Fixed income sales traders make money by buying and selling fixed income securities, such as bonds, on behalf of institutional clients. They typically work for investment banks or large financial institutions.

1. Spreads: Sales traders make money by earning a spread, which is the difference between the price they buy a bond for and the price they sell it for. The larger the spread, the more money the sales trader makes.

2. Commissions: Sales traders also earn money through commissions, which are fees charged to clients for executing trades. These commissions can be a flat fee or a percentage of the trade's value.

3. Markup: Sales traders may also make money by marking up the price of a bond when they sell it to a client. This is a common practice in the fixed income market, and it allows sales traders to earn a profit on top of the spread and commission.

4. Financing: Sales traders also earn money by financing the bonds, which means borrowing from a lender to purchase the bond and selling it with a higher price.

5. Relationship building: Sales traders also earn money by building strong relationships with clients and providing them with valuable insights and research. This can lead to repeat business and more trading opportunities.

In summary, fixed income sales traders make money through spreads, commissions, markups, financing, and relationship building with clients. Their main goal is to buy and sell bonds on behalf of institutional clients, by doing so they make money through the difference in prices and commissions.

 

Fixed income sales traders typically communicate with clients through a variety of channels, including:

1. Phone: Sales traders will frequently speak with clients over the phone to discuss market conditions, provide updates on trade activity, and offer new investment ideas or strategies.

2. Email: Sales traders will also use email to correspond with clients, sending them market updates, research reports, and other relevant information.

3. In-person meetings: Sales traders may also meet with clients in person to discuss their investment needs and provide more detailed information about specific securities or strategies.

4. Video conferencing: With the advent of technology, sales traders also communicate with clients via video conferencing, this allows them to have face-to-face conversations with clients from different locations.

5. Chat: Sales traders also communicate with clients through chat platforms, this is a quick way to provide updates or answer questions.

In their communication, sales traders will typically use industry jargon and terminology, they also need to be able to explain complex financial concepts in a clear and concise manner, this is important to establish trust and credibility with clients. They also need to be able to listen to clients and understand their investment needs, and tailor their communication to those needs.

In summary, fixed income sales traders communicate with clients through phone, email, in-person meetings, video conferencing and chat, they use industry jargon and terminology, and they need to explain complex financial concepts in a clear and concise manner, and also to listen and understand clients' investment needs to tailor their communication.

Fixed income sales traders communicate with research teams to sell investment ideas in the following ways:

1. Research Reports: Sales traders will often receive research reports from the research team, which provide in-depth analysis of specific securities or market conditions. They will use this information to present investment ideas to clients and to provide them with a detailed explanation of the investment opportunity.

2. Meetings: Sales traders will also meet with research teams to discuss new investment ideas and to get a deeper understanding of the underlying market conditions. These meetings will allow them to ask questions and get additional insights on the research team's analysis.

3. Conference Calls: Sales traders may also participate in conference calls with the research team, where they will discuss market conditions and new investment ideas. This allows them to get real-time updates on the markets and to ask questions of the research team.

4. Email: Sales traders will also use email to communicate with research teams, this is a quick way to ask questions or request additional information.

5. Chat: Sales traders also communicate with research teams through chat platforms, this is a quick way to provide updates or ask questions.

In their communication, sales traders need to be able to understand the research team's analysis and be able to explain it to clients in a clear and concise manner. They also need to be able to identify potential investment opportunities and tailor their communication to the specific needs of clients.

In summary, fixed income sales traders communicate with research teams through research reports, meetings, conference calls, email, and chat. They use this information to present investment ideas to clients and provide a detailed explanation of the investment opportunity. They need to understand the research team's analysis and be able to explain it in a clear and concise manner, also they need to identify potential investment opportunities and tailor their communication to the specific needs of clients.

 

 

Hello, folks today I want to show you a strategy based on Commodity Channel Index (CCI) Indicator.

 

What is the Commodity Channel Index (CCI)?

 The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.

 

                                                         

 

Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

I will use the simple rules for the strategy:

KEY TAKEAWAYS

-IF CCI -140 ENTER LONG, IF LAST 5 HIGHS OF THE BAR BELOW EMA 20
Enter long position
-IF CCI ABOVE 140 ENTER SHORT, IF LAST 5 LOWS ABOVE EMA 20
Enter short position

STOP: 1000 USD
TAKE: 5000 USD

Instrument BTCUSD

 

 

This is how automated strategy is looking on the chart.

Now let’s make some magic with backtesting of the strategy.

