BONDS & SHARESBONDS & SHARESJanuary 9, 2018
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4min1480

Virtual reality allows a user to immerse himself in an entirely virtual universe generated by a computer, a game console or a smartphone. It is very different from augmented reality in that it consists of an interaction between virtual and real elements (e.g. the Pokemon Go application). VR is beginning to occupy an increasingly important place in the professional field, thanks to many assets. This allows safe, fun and safe training while saving time and money. We can learn more about the virtual trading site.

From a consumer point of view, virtual reality makes it possible to offer a unique experience to a clientele that is more and more “addicted” to new technologies. But then does the field of finance also succumb to it?

Well, we’re going to see this in three points.

1st point: In the trading sector

virtual reality

The virtual reality headset will make it easier for traders to visualize opportunities through a better view of the numbers.

Swissquote, the Swiss leader in online trading, provides its clients with an application that allows them to conduct transactions via a headset. This will allow the client to navigate between indices and other financial information in real time and in a more fun way.

2nd point: A fun way to train

It allows the user to learn actively and autonomously in a virtually generated situation. This type of system increases the employee’s motivation to learn. It also has the advantage of posing fewer sensory problems than simulators. Already used in the fields of finance, health, industry and military, where it has proven its worth.

3rd point: The consumer experience

It will revolutionize customer relations, in particular by making interaction with the advisor more lively than a simple telephone conversation. This can also be the last step in the dematerialization of bank branches by creating virtual offices.

This revolution will enable banks to attract and retain new generations of people who belong to the digital age and who are demanding digital experiences.

Commonwealth bank has set up an educational program called Start Smart which allows children to learn about economics and finance in a fun way, which will create trust between the brand and the child, and thus create a link for their future choices of a bank. This trust will be also created between virtual trading site and children.

Currently, virtual reality is only at an embryonic stage in the banking sector, but it could well become an essential element in the coming years.

(cf site de trading virtuel)


Alexandre CAMPOSAlexandre CAMPOSNovember 28, 2017
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4min860

Everyone today knows about the existence of crypto-currencies mainly thanks to Bitcoins. This virtual phenomenon has given way to a large market for digital currencies, both in terms of market cap and existing number. In this article we will discuss the Ripple, the flagship currency of the moment (see ripple euro rates). The ripple project comes from the company RipplePay which appeared in 2004. This project focused on the creation of local currencies within different communities.

ripple

After the appearance of Bitcoin in 2012, a new company called Ripple labs was created, which was at the origin of the Ripple Token Issue (XRP). The first idea is to simplify international money transfers by relying on decentralized servers, by having a vision of clearing currency, not payment currency in order to facilitate transactions and make them less costly.

“The goal is to free oneself from what are called peers in the currency market. Instead of exchanging one US dollar for the euro, we will exchange one dollar for XRP and then switch from XRP to the euro,” explains Alexandre Stachtchenko, co-founder.

For individuals, the purchase of the Ripple is simply motivated by the speculative and liquid aspect of it, as they cannot use it on the Ripple network, so the intrinsic utility is nil.

The ripple has caused a strong craze in recent weeks, it appears to some as the replacement for the SWIFT system.

This strong demand from users/speculators has propelled the ripple as the second cryptomone (Capitalization about 145 billion dollars) after the bitcoin (see euro ripple price).

Its price remains around 3 dollars, the ripple to sight its price increase by 60 000% in one year.

Regarding the protocol used, the Ripple blockchain does not use minors to validate blocks of transactions via important calculations unlike Bitcoins or Etherreum. In the Ripple blockchain, all the tokens are already pre-mined (all of them are already created, but only about 40% are in circulation on the market, the others being blocked in a computer escrow) and the transactions are validated through a voting system.

However, this system raises some questions, the ideological domain, so it would be a cryptomonnaies that serves the banking systems. In addition, this fast system reveals lower security.

One last point seems important to me on the criticism, the fact that a large majority of ripples are owned by only a few people (Ripple Labs owns 60% and the two former CEO 20%) is a dependency problem.

“Beyond the fact that these people de facto control the market, imagine if in 20 years’ time the technology was used by all banks. The power these people would have over the global economy would be a serious problem,” said Alexander Stashchenko.

The other co-founder Chris Larsen became virtually the fifth richest man in the world on Thursday, January 4. With a valuation of his assets exceeding 59 billion dollars, he even doubles Facebook boss Mark Zuckerberg.

