100 per barrel on fears of flows from Iran and potential closures of the Strait of Hormuz.
Investors reacted with a move towards safe haven assets such as the Dollar, Gold and Treasuries.
📊 Equities and sensitive sectors
Starts on an uncertain tone: S&P500 and Nasdaq futures “volatile open”, with penalties on travel and tech, and increases on energy and defense.
Gulf markets open slightly higher (Saudi, Qatar, Bahrain, Kuwait), thanks to the attenuation of initial sell-offs.
🌍 Global economic impact
Weakening predictions from the World Bank, IMF and OECD predict an economic slowdown due to energy shocks and increased global tensions.
📌 Currency and Forex Scenario
USD has gained ground as a safe haven asset, benefiting from Safety flows.
Commodity-linked pairs, such as AUD/USD, NZD/USD and CAD/USD, will be pressured by rallying oil.
Potential increase in volatility on EUR/USD and GBP/USD: they rotate towards safe haven and US/China political risk.
📣 What to watch out for
Daily and H4 candlesticks in EUR/USD and GBP/USD to understand if support holds under geopolitical stress.
Volatility indicators (VIX | MOVE) are rising, it is useful to calibrate the size and prefer structured trades.
In the coming days it will be essential to monitor:
Reuters/Bloomberg for updates on possible sanctions or public retaliation.
ASEAN and Asia for regional reactions on energy supplies.
Central banks on inflation expectations due to high oil.
💡 Conclusions – Market and Forex Impact
This military action represents a classic geopolitical shock: rising dollar and defensive assets, pressure on oil and high volatility on stock markets and exchange rates. Unlike Israeli attacks, the direct entry of the US increases the degree of macro uncertainty.
For Forex traders:
USD Index: potential rebound within the bullish trend channel
Pairs with commodities: activate strategies on breakout key levels (e.g. AUD/USD, CAD/USD)
Anti-USD FX (EUR, GBP, JPY): under pressure and to be used in range rebound.
For the equity sector:
Rotation towards defensive sectors, defense, energy.
Possible entry into government bonds as a high inflation/political hedge.
Overall, the impact is clear: increased geopolitical risk → high volatility → shift towards USD/safe haven asset → penalization of sensitive assets.
Your Trading System Isn't the Problem. Your Discipline Is.📘 Your Trading System Isn't the Problem. Your Discipline Is.
Hard truth:
Your endless search for a new system is a smokescreen.
The best system in the world can't save you from poor discipline.
Here's why discipline matters more than your strategy:
You quit your system after a few losses, never allowing it to prove its value.
You deviate from your rules when emotions run high—wrecking consistency.
You're focused on shiny objects instead of sharpening the knife you already have.
🎯 The solution?
Commit to discipline. Track your adherence rigorously. Measure your success by consistency, not immediate outcomes.
TrendGo’s power isn’t just in clear signals—it's in enabling disciplined action.
🔍 Stop blaming your tools. Own your discipline.
Automated Execution: TradingView Alerts → Tradovate using AWS LaI’ve built a fully automated pipeline that takes live TradingView alerts and turns them into real orders in Tradovate. Here’s how it works, step by step (I will provide a video on it):
PineScript Alerts
My indicator/strategy in TradingView fires alert() with a JSON payload (symbol, side, qty, price, ATR, ENV).
Webhook to AWS
Alerts hit an API Gateway endpoint in AWS, invoking a Lambda function.
Lambda Processing
Parse the JSON from TradingView.
Calculate Stop‐Loss & Take‐Profit using ATR.
Authenticate to the Tradovate API (demo & live environments).
Place an OCO order (placeOSO) with proper bracket legs.
Send a confirmation message to my Telegram channel.
Tradovate REST API
Auth: POST /auth/accesstokenrequest → accessToken
List accounts: GET /account/list → find accountId
Place OCO: POST /order/placeOSO with entry, SL, TP
Testing & Monitoring
Local smoke tests of Telegram bot.
Lambda console test events for sample payloads.
CloudWatch logs for debugging & alerts on errors.
Why it matters:
Zero manual steps from signal to fill.
Consistent risk management via ATR‐based SL/TP.
Clear audit trail: logs in AWS + Telegram notifications.
Educational resource for anyone building similar setups
Feel free to ask questions or suggest improvements! Please leave comments.
Learn The Difference Between Beginner and Expert in Trading
In the today's post, we will discuss the evolution of a mindset of a trader as he matures in trading.
✔️Beginner
For some unknown reasons, beginners assume that a couple of educational videos and books about trading is more than enough to start trading successfully.
They believe that they got a comprehensive knowledge and that very few things remain to learn.
They start trading, but quickly realize that their knowledge is not enough to make even small gains.
