First buy on CL at 42.36 (futures) . This is the power of having statistical arbitrage models and being able to value CL . You can see when its discounted or at a premium. All the value lines had gone bid into the retest of the lows. image On ...

WTI Crude Oil Trading

Still no value developing to the long side. Still want to be short on any upticks. Bit of a risk on tone developing this LDN session so might find some short term buyers. image

WTI Crude Oil Trading

image No liquidity has been put into the market above for the algos to target. Everything is below. Selling any upticks for the moment

WTI Crude Oil Trading

Macro value still developing to the downside. You should be short but first market needs to go up to generate some liquidity. image

WTI Crude Oil Trading

Oil is very cheap vs the EUR and the Crack spread (Purple and blue lines) therefore any lows are going to get bought by the refiners. However there is alot of supply coming into the market at the moment (see the orange and pink lines) on my Stat Arb ...

WTI Crude Oil Trading

Yes you will learn how to build the various value models and what the lines mean with the specific formulas used for them. Ray stresses the need to learn and understand what the lines consist of as they often change as contracts roll over and their ...

Institutional Equivalent Education?

Just have vwap start at the beginning of the new day around 12am LDN time. Some start it at 11pm but it wont make a difference. Yes VWAP is applicable to all markets. I cannot say if it is better on one more than another.

(binned per thread starter's request) Currency Strength with cont

No doubt VWAP is a very useful tool and I do have it on my charts. Many of the banks use it as a way to calculate traders bonuses so if the trader is able to trade below VWAP for a long trade and visa versa they get bonus as they have traded below ...

(binned per thread starter's request) Currency Strength with cont

It is. Built that model in Tradingview. You will need to pay for a data feed to get some of the values but otherwise anyone can do it. The difference between us and the institutions is that they will not look at it like that. Those values will feed ...

(binned per thread starter's request) Currency Strength with cont

No VWAP and MAs are indicators based on either price or volume and therefore lag. Value are the alternative markets or combinations of that are used by the institutions to build their intrinsic value models. These are also what they use in what is ...

(binned per thread starter's request) Currency Strength with cont

The only thing that doesn't lag price is value. If you know how to accurately value an instrument you will know when you are trading at a discount or a premium and therefore will know if you can buy something and sell it for more than its worth at a ...

(binned per thread starter's request) Currency Strength with cont

It would make sense that retail volume would be a lagging indicator. Up moves are fuelled by sellers whose stops are being triggered and are forced to become buyers, institutions are not the ones buying at higher and higher prices. The momentum ...

(binned per thread starter's request) Currency Strength with cont

There was quite a big adjustment in the demand for CL this morning (see the orange line) and so you should have been long out of the commercial buying zone in the lower green box. As we hit the into 58 however we lost value into the commercial sell ...

WTI Crude Oil Trading

This pair is actually quite a good pair to trade if you know how to measure risk. GBP is bought in a Risk On and JPY is bought in a Risk Off environment and so this pair has very nice trending moves as the market moves from Risk Off to Risk on and ...

Pivot Trading

I have been trained and mentored by an institutional trader/quant analyst for the last three years who has close to 40 years in the business. He contracts to the banks advising them on strategies and designs algos for them. He taught me just about ...

Pivot Trading

Here is a good example on CL contract Orange line is value... Each time price trades below a pivot (blue lines) the liquidity is bought. Look at all the paycheck levels above the market. Once the MM detects buying above the 50 line they pull their ...

Pivot Trading

For sure stop loss hunting happens but its not your broker or the market maker that does it. As you say its rather done by the large directional players in the market. However its usually done to get off their position and not done during an ...

Pivot Trading

FX works just like any other auction market. When your broker (if they are a market maker) accepts your trade they are taking the otherside of that position. MMs will widen the spread or withdraw their liquidity only if and when they detect large ...

Pivot Trading