Chris Larsen holds XRP 5.19 billion (Ripple’s virtual currency) and 17% of the company’s shares. The XRP reached an all-time high of $3.82 while it was still trading at $0.25 in mid-December, an increase of 1.428% in three short weeks.


BONDS & SHARESBONDS & SHARESJuly 24, 2017
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4min840

Myth #1: > Day-Trading is impossible.

In my opinion, traders from M2 Trading Group and people who specialize in the oil market,

as well as more than 40 excellent traders I know

and who have an income of more than 500k per year, I would say FALSE.

You need to know exactly what you are doing and why.

And establish very clear entry and exit rules.

And have an iron discipline and over several years

and suffer the worst blows and go through the most difficult trials

and study the same market for more than 5 years, from all angles,

without ever giving up.

But impossible? No. Really not.

oil market

Myth #2: work and use graphs of 30 seconds or less, is simply crazy and suicidal.

Unfortunately, I must disagree once again.

I worked with graphics of less than 1 minute

(a bar represents for example, 30 seconds) for more than 10 years.

People are afraid of very short time intervals because they do not have the necessary knowledge and they fear the unknown.

I look at the oil market American and, with an indicator (if I am out of the office or travelling) and I know immediately if I have a transaction or not, either when the markets open in Europe, or in the United States, and I know it in four seconds.

Unfortunately, it took me many years to have such a clear vision.

Myth #3: I need 100k to start as a day trader.

Hum… let’s see… no…

I had students on oanda.com and they progressed slowly, risking a few dollars for each transaction.

What matters is experience, and in trading, experience is counted in years, even decades.

Myth #4: >b>No one should attempt to enter the oil market.

My answer will be once again: FALSE.

I make one or two transactions every day, on oil.

On the 30-second graph I published here, in the last 48 hours, I have only 3 transactions.

I can track each transaction, and each one requires from a few minutes to a few hours.

Just because we work on 30-second charts does not mean that each transaction is 30 seconds. Far from it.


Joseph CHAARJoseph CHAARJune 13, 2017
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6min6180

« The Fundamental Review of Trading Book » est une nouvelle norme pour les banques publiées par le comité de Bale. Ces nouvelles normes doivent être mises en application par les banques en 2021, un report puisqu’originellement celle-ci devait être mise en place pour 2019.

Cette nouvelle règlementation est cruciale et risque de couter plus de 120 millions d’euros au banques. Cette régulation va poser des défis important aux banques pour sa mise en place. Je vais tacher de vous présenter dans cette article quelque uns des changements important.

FRTB est la suite des régulations qui visent a assuré la stabilité financière en contrôlant les exigences de fonds propres imposées aux banques. Ce contrôle passe par l’évaluation des risques induits par leurs activités respectives (détail, crédit, marché…).

Cette nouvelle norme vient tout d’abord faire la distinction entre le « banking book » (portefeuille bancaire) et le « trading book » (portefeuille de négociation). Cette distinction plus strict a été apporté pour éviter tout risque d’arbitrage en transférant dans une catégorie une classe d’actif qui devrait être dans une autre.

FRTB dit adieu à la VaR et introduit l’Expected Shortfall. La VaR, Value at Risk représente la perte potentielle maximale sur la valeur d’un portefeuille ou d’un seul actif avec un intervalle de confiance (souvent 95% ou 99%) sur un horizon donné.

Malheureusement la VaR présente plusieurs défauts et le régulateur est soucieux de trouver une mesure plus importante du risque de perte extrême (tail-risk). Pour cela il remplacera la VaR par l’ES (expected shortfall). Alors que la VaR ne mesure qu’une partie de la distribution, l’ES se focalise sur la queue de la distribution.

Le calcul de l’ES devra être journalier comparé à la VaR qui était sur une période de 10 jours. Mais pour les « stress-tests », d’autre périodes sont à considérés, des périodes qui sont dépendante de la classe d’actif. Par exemple pour les actions il s’agira d’une période de 20 jours, pour les métaux précieux d’une période de 60 jours….Tout cela est répertorié par la BIS (bank for internal settelements) dans ses documents mis à disposition sur FRTB.

Une des autres nouveautés est la publication des résultats de la « Standardized Approach ». Les banques avaient le choix entre deux « formules » pour calculer les capitaux nécessaires, la SA (standardized approach) établit par les autorités et l’IMA (internal model approach) établit par les banques mais contrôlé par les régulateurs. Ce qui permettait aux banques d’avoir un montant de capital a conservé plus proche de leur réalité que le modèle général pour tous. Cependant le régulateur souhaite pouvoir comparer les banques entre elles et que cette information soit accessible à tous.