✔️COMPETENT
After practicing a couple of years, traders come to the conclusion
that they know everything in that field. That they learned, tested and tried all concepts and techniques that are available.
They consider themselves to be the experts in the field BUT
for some unknown reasons, these traders still are not able to trade profitably.
✔️EXPERT
After many years of learning, training and practicing, eyes finally open.
Traders realize how limited is their knowledge and how much more there is to learn .
While they already have the skills to trade in profits, they understand now that even the entire life is not enough to learn all the subtleties of trading.
And here is a little lifehack for you:
if you are a beginner, embrace a mindset of an expert.
Start from realizing how little you actually know and how much more there is to know, that will help you a lot in your trading journey.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Crypto Jungle: Where Whales Feast and You’re the SnackHere’s the harsh truth: whales and market makers are robbing you blind. They create hype around garbage altcoins, meme coins, and straight-up shitcoins. You, the hardworking retail investor, buy the dream—they dump the bag.
While you're stuck holding worthless tokens, they’re off buying Bitcoin, gold, real estate, and flexing in Lambos on exotic beaches. It’s not investing—it’s a jungle. And you're the easy meal.
This isn’t a game. It’s a cycle: they pump, you buy, they dump, you cry. Stop being the prey. Start thinking like a predator—or get eaten.
BINANCE:BTCUSDT BINANCE:ETHUSDT BINANCE:ADAUSDT BINANCE:SUIUSDT BINANCE:SOLUSDT BINANCE:BNBUSDT
Everyone Talks Charts — But the Order Book Knows FirstHello, Traders! 🤓
Everyone watches the chart. But not everyone watches the market itself. If you’ve ever wondered why the price suddenly jumps or stalls just below resistance, you’re likely looking at the surface, not the structure underneath. And that’s precisely what DOM in trading helps to reveal.
What Is DOM Trading?
Let’s start with the basics. DOM stands for Depth of Market, which shows real-time limit buy and sell orders at different price levels. Some traders call this the trading DOM. Unlike a candlestick, which tells you what already happened, the DOM trading view shows what participants intend to do. This makes it useful for those trying to understand short-term moves, liquidity pressure, or even the psychology behind a specific level.
So if you’re asking, “What is DOM in trading?” or “How does DOM work in crypto?” – it’s essentially a live x-ray of the market’s limit order book.
Order Book Trading in Crypto
The order book, the live list of buy and sell orders, acts like a constantly updating roadmap of trader intentions. In order book trading, it’s not just the numbers that matter but how they shift. For example, traders often notice thick sell walls near round numbers (e.g., $70,000 BTC), sudden order pulls, which can fake out breakout traders, and absorption, where big buy/sell orders are filled silently, without noticeable price change… When analyzed properly, this behavior gives context to price action, something traditional indicators can’t always offer.
How to Use Crypto Trendlines… and Then Watch DOM
Drawing trendlines in crypto is common. Everyone has their version of a breakout setup.
But what happens when the price reaches that line? That’s where DOM trading shines.
It doesn’t predict whether the line will hold or break, but it shows whether liquidity is building or backing away right at the critical moment. The combination of crypto trendlines and DOM behavior often exposes subtle market dynamics, a large bid appearing just as price touches support, for instance, or offers vanishing before a breakout.
That’s not about strategy. It’s about market structure awareness, watching both the levels and the surrounding behavior.
Chart vs DOM: Two Sides of the Same Story
The crypto psychology chart tells you what’s happened — highs, lows, closes. The DOM, on the other hand, shows live trader psychology. And that’s where the psychology of crypto trading gets interesting.
When everyone’s waiting for BTC to hit $100K, for example, you might already see: Buyers are stacking bids at $95K, hoping for a retrace. Sellers layering offers at $99.9K, defending the level. And the sudden orders near $100K, a possible trap. In this way, round numbers in trading aren’t just emotional, they’re structurally significant. Especially in crypto, where the market cap is still heavily influenced by sentiment.
Final Thought
Some traders find it useful to spend a few sessions just observing the DOM. Psychological numbers in trading, like $10K, $20K, or even the famous 100K BTC milestone, are often surrounded by unusual order book behavior. So, the next time price seems to move “out of nowhere,” ask yourself: Was it really out of nowhere… or did the DOM in trading already whisper it?
You don’t need to trade based on it. But knowing how to draw trendlines in crypto and then pairing that with DOM behavior can offer a sharper view of where the market might hesitate, reverse, or run. Sometimes, seeing how others are placing their bets matters more than where. What do you think?
The Midyear Mindset Reset: Reboot Your Trading Before Q3Because nothing says "trader growth" like admitting you’ve been winging it for six months.
👋 Welcome to Halftime — How’s Your P&L Looking?
June’s closing bell isn’t just a date on the calendar — it’s that awkward moment where traders stare into the middle distance, coffee in hand, and quietly whisper: “Well… that went differently than I expected.”
