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TrendFollower

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Everything posted by TrendFollower

  1. All Cryptocurrencies are in the 'red' and seem to be correcting heavily as they do. This is likely to be a combination of profit taking, stop losses being triggered and new short positions being opened all amplifying the move downwards. Litecoin seems to be holding up rather well compared to the others including Bitcoin It is only down around 1.1% compared to 3%-7% for the others.
  2. I have stated on possibly other threads that Lumber has been one of my best trades both on the 'Long' side and on the 'Short' side. The US Fed are making noises about potentially reducing interest rates and this is providing a bullish backdrop for Lumber prices. It is breaking out very strongly and sharply and hit $41008 today. See the 'daily' chart below.
  3. The German Bund and Bond prices in general are rising which is not a good 'Economic Indicator'. The chart below highlights the price action of the German Bund.
  4. @JamesIG, I think some are concerned that because staff on IG’s dealing desk and trading services team can see these that the price could be dropped to stop loss levels as they could have an overall view of this on any specific asset. This is what certain others believe. Are you able to alleviate their concerns?
  5. I wanted to take this opportunity to share this which is from the website CCN but the source is the Wall Street Journal. This graph highlights Bitcoin's performance and percentage returns based on hard facts and evidence. Bitcoin is leaving other asset classes in the dust. | Source: Wall Street Journal
  6. @JamesIG, Great stuff. I just had a look and it is very good and much needed so well done. I think there is still a lot of scepticism over Bitcoin and Cryptocurrencies in general so this is good timing. There has been a lot of negativity over this asset class on the IG Community and I think it stems from a lack of understanding, lack of knowledge and lack of appreciation of what is currently happening and the potential going forwards into the future and how this will be applied. To be fair there has been some valid criticism but at times some of the negativity has been vague and there has been no real credible evidence or substance behind the negativity apart from that it is rubbish, junk, garbage and is going to zero. IG has offered its clients the ability to trade Bitcoin and other Cryptocurrencies for a while as have their competitors. There is a real market and asset class emerging here. Those who know me or follow me on the IG Community will know that I trade Cryptocurrencies but that I also invest via the XBT Provider One products. The reason why I invest is exactly because of the price appreciation and capital growth in relation to halving events and many other factors. IG offers me the ability to trade Bitcoin and other 'Alt Coins' but as a long term investment it is very compelling when you look at the profits and returns from inception (2009) to date. Again well done for setting this up. I think it was needed based on the views I was experiencing on the IG Community.
  7. @Goldfinger, Very interesting question. I do not envisage any major difference for IG's UK Spread Betting clients. However, for EU's Spread Betting clients, I do not know. I personally cannot see IG closing such positions for its EU customers without warning them in writing for this potential. @JamesIG, are you able to offer any thoughts on this?
  8. @GabyBerger, The general IG Community do not have access to your account and therefore would not have the personal detail of your trades to even try and work out how it was calculated. I would suggest you contact IG Customer Services for assistance on this specific matter.
  9. One of the key skills when following 'Trend Following' principles is actually identifying the trends to trade in the first place. The asset class is not important. It is the asset which is trending the strongest which will give you the best chance of a successful trade. It is about identifying the strongest trending assets and then trading them. What happens is that traders get stuck in trading just certain FX pairs or only specific commodities or indices. This means they face a higher probability in missing some of the biggest trends and strongest trends from a trading perspective. The stronger the trend, the higher probability of greater profit potential. Risk Management is crucial and if one is applying technical analysis then it can assist when considering a trade which is slightly high risk. It could be a specific set of commodities that are trending strongly. If one is only willing to say trade Gold or Oil then they may miss bigger opportunities in say Corn, Coffee, Cocoa, etc. If one is only willing to trade Bitcoin then they may miss a bigger opportunity in Litecoin. If one is only willing to trade US Treasuries they they may miss an opportunity in the German Bund. If one is only willing to trade the FX Pair US/GBP then they may miss a bigger opportunity in say another FX pair which is trending stronger. When someone applies 'Trend Following' principles, following of the strongest and biggest trends is more important than following only specific assets. This is an important factor when it comes to 'Trading Portfolio Profit Performance'. Now I accept the risk is greater when trading certain assets which are slightly more illiquid or volatile. However, if robust risk management is applied and trading rules are followed with discipline in terms of entry/exit execution, one can learn to control and manage the risk to their advantage. Of course there are no guarantees in trend following and losses will occur following such a trading style but losses will occur using any trading style as no trading style exists where losses simply cannot occur. This is where identifying trends early and entering trades as early as possible makes a big difference. I tend to 'anticipate' and make 'assumptions' which I allow the price action to test if I am right or wrong. If I am wrong then my stop loss will allow me to exit early and quickly. If I am right then my trialing stop will allow me to exit with a profit.
