Hedge Fund Currency Trader Tips For Finding Trades
Tips from Art K.
Hedge fund currency trader trader gives some tips on how he goes about finding high value / lower risk trades.
(circa 2008)
Here are some ideas from Art K. as to how to go about preparing to find a good, high probability entry. He's a serious hedge fund pro.:
One of my regular (technical) port of calls is to the Dollar Index to see what that’s up to. It’ll offer a snapshot of $ weakness v/s strength. You might then choose to cherry pick your candidate of choice if it's playing ball & quickly then proceed to leaf through the appropriate pairs to adjudge a likely opportunity.
For instance, if the buck is weak v/s the basket, I’d want to be homing in on the candidate which is displaying the dominant & aggressive behavior patterns. If it’s the Pound, then I’ll trail through the cross instruments associated with the Pound to locate whether it’s also a Pound story (of strength) or exclusive to the buck.
I’m always on the hunt for value v/s risk. I want an easy life wherever possible. If the buck is mired in heavy range traffic, then I’ll look outside for maybe a decent cross opportunity.
Perhaps sniff out a Yen (v/s it’s crosses) or CAD (v/s it’s crosses) or Swiss (v/s it’s crosses) maybe an Aussie (v/s it’s crosses) story.
It’s not always just about the U.S Dollar. There’s a big wide world going on out there & all these Central Banks & treasury houses have their own internal agenda’s to juggle.
I like to trawl through my pairs on a regular basis & pick out minor & major trend candidates setting up. I don’t exclude anything.
I’m looking for consolidation behavior, potential breakout candidates & possible reversal (into supply-demand grid territory) potential. Basically any area or zone which I determine is displaying a potential imbalance opportunity.
I realize fundamental information & newswire chatter isn’t everyone’s favorite biscuit, but we all work that ticket too. You can pick up some very good reasonings behind near term directional flows via that route, especially the validity of a particular level or zone of interest (strength of bid/offer currents etc).
To me, it’s a complimentary balance of views. I don’t give either one (techs or fundies) priority, rather try to see each sides point of view & use that info to offer me an edge at that specific time.
Trading is all about separating the wheat from the chaff. It’s a constant merry-go-round which changes by the hour. I try not to hold opinions or fall in love with a pair.
I’ll just as soon stop & reverse or scratch a trade which has soaked up a good few hours of analysis if the reasons for taking a view are no longer valid.
One of my regular (technical) port of calls is to the Dollar Index to see what that’s up to. It’ll offer a snapshot of $ weakness v/s strength. You might then choose to cherry pick your candidate of choice if it's playing ball & quickly then proceed to leaf through the appropriate pairs to adjudge a likely opportunity.
For instance, if the buck is weak v/s the basket, I’d want to be homing in on the candidate which is displaying the dominant & aggressive behavior patterns. If it’s the Pound, then I’ll trail through the cross instruments associated with the Pound to locate whether it’s also a Pound story (of strength) or exclusive to the buck.
I’m always on the hunt for value v/s risk. I want an easy life wherever possible. If the buck is mired in heavy range traffic, then I’ll look outside for maybe a decent cross opportunity.
Perhaps sniff out a Yen (v/s it’s crosses) or CAD (v/s it’s crosses) or Swiss (v/s it’s crosses) maybe an Aussie (v/s it’s crosses) story.
It’s not always just about the U.S Dollar. There’s a big wide world going on out there & all these Central Banks & treasury houses have their own internal agenda’s to juggle.
I like to trawl through my pairs on a regular basis & pick out minor & major trend candidates setting up. I don’t exclude anything.
I’m looking for consolidation behavior, potential breakout candidates & possible reversal (into supply-demand grid territory) potential. Basically any area or zone which I determine is displaying a potential imbalance opportunity.
I realize fundamental information & newswire chatter isn’t everyone’s favorite biscuit, but we all work that ticket too. You can pick up some very good reasonings behind near term directional flows via that route, especially the validity of a particular level or zone of interest (strength of bid/offer currents etc).
To me, it’s a complimentary balance of views. I don’t give either one (techs or fundies) priority, rather try to see each sides point of view & use that info to offer me an edge at that specific time.
Trading is all about separating the wheat from the chaff. It’s a constant merry-go-round which changes by the hour. I try not to hold opinions or fall in love with a pair.
I’ll just as soon stop & reverse or scratch a trade which has soaked up a good few hours of analysis if the reasons for taking a view are no longer valid.
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