Something Interesting in Financial Video - page 3

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Sergey Golubev
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Sergey Golubev  

Forex Broker Types - MM,NDD,STP,ECN

This is small 10 minute education video about the following: the difference between Forex Broker Types - MM,NDD,STP,ECN


Sergey Golubev
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107291
Sergey Golubev  
How to Tell if Your Broker is Trading Against You
  1. In this video, we're focusing on forex and CFD brokers; this discussion does not apply to stocks and futures brokers.
  2. The simple truth is that most forex and CFD brokers are trading against their clients. The details in how this is accomplished vary greatly from broker to broker. Broadly speaking, we can say there are two types of brokers: A Book brokers and B Book brokers.
  3. A Book brokers may technically be trading against their clients in that they are taking the opposite side of the trade, but they generally are taking a risk neutral approach to the market and are looking to immediately offset the trade. So they are not trading against their client in spirit, only in technicality.
  4. B Book brokers will choose what positions of their clients they wish to offset. As such, they are willing to take a directional position in the market, and thus may be trading against their clients in a more material way. For instance, suppose the B Book broker wants to take a long Euro position in the market. To do this, they may not offset the short Euro trades their clients have put on; rather, they will simply take the other side of these trades.
  5. A Book and B Book brokers can both run into big problems -- for themselves, and in turn, their clients -- if the larger banks and brokerage firms they offset orders with no longer take positions. This risk is known as liquidity risk. We saw liquidity risk have a devastating impact on both A Book and B Book brokers when the Swiss National Bank unpegged the Swiss Franc from the Euro, resulting in a huge move in a matter of minutes.
  6. As a general rule of thumb, the more illiquid instruments a broker offers and the more leverage they offer the more likely they are a B book broker whose positions in the market are a significant part of their business. These types of brokers are giving signals they are comfortable with liquidity risk, which means they are comfortable taking the other side of the customer's position.
  7. B Book brokers have a conflict of interest that makes it seem like they are dishonest and unethical, but they can offer their clients significant benefits that A Book brokers cannot. Namely, their willlingness to take on liquidity risk means they can offer prices and trading opportunities that would otherwise not be available. They bundle their customer orders to customers with lower trading costs, and offer trading free from restrictions like the patternday traderrule or any uptick rule. As such, B Book brokers are not entirely bad or useless. What matters is whether you value the advantages they offer and that you trust them not to abuse their position as your counterparty.
  8. You can ask your broker directly about their dealing desk policy, though many will be coy about their status. This is largely because they feel uncomfortable about admitting their status as the counterparty to your trade, and because they generally do not educate their staff in the nuances of how they operate and make money.

patrickjjames90
9
patrickjjames90  

Esto es completamente interesante y útil, muchas gracias.

Sergey Golubev
Moderator
107291
Sergey Golubev  

Factor Models for Traders By Dr. Ernest Chan

Factor models are not just for long-term investors. They can help traders find out why their strategies are suffering. This talk highlights the difference between factor and "alpha" models, and what short-term factors traders can use. 

Dr. Ernest P. Chan, is an expert in the application of statistical models and software for trading currencies, futures, and stocks. He also offers training via workshops or individualized consulting. Dr. Chan has built and traded numerous quantitative models for investment banks and hedge funds in the past. He has served individual and institutional clients in Australia, Canada, France, Hong Kong, India, Singapore, South Africa, United Kingdom, and the United States since 2006.


Sergey Golubev
Moderator
107291
Sergey Golubev  

Introduction to Ichimoku Part 1

In this Video we'll take a look at Tenken-sen and Kijun-sen and how they work!


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Sergey Golubev
Moderator
107291
Sergey Golubev  
Introduction to Ichimoku Part 2

In this video we will dive into the most iconic part of the system, the cloud!
In this instance we reccommend getting your head in the clouds with us as we break down the parts and pieces, and all the things it does for us!
We also jump into the last part of this indicator which is chikou span, the lagging indicator. We explore it's purpose and how to interpret it!


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  • Tenkan Sen / Kijun Sen Cross - very weak signal but it is coming as the first one ... but it may be a lot of false signals
  • price crossing Kijun Sen - more strong signal
  • price crossing Sinkou Span A line (Kumo Breakout)
  • price crossing Sinkou Span B line (Kumo Breakout)
  • Senkou Span A crossing the Senkou Span B (trend reversal)
  • Chikou Span crossing historical price - it is most strong signal for Ichimoku but it is lagging on timeframes started with H1, and not lagging for lower timeframes.