  10. The Middle East seems to be embracing 'Tokenomics'. Please see the article below for further information. UAE second in global token sales https://www.arabianbusiness.com/banking-finance/422182-uae-second-in-global-token-sales The UAE wants to apply government transactions on the blockchain and apply it to Dubai's smart city ambitions. UAE are embracing this technology as they realise they are in the middle of the globe in terms of payment transactions and supply chain from west in to east and vice versa. It wants to be the hub for global trade both from the physical sense and digital sense and this includes digital transactions.
  11. Just look at the gains from this ETF which is available to trade on IG's platform. Now there are some funds and investment trusts in this area which have performed better than ETF's simply because of the stock picking skills of the fund / trust manager. Also how much capital they allocated to specific companies and their general portfolio allocation model. Their entry and exit prices play a part as their decision making can be critical to the level of returns they generate for their investors.
  12. It seems Bitcoin is leading the way not only over this weekend but today in terms of price action. It is making new highs for the day and just hit $9338.20.
  13. Part 4: BlockClaim is both an interesting and very exciting company in the field of insurance and technology. I think it is exciting because it had the foresight to combine AI, Machine Learning and Blockchain into their business. What companies are beginning to do is to combine these technology themes as they have began to realise that it is by combining them that they are get the most 'Return on Investment' ROI out of them. 'Data' is the new 'Natural Resource'. This is how Sandip Patel who is the global managing director for insurance across IBM described it. I think this is especially true when you look at data from an insurance companies perspective. What is interesting about BlockClaim is that it is a data aggregator and it enriches this data too. Now this basically allows BlockClaim to make informed decisions in an automated way. This is the future for insurance companies embracing and utilising technology going forwards. What BlockClaim wants to do is to help insurers settle claims in 24 hours. Now on average in the UK it is reported that it takes around 25 days for insurers to settle claims. If this company can successfully meet its aim then this could be a truly 'disruptive' business in the industry. For those of you who are not familiar with BlockClaim then it started at Imperial College around two years ago out of a 'Proof of Concept' POC that was about Blockchain telematics and insurance. The company then began working with motor insurance and I believe it has moved into health claims. Insurance is a huge market not just in the UK but worldwide. Disclaimer: I hold an equity stake in a start up business called 'Wrisk' which operates in a similar area. To be continued...(Part 5 - Coming Soon)
  14. @JamesIG, Thanks for responding. Ok that’s cool and the maybe if the asset is added to IG’s platform then it can be reviewed the potentially moved to the Cryptocurrency / Blockchain section? Great, that this thread can remain open. I shall continue to add relevant information to Cosmos - Atom on this thread to share with the IG Community.
  15. @elle, Thanks for this. Interesting ‘Support and Resistance’ viewing. I still think Bitcoin needs to hit $11.5k level from a ‘daily’ chart perspective for any downtrend in play to be overridden.