Whether you’ve been racking up wins, nursing drawdowns, or simply surviving market whiplash, midyear is nature’s way of handing you a clean slate. Before Q3 throws its inevitable curveballs, now’s your chance to pause, reset, and actually look at what the heck you’ve been doing. And, of course, prepare for the next batch of earnings reports .
Spoiler: if your trading strategy this year has involved equal parts hope and caffeine, you’re not alone.
🔥 The Year So Far: Markets Kept It… Interesting
Let’s quickly recap 2025 so far (because trauma processing is healthy).
The Magnificent Seven? More like the Magnificent Two-And-A-Half. Meta NASDAQ:META and Microsoft NASDAQ:MSFT ran victory laps while everyone else tripped over AI headlines or regulatory landmines.
Nvidia NASDAQ:NVDA moonwalked into trillion-dollar territory, then stumbled after export bans — but somehow still has every fund manager whispering “Blackwell” like it’s a secret password.
Bitcoin BITSTAMP:BTCUSD set new highs north of $110K (who needs fiat when you can have memes?).
The Fed teased cuts, inflation teased persistence, and Trump teased… well, everyone.
And summer trading arrived with its usual low-volume traps, giving us breakouts that break hearts and liquidity that disappears faster than your broker’s customer support.
In short: volatility? Check. Opportunity? Absolutely. Discipline? That depends on whether you’re still following your rules or trading on vibes.
By June, most traders have crafted elaborate narratives in their heads. You know the type: "This breakout is different," "The Fed has to cut next month," and "There’s no way Nvidia can keep running like this."
The problem is, markets don’t care about your narrative. They care about price, volume, sentiment — and sometimes, absolute chaos. That beautifully clean chart setup? It’s not asking for your prediction. It’s begging you to respond with discipline, not bravado.
The traders who thrived in the first half didn’t win by forecasting every twist in the macro plotline. They won by following the tape. The breakout happened? They took it. The stop-loss hit? They respected it. That’s not luck — that’s execution.
🫶🏻 Emotional Capital: The Real Balance You Should Be Watching
P&L tells one story. Emotional capital tells another.
By June, a lot of traders aren’t out of money — they’re out of discipline. They’ve been revenge trading after a string of losses, chasing AI headlines that already ran, and convincing themselves they can “make it all back” on the next oversized position.
Do you know that feeling?
Resetting your trading mindset at midyear means recalibrating that emotional bankroll. Start by reviewing your trading journal (yes, you’re supposed to have one ). Revisit the trades that made sense and the ones that make you cringe. Recognize your patterns — your strengths, but also your weaknesses. Success leaves clues and there are lessons in failures.
💭 Clean Up the Clutter
There’s a special type of fatigue that sets in after six months of consuming too much trading content. You start layering on indicators like toppings at a frozen yogurt bar — RSI, MACD, Stochastics, VWAP, Fibonacci, Elliott Waves, Gann fans... until your charts light up like the billboards in Times Square.
The truth is, the best traders heading into Q3 are simplifying. They’re not chasing complexity; they’re chasing clarity. They know their setups, they trust their process, and they wait for clean signals.
Summer trading especially demands this discipline. Liquidity gets thinner, breakouts fail more often , and the tape gets choppy.
Complex systems may amplify the noise. Strip it down. Focus on price structure. Simplify your strategy so you can execute when real opportunities appear — not when your 12th oscillator blinks green.
⚾ You Don’t Need a Home Run
At this stage of the year, many traders fall into what we’ll call the desperate hero phase. They feel behind. They want to make up for drawdowns. They want “the trade” that fixes everything. If you’ve missed making bank over the first half of the year, chances are, you want to catch up — and fast.
Here’s a secret: The best traders aren’t always looking for grand slams. They’re playing small ball too — consistent singles, tight risk, controlled losses, steady gains.
Q3 isn’t about doubling your account. It’s about staying alive long enough for your edge to show up and play out. The traders who make it to year-end consistently profitable aren’t the ones chasing massive wins. They’re the ones compounding quiet, boring, disciplined trades.
Midyear Reset: Your Q3 Trading Checklist
Here’s your brutally simple plan for the back half:
✅ Journal your biggest mistakes from H1
✅ Cut your watchlist in half
✅ Size smaller than feels exciting
✅ Trust clean setups over crowded trades
✅ Stay curious — but stay selective
✅ Leave the FOMO trades to the TikTok influencers
So the real question heading into Q3 isn’t whether markets will go up or down. It’s whether you will trade better or keep winging it.
Happy midyear reset. Trade smarter, not harder.
