Month: November 2019

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How to use the money flow predictor

HOW TO...

Trades
besomebodyfx terminal
HOW TO USE THE capital FLOWs TOOL

This is a fairly straightforward tool.

You have access to up to date seasonal charts for any asset you want.

Indices?

Yes.

Currencies? All of them yes, majors, minors, and exotics.

Commodities?

Absolutely.

Now the question becomes…

HOW IS THIS USEFUL?
Well, if you have seen these seasonal charts around already you certainly know how useful these are.
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But if you are not, then let me show you some practical applications.
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Ok, before we get into some examples.
what exactly is a