Certains produits complexes allant demandé d’importante quantité de capital mis de côté, les banques vont avoir des décisions compliquées sur si elle conserve ou non certaines activités et/ou revoir la taille de certain desk.

En conclusion FRTB apporte plusieurs changements importants. Il existe encore beaucoup d’autres détails dans cette réforme. J’ai présenté certains des points phares de cette réforme. De plus FRTB risque d’évoluer et d’apporter certaines précisions avant sa mise en application en 2021.

Sources ;

BIS http://www.bis.org/publ/bcbs265.pdf

http://www.risk.net/risk-magazine/technical-paper/1506669/var-versus-expected-shortfall

http://www.fimarkets.com/pages/value_at_risk.php

https://webforms.ey.com/Publication/vwLUAssets/ey-fundamental-review-of-the-trading-book/%24FILE/ey-fundamental-review-of-the-trading-book.pdf

Basel rules to cost banks €40m-€120m each, says study

Joseph Chaar


Mohammed EL BOUZIDIMohammed EL BOUZIDIApril 24, 2017
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5min2920

Le money trading management is the art of preserving your most precious working tool: its capital. It is the most important element of trading after trader psychology and technical analysis.

Capital is a determining element in any trading strategy, every euro is precious, if you lose 25% of your capital, you must obtain a performance of +33% to compensate for your loss. Lose 50% of your capital, and it is a performance of +100% that you must achieve to get back to the starting point. The more you lose, the harder it is to recover. The key to the war is therefore never to lose money, or to lose very little, and very rarely.

money management in trading

Grace to a set of techniques, money management aims to lose little, little often, and earn more, more often. The trader must therefore cut losses quickly, using Stop orders, and “let the gains slip away”.

In practice, it is a question of protecting oneself against the fact that one has made a mistake about the probable evolution of prices and in the sense in which the trader has any interest in positioning himself, whether this interpretation has been obtained from technical analysis or fundamental analysis or even the fact of protecting himself against an event not foreseen and therefore not taken into account in the price, occurs suddenly.

Money management mainly deals with three factors: the expectation of potential gain offered by the different opportunities and the amount of the position.

Risk/Reward

Each investment opportunity has a specific technical profile, and therefore an expectation of gain, risk/Reward allows you to choose the position that offers the highest probability of success, in other words, if the potential gain from the position far exceeds the tolerated loss. Let’s take the example of a trader who risks an average of €1,000 for a potential gain of €3,000 and manages his risk correctly. Indeed, it is enough for him to win only in 33% of the cases to achieve a gain of €1,000 (3,000 – 1,000 – 1,000 – 1,000 = 1,000).

The maximum amount at risk as a percentage of total capital

To limit his risk, the trader defines the level of stop-loss, thus ensuring that he only risks a certain percentage of his total capital on each position. Classically, the risk accepted per position corresponds to 2% of the trading capital. In the case of a trading account of €1,000, for example, the maximum loss per position would be €200.

Sources:

http://www.univers-bourse.com/Apprendre/Wikibourse/le-money-management/le-money-management

https://www.cortalconsors.fr/Outils-Services/Guide-du-trader/Averti/Qu-est-ce-que-le-money-management-

https://www.zonebourse.com/formation/Les-etapes-du-money-management-10/

https://www.andlil.com/le-money-management-5689.html


Christophe RAMDAMEChristophe RAMDAMEDecember 14, 2016

3min1080

Advertisements on trading robots promising to make you ultra rich, are above all a cash machine for their owners, especially those marketed for exorbitant sums. So how do you distinguish the good and make profits with these automatons?

robot trading

All these automatons work with trading system signals (forex, cfd). These signals will indicate to the robot whether it should buy or sell an asset at a given time, or possibly modulate the size of the position statement. Trading robots can therefore be divided into two categories: those derived from technical analysis and those obtained through fundamental analysis.

Is it efficient: The designers of these trading automatons explain that it is possible to develop your capital. To do this, the trader must first implement his strategy. The stockbroker uses a technician to integrate the instructions defined in the computer program. A small test will check whether the trading tool is working well or not. The trader can always make some corrections to his forex robot.

