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#5 VOLUME - HEDGE FUND INVESTING TRADEWE SHARE #5 VOLUME HEDGE FUND TRADE. TRADE WITH OWN RISK WE WILL SHARE #10 OUR HEDGE FUND TRADES IN YEAR 2016 ! LIKE & FOLLOW US AND DON'T MISS HEDGE FUND TRADES! SOMETIMES YOU WIN SOMETIMES YOU LEARN -NEW SIGNAL- Type : Pending Order Date : 28.8.2016 Time : 13:30 GMT+1 Technical : BEOB formed at supply zone & trendline break Pair : NZDUSD Timeframe : Daily Trade setup : Sell stop Entry at : 0.72161 ( 20 pips left ) Take profit 1 : 0.70000 ( 216 pips ) Take profit 2 : Take profit 3 : Stop loss : 0.73860 ( 169 pips ) Risk reward : TP1 – 1:1.3 TP2 – TP3 - Our risk : -Full bar risk (ie entering near a break or having a full bar to work with - stop behind the bar) = 3% risk
Short
by FxcInvesting
Leveraged Decay: how to calculate itBrexit and currency hedging has thrown up the need for products such as SUP3 however there is danger in holding such leveraged products as SUP3 (3X Long GBP Short EUR). As path dependency of the currency picks up in volatility the arithmetic mean drifts below the geometrical mean. This is most easily realised in the following example of an up and down fluctuation of 10%: 100 +10% = 110 110 - 10% = 99 We have lost 1% due to the path dependency having only moved up and down 10% We can approximate the volatility drag using the following: Volatility Drag = 0.5 * (Leverage) * (Standard Deviation) ^2 This comes from the formula for the geom mean: Geom Mean = Arith Mean - 0.5 * SD^2 It is not precise but allows a proxy to be formed!
LSE:SUP3Long
by MarcusWilliamson
GER30 (DAX) LONG Holding GER30 (DAX) Longs (No selling Longs yet) TP1: 10.000 / 10.100 (just below EMA200) TP2/TP3 to be revised after Brexit Referendum #Holding "Short Hedge from 9700" Personal opinion 1. Scenario UK Stays in EU (Long TP1 10.300, TP2 10.800) 2. Scenario UK Leaves EU (Short TP1 9400, TP2 8600) ............................................................... MONTHLY: Bounce from April LOW DAILY: Pitchfork Bull vs Bear (Possible break from bearish channel) DAILY: Similar candlestick pattern "Daily low" GREEN line: Monthly High (from Dec 2015) RED line: Monthly Low (From Dec 2015) Lets follow the coming days and get the best out of it. Happy Trading Gert
FX:GER30Long
by GertNurme
Clearly this is bearish!!SHARE PRICES, SINCE FRIDAY’S MARK, HAVE MOVED NOWHERE as our International Index has lost one single point as five of the ten markets in our Index have fallen and as five have risen. Given that our Index finished last year at 9,556 and given that it is 9,238, for the year-to-date stocks in global terms are down 3.3%, while stocks here in the US as represented by the S&P are as close to unchanged as they can be for the S&P closed last year at 2,044 and it closed Friday at 2,046. What is more important, however, than the year-to-date change is the change from our Index’ all-time high late last May at 11,185, for from that high stocks globally are down a very material 17.4%. Clearly this is bearish; clearly stocks in global terms are not bullishly inclined and clearly too here in the US , as evidenced by the chart of the NASDAQ included here this morning at the lower left of p.1, the very nature of the US market is turning for the worse as the upward sloping trend line that has defined the bullish run here in the States is about to be put very much to test. Quietly, but steadily, in our own account… our retirement funds here at TGL and the only money we manage but money that is really rather important to us, obviously!... we are turning bearish of equities. Friday, because our position in aluminium has been turning against us, we cut that position yet again, for we always try our best “to do more of that which is working and less of that which is not.” We began cutting that position late two weeks ago and quietly but steadily cut it back last week and now have 1/3 of the position that we had on at its peak. It’s hurt us badly that we did not cut it more swiftly and more severely, but that is the nature of our trading activity; we are relatively slow to add to positions and we are equally, but relatively slow to cut them back, but do it we have. For the record, as of Friday’s close we are +4.3% for the year-to-date, out-performing our International Index handily and still out-performing the S&P and thus most hedge funds; but clearly the past two weeks have not been our best. Today, however, given our positions in gold we should see the “spread” between our performance and that of the broad global and parochial US markets widen pleasantly in our favor.
