Trading Under Limited Time Conditions (33 ITM)

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Welcome to FXChoice

We’d like to take this opportunity to warmly welcome you to our website.

Firstly, a little bit about us and what we do. Over the last few years we have emerged as a leading online broker, specialised in Forex and CFD trading for private clients, as well as institutional investors and fund managers alike.

Our wide range of products and services cater to a broad spectrum of traders, so please feel free to peruse our website and find out which of our products works best for you and your trading needs. We position those needs at the centre of our ethos, so our award-winning customer service is there to assist you in making FXChoice, the right choice.

Due to the highly-competitive nature of the online trading field, for us a focus on technology is paramount, as we believe being ahead of the curve in this area gives us the edge on our competitors. Coupled with this emphasis on technology is our dedication to security; we work tirelessly to ensure the protection of your data and guarantee the safety of your transactions.

Risk warning: Forex, spread bets and CFDs are leveraged products. They may not be suitable for you as they carry a high degree of risk to your capital and you can lose more than your initial investment. You should ensure you understand all of the risks.

FX Choice Limited is authorised and regulated by the IFSC (Licence number: IFSC/60/191/TS/19)

FX Choice Limited registration number: 105,968

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Commitment of Traders (COT)

Indicators and Strategies

Commitment of Traders (COT)

The Commitment of Traders (COT) reports show futures traders’ positions at the close of (usually) Tuesday’s trading session. The report is prepared by the Commodity Futures Trading Commission (CFTC). It is an excellent trading tool and can be used as an indicator for analyzing market sentiment. Markets are only included if 20 or more traders hold positions equal to or above the reporting levels established by the CFTC and the respective exchanges.

Traders are grouped into categories and their holdings are aggregated. There are 3 categories: Commercial Traders, Non-Commercial Traders (large speculators) and Nonreportable (small speculators). Thanks to our integration with Quandle you can apply COT data on a chart.

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This is the improved version of Stochastic Money Flow Index script that uses Open Interest instead of volume in Future markets. I think it will make a difference especially in Future and CFD markets. Since the system will pull data from Quandl, CFTC reports may cause repaint when disclosed. So if you use it during the weekly time frame (1W), it will definitely.

5 failures and 5 successes. 3 years on the way to a dream. The story of a real trader.

Hello. My name is Julia. I am from Saint-Petersburg. My trading experience is 3 years. I do the positional and intraday trading on the Moscow Exchange.

In this autobiographical article I will tell you how I became a trader. I will split my story into:

  • failures – a description of mistakes. Each failure contains a saving prescription of how not to fall into my traps;
  • successes – a story of achievements. What I recommend.

But first, a bit of background before we start speaking about failures and successes.

Start to use ATAS absolutely free of charge! The first two weeks of use of the platform give access to its full functionality with 7-day history limit.

Why I decided to reverse my life

Three years ago I decided to resign from a well-paid office job to start doing what was interesting for me – investment and trading.

I chose exchange trading , because:

  • I had economic education;
  • I was fed up with my job;
  • I had free money and I was ready to take a risk;
  • I wanted to run away from the office routine;
  • I wanted to make millions.

How I planned to change my profession.

I calculated my monthly expenditures/income and built a plan of changing a profession. The plan envisaged that I could trade without income for some time.

From the very beginning I got qualification certificates of the Federal Financial Markets Service 1.0, 5.0 and 7.0, so that brokers would recognize me as a qualified investor.

Theoretically, qualified investors could buy any financial instruments of the Moscow and American Exchanges through Russian brokers. Practically, they are just beautiful pieces of paper hanging on the wall.

Preparation for exams and getting qualification certificates took about half a year. At the same time, I studied portfolio investment, bonds and stock at https://www.coursera.org/ and financial consulting in the Ministry of Finance of the RF.

I should admit that it was a doubtful decision. If I had a time machine, I would have missed this long stage of training and certification and started to trade on a real account much faster.

Having received all certificates I started to count the days until I make millions and set off for an ocean cruise around the world. However, the reality of first trades on the exchange turned out to be less radiant.

And now we come to my failures.

Failure No. 1. Mistakes when executing a brokerage contract.

I took my time to select a broker. I compared conditions, studied trading platforms, commissions and cash withdrawal methods. But when I arrived to execute a contract, I made a lot of mistakes.

There is a popular term – a noob. A noob is a newcomer, incompetent person and inexperienced user. Well, when I opened a broker’s account I behaved like a dumb noob and happily agreed to everything the broker offered.