Despite the qualities of the robot trading, opinions remain divided on their effectiveness. Critics of these tools explain that robots obey the commands inserted in the program. Decision-making can be erroneous when market parameters change.

The problem is that the PLC does not have the ability to automatically adapt to a new context without the intervention of a technician and it should modify the algorithm of the program so that it can recover in the direction of travel.

While the credibility of these tools is questioned, their designers continue to flatter the gains that can be accumulated by the trader using a robot. Stock market specialists warn that developers are using these programs to scam Internet users. Indeed, for about ten euros invested, you have a great chance to enrich yourself without getting tired?

Jean-Christophe Ramdame


Achraf MEKKIAchraf MEKKIJuly 16, 2014
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4min7850

It was only a few years ago that most of the world top trading place introduced the electronic trading in their trading room, only 2 places in the worls now are still working with the floor trading, the real trading for someone, the London Metal Exchange and The Chicago Mercantile Exchange.

The London Metal Exchange (LME), located at 56 Leadenhall Street in the City of London, is the futures exchange with the world’s largest market in options and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates of up to three months from trade date, along with longer-dated contracts up to 123 months, it also allows for cash trading. It offers hedging, worldwide reference pricing, and the option of physical delivery to settle contracts.

On this picture, we can see the floor of the LME, brokers and trader of differents firms are negociating each others every metals.

In the futures pits of the Chicago Mercantile Exchange (CME), tens of thousands of people crowd into 70,000 sq. ft. and trade in excess of 550,000 contracts a day by using their voices and hands. Even this volume is pale in comparison to the total dollar volume of all futures contracts worldwide, which are over $500 billion a day. In comparison, the electronic automated counterpart to the Exchange, the GLOBEX Trading System, trades only 6,000 contracts daily.

LME trades the equivalent of $7.41 trillion annually and $29bn on an average business day. More than 95pc of its business comes from overseas.

Compared to futures, options have been slow to transition to screen trading because they are inherently more complex. Not only do they come in a range of strike prices and expiration dates, but their prices depend on the volatility of the underlying futures contract, which can fluctuate sharply on a moment’s notice. On top of that, traders have a huge variety of strategies involving different combinations of puts and calls. In energy markets, it is often easier to execute such strategies through humans on the Nymex floor rather than through Globex, which is best used for plain-vanilla options with nearby expiration dates, according to market participants. That could keep the options pit humming for a while.

Does the « Trading on the floor » has a future in this world based on technology ? Still, others still believe there should be a role for both humans and machines. We’re in the 21st century and open outcry is being replaced by more machines ; but of course, If you’re just trying to do volume, if you’re just trying to do speed, the machine will be the preferred venue. Nobody will argue that. But there’s a place for both in some way, because sooner or later people will want to have more personal attention than a machine can provide. I mean, have you seen all the snafus that the machines have created? We’ve never had that kind of stuff in open outcry. That could keep the pit humming for a while.

Mekki Achraf


BONDS & SHARESBONDS & SHARESMarch 17, 2014
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11min580

Jesse Livermore, the greatest speculator of the 20th century said: ” What is fundamental for  successful trading is knowledge and patience… “

First of all, the acquisition of knowledge requires a lot of personal involvement, especially if the trader’s vision is to reach the best levels to be part of the golden boys of trading.

In my opinion several factors are essential to form an efficient way. Through my eyes as a student over the years, I share with you my feelings about quickly and effectively acquiring solid skills.

 successful trading

First select a formation de prestige that proves itself in terms of results but also a person with irrevocable trading credit. In other words, a credible trainer that you will listen to diligently. For my part, I first selected the TKL trading school master to acquire technical analysis skills before even integrating an MBA specialized in trading at ESLESCA (Paris)

Why the TKL trading master?

A mes yeux, Thami Kabbaj has a fairly rich experience, both academically with reference luggage and in terms of  technical analysis. Once again this year, he showed us his incredible talent by winning the technical analysis trophy despite his discretion in the media.

He has focused all his energy on developing his school : TKL trading School. At no time as a student are we able to question his knowledge and hard work. Above all, it is a mentor whom we must listen to in order to progress. It is an essential aspect to accept the criticisms of a great master.

To make the student should approach his training with an optimal psychological state that I describe here by >the teachability index. A student with a teachability index of 10 will increase his chances of success.  The teachability index is based on two elements:

The willingness to learn: This value reflects the degree of a student’s personal involvement in learning. This reflects the means you will be ready to implement to succeed.