 

 

As we see above during 2 years of trading strategy made over 32k USD. We can’t say that the equity performance was perfect,                                                                                                                but at least strategy showed a profit in these difficult market conditions.

Lets look at Performance summary ($)

 

As we see above simple strategies are exist !)

The best trading strategy in the world won’t do you any good if you allow emotions to trump logic

 

PRICE: 70 USD

 

Pls contact us:  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Today we want to show the most sophisticated Institutional algorithms that is used by large institutional clients for market-making, order execution and trading.  

 

EXECUTION ALGORITHMS FOR MAKING LESS IMPACT TO MARKET

Iceberg (Iceberg)

An algorithm that dispenses orders . Of the true order quantity, only a part is shown on the board, and when the order placed on the board is executed, the next order is placed.

Stealth

Don't put your order on the board, but take it when you get an order for the price you want to buy on the board.

Pegging

An algorithm that places a limit order that is a certain value or a certain percentage away from the best quote, and follows it when the best quote fluctuates . Sometimes used for market making.

Layering

Place limit orders distributed across multiple prices in order to take a high priority position within each price .

Liquidity Driven Order

Monitor the liquidity of the board and place an order when the liquidity exceeds a certain level.

SOR (Smart Order Rouiting)

Place orders from multiple markets to the best market.

 

 BENCHMARK EXECUTION ALGORITHM-AN ALGORITHM THAT BRINGS THE EXECUTION RESULT CLOSER TO SOME KIND OF BENCHMARK USED BY INSTITUTIONAL INVESTORS FOR LARGE ORDERS. 

TWAP (Time-Weighted Average Price)

An algorithm that equalizes in time and places an order . Place an order by dividing the quantity you want to trade at equal time intervals.

 

VWAP (Volume-Weighted Average price)

An algorithm that aims to bring your VWAP closer to the market VWAP . In many cases , the volume is normalized by the volume distribution during the day and the quantity is sliced ​​before ordering.POW

 

POV(Percentage of Volume)

Place an order so that it accounts for a certain percentage of the market volume .

 

PI (Price Inline)

A modified version of VWAP. If the current price is smaller than VWAP, order a larger quantity, and if it is larger, order a smaller quantity.

 

MOC (Market on Close)

An algorithm that aims to bring its VWAP closer to the closing price of the market .

 

IS (Implementation Shortfall)

An algorithm that benchmarks the market price at the time of buying and selling decisions .

 

MARKET MAKING ALGORITHM-ALGORITHM USED FOR MARKET-MAKING . PLACE BOTH BUY AND SELL ORDERS ON THE BOARD.

 

See market mid-market price

Determine your order price by referring to the market mid-market price.

 

Market price interlocking

Take the limit order left behind when the board situation changes and the price moves to either side .

 

Utilization of market liquidity

If there is a large order for another participant on the board, place an order in front of it.

 

ARBITRAGE ALGORITHM-MAKE RULING BY PAYING ATTENTION TO THE DISTORTION OF THE MARKET. 

 

Same product arbitrage

If the same product is traded in multiple markets, the price difference is determined.

 

Theoretical ruling

For objects such as derivatives for which the theoretical price can be calculated according to a model such as the financial price, the price difference from the theoretical price is determined.

 

Statistical ruling

Arbitrate statistical distortions that other market participants are unaware of.

 

DIRECTIONAL ALGORITHM-PREDICT PRICE MOVEMENTS AND ACTIVELY TAKE MARKET RISK.

 

Trend Following

We will trade with the expectation that the trends that occurred at the past will continue in the future.

 

Momentum Traing

Make transactions that take advantage of short-term momentum.

 

MEAN REVERSION-TRADE THE HOPE THAT THE PRICE WILL RETURN TO EQUILIBRIUM WHEN THE PRICE FLUCTUATES TOO MUCH. 

 

Range Trading

Trade with the expectation that the price will move within a certain range.

 

News / Event Driven

Transactions are triggered by stock price movements such as corporate news and announcements of indicators.

 

MARKET OPERATION ALGORITHM-AIM TO MANIPILATE THE MARKET BY INDUCING THE OTHER PARTICIPANTS. IT MAY CONTAIN ILLEGAL ELEMENTS.

Front Running

The broker uses the order information from the customer to buy and sell in his own favor .

 

Spoofing

Place large orders at multiple prices and mislead other investors' forecasts.

 

Strike robbing (Strobing)

Placing an order on the board for a moment misleads other participants' predictions.

 

Momentum Ignition

Placing an order in a specific direction misleads other participants' predictions.

