Special: Trading Ideas David Aranzabal. ✦ Degree in Software Engineering from Deusto University MBA from IESE Business School Founder of 2 successful.

Slides:



Advertisements
Similar presentations
But all of them seek one thing above all else: Clarity. In this lesson, I will try to provide clarity on the India Volatility Index or India Vix in short.
Advertisements

Market Color Taking the pulse. SPX Since May 1995.
15-1. Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 15 Option Valuation.
Saeed Ebrahimijam Spring 2013 Faculty of Business and Economics Department of Banking and Finance Doğu Akdeniz Üniversitesi FINA417.
Return, Risk, and the Security Market Line Return, Risk, and the Security Market Line.
© 2008 Pearson Education Canada13.1 Chapter 13 Hedging with Financial Derivatives.
Project 2: Options.
Chapter 13 Financial Derivatives. © 2004 Pearson Addison-Wesley. All rights reserved 13-2 Hedging Hedge: engage in a financial transaction that reduces.
Where do we go from here? Ken Karr, CFP MBA Adam Drake, CFA HIGHLAND INVESTMENT ADVISORS, LLC.
Economics 330 Money and Banking Lecture 18 Prof. Menzie Chinn TAs: Chikako Baba, Deokwoo Nam.
Valuing Stock Options: The Black–Scholes–Merton Model
Stephen G. CECCHETTI Kermit L. SCHOENHOLTZ An Introduction to Money and the Financial System Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights.
Investment Challenge Program January 2003, Volume III, Issue 12 Website of the Month: Investors, Quote of the Month: 2002 CBOE Volatility Index Check out.
Basics of volatility Volatility is a huge issue in risk management.
+ Implied Volatility Index Kyu Won Choi March 2, 2011 Econ 201FS.
Lecture Presentation Software to accompany Investment Analysis and Portfolio Management Seventh Edition by Frank K. Reilly & Keith C. Brown Chapter 23.
Saeed Ebrahimijam SPRING Faculty of Business and Economics Department of Banking and Finance Doğu Akdeniz Üniversitesi FINA417.
Problem With Volatility MMA 707 Analytical Finance I Lecturer: Jan Röman Members : Bo He Xinyan Lin.
SMB CAPITAL Broken Wing Butterfly
Proshares Ultra VIX Short-term Futures ETF (NYSE: UVXY) Andrew Jiao, James Day.
Kian Guan LIM and Christopher TING Singapore Management University
Chapter 13 Financial Derivatives. Copyright © 2002 Pearson Education Canada Inc Spot, Forward, and Futures Contracts A spot contract is an agreement.
© 2008 Pearson Education Canada13.1 Chapter 13 Hedging with Financial Derivatives.
Investment Analysis and Portfolio Management Lecture 9 Gareth Myles.
® Binary Options OPCIONES BINARIAS OF OFOF OF “Trading Principles in Exotic Options (Binary Options)” COPYRIGHT  Note : This presentation is directed.
Bollinger Bands Metastock User Group 11/5/02 Leland Brode
The FEAR Gauge An Introduction to the Volatility Index by Amy Ackers.
6. Currency options International Financial Services 2 Karel Bruna.
How to Take Money From the Market Maker Presented by Andrew Keene.
Todd Gordon Technical Strategist Fund Trader
Stock Volatility during the Recent Financial Crisis G. William Schwert European Financial Management Association Keynote Address June 25,2010 – Aarhus,
13-1 Hedging Hedge: engage in a financial transaction that reduces or eliminates risk Basic hedging principle: Hedging risk involves engaging in a financial.
Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.
Seminar: Timely Topics for Today’s Business World Mr. Bernstein Risk January 2015.
© 2004 Pearson Addison-Wesley. All rights reserved 13-1 Hedging Hedge: engage in a financial transaction that reduces or eliminates risk Basic hedging.
The RSKsys Emini S&P Trading Strategy Developed by RSKsys Intl LLC Denver, CO. USA
Mad Day Trader Bill Davis Webinar – July 29, 2015.
Questions on Readings (Closed notes). What is volatility ? It’s a statistical measure of the tendency of market to rise or fall sharply within a short.
12-1. Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 12 Return, Risk, and the Security Market Line.
Lecture 3. Option Valuation Methods  Genentech call options have an exercise price of $80 and expire in one year. Case 1 Stock price falls to $60 Option.
Copyright © 2003 South-Western/Thomson Learning. All rights reserved. Chapter 19 An Introduction to Options.
INTRODUCTION RSI- RELATIVE STRENGTH INDEX MOVING AVERAGE BOLLINGER BANDSSUMMARY.
Comments from Instructor: A detailed yet analytical paper, which puts class materials into good application, and takes one step further, if simple, to.
Lesson 1 Forex Secrets Inc.. How to start with Forex Secrets Inc.  Go to and open an accounthttps://
Forex Rates Today Advantages of Forex Market – Live Forex rates Flexibility Trading Options Transaction Costs Leverage Some.
Kian Guan LIM and Christopher TING Singapore Management University
VOLATILITY INDEX Some people enjoy dancing in the rain but some really hate getting drenched. Some people enjoy the stock market volatility but some get.
International Economics By Robert J. Carbaugh 10th Edition
Agricultural Commodity Marketing and Risk Management
Investment Management
Trading in Secondary Equity Markets
Using Time and Volatility for Profits
The Opening Bell Deviation Theory
The Opening Bell Deviation Theory
Market Internals For Day Traders
Investing: putting savings to use
International Economics By Robert J. Carbaugh 9th Edition
Interest Rate Parity: Practical Implications
HISTORICAL AND CURRENT PROJECTIONS
Getting the Most from Bollinger Bands
Risk Management with Financial Derivatives
FOREX 101.
But all of them seek one thing above all else: Clarity.
VXX made Easy: What is the VXX?
Risk Management with Financial Derivatives
Presentation transcript:

Special: Trading Ideas David Aranzabal

✦ Degree in Software Engineering from Deusto University MBA from IESE Business School Founder of 2 successful software companies Lecturer at the Financial Congress and IESE ✦ Founder of FXforaliving.com, specializing in forex education. Full time trader since ✦ Regular contributor to FXStreet, Estrategias de Inversión, Finanzas.com, Revista Inversión, Trading Room, Bolsalia, and Madrid’s stock Exchange ✦ Contributor to Hispatrading and Trader’s Magazine ✦ Presenter for over 100 live trading sessions and over 1,000 free webinars to date ✦ Creator of online educational video series, reaching 1 million views (Youtube + Vimeo) ✦ Founder and organizer of Trading Week® and The Forex Day®

VOLATILITY

Trading Ideas

Volatility  A statistical measure of price dispersion in a currency pair.  In general, the higher the volatility, the higher the risk in the pair.

Volatility periods  Periods of low volatility follow periods of high volatility  Periods of high volatility follow periods of low volatility  Again and again and again.. and then it starts all over.

Bollinger Band 9  Because the standard deviation is a measure of volatility, Bollinger Bands adjust to market conditions.  When markets become more volatile, the bands widen (move further from the mean), and during periods of lower volatility, the bands become narrower (move closer to the mean).  When the bands are very close to each other, it can be a sign that volatility is about to rise substantially.

John Bollinger

Bollinger. Mean and Bands 11

 Range trading  Within the bands  Trend trading  Once they get closer to the mean  Breakout:  With RSI filter  For automated systems:  B% and Bandwith Bollinger trading: 12

Bollinger for Range Markets 13

Bollinger for Trend Markets 14

Bollinger with 2 and 4 Standard Deviations 15

Bollinger Breakout 16

Bollinger and RSI Breakout Filter 17

Trading Ideas

VOLATILITY AND VIX

 VIX is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward- looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge”.

 VIX is the code of the Chicago Board Options Exchange Market Volatility Index.

Trading Ideas

LONDON SESSION

Time flexibility is a great advantage for people with various schedules and allows for adaptation to everyone's day Since it's a global market, we can trade anywhere in the world, even while we're travelling. Because it's a traded market without interruptions, there are no opening gaps each day.

This minimizes the risk of trading gaps at night caused by unexpected news, natural disasters, wars, etc. The advantage of not having gaps is indisputable, since it allows us to manage risks in a much more precise way, calculating down to the last pip, because normally we won't have the problem of slippage or trading gaps.

8:00 (LONDON) 11:00 (MOSCOW)

LIVE TRADING AT:

EXAMPLE 1:

EXAMPLE 1I:

@FX_FORALIVING