It is a question essential, ask yourself this question: What am I willing to put aside for this training? Even my favorite activity? Well yes, if you have a strong willingness to learn, set yourself goals and demonstrate your ability to achieve them.

– The willingness to accept change : This requires a good dose of humility, put your ego on hold. The student must, first of all, leave aside the knowledge already acquired on the subject. Hence the need to believe in your trainer.

To excel one of the secrets is to unlearn to learn. Once the method is fully mastered, then your judgment and knowledge may eventually come into play. ” To excel, you have to unlearn to learn” via Thami Kabbaj.

With this winning attitude we quickly integrate trading skills. However, it is important to distinguish between conscious competence and c unconscious competence. The difference lies partly in the time factor but also in the notion of perseverance. Conscious competence is characterized by “I know…… “While unconscious competence is the almost instinctive execution of an action.

The best traders have unconscious competence, so they have integrated the time factor in their trading plan. After acquiring and convincing their methods, these champions have repeated again and again</span style=”color: #000000;”> to such an extent that their methods become automatic in daily use.

In this way, it focuses their efforts on the process. Consider one thing, from the moment a trader is profitable with the process even with low capitalization, it will be the same for larger sums….

As mentioned by M.Loeb :

The knowledge from experience is what makes the difference between good and bad speculators. “

http://www.thamikabbaj.com/fondamentaux-pour-reussir-le-savoir-et-la-patience/

Kévin ROMANTEAU


BONDS & SHARESBONDS & SHARESMarch 5, 2014
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6min440

An outbreak of panic struck the financial markets on May 6, 2010. The appearance of a new crisis that has never existed before. In the space of 10 minutes, the markets fell sharply without interruption and lost up to -9%, the lowest ever. This is called “Flash crash“. Even today, no one knows the exact reasons for this crisis. But for some, there is no doubt. The algorithmic trading to a share of responsibility. But first let’s go back to high-frequency trading.

It was in 2005 that it appeared when the United States began to implement algorithms to automate orders at full speed. Many people still think that to negotiate, it is still necessary to scream in the rooms and execute incomprehensible signs.

high frequency trading

But this era is over. From now on, the auction has given way to computers and their endless algorithms. Mathematicians are therefore putting in place new formulas that make it possible to take positions in the place of man. They therefore have control over most financial transactions. The new machines have no emotions and therefore make it possible not to be influenced by psychological biases.

Every day, high frequency trading brews billions of dollars worldwide with about 60% of the world’s daily transactions. To automate all this, powerful mathematical algorithms are coded and integrated into high-speed computers to detect and exploit micro-market movements.

Orders are executed in about ten milliseconds and therefore try to take advantage of very small price differences on the values. With such a speed of execution, one can wonder if this can not destabilize markets and it is legitimate to ask questions about regulation.

Is it necessary to regulate high frequency trading?

As high-frequency trading grows, the authorities quickly reacted. In particular the AMF which has carried out a risk mapping. It estimates that the volume of transactions processed by high-frequency trading for the CAC 40 is 17% and around 30% for Europe.

The debate is complex because among the many experts, there are two parties. Some say it is dangerous to use this system, and others point out that this trading is essential for market liquidity. However, the authorities have decided to limit the speed of transactions.

In fact, a draft revision of the Markets in Financial Instruments Directive intends to impose a time of minimum latency for stock market orders. That is, each automated order, before being executed, must remain at least half a second in the order books.

This new project is likely to have a significant impact on transaction volumes and market operators. Pending the response of the European Parliament and the adoption of a joint decision, the debate is very lively between detractors and defenders of high frequency trading.

Future “Flash crash” ?

On the other hand, the subject of high frequency trading leaves no one indifferent, one can wonder if the origin of the “flash crashes” is not partly due to high frequency trading. We are currently unable to find the factors that cause the “flash crash”, but according to experts, high frequency trading can amplify the drop.

We all know that high frequency trading is based on the principle of taking positions according to market trends. And it is clear that if the market is “bearish”, the machines will therefore massively return to the sale, which causes a mini crisis. The market is therefore extremely volatile, and the execution speed is so fast that even stop-losses are surpassed and do not have time to be triggered.

No one knows where and when the next crisis will appear but one thing is certain, it is that high frequency trading has already impacted the depth of the markets. That is to say that we see more and more small orders and the size of transactions have decreased. This results in an inability to absorb a large order size and the growth of OTC transactions.

Vicky TSANG



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