FX:SPX500Short
by DennisGartman
Long Gold Short OilGold has a historic relevance as being a price appreciator in times of volatility, geopolitical risk and economic uncertainty. Current day presents a plethora of risks both economic and political; from emerging market credit risk through to south china sea politics. Oil, like Gold has benefitted from a fall in the USD which has lead to some price recovery, however this does not change the fundamental facts that there is still chronic oversupply. Long Gold for economic risk hedge, Short Oil for for USD revaluation protection and further oversupply issues.
AMEX:GLD
by MarcusWilliamson
1
Asymmetrical risk trade: No FOMC hike: Long EUR/CHF to 1.1140Full Thoughts: wordpress.com When conviction is super high, trades get crowded and markets get one-sided. Um, remember the 5+ sigma move in EUR/USD post Draghi's disappointment, last week? One-sided markets offer great opportunities for asymmetrical risk. Yes, longs got burned a la Draghi, but the market still sees global monetary policy divergence as a stedfast theme, albeit to a lesser degree. Dollar strength doesn't lie with a single rate rise. Instead it relies on the expectation of subsequent rises following the commencement of lift-off. A surprise fold, would push lift-off another 6 months down the road, too far into the future for dollar-longs to finance the trade as vigorously. Short USD is the first-level trade. Where can we find more beta? Maybe EURUSD? Equity markets expect a hike, and par for that expectation will be bullish for stocks = Short EUR and buy US stocks. Folding will firstly be fundamentally bullish for the EUR/USD cross and secondly bearish for equities, which will further strengthen EUR/USD due to carry trade unwinds. USDCHF? With the world's lowest interest rates (-0.75%), it makes sense that if the Fed doesn't move, you'll see outsized strength in CHF. Combining the two, go long EUR/CHF.
Long
by simonsays452
The idea of pair trading: Industrial Metals & Minerals.Ladies and gentlemen, I recommend you the idea of the pair trade: 1. it is long position in the company OCIR (OCI Resources LP) and short position in the company RIO (Rio Tinto plc). 2. it is long position in the company OCIR (OCI Resources LP) and short position in the company ARLP (Alliance Resource Partners LP). Stocks of the company OCIR are stronger than RIO and ARLP since 2014. I think that next 2 months stocks of the company OCIR will be stronger than RIO ana ARLP. Risk-management: I reccomend to use a conservative approach. The trade capital divide equally between 2 pairs: OCIR-RIO and OCIR-ARLP. The proportions of each company in pairs: 1. Stocks of the company RIO are more volatility than OCIR: * 53% it is long OCIR. * 47% it is short RIO. 2. Stocks of the company OCIR are more volatility than ARLP: * 37% it is long OCIR. * 63% it is short ARLP. This allocation between stocks is necessary for the parity volatilities.
O
by Pairtrade
EURUSD, USDCAD , DXY index Dynamic intraday hedging Dynamic intra day hedging: Fundamentals and and a lack of interest in the euro has has it fall substantially, USDCAD is -95% corralated to the EURUSD and we have seen a strong canadian dollar over the past few d ays. effectively by creating two positions one short on the eurusd and one long in usd cad with the same lot sizes we can effectively minimize risk. we can minimize risk even more by then adding the two lot sizes from eurusd and usdcad to create another positions in the dxy which then minimizes risk even more
INDEX:DXY
by GOVYTrader
Kiwi hedge with the EuroI have a number of NZD longs currently in play (vs CAD and GBP) and this trade is an offset to that somewhat heavy exposure. Opened a long position at trendline support and the .764 fibonacci level @ 1.5035. Daily wick is looking good (currently) at forming a very positive hammer candle. I'm hoping for a 2-3 week trade into trendline resistance and confluence with the longer term descending channel @ 1.5950.. at which point I would look to initiate shorts once again.
Long
by AgentSmith
2
Market-Neutral Pairs TradeSo here we are, S&P 500 at 2,000, bears have good arguments and bulls have good arguments as well. As of right now, I have no idea where equities are going, I'll let the market tell me. But here is a quick trade idea I got today. By the way, please correct me if there is something wrong in my analysis as this is my first real market-neutral trade that does not involve options. US equities have outperformed World-ex. US equities for a few years now and I don't see how that trend is likely to stop. The US economy is finally blooming and it seems like things will go well, at least in the medium-term (but that's another story). So here is the trade: go long SPY and go short VEA. As for how to do this, I believe you would have to short 4.81 (ish) shares of VEA for every SPY you buy. If someone with more market-neutral trading knowledge could help, that would be great. Anyways, just a quick trade idea that exploits an easy trend to follow. Cheers
AMEX:SPY
by Fouezz