Tag Archives: crashes

1 Trader with Algorithmic Trading crashes the market

1 Trader with Algorithmic Trading crashes the market

I did not think this was possible but greedy automated traders crashing the market is something else.

http://www.bloomberg.com/news/articles/2015-04-22/mystery-trader-armed-with-algorithms-rewrites-flash-crash-story

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

There goes the EUR/USD, crashes right through support at 1.3150 and is sitting below 1.3100, if it holds below 1.3150, next target at 1.2875

There goes the EUR/USD, crashes right through support at 1.3150 and is sitting below 1.3100, if it holds below 1.3150, next target at 1.2875

 

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there is always and up and down,, manipulated you dont agree!!!

 

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I would like to see a retrace up to around 1.3150 again to look for a short position. EUR/USD’s volatility is hopefully in the process of picking a consistent market direction for the time being. Unless the ECB and EuroZone reach a stellar agreement, financial markets must be bearish on the euro for the foreseeable future.

 

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below 1.3064 still points bearish before next fib resistance at 1.3160..would like to see it towards 1.2930-ish first before leg up, then before a bigger south mho

 

For the short position view on EUR/USD the below option strategy can be applied.
Spot: 1.3020

Buy EUR Put USD Call with strike 1.3020 expiry 1 week. You will pay 4730 EUR
Sell EUR Put USD Call with strike 1.2800 expiry 1 week. You will receive 1651 EUR
Sell EUR Call USD Put with strike 1.3200 expiry 1 week. You will receive 2900 EUR

This strategy is almost zero cost. You will be taking advantage to sell EUR from spot level and will be safe unto spot + 80 ticks. If EUR/USD goes above 1.3250 it is better to start making delta hedge for stop loss.

Pricing source: www.derivativeengines.com/multipleoption2.aspx

 

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The notional amount for the first and second option is 500,000 EUR (puts) and for the third option 1,000,000 EUR (call)

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!