Cryptocurrencies: spreading riskAfter recent developments, its obvious that risk management is everything. "spreading risk" over multiple currencies might just be an illusion.
Risk
Nasdaq is up 8 pts from the Monday Gap open in RTHMuch Ado about nothing again as this fake out false test of highs two weeks ago, is maxing out those Hoping for another Breakout! Simple sell it! CME_MINI:NQ1!
1:1 EUR/NZD long on Double bottomA market pull back on EUR/NZD
Market form a double bottom by having two bullish candlesticks
1:1 risk reward ratio on this trade
SL should be at least a 1.6350 or below
TP at the last high 1.6650
Facebook OptionsGreat day for FB. Looking to buy sep 8 calls on any quick dip under 173 in morning (as long as it doesn't gap up too high). Huge potential to keep running over 174.5 tomorrow and to new all time highs. High risk, but high potential reward.
NVDA Option playThis coil is gonna go big one way or the other very soon. Hoping for that to be tomorrow off a weak open. My play is to spend $50-100 on sep 8 calls(probably 170 strike, possibly 167.5) on any pullback, risk to 0, sell for a minimum of 100%, depending on the chart. A break of 167.89 (today's high) is a good add spot, then above 168.58 another add which could pop for a $1 gap fill. I already am holding a bigger position of sep 15 calls. Volume is not there, I'm early on this. Could still go south, and will drop fast so manage your risk well!
VIX / D1 : Very nice opportunity here...Just got myself in this via long OCO entry : 11,5 / 12,3. leverage 0,1.
SL 9,6 TP 24,9 => risk 2% / gain 10%
EUR/USD Gartley Short with StructureSo we have a good Risk Reward here. I think that the resitance is a good level and it will be hard to break the sl.
NZDJPYSold this pair like AUDJPY with TP1 and TP2 at S4 and S5 pivot lines respectively, and a conservative SL between S2 and S3.
Daily:
Weekly:
Confidence: A
AUDJPY ShortSold this pair earlier with TP at S3 pivot line and SL a few pips above S1 (which is also near it's daily high) to ride the recent risk-off related to increasing geopolitical risks and also weaker than expected Chinese inflation report.
www.dailyfx.com
www.dailyfx.com
www.dailyfx.com
Daily:
Weekly:
Confidence: A (there's still risk that this pair will rebound soon especially Thursday's near the end of the week already, but I think this position will hold in the long-run considering the chart patterns in the daily and weekly charts)
CADJPY ShortCADJPY possible short. At the moment it touches the downtrend curved line. Low risk and good risk-reward ratio
Nice risk to reward position for long in NXTprice is retracement in 61.8 fibo and you can open a long position by flowed risk/reward in chart
LONG VIX SEPT 21ST FUT - BROAD EXHAUSTION & FADING RISK APPETITELONG VIX SEPT FUT @12.8 TP 16-20VOLS
1. Fading risk sentiment - back of googl, msft, fb strong earnings not able to push market higher implying risk bid is over.
2. Time value - 7wks for this view to play out. I expect maturity in around 2wks but an extra 5wks of float is only positive.
Double bottomThere may be an intraday increase due to double bottom formation.The short term trend is down.Act careefully.
KOS Long - Risky but high rewardwww.tradingview.com
This stock is a little bit risky. However, the huge upside makes it worth a shot. Remember to set correct stop-loss @5.57 (0.5)
As always. Target is floating and not set. If the trade is successful, I will close once it hit's SMA200 again.
Stellar STRBTC Volatility FunnelVolatility decreasing over last 10 days+, as measured by ATR. Volume candles through buy line.
Bytecoin BCNBTC Volatility FunnelVolatility decreasing over last 2 days, as measured by average true range (ATR) indicator. Lacking good volume at key points, but I think pretty solid trade.
This is not advice.
Risk Parity - Finance lesson 1 Warning Long Macro Post ahead!
The aim of this post is to open the discussion on risk parity and add insight into why some of the largest macro funds in the world use the strategy of risk parity .
... It is basically an asset allocation concept.
-> At what point do we have our portfolio 100% in these really safe securities (safest of all is inflation protected securities... which are bonds issued by sovereign entity without inflation return) Yields are very small.. sub 1% usually.
-> Then you have normal bonds, these can be any kinds of bonds . They don't have to be treasuries they can be corporate bonds.
-> And then you have mixed portfolio , which is maybe 60% stocks and 40% bonds...
-> Or perhaps a really risky portfolio with 100% stocks
-> Or EVEN riskier with 100% Emerging Market Equities .
+++++ The question is what kind of returns do we expect? +++++
One of the ways people employ Risk Parity is a re-balancing concept;