#AN008: Israel, Iran and the price of fear
GEOPOLITICS – Israel, Iran and the price of fear
While the stock markets are trying to hold up, the geopolitical reality is very different. In the last 72 hours, Israel has hit a facility considered strategic in southern Iran. Tehran responded with ballistic warheads targeted at NATO positions, and threatened a military closure of the Strait of Hormuz. In a few hours, Brent has shot above $100, while WTI has touched $94.20, bringing back to life a spectre that seemed archived: energy purchases.
DOLLAR AND FED – Sickles under pressure
The Federal Reserve has kept rates unchanged, but Powell has sent a clear signal: "there will be no cut if the geopolitical context continues to generate upward pressure on prices".
In other words: the FED remains hawkish, the dollar continues to dominate, and global sentiment shifts to risk.
CROSS WATCH – SwipeUP FX Opportunity
EUR/USD
Weak EU macro + sustained US sell-off + war → Realistic target 1.0630 – if it breaks 1.0675 H8.
USD/JPY
Institutionals undecided: if the yen does not strengthen and the BOJ remains neutral, we can return above 158. Target: 158.60-159.2 in case of new USD leg.
CAD/JPY and oil-linked
Canada benefits from the oil increase, but be careful: risk-off can penalize. Assess only with cyclical confirmation and real volumes.
📌 WHAT TO WATCH NOW – SwipeUP Checklist
📆 Friday, June 21: US PMI data + Powell speech
⚠️ VIX above 20: signals real tension
📉 JPY and CHF in divergence? → watch out for manipulative breakouts
🗓️ Earnings Season: can divert flows in the short term, but remains in the background
Your Liquidation can be Exchanges Business & Profit Ever feel like the market is designed to move against you ?
That your stop-loss is a magnet for price action?
What if it’s not just in your head? Behind every liquidation wave lies a structure and maybe even a strategy.
In this post, we dive deep into how exchanges might be benefiting from your losses and most importantly, how to flip the script in your favor.
Hello✌
Spend 3 minutes ⏰ reading this educational material.
🎯 Analytical Insight on XRP:
XRP is approaching a major daily support zone, aligned with the psychological level of $2.00. This area has historically provided strong buying interest. A potential rebound from this level could lead to a minimum upside of 16%, with a medium-term target around $2.50 . 📈
Now , let's dive into the educational section,
💣 Liquidation as a Business Model
In crypto derivatives markets, liquidation isn’t just a risk it’s a revenue stream. When your position gets liquidated, your funds don’t just vanish into thin air they become someone else’s gain. Often, the exchange itself.
Remember, exchanges control:
Price data
Order book matching
Access to retail trading behavior
That means they can anticipate and even design market conditions that favor liquidations . Especially from retail traders who overleverage or place their stops in obvious spots.
Scary? Maybe.
Avoidable? Absolutely.
📊 Why TradingView Is Where Your Survival Starts
When it comes to defending yourself against liquidity traps, your best weapon is data real data. Not gut feelings, not Telegram signals. TradingView offers a range of tools that help you detect the footprints of large players before they run over your position. Here’s how to use them:
Liquidity Zones: These zones highlight areas where most stop-losses cluster perfect for identifying where big players are likely to push price. Use community indicators like “Liquidity Grab Zones” or manually plot key levels.
Volume Profile: Shows you exactly where the highest traded volumes occurred. These “high interest” areas often become magnets for price and are favorite playgrounds for liquidity raids.
Order Blocks: Smart money often enters the market through order blocks. Tools like “SMC Tools” or custom scripts in TradingView help you mark these institutional footprints.
Open Interest & Funding Rates (via external data plugins): Watch for spikes in funding or sudden OI drops these can be early signs of liquidation sweeps.
Replay Tool: Rewind the market to any date and simulate price movement in real time. An amazing way to train your eyes on how liquidity hunts usually play out.
Bottom line? TradingView isn’t just a charting tool it’s your radar system in a market full of traps. But only if you use it the right way.
🧠 Market Psychology: Your Fear Is Their Fuel
Exchanges and the whales who partner with them thrive on predictable retail emotion:
Fear of missing out (FOMO)
Fear of liquidation
Greed for fast gains
They don’t need to fake anything your emotions are enough. They just need to let the herd run into the slaughterhouse. Your best defense? Awareness, logic, and a data-first mindset.
⚠️ How to Avoid Becoming Their Target
Stop following noise; start tracking smart data.
Never use stop-losses at obvious round levels or under candle wicks these are classic sweep zones.
Watch funding rates if it looks too bullish or bearish, get cautious.
Don’t enter trades when you feel too confident that’s often when traps are most effective.
Aim for higher-timeframe setups and avoid scalping in manipulated zones.
Most importantly: Treat every chart as a trap until proven otherwise.
🧭 Final Take
In crypto, knowledge isn’t power it’s protection. If you’re still hoping the market plays fair, it’s time to change perspective. Use TradingView to out-think and outlast the systems designed to exploit you. You don’t have to be a genius just informed.