The combination of all those 6 signals = Ichimoku indicator.

bonnytu436
14
bonnytu436  

all the videos are super interesting friends, thank you very much

Sergey Golubev
Moderator
107291
Sergey Golubev  

What is Ethereum? A Simple Explanation Anyone Can Understand


Forum on trading, automated trading systems and testing trading strategies

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Sergey Golubev, 2017.12.13 08:11

Why Is The Price Of An Ethereum Going Up? (based on the article)

Intra-day H4 price is on bullish breakout: the price is located very far from Ichimoku cloud in the primary bullish area of the chart with resistance level at 684 to be broken to above for the bullish trend to be continuing.


  • "The value of Ethereum’s currrency is increasing alongside its altcoins Bitcoin and Litecoin, and the price of one Ether is currently at a high of $625.25 USD, according to CoinMarketCap, despite the CryptoKitties drama. 2018 will welcome a range of regulatory requirements and financial institutions are launching new products on the blockchain in order to simplify compliance, and this is where the Ethereum blockchain is becoming increasingly popular."
  • "A project named the Massive Autonomous Distributed Reconciliation program (Madrec) was announced this week and will be led by UBS with involvement from Barclays, Credit Suisse, KBC, SIX and Thomson Reuters. For a while now, financial news has been dispersed with updates of how banks are experimenting with cryptocurrencies and this announcement is one of the most recent, after Bitcoin futures began trading."
  • "Unlike Bitcoin, however, Ethereum has always been spoken about in a more positive way and has become the second largest digital currency in two years. After being launched in 2015, the value of Ethereum’s currency, otherwise known as Ether, has increased by more than 6,800% since the start of the year, according to The Telegraph."

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The chart was made on H4 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicators from CodeBase:


Sergey Golubev
Moderator
107291
Sergey Golubev  

What is Litecoin? Explained in 90 seconds


Forum on trading, automated trading systems and testing trading strategies

Press review

Sergey Golubev, 2017.12.12 17:40

Why Is LTC Price Going Up? (based on the article)

Intra-day price on H1 chart is on bullish breakout: the price broke Ichimoku cloud to above to be very far from Senkou Span lines which are the virtual border between the primary bearish and the primary bullish trend. Price was bounced from 362 resistance level to below for the ranging condition to be started in the near future for example.


  • "Litecoin, an altcoin of the better known cryptocurrency Bitcoin, has soared to the record high of $290.99, a YTD increase of more than 4,000%, as listed on CoinMarketCap. Many are asking why the price of digital currencies has and is rising, whether Litecoin’s recent price increase is because of Bitcoin and if this bubble will burst."
  • "The start of this week saw the launch of Bitcoin futures on CBOE, the Chicago Board Options Exchange, which could be a significant reason why the price of other virtual currencies are rising. As Litecoin is a fork of Bitcoin, and the fork causing Bitcoin’s price to go up earlier this year, if Bitcoin is doing well, we should expect the same of Litecoin and Ethereum. Litecoin has lesser name recognition and it could be a better option for investors, however, as there is not as much controversy surrounding this coin, (perhaps because it is not as well known), offers faster speeds and lower fees."
  • "Another possible reason could be the media coverage of Bitcoin and Charlie Lee’s recent fame with a lot of news outlets asking for the Litecoin founder to discuss the BTC price increase."

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The chart was made on H1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicators from CodeBase:


Sergey Golubev
Moderator
107291
Sergey Golubev  

MQL5 vs QLUA - Why trading operations in MQL5 are up to 28 times faster?


Have you ever wondered how quickly your order is delivered to the exchange, how fast it is executed, and how much time your terminal needs in order to receive the operation result?

Meanwhile, there is a way to improve order execution quality by receiving a quicker response and by achieving a faster transaction speed.

September 12, 2016 we simultaneously run three speed tests on a real account with the "Otkrytie" broker in MetaTrader 5 build 1415 and Quik 7.2.23. Each test was aimed to measure specific speed characteristics, which is important for algorithmic trading:

  1. Testing of synchronous operations — a series of 10 synchronous consecutive Buy operations with a confirmation of a successful execution of each transaction on the exchange. The next operation is not executed until a response is received from the trade server confirming that the previous operation has or has not been executed on the exchange. The execution speed depends on the entire chain: the terminal — the trade server — the exchange — the trade server — the terminal. The smaller the average time of the synchronous trading operation, the better.
  2. Testing of asynchronous operations — a series of 10 asynchronous Buy operations without any confirmation of a successful transaction execution. It is a pure rate test, which measures how fast orders are sent to the exchange. The best terminal is the one that can execute 10 asynchronous Buy operations faster.
  3. Testing of order book update — measuring how fast orders in the Market Depth (order book) are updated. This is a simple counting of the number of ticks (updates) in the Market Depth per a unit of time. The more frequent quotes are received by the terminal from the exchange, the faster the order book will be updated. Therefore, the more ticks per second are received by the automated trading application, the quicker it can respond to changes in the market demand/supply structure. The best terminal is the one with the higher speed of order book update.
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