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Sunday, September 20, 2020

SUNDAY UPDATE: MARKET HOPSCOTCH

 

“Find a market to trade they said … it’s easy they said! … WTF!”

Back before the era of central bank manipulation began, circa 2014 - 2016

depending on the specific market, the criteria for finding & then trading a

financial market was pretty easy … what hours do you want to trade & what’s the

volatility, then figure out what it cost you to trade it … simple … today, not so

much cuz the manipulators are ever changing the game midstream … enter the

HFT’s [three of the largest are BlackRock, Virtu, & Citadel], the use of crypto, and

suddenly THINGS “they are a changin’ quickly”!


Now, it’s not happening all at once across the board, but it is happening in markets

that traders trade the most often, cuz that’s where the money is at … I’ve already

highlighted the 5 FX pairs, where at Turnkey & Coinexx the bid/offer spreads

+ commissions have never been lower than they are now, and are very close to

about as low as you can expect them to go … and while there have been “hints” at

times that the HFT’S are moving into metals, they either aren’t sure the move is

worthwhile [read money making], or are having problems with the bullion banks

and cross platform trading & execution … whatever, they obviously aren’t ready

for prime time yet.


As I’ve mentioned before, for FX & stock indices [not all but the most popular

ones] Coinexx uses Turnkey’s IT subsidiary bridge for LP’s … traditional

scumbag bank LP’s … and now, offshore brokerage houses are beginning the

battle to line up HFT’s and use their proprietary systems as LP’s cuz they undercut

the scumbag banks by a wide margin … and so it was I noticed last week that

Coinexx bid/offer spreads in stock indices started to come down … more so in

the DAX30 & NDX100 than any of the others, cuz some stayed the same and

others only went down slightly … and so it prompted me to start making some

calls … and after some investigative work, bottom line is this … the HFT’s have

moved into the indices arena … so I moved a small amount of BTC into Coinexx,

traded the DAX30 on Thursday & Friday and suffered no discernible slippage

with a spread right at 1 index point … “knock me over with a feather”, cuz they’re

using Turnkey’s HFT bridge servers! … that means Turnkey SHOULD be the same.


OK, some more phone calls later, and I’ve been “assured” the latency &

spreads/fills are excellent … how many times have I heard this before? … the

difference, though, is it isn’t the addition of more scumbag LP banks into the

liquidity provider pool, it’s the HFT’s … so, can I FINALLY get an honest & fair

market in the DAX30, without getting murdered & raped on most fills? … we’re

about ready to find out, cuz as I told some brokerage house execs, “this is your

LAST CHANCE to make good on promises that turned in every case in the past

to have been LIES … screw me one more time, and I’ll never talk to you again

… period”! … so, we’ll see as I add back both the DAX30 & NDX100 back into the

tradeable mix along with GBPJPY.


Quite frankly, I’ve had it up to my ears with this “market hopscotch” BS that’s 

gotten foisted upon me by greedy, scumbag bank LP’s where they are constantly

adjusting and changing my cost of doing business in any and all MT4 and/or

MT5 markets … a good example of this in FX is primarily gold, but EURGBP &

GBPCHF come to mind as well … and when I call them on the carpet about it, of

course all I get in return is “duh, market conditions, duh” as their SOP [standard

operating procedure] excuse for EVERYTHING … finally, FX in the 5 pairs of

EURUSD, GBPUSD, USDJPY, EURJPY, & GBPJPY has gotten to the point of where

it should have been years ago … better late than never I suppose.


But the problem in FX these days is one of consistency … ranges & IVIX INDEX

levels are all over the map day-to-day and week-to-week, from piss poor to

extremely chaotic & troublesome … and making matters worse, it can go from

one extreme to the other in seconds or minutes … and as the IVIX INDEX LEVEL

TABLE DIRECTLY BELOW will show, lately the DAX30 & NDX100 are exhibiting

high volatility … one close to ideal [DAX30], the other [NDX100] oftentimes simply

too volatile for proper risk control.


Directly below, last week’s IVIX INDEX levels & 20 Day Range MA’s for DAX30,

NDX100, & GBPJPY. [Please read the footnotes!]


click on table to enlarge

I’m hoping I can keep these 3 markets in my trading mix going forward … the

trading algorithm works phenomenally well in all 3 pairs … all 3 are good markets

if you can get 1) low bid/offer spreads & LOW RT commissions, and 2) NO [or very

little] SLIPPAGE … and right now all 3 fit the bill, with NDX100 getting very close to

being almost untradeable at times it’s so volatile … for me, it’s an option, but I’ll

mainly be looking at & trading GBPJPY and/or the DAX30 … so, we’ll see what

happens, and if in fact things have changed with the DAX30 or it’s all a bunch of

brokerage house mumbo jumbo basket of dog poo.


… until tomorrow … Onward & Upward!!


-vegas





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