✨ Need a little love!
We put so much love and time into bringing you useful content & your support truly keeps us going. don’t be shy—drop a comment below. We’d love to hear from you! 💛
Big thanks ,
Mad Whale 🐋
📜Please remember to do your own research before making any investment decisions. Also, don’t forget to check the disclaimer at the bottom of each post for more details.
CME FedWatch : the essential tool to consult before the FedThe CME FedWatch Tool is a free and widely used resource offered by CME Group. It has become a key reference in the financial industry for tracking, in real time, market expectations about upcoming interest rate decisions by the U.S. Federal Reserve (Fed). Frequently cited in financial media, this tool allows traders and analysts to assess the likelihood of a rate hike, hold, or cut ahead of each scheduled FOMC meeting.
How does it work?
At the core of the FedWatch Tool lies data derived from 30-day Fed Funds Futures, which reflect the average federal funds rate expected for a given month. These contracts follow a simple rule:
Implied Rate = 100 – Futures Price
So if a futures contract trades at 95.67, the implied average rate is 4.33%. This is then compared not just to the Fed’s current target range (4.25% to 4.50%), but more specifically to the Effective Federal Funds Rate (currently around 4.33%) to estimate the market-implied probability of a rate hike, hold, or cut.
The FedWatch Tool then distributes these probabilities across expected scenarios for each upcoming meeting, allowing users to see, for instance, a 99.9% probability of a hold or a 0.1% chance of a cut. This makes it a real-time barometer of monetary policy expectations.
The Historical section: analyze and backtest
Beyond the live probabilities, the tool also features a Historical section. This shows how rate expectations evolved ahead of past FOMC meetings and what the Fed ultimately decided.
Users can download this data for further study, enabling a better understanding of how market sentiment shifted over time, particularly in reaction to speeches, inflation data, or jobs reports. This is especially valuable for those looking to backtest trading or hedging strategies tied to rate decisions.
The “Dot Plot”: insight into the Fed’s own outlook
Another key feature of the tool is the Dot Plot, which displays individual FOMC participants’ rate projections over time. Each dot represents a member’s view of where the fed funds rate should be by the end of a given year.
The Dot Plot is only updated four times per year, in March, June, September, and December, during the Fed’s so-called “summary of economic projections” meetings. These quarterly meetings are particularly market-sensitive because they are accompanied by updated economic forecasts and a press conference. While the dots do not reflect a formal voting commitment, they offer valuable insight into the Fed’s collective sentiment and long-term bias.
How to Interpret the Data?
A key takeaway for traders: don’t confuse the direction of interest rates with the overall message. A rate cut may not be “dovish” if paired with cautious language or projections. Conversely, holding rates steady may be interpreted as “hawkish” if the market was expecting a cut.
What really moves markets is the difference between expectations and what the Fed actually says or does. That includes the language of the statement, any changes in the dot plot, and Chair Powell’s comments in the post-decision press conference. These factors often matter more than the rate move itself.
The situation on Wednesday, June 18, 2025: what to expect?
The June 18 meeting is one of the quarterly meetings, meaning it will come with a press conference and a release of a new dot plot. As of now, the FedWatch Tool shows an extremely high probability (99.9%) of a rate hold within the current 4.25% to 4.50% range.
However, what matters most on this occasion is the guidance for the second half of the year. As of now:
The market assigns a 56% probability to a first rate cut by September,
A 41% chance to two cumulative 25 bp cuts (down to 3.75–4.00%) and a 21% chance of a more aggressive easing path (3.50–3.75%) by December.
This means the market still expects some policy easing later in the year, but not aggressively. If Powell opens the door more clearly to cuts, or if the new dot plot shows a downward shift in the median rate projection for 2025, the dollar could weaken and rate-sensitive assets might rally. On the other hand, if the Fed maintains a cautious stance and the dots remain unchanged, markets may interpret that as hawkish.
This is why knowing what the market has already priced in before the announcement is essential: the reaction depends not on the raw decision, but on how it compares to expectations.
In short…
For all these reasons, I believe the FedWatch Tool is a simple yet extremely powerful resource for anyone interested in U.S. monetary policy. It allows users to track market expectations and compare them with official Fed communications. It’s definitely a key part of my trading arsenal.
To go deeper, other tools can complement this analysis—especially implied volatility data from rate options markets. These don’t signal directional bias, but rather how large a move the market expects. That will be the focus of an upcoming article.
Trading the VIX – Part 2Trading the VIX – Part 2: VIX ETPs and Strategic Applications
In Part 1 of this series, we explored the structure of VIX Futures, focusing on the roll-down effect in a contango VIX futures curve—common in calm market conditions.
