Nov 28, 2015

Trading Forex and The Options Arbitrage Excitement

Well there has not been a whole lot of updates and I have been sticking to the weekly time frame until this eur/usd death trap I got myself into blows over. It has been good though because it made me open up to a new strategy involving index options.

Nov 20, 2015

This Weeks Forex Business (EUR/USD and USD/CAD) and Options ARB Testing

Well as the U.S. and DXY move higher this week, the eur/usd and usd/cad stayed sideways to down. This has been a pretty monstrous move in foreign currencies against the USD, especially with the eur/usd. Anyway I have not touched a single position and am trying to wait it out for capitulation. As you see in the recent videos I am still sitting down about 30% all week with this 100 pip range we have been stuck sliding around in.

Futures Margin Calculator

I have been working on a tool that futures traders can use to calculate what their losses/profits would be like given a specific margin requirement and levels of adding to the position. As of right now it's built just for long positions, but in the future I will add more functionality to it so you can see effects if you were long or short.

                                                         Trading Tool

Some things to consider with this:
  • Note a recent update has been done to show the price at which you would have a margin call. This is based on the margin required per 1 standard lot and the % you would get a call or have a chance to get a call based on the policy of your broker. It flows through for up to 3 added positions from the initial entry and it changes if you change the lot size/prices that you add to your existing position.
  • The red cell is where you enter the margin requirements for the instrument you are trading based on the requirement for 1 standard lot.
  • The profit/loss is currently calculated for silver, but can be adjusted for any underlying. That said, it is showing that a 0.01 penny move in the underlying is worth $10 / $1.00 move is worth $1000 per 1 standard lot.
  • Equity Available to Make Trades is the margin you can still make trades with (it includes losses as well as takes into account margin used for all positions.
  • New Equity Balance is just where your balance is from the start and used to calculate the % of margin you have. Usually this helps traders where they may see a margin call given a move in the underlying to a certain level and however big you are in the position at certain price levels.
I will go through all of this with you after the purchase if you need more insight on its use or slight modifications and fee free to email me:

Nov 16, 2015

Happy Monday Forex Trading and Options Arbitrage

I am trying to get back to daily overviews of trading and what is going on in the world of trading as my current positions has had me bogged down now for over 2 weeks without making any adjustments or changes. It's all good though. Right now the worst case scenario is happening and I still have well over 50% margin in forex and have some interesting options stuff going on.

Nov 12, 2015

EUR/USD Finally Rallying Out of its Dark Hole

Well as I was testing a new arbitrage type forex setup with real money I ended up getting myself into trouble and long story short the result was being long way too big in the eur/usd. Luckily it was at such a low and now I am just holding on as it starts to rally back finally.

Nov 6, 2015

This is What Happens When You Start off Imbalanced the Wrong Way (forex trading)

Well here was my mindset on Monday. I thought the eur/usd and gbp/usd were going up. So, I structured my trade where I was long 0.06 eur/usd and short 0.04 gbp/usd and 0.04 eur/gbp. Little did I know that the eur/usd hedged leg would move so much that it really wasn't a mean reverting position and ended up mirroring whatever happened in the eur/usd rather than all 3 sides of the hedge.

Oct 30, 2015

Forex Week 4.95%

Well traders. This is I guess what it takes to make about 5%. I started the initial core triangular hedge last Friday and closed it off this Friday. Did a little management of the split up leg ratio and had about 40% of these profits coming from the usd/cad as I took unlimited risk for myself.

Oct 24, 2015

Thursday Night and Into Friday (2%) EUR/AUD Forex Basket

Well, I told everyone in the last forex trading update that I was going to be out on Friday, but may trade on the mobile platform. That is what happened and I took that EUR/AUD basket off for nearly a 2% gain in a day. It's nice to get the daily turnover and not wait a week.

Oct 22, 2015

Taking More Profits Out of Currency Market: Dual Hedge On

Grinding in some more forex profits. I had a dual  triangular hedge on in the two main pairs that normally hit my watch list. You can see even with a 200 pip move down in the eur/usd and no move down in aud/usd, the eur/aud cross hedge literally moved less than $10 on a total of 0.04 lots for all 3 sides. That is some damn balance if I ever saw it.

Oct 21, 2015

Actively Managing Forex Hedges for 1.72% Balance Return

There is basically one story about this forex trading today. It's that you can have a core triangular hedge on and then scalp the legs for basis improvement to grind out profits even if nothing happens in the overall trade.