  16. I do not invest in Gold or Silver but I do occasional trade Gold and Silver. The margin requirements are attractive when trending strongly in any direction. However, it is important that one does not get a strong 'bias' towards Gold and Silver as they deceive far too much. Based on media hype and frenzy anyone would think Gold and Silver are shooting up and are going make new all time highs shortly. There needs to be demand and a serious appetite for capital to shift to such assets and based on the current price action I am just not so sure there is. At the moment I favour Bonds ahead of Gold and Silver. Now that could change as the price action changes but for now Bonds such as the German Bund have a far better price behaviour than Gold and Silver based on the same time period of say a couple of years.
  17. I wanted to take this opportunity to share an article about the title of this thread from the well known and established technology company, Oracle. How IoT, AI, and blockchain will revolutionise business. http://www.oracle.com/us/solutions/cloud/tt-technologies-white-paper-4498079.pdf I will try where possible to share material from 'Credible' sources as I think this is important. I accept that at times such called credible sources will contain both 'Positive and Negative Biases' so one must be aware of this.
  18. It looks like the sell off was rather short lived. It is 5:00 am UK time on Monday morning and Bitcoin is around the $9267 level. It seems to be holding up rather well as it low overnight was around $8901 level.
  19. @K2E2014, Welcome to the IG Community. What assets do you trade? What is your trading strategy?
  20. So here comes the UK 9:00 pm Sunday sell off! With the gains achieved from Friday evening to Sunday evening it is totally understandable that traders are going to take their profits as there simply is no other asset that has delivered such returns in this very same time period of Friday evening to Sunday evening. How deep this profit taking will be I don't know but I think Bitcoin will seeing further buying pressure which will take it to $10k pretty soon.
  21. What we may see is a quick sharp push to $10k. This is a very important price level which may attract a lot more capital to the asset class. We know more institutional interest is taking place compared to the run back in 2017 as it climbed towards $20k. We are also know the awareness level of Bitcoin and Cryptocurrencies are higher now than then. We also know there are more active participants in terms of investors and traders now than there were back in 2017. The large inherent risk still exists with Bitcoin and co so one must be very robust with their risk management. One must also not get too attached to this asset class as the potential still exists for a collapse. It is unlikely at this point in time but a lot of skepticism still exists. One must also be aware of aggressive short sellers now there is a futures market for Bitcoin. I still expect Bitcoin to hit $10k pretty shortly even if there is any correction or the big correction may come after $10k is crossed and it hits $11k or even close to $12k. A lot of people will be on the sidelines just watching as the price keeps going up, up and even more up. On balance of probability it is looking more likely from this current point that Bitcoin will hit $10k and even higher up to $11k - $12k rather than hit zero and collapse in the next 12 months or up until the halving occurs.
  22. Bitcoin at 1:30 pm UK time is still holding up above $9k level which is good so far. It may not last and by tomorrow morning could be back below $9k or shooting up to $10k such is the unpredictability and volatility in Bitcoin.
  23. I wanted to just share the 'Monthly' Silver chart. I shall let you all draw your own conclusions and make your own predictions / assumptions. Now have a look at the 'Weekly' chart below: For me one could argue that all the downside is played into Silver and any sight of significant bad new could lead to immense upside. It would be a 'Contrarian' type investment / trade but it would also be a 'buy and hope' investment and style. There is nothing wrong with that as long as one accepts that is what it may be. Right now time for some serious 'Flooding'. Apologies if you do not get a chance to this this post or my previous post on this thread due to severe 'Flooding'. The weather is bad in the UK. 😂
  24. @JamesIG, Please can you move this into the Cryptocurrency / Blockchain section? Also are you able to advise on whether IG deem anything in this thread as token spam or anything inappropriate as then a decision can be made on whether this thread needs to be closed or it can remain open.
  25. It is no secret that right now in my personal opinion the 'Strongest Trending Assets' (STA) are Cryptocurrencies and the likes of Bitcoin et al. Remember that the trend is your friend until the bend. The key is that the bend has to be a significant one which shifts the direction of the longer term trend. Short bends can be mistaken for corrections which are not necessarily trend reversals.
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