In Part 2, we turn our attention to VIX-related Exchange-Traded Products (ETPs)—specifically, the popular and liquid:
• VXX – unleveraged long VIX ETP
• UVXY – leveraged long VIX ETP
• SVXY – inverse VIX ETP
Each of these products is based on a specific VIX futures strategy, the “S&P500 VIX Short Term Futures Index” , which is maintained by S&P, Dow Jones (the “SPDJ-Index”). The Fact Sheet and Methodology can be obtained from the S&P Global website.
What is the SPDJ Index that these ETPs track?
The SPDJ-Index is a strategy index that maintains a rolling long position in the first- and second-month VIX futures to maintain a constant 30-day weighted average maturity.
Key Features of the SPDJ Index:
• Starts with 100% exposure to VX1 (the front-month future) when it’s 30 days from expiration.
• Gradually it rolls from VX1 to VX2 (next-month future) each day to maintain a 30-day average expiration.
• At all times, the index is long either one or both VX1 and VX2, with exposure shifting daily from VX1 to VX2.
• This roll mechanism causes value erosion in contango (normal markets) and gains in backwardation (during volatility spikes).
• Since contango is the dominant market state, the index loses value over time—with occasional short-lived gains during sharp volatility increases.
Importantly, the SPDJ Index does not represent the VIX or any other volatility level, it simply reflects the value of this futures-based rolling strategy.
________________________________________
Breakdown of the ETPs: VXX, UVXY, and SVXY
VXX – Long SPDJ Index (1x)
• Tracks the SPDJ Index directly
• Suffers from the roll-down drag in contango environments.
• Useful only for short-term exposure during expected volatility spikes.
• Timing for long positions is critical
UVXY – Leveraged Long (Currently +1.5x)
• Replicates a strategy that maintains a constant leverage of 1.5 to the SPDJ Index.
• Formerly +2x leverage; reduced in April 2024.
• Highly sensitive to VIX moves; underperforms long term due to both roll-down drag and leverage decay (see below). Timing for long positions is even more important than for the VXX.
SVXY – Inverse (-0.5x)
• Replicates a strategy that maintains a constant exposure of -0.5 to the SPDJ Index.
• Benefits from falling VIX levels as well as from contango in the front part of the VIX futures curve.
• Formerly -1x before the Feb 2018 volatility spike triggered massive losses (XIV, a competing ETP, collapsed at that time).
• Performs well in calm conditions but is vulnerable to sharp volatility spikes.
Leveraged & Inverse ETPs – Important Notes affecting the UVXY and SVXY (without going into details):
• Daily resetting for the replicating strategies to maintain constant exposure factors (different from 1x) are pro-cyclical and can cause compounding errors, specifically in turbulent markets (e.g. Feb 2018).
• The real volatility of the VIX futures itself acts as a drag on returns, independent of the index’s direction.
• Risk management is essential—especially with inverse products like SVXY.
All three of these ETPs track a VIX futures strategy, they are not levered or unlevered versions of the original VIX index. Each of these ETPs benefits from liquid option markets, enhancing the toolkit for volatility trading.
Trading Strategies Using VIX ETPs
Here are several practical approaches to trading these products:
VXX and UVXY
• Best used for short-term trades aiming to capture volatility spikes.
• Options strategies such as zero-cost collars, vertical and calendar spreads can help mitigate the challenge of precise timing.
• Avoid long-term holds due to erosion from roll-down and leverage decay (see historical performance!).
SVXY – The Carry Trade Proxy
• Ideal for profiting from prolonged calm periods and the contango structure.
• Acts like a carry trade, offering a positive drift—but must be paired with robust stop-loss rules or exit strategy to guard against sharp spikes in volatility.
Switching Strategies
• Tactically rotate in/out of SVXY based on short-term volatility indicators.
• One common signal: VIX9D crossing above or below VIX, i.e. long SVXY if VIX9D crosses under VIX, staying long while VIX9D < VIX, closing long SVXY position when VIX9D crosses over VIX. Some traders also use crossovers with VIX3M or the individual expirations of the VIX futures curve to manage entries.
• Switching between SVXY and VXX based on crossover triggers through the VIX futures curve is often advertised, but very hard to get working in practice due to the importance of timing the VXX entry and exit – signals from the VIX curve may not signal VXX entries and exits timely enough.
Term Structure-Based Combinations
• Combine short VXX with long VXZ (an ETP tracking longer-dated VIX futures, balancing the 4th to 7th VIX contracts to achieve a constant expiration of 60days).
• Weighting is determined by the Implied Volatility Term Structure (IVTS), calculated as VIX / VIX3M. This approach adjusts positions based on the shape of the VIX futures curve, indicated by the IVTS. For instance, when the VIX futures curve shifts from contango (where near-term futures are cheaper than longer-term ones) to backwardation (where near-term futures are more expensive), it involves reducing short positions in VXX and increasing long positions in VXZ.
