Traders use chart patterns to determine likely market reversal points, whether bullish or bearish. Some take it further, using harmonic patterns based on Fibonacci ratios. Harmonic patterns can be applied to any asset class, including stocks and commodities, but are most frequently used by forex traders. Key Takeaways Understanding Harmonic Patterns Like other price patterns, harmonic patterns […]
Harmonic Patterns in the Currency Markets Read More »
What Is Behavioral Finance? Behavioral finance, a subfield of behavioral economics, proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. Moreover, influences and biases can explain all types of market anomalies, including those in the stock market, such as severe rises or falls in stock price. Given that behavioral finance
Behavioral Finance: Biases, Emotions and Financial Behavior Read More »
Heikin-Ashi, also sometimes spelled Heiken-Ashi, means “average bar” in Japanese. The Heikin-Ashi technique can be used in conjunction with candlestick charts when trading securities to spot market trends and predict future prices. It’s useful for making candlestick charts more readable and trends easier to analyze. For example, traders can use Heikin-Ashi charts to know when to stay in trades while a
Heikin-Ashi: A Better Candlestick Read More »
Introduction Being an MEV searcher is just like being a philosopher. Your days will consist of 80% thinking, 10% building, and the remaining 10% dreaming. The last two weeks have been just like that for me. I was one and a half months into studying MEV when I realized that if I continued on this path,
How I built my first DEX arbitrage bot: Introducing Whack-A-Mole Read More »
Traders use technical indicators to gain a hold on the movement in the supply and demand of securities and market psychology. The best indicators are used to see when to buy or sell an asset. Traders can choose from hundreds of technical indicators, from simple moving averages to complex oscillators. Each serves a specific purpose.
7 Technical Indicators To Build a Trading Tool Kit Read More »
For me, a trader’s diary is the thing that helps you immediately determine whether you are an amateur or a professional trader. Amateurs do not bother to spend time on it. Professionals strive to constantly improve their skills and understand how useful a diary is for this. Keeping a trading diary was a game-changer for
Trader’s Personal Diary: How I Analyze My Trades Read More »
Introduction As you dive into building your MEV bot, you quickly realize that while executing your logic is crucial, an often underestimated aspect of the process is the search for MEV opportunities. Today, I want to discuss how we can effectively search for these opportunities, which can occur in two main regions: When it comes to MEV, the term
First Key to Building MEV Bots: The Simulation Engine Read More »
Effective risk management takes a proactive and preventative stance to risk, aiming to identify and then determine the appropriate response to the business and facilitate better decision-making. Many approaches to risk management focus on risk reduction, but it’s important to remember that risk management practices can also be applied to opportunities, assisting the organization with
Risk Management 101: Process, Examples, Strategies Read More »
A type of financial contract whose value is dependent on an underlying asset, a group of assets, or a benchmark. It’s an agreement set between two or more parties that can be traded on an exchange or over the counter (OTC). What Is a Derivative? The term “derivative” refers to a type of financial contract
Understanding Derivatives: A Comprehensive Guide to Their Uses and Benefits Read More »
Statistical arbitrage strategies are quantitative trading approaches that leverage mathematical models to identify and exploit price inefficiencies between related securities, generating market-neutral returns. A long short portfolio is fundamental to implementing these strategies, especially for relative value trades, as it involves taking both long and short positions to exploit mispricings and spreads between related assets.
Understanding the Most Effective Statistical Arbitrage Strategies Read More »