  • “NYSE? Sure!” I didn’t know that I would have to pay for the access to NYSE more than RUB 300 a month and that commissions are accrued in USD.
  • “LSE? Sure!” I had no idea at that time what LSE was. Additional payment for the access is another RUB 300 a month.
  • “FORTS? Of course!” I also didn’t know what forward contracts were . Additional monthly commission was RUB 100.
  • “Currency market? Of course!” I didn’t know that the minimum lot was USD 1,000. And there was an additional commission for trading less than 50 lots.

I think you’ve already got the main idea – I was connected to everything and mandatory payments were written off immediately. After I got acquainted with details and realized that what I need is FORTS (Futures and Options on Russian Trading System) and nothing else, I found out that I made a present to my broker in the amount of RUB 1,300. And, by the way, the tariffs of my first broker, from the point of view of trading on FORTS, were not the best possible ones, which I started to realize only a year later.

How to avoid failure No. 1:

  • Read contract and tariff conditions, despite the fact that there is a lot of text there and it’s boring;
  • Execute a contract online – this would help you to avoid additional offers and possible psychological pressure;
  • Compare conditions and tariffs of different brokers;
  • Make your decision what and where you trade beforehand. Learn everything about tariffs in this market. Stay focused and select only one market to start with. One cannot embrace the boundless.

Failure No. 2. Absence of important knowledge and trading system. Experiments on a real trading account.

It’s funny – I studied the theory for half a year but had no idea about the basics of price movement. I didn’t know:

… and so on. I only had a very ordinary Quik as a trading platform.

I still remember my first trade – I bought Aeroflot stock in the middle of a falling trend. I behaved like a joke – I buy it because it falls.

I marked the week when I bought the stock with number 1. Unfortunately, it wasn’t the last time when I did it.

For about half a year I tried to buy and sell everything I saw and considered acceptable – commodity futures on gold, oil and platinum, futures on indices and stocks and currency futures. It resulted in the loss of 20% of my account.

Of course, there were accidental achievements, when I managed to catch up with a developing trend and make some money. For example, I opened a long position in a Lokoil stock futures on the eve of New Year during two years. Both times I made a relatively big profit: about RUB 15 thousand in 2020 and a bit less in 2020 (closed too early).

Do you think I conducted a thorough technical or fundamental analysis before buying? No. I bought these futures hoping for a New Year rally. The trading system during the first year on the exchange had the proud name – ‘maybe’.

Trading without a system is a cause of many mistakes:

  • trading from sheer boredom. “I cannot just sit and watch the screen. I need to do something during a trading day”.
  • trading in big lots.I wanted to make a lot of money immediately. I watched a broker’s webinar where a trader made RUB 17 thousand during a day and I badly wanted to reach that number.
  • trading in several markets and instruments simultaneously. For example, I bought a Moscow Exchange index futures, RTS index futures and Sberbank stock futures. If I would have done it along a trend, perhaps, I could have reached the desired 17 thousand. But I managed to do it against the main trend, increasing my losses, because the correlation between the Moscow Exchange index and Sberbank stock achieves 80% and higher. (By the way, I traded by correlation too).
  • trading by an unclear plan. On the one hand, you have a trading plan, on the other hand, it has unclear statements, which allow several variants of trading by this trading plan.
  • absolute misunderstanding of what takes place in momentum. I saw in the Quik platform that prices go up and down and constantly tried to understand why this happens.

Now I think that it is not important why the price moves. It is important how it moves. Let’s assume that the price does not grow and the positive delta grows on the day’s local high. Perhaps, the market buy orders are engulfed by limit sell orders. The key word is ‘engulfed’, that is, the limit sell orders do not let market buy orders move further. Quite often this engulfing forecasts a downward reversal.

How could I see engulfing and reversal in Quik at that moment? I still don’t know. That is why I started to look for the required software with rich functionality for analysis of buyers and sellers actions. And the ATAS footprint shows it immediately.

I will give an example in the range chart (10) of a WTI oil futures. I like charts that are not connected with time, since they show the market situation from a different angle and the existing trading platforms do not have them.

I marked engulfing with a rectangle and the horizontal red line shows the level, above which the buyers failed to break through.

  1. Number 1 marks the bar with the biggest volume for the previous upward movement.
  2. Number 2 marks neighbouring bars, in which the buyers obviously tried to push the price up. After that, the delta becomes stably negative, buyers move into the shadow and sellers become more active. Big volumes and small delta show a fight between buyers and sellers. And a big number of red footprint cells shows that sellers win.
  3. Numbers 3 and 4 mark bars in the breakout area, where there is an obvious overweight of sellers.

This is how I see engulfing and reversal in a footprint. This footprint type is called the Bid Ask Ladder . I traded by candle charts in Quik.

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