• This approach mimics the spirit of a calendar spread strategy in VIX futures and reflects the “S&P 500 Dynamic VIX Futures Index” , with weightings backed by research from Donninger (2011) and Sinclair (2013) - see performance chart and weighting-matrix enclosed in the introductory chart).
________________________________________
VIX Curves as Market Indicators
Beyond trading, VIX instruments and their term structure are widely used as market sentiment gauges. For instance:
Signs of Market Calm:
• VIX9D < VIX
• VIX < VIX3M
• VIX < VX1
• VX1 < VX2
These relationships imply that short-term volatility is lower than longer-term expectations, indicating near-term calmness in markets, occasionally leading to market complacency.
Traders and institutions use these signals to:
• Adjust positioning in broad market indices
• Determine hedging requirements
• Evaluate suitability of selling naked options
________________________________________
Final Thoughts
VIX ETPs offer a powerful toolkit for traders seeking to profit from or hedge against volatility. But they come with structural decay, leverage dynamics, and curve risk. Timing, strategy, and risk control are key.
Turn Your Chart – Turn Your ViewCurious about tricking your trading mind?
A lot of traders are constantly searching for new indicators or secret setups. But what if your biggest breakthrough is just a perspective shift away—literally?
This article is about a unique but effective experiment: Rotate your candlestick chart by 90 degrees (horizontal instead of vertical) and see how your perception and analysis change.
Example: ibb.co
No, this isn’t a volume profile – this is the real NAS100 chart, just rotated by 90°!
What do you see now? New patterns? Different price action? Sometimes a fresh angle reveals details you normally overlook and helps break your trading habits.
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What changes?
1. Patterns suddenly look different
Trends, consolidations, and breakouts appear in a new light:
– Uptrends and downtrends lose their emotional “up feels hard, down feels easy” effect.
– Sideways markets become vertical clusters—your eye spots new structures.
2. Support & resistance become less dominant
Your classic support and resistance zones disappear.
You’re forced to rethink important levels—maybe you’ll notice supply/demand zones you always missed.
3. Emotional neutrality
With a rotated chart, the usually existing “Long is better” bias fades.
You view price action more objectively—and may discover signals you’d otherwise miss.
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Try it out!
What did you discover by rotating your chart? Comment below or share your thoughts!
What do we need to know before investing?If you are thinking about investing money for the potential returns it offers, you should know that it may go well, but that there are always risks. That’s why we are going to give you some basic tips to bear in mind before making any investment decision.
How much money are you going to invest?
First of all, you need to decide how much money you want to put towards your financial investments.
The markets are subject to change
The financial markets are constantly fluctuating. The term volatility is the most commonused term to describe and measure the uncertainty provided by changes to theprices of financial assets.
Additionally, there are times in the market when the prices are more pronounced and every now and then there are crisis periods and asset prices fall dramatically.
Investing in financial markets means that we have to assume that our investments will always be subject to these types of fluctuations. If you are going to invest in the financial markets the money that you invest must be money that you will not need during the investment term.
That’s why, investing in order to obtain short term gains is inevitably associated with high risk. Furthermore, the larger our intended gains, the larger the associated risk. Always bear in mind that the greater the expected returns, the greater the assumed risk. Once again, be sure that you do not need the money that you are going to invest, as it may have losses.
The opposite can be said of long term investments, where the capacity to wait and overcome falls in the market means that you can assume more risk with your investments. With a long term vision you will avoid having to experience any possible losses with your investment period due to any eventual liquidity needs.
How much risk are you willing to take on?
Before investing it is important to know the risk you can assume. Every investor has their own risk tolerance level that they need to be aware of. Risks and returns go hand in hand, because for more returns you also need to take on more risk, and vice versa.
It is also good to know that just as with normal market conditions, those assets with a higher risk tend to suffer more fluctuations with their prices than those assets with less risk.
Therefore, in general terms:
When the forecasts for the financial markets are favourable and the market goes up, those assets with higher expected returns generally perform excellently.
Whenever the financial markets are going through uncertain times, those assets with higher expected returns, and therefore more risk, tend to perform worse.
You must start from a strong financial position
To invest you need to be at a point where your accounts are well under control, including your debts. We do not mean to say that if you have any outstanding credit you cannot invest, but it is essential that everything is in order and that you are in a situation where you can fulfil your financial obligations.
On the other hand, to build long term wealth, it is important that you assign part of your income to your savings, meaning that you have to invest with the money left over after making your payments while also saving part of what you earn.
It is important to keep a composed outlook
Now we know that investing bears its own risks and that the market is subject to change, it is essential to be composed when investing. When investing it is important to think positively, as if you don’t really believe that things will work out, why invest?
