Hi there David.
First of all thanks for sharing all of your knowledge with us :57:
Now, i don’t have a clew yet how do you mark the BB zone. Is it all from price action and MA’s?
Thanks
Cheers
I find its a bit hard to understand having to wade through all the posts, I go way for the day and have pages and pages to sift through. Afraid its going to get like the thread on forex factory has like 7000 pages and is just unwieldy.
I think you explain relatively clearly the patterns you look for are pretty clear, still having trouble with the BB zones.
You pretty much got the main part Simon.
Not every round number is traded or taken notice off. Its all down to what option barriers and protection is there… if ANY!
You will often see price crash through a round number by 30-40-50+ pips without stopping, other times you will see it come within a few pips of the RN (round number) then bounce, then a little while later break it… other times you will see it break the RN by a couple of pips or so then bounce back up.
It all depends what sits there in terms of bids/offers, sell stops/buy stops… and option barriers and how well they are protected… if protected.
The cluster of orders based around key levels come from all different sources… retail traders, corporates, funds, banks, props, QQA’s, CB’s ect ect ect… but really, how price will react when it reaches a round number will depend on who it is that has the most interest in that level or levels.
Retail traders can’t defend **** to be honest. They just don’t have the market intelligence or cash to do it. Plus they always bail at the first sight of trouble.
Small/Medium funds and corporates are not much better… yes they are classed as pro money… but they are not very bright and we used to take advantage of them almost on a daily basis. I remember manipulating a price move on the EUR/GBP at Barclay’s in 2007… few pips… as I heard this outfit was ready to buy over 250 million. I spiked price down down 3 pips under fair value in low volume trade and they took the bait, I then shorted the rest of my position when they bought, which was more money than that particular outfit was worth, they would have had to of taken out leverage in the region of 1/50 to match my position which they couldn’t afford, therefore they executed instant exit which earned Barclay’s around £4.3 million in the matter of minutes. Big fish eats small fish… that’s life!.. I was pretty chuffed with that trade, thats why I remember it :13:
More to come…
perhaps it might be worth having a faq post linked to at the beginning, going over the most important features so newbies don’t have to wade through all the daily trades and banter.
Most options that are taken by banks/funds/pro money in general are placed at round numbers for simplicity and easy calculations. (strikes/strike prices).
You will find that the most heavily defended round numbers/option barriers come when its Middle Eastern names who have it, or the Asian Central Bank, Sovereign wealth funds, even the Russians defend there strikes extremely well and the SNB. These are the names that will literally out bid you and put you on the street. I was told on many occasions not to test my luck with them, but to go with their flow.
So when you see any of those names above mentioned in terms of having barriers or bids/offers, then sit up and pay attention, and do not fight them.
thanks a lot for that David, thats very illuminating. Are there rules preventing banks from taking advantage of their knowledge of order flow and trading against their client or is forex completely unregulated for the big players? Also since the hedge funds must know that the banks are trading against them, doesn’t this sour relations between them and their clients?
[B]Are there rules preventing banks from taking advantage of their knowledge of order flow
[/B]
Order flow isn’t a hidden gem… the funds have it available to them… the better info is available to the smarter and richer yes… but its not that different!
Currency market… regulations… whats that? 
… who takes notice of the minimum few that exist…ie the current libor out burst.
[B]Also since the hedge funds must know that the banks are trading against them, doesn’t this sour relations between them and their clients?
[/B]
It’s not actually as straight forward as that. I view funds as gamblers and banks as casinos… the gamblers love it and so do the casinos. The gamblers keep coming back for more… especially when they win a bit… but we all know what the outcome is at the end!
Noted… I will see what I can do about it.
David
[QUOTE=David Jefferson;]
Small/Medium funds and corporates are not much better… yes they are classed as pro money… but they are not very bright and we used to take advantage of them almost on a daily basis. I remember manipulating a price move on the EUR/GBP at Barclay’s in 2007… few pips… as I heard this outfit was ready to buy over 250 million. I spiked price down down 3 pips under fair value in low volume trade and they took the bait, I then shorted the rest of my position when they bought, which was more money than that particular outfit was worth, they would have had to of taken out leverage in the region of 1/50 to match my position which they couldn’t afford, therefore they executed instant exit which earned Barclay’s around £4.3 million in the matter of minutes. Big fish eats small fish… that’s life!.. I was pretty chuffed with that trade, thats why I remember it :13:
[/QUOTE]
Point 1: there is absolutely no way one person can take out a 250 million trade or single handedly spike down price
Point 2: there is no record of a David Jefferson working for Barclays, BarCap or any subsidiary of Barclays
Point 3: a successful trader making large sums of money will have no need to show off about houses, fast cars
Point 4: this is an interesting thread which I’ll follow but just for all newbies out there, trust no one and never believe anything you read. I predict this thread will fizzle out…
Ps: David (if thats your real name) you never answered my first question in an earlier thread.
david already answered that , you can and you will just have to adjust your zone to reflect price
I am working tomorrow and just couldn’t stop reading. It’s 1:50am (Norway)… thanks mate, this is like watching a James Bond for the first time in my life. Cheers for that!
Hi Mrchilled and welcome to the thread…
[I]Point 1: there is absolutely no way one person can take out a 250 million trade
[/I]
[B]Who ever did say one person. I’m pretty sure I said it was a fund/outfit… not a person. Do re-read.
[/B]
[I]Point 1 A:[/I] [I]or single handedly spike down price
[/I]
[B]I think someone needs a little education before they flap their gums. Are you telling me that a fund, CB or IBO cant move price… or spike price… fk me… what moves the market then lol!
[/B]
[I]Point 2: there is no record of a David Jefferson working for Barclays, BarCap or any subsidiary of Barclays
[/I]
[B]Ermm, I wasn’t aware that my previous employers would openly discuss or even give you the time of day on searching through any particular record/file. Not to mention data protection… silly boy.
[/B]
[I]Point 3: a successful trader making large sums of money will have no need to show off about houses, fast cars[/I]
[B]I wouldn’t call it showing off in the sense you refer to, more proud of what I’ve earned and achieved, and proud to show it in public my friend.[/B]
[I]Point 4: this is an interesting thread which I’ll follow but just for all newbies out there, trust no one and never believe anything you read. I predict this thread will fizzle out…[/I]
[B]Pheewww, what do I say to that, but you sound bitter, and deflated about something… had a few losing trades lately?.. just fancy letting out some emotion or something? Your other part of the comment: [I]I predict this thread will fizzle out…[/I] I hope your trading predictions are better than this one, cause if there not… then your ****ed big boy[/B]
I have absolutely no gain from this apart from enjoying helping other traders who need a little lift while I trade. No money is asked for, or charged.
I don’t mean to sound rude or obnoxious, but if you don’t like what I offer here, provide, have to say, or do… then piss off then! No one is holding you to ransom or forcing you to read anything, just leave!
ps: I see you can’t even follow a simple guideline… I did politely ask (first post), that if there was any negative comments, or questions that puzzled you then just PM me. I would then have a chat in private with you on Skype or phone or email to explain things or fix things or help to solve any issues one may have. The thread is for people who are interested and willing to learn with no charge or money asked… sorry if that pisses you off…
I always wonder why people like mrchilled come on to forms and attack people like Dave who take time to help others with no financial benefit ? What you are doing Dave is great. I take my hat off to you. I know by your indepth knowledge of the markets that you for sure come from a professional career in trading. No one who has shown your knowledge is a rookie. I personally have been trading for 29 years and rarely do I come across a person like you on public forums. I say only one other person who goes by the name of German is in same league as you. Keep up your great work. PS I love your taste in cars. I drive a Range Rover but a Porsche is more my fancy.
Cheers
Jeff
Hi Jeff… I was going to say WTF you doing up at this time! … but then I remember your in the states… DOOHH
It’ 01:15 UK… watching a few movies… few beers and on laptop.
Thanks tomin… kind words… hope you learn some stuff in coming weeks.
007 fan myself… but love the Jason Bourne movies more!
David
Actually Toronto Canada. I am up north now in the Country for the weekend and on my iPad now.
Jeff
My mistake… nothing worse than literally calling a Canadian a yank… oops… sorry! :58:
Please don’t tell me you are a yank but live in Canada… I will need a bigger shovel!!!
No born and raised in Canada. I love the US but I am proud to be Canadian. Lol. I am looking forward to next weeks trading.
Cheers
Jeff
will you also rename your dogs? Db9 et al?
Hey BidDiddler… sorry but I can’t answer that… as it would be showing off… and apparently successful traders don’t do that according to the post a few up.