 

Stop Loss Ignition

Induce price movements by aiming for stop loss orders from other investors.

 

Push the Elephant

When there is a large order on the board that seems to be willing to buy or sell, induce a large order by updating the best quote with your own order.

 

Gaming

Update the best quote on your order and manipulate the price of the dark pool referring to the quote.

Hello folks

Today I want to show u system of Donald Prendergast that was explained in in the December 2013 in journal "Stocks and Commodities "

Donald Pendergast

Donald Pendergast has studied technical price charts and market dynamics for more than 30 years and has had more than 1,000 articles on technical analysis, trading system development, and high-probability chart setups published at several trading/investing publications since 2008. Pendergast offers real-world trading signals for a basket of eight gold/silver mining stocks/ETFs and also offers high-quality, customized analysis for US stocks. 

 

A SIMPLE AND VISUAL SYSTEM
Here's a look at my simple, visually based "trading with the trend" system that is nonoptimized, noncurve-fitted and is a no-brainer to construct and maintain. The key ingredient for success in trading with this template is you, because there are no secret market indicators or forecasting tools that can guarantee you trading success. But this no-cost trading template that is easy to construct will help you stay on track with the mental and emotional discipline needed to learn to trade profitably. After that, you may want to further fine-tune it by obtaining education in other market dynamics like relative strength analysis, money management techniques, price cycle studies, or wave analysis.

THE RIGHT CANDIDATES
Before you begin, you first need to locate stocks and ETFs that tend to make relatively smooth, regular swing and/or trending moves (up or down, and preferably balanced over long periods of time) if you expect to achieve success with this system. In other words, look for volatile (high-beta), high-volume stocks from sectors and industry groups that tend to go on a bullish/bearish tear several times per year, and which don't spend too much time chopping around in directionless funks. Fast-moving, news-driven technology, mining, financial, or energy stocks are likely to be good hunting grounds for such desirable issues; you'll likely want to avoid sluggish markets like electric utility stocks or other highly regulated public service issues that tend to trade within small ranges most of the time.

 

 

 

UNO, DOS, TRES
The daily chart of Citigroup (C) in Figure 1 shows the three-indicator trading template; this was created using three standard indicators in TradeStation 9.1 (see Figure 2):

 A 50-day exponential moving average (EMA; blue line)
A five-day simple moving average of the daily highs (SMA; gold line)
A five-day simple moving average of the daily lows (SMA; red line)

 

The trading logic is very simple:

Long entry:

Go long when price exceeds the upper (gold) moving average of the daily highs by five ticks (0.05) and the price bar prior to the break of the upper moving average has closed above the blue 50-day EMA. (Note: If trading low-priced or high-priced stocks, you may want to decrease/increase the five-tick parameter as needed, since five ticks in a $300 stock is a much smaller entry filter amount than five ticks in a $40 stock, so adjust accordingly).
Once you are in a long trade, use the lower (red) moving average of the daily lows as your initial/trailing stop-loss for the life of the trade. Aggressive traders can use the low of the entry bar as the initial stop, but this will sometimes result in premature stop-outs and will entail extra commissions and effort; newer traders should just use the red line as the initial/trailing stop to keep things simple.

Short entry:

The rules for short entry are simply the inverse of the long entry setup.

 

MOVING FORWARD, SLOWLY
The simulated test results aren't too shabby overall; the system made money on both sides of the market, although more on the long side. The closed trade drawdown was decent, and the profit factor was exceptionally good. Winners were much larger than losers on average, and there were no "catastrophic" losing trades -- a major plus. This means the model has good overall risk control even as it allows winning trades sufficient breathing room to develop.
Of course, this is just a sample trading strategy and no one knows if it will continue to perform as well as this in the future, but you can alter it, fine-tune it, automate it, add multiple exits, or just run it as-is, being sure to select a suitable, diverse universe of stocks or ETFs to trade it with.
Try using a longer or shorter EMA as your trend-confirmation line. Consider using, for example, a 21- or 30-day EMA to generate more trading opportunities, or perhaps an 80- or 100-day EMA to slow things down a bit. You can accomplish much of the same thing by lengthening/shortening the moving averages of the daily highs and lows, too. You can even control the dollar/share allocations by limiting your maximum account risk to perhaps 2% per trade or 0.75% to 1% per trade if you are trading it with a portfolio of six or more stocks. The possibilities for further development of this system are limited only by your understanding of the financial markets, trading skills, imagination, creativity, account size, and confidence level.

 

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