It is one thing to be cautious, and to know how much money to invest and what level of risk tolerance to assume, and another to think negatively each time there is a drop in the market. In reality, investing is a combination of caution and composure.
Diversification is the key to success
Somebody with less investment experience may make the mistake of putting all of their investment budget into just one thing. However, it is much better to have diverse investments, as while some investments may not quite work out as you would have liked them to, some do even better.
Losses are normal, and so are returns
We previously said that when investing it is important to stay calm, and that is true. In this regard, you also have to bear in mind that it is normal for some investments in your portfolio to not perform as well as you had expected.
We cannot predict the behaviour of the financial markets or of certain assets. We can also unexpectedly find ourselves with some assets that don’t perform as well as we had hoped. That is why we recommend, in addition to not risking more than you can invest, to diversify your investments well.
We have already said that investment involves risk, which is why it is good to know that if you are willing to invest, you are also willing to take on risks. If you are prepared to take on this risk, you can be successful in your investments.
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by HollyMontt
What is Dollar Cost Averaging (DCA)?🔵 What is Dollar Cost Averaging (DCA)?
Dollar Cost Averaging (DCA) is a timeless investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the asset's price. It’s one of the most effective ways to build a position over time while minimizing the impact of market volatility.
The term "Dollar Cost Averaging" was popularized in the early 20th century by Benjamin Graham — the father of value investing and mentor to Warren Buffett. Graham advocated DCA as a way to remove emotions and guesswork from investing. By spreading out purchases, investors could avoid mistiming the market and reduce risk exposure.
Today, DCA remains a core strategy for retail investors, especially in volatile markets like cryptocurrencies and growth stocks.
🔵 How Does DCA Work?
The concept is simple: instead of investing a lump sum all at once, you break your total investment into smaller, equal parts and invest them over time — for example, weekly or monthly.
Invest $100 every week into Bitcoin.
Keep buying consistently — regardless of whether price goes up or down.
Over time, this smooths out your average entry price.
You buy more when price is low, and less when price is high.
Example:
If BTC is at $30,000 one month, you buy a small amount.
If BTC drops to $25,000 the next month, you buy more units with the same $100.
Over time, your entry price averages out — reducing the risk of buying at a peak.
🔵 Why Use DCA?
DCA offers both psychological and mathematical advantages:
Reduces timing risk: You don’t need to predict market tops or bottoms.
Builds discipline: Encourages consistent investing habits.
Prevents emotional mistakes: Avoids FOMO buying and panic selling.
Smooths volatility: Especially useful in crypto or fast-moving assets.
🔵 Smart DCA: Buying Into Market Bottoms
While classic DCA is powerful on its own, it becomes even more effective when combined with market structure. A popular approach is to only DCA when the asset is trading below its long-term average — such as the 200-day Simple Moving Average (SMA) or using RSI (Relative Strength Index).
What is the 200-day SMA?
It’s the average closing price over the last 200 days — a key indicator of long-term trend direction.
Why DCA Below the 200 SMA?
Historically, many market bottoms occur below the 200 SMA. Using this as a filter helps you avoid accumulating during overvalued or overheated conditions.
SDCA with RSI
The Relative Strength Index (RSI) helps identify momentum exhaustion. When RSI drops below 30, it often marks deeply oversold conditions — especially on the daily chart for BTC.
How to use it:
Only DCA when price is below the 200-day SMA.
You accumulate during crashes, fear, and corrections.
Avoid buying when price is extended far above long-term value.
🔵 Scaling DCA Based on Undervaluation
To further optimize the strategy, you can scale your DCA amounts depending on how far below the 200 SMA the price is.
Example:
Price is 5% below 200 SMA → invest normal amount.
Price is 15% below → double your investment.
Price is 25% below → triple your investment.
This creates a dynamic DCA system that responds to market conditions — helping you build larger positions when prices are truly discounted.
🔵 When DCA Doesn’t Work
Like any strategy, DCA has limitations. It’s not magic — just a system to reduce timing errors.
In strong uptrends, a lump sum investment can outperform DCA.
In declining assets with no recovery (bad fundamentals), DCA becomes risky.
DCA works best on quality assets with long-term growth potential.
Always combine DCA with research and risk management — don’t blindly accumulate assets just because they’re down.
🔵 Final Thoughts
Dollar Cost Averaging isn’t about buying the exact bottom — it’s about consistency , discipline , and risk control . Whether you’re investing in Bitcoin, stocks, or ETFs, DCA offers a stress-free approach to enter the market and smooth out volatility over time.
Smart traders take it one step further: using moving averages and structure to focus their DCA efforts where value is highest.
DCA won’t make you rich overnight — but it will help you sleep at night.
This article is for educational purposes only and is not financial advice. Always do your own research and invest responsibly.