SUNDAY UPDATE: STATISTICS MATTER!

“What you trade AND where you trade MATTERS!”

Directly below, this week’s ‘VIX MATRIX TABLE” … take a good, hard look.

click on ANY chart or table to enlarge

I’ve added a new column, that takes into account the average bid/offer spread

when trading … WTI Crude Oil & DOW30 CFD’s trade commission free at FX

CHOICE, but everything else is calculated from PRIMEXBT … one major item of

interest regarding crypto, is that these figures are for trading approximately

$2,000 notional amount of the crypto pair, which is not very large in the scheme

of things … climb higher, and the percentages of what it costs to trade relative

the 20 Day Range MA go north quickly.

And so, looking at the above table, what jumps out at you? … well, it’s the

TOTAL COST to trade the DOW30 at FX CHOICE relative to its 20 Day Range MA

… at less than 1%, it’s one of the very best CFD’s out there that has everything a

trader should be looking for, which is 1) above average IVIX [intraday volatility],

2) most days see 90% - 95% of the days range confined to NYSE trading hours

[9:30 AM EST - 4:00 PM EST], which is a 6 ½ hour day … the more the movement

in less time, the better the market, and 3) a fairly stable bid/offer spread with LP’s

that fill orders in about 300 - 500 milliseconds … not the fastest on Earth, but

good enough to convince me I’m not getting screwed by an MT4 or MT5 robot,

meaning I’m being filled at the market price from a legitimate LP.

I like the fact that at FX CHOICE, the DOW30 CFD is 10X the index, so a 1 lot

volume is = to approximately $290,000 … in addition, the PAMM /MAM is cleared

to trade up to 100 lots, and if I need more at some point, all I have to do is tell the

banks what I want, and they’ll up the ante with no problem … by comparison, the

DAX30 at FX CHOICE is one of the very best around as well … sadly, it’s not the

same with either the SP500 or the NDX100, which have far higher costs and make

both unacceptable for trading.

Now look at crypto, and when you consider it’s only for $2,000 worth, why on

Earth would you pay these exorbitant fees in order to trade it? … I can see some

BTC trading, even with its relatively high cost cuz it moves, but the others? … I

mean seriously, take in fully the percentages involved here … you’d literally have

to be nuts to trade either EOSUSD or XRPBTC … each trade is gonna be OVER

10% of the day’s most likely range? … wut? … by comparison would you trade

gold with a $17 spread, or the DOW30 with a 27 index point spread?

Directly below is the FX CHOICE PAMM / MAM uptodate results. Since it’s the start

of the new year, why not start from January 1, 2020 and go forward from there?

Directly below, a statistical breakdown of key data for 2019. I’ve also posted it

over in “Download Links” for future reference. 

Directly below, our 20 Day Range MA’s broken down by group.

STOCK INDICES

All have a slight “skew” to the upside, due to the “war that wasn’t” … this will get

worked off in due time, but it’s important to know the DOW30 is about 20 index

points higher than normal from that one night.

PRECIOUS METALS

Some slight upticks, but gold is still very unstable in New York with ranges all

over the place. It still has a very big problem with slippage on fills.

FX [GBPUSD & GBP CROSSES]

FX volatility at all time record lows, and Cable’s 20 Day Range MA falls below 100

for the week.

It’s a heavy dose of earnings for the DOW30 this week, and of course we got the

coronavirus in China & throughout the world to deal with … it looks to be a

volatile week … until tomorrow mi amigos … Onward & Upward!! 

Have a great rest of your weekend everybody!

-vegas