Index Arb, Buy & Sell Programs what are they?

Posted by kurtosisT

Index arb and program trading is becoming more and more of the turnover in stock markets and as a private trader how can you stay ahead of this massive prop desk flow.  The NYSE indicates that in 2009 approx 30% of turnover on avgerage can be accounted for by program trading. Keeping this in mind one can understand how it can impact direction. Note the NYSE did change its methodogly of program trading calculation which significantly downgraded the statistics.

I would like to show you how you can track and use this information to your advantage as private traders. Its away for you to keep up with the big boys - the prop desks and hedge funds out there.

Check out my latest video on this which explains how you can setup a chart to track this and then use this to enhance your own entry and exits. (Please wait for video to load there may be a short delay.)

Links discussed:

http://www.kurtosistrading.com/public/IndexArb20090531/IndexArb20090531.html

http://www.indexarb.com/

Hope this helps and stick to your stops

 

KT

Disclaimer

Using Ticks to improve Entry or Exit of a trade

Posted by kurtosisT

 

Ticks are the Net Value of stock ticks ie formulae would look something like this Ticks = Upticks - Downticks. Positive value indicates stonger buying bias and negative ticks indicate selling bias.

This is how you can use the Ticks to improve entry and exits.

1. Enter a short on a high tick or exit long on high tick. Avoid Buying High Ticks

2. Enter long on low tick or exit short on low tick. Avoid Selling Low Ticks

As a general rule extreme tick value are +/- 1000. I like to add some other indicators to help use the Tick data I use a Linear Regression Channel, 1 period SMA and  Value Charts.  See the Video on this to better explain it. 

Latest Video: http://www.kurtosistrading.com/public/Tick20090527/Tick20090527.html

Link to TS Value Charts code and explaination.

 

Hope this helps and stick to your stops

KT

Macro and Micro Ambush Trades on Euro

Posted by kurtosisT

 

Here is the 60 min chart of the Euro vs USD and it highlights how todays price action has seen the EUR comeback to the micro Ambush long zone but there still could be some pull back to the bigger fibonacci ambush set up at the 1.3737 - 1.3662 zone.

Good trading and stick to your stops

KT

Euro looks to have support at 1.3750 level

Posted by kurtosisT

The Euro looks to be testing the middle of the Head on H&S from October 2008 to April 2009. With Support lining up at the 1.3750 level which is support to the middle of the head and also a 50% Fibonacci retracement from the 1.3430 level to recent highs of 1.4050.

With this in mind at the 1.3750 level could be a good long set up as in coming weeks would expect to see more US$ weakness.

Good trading and stick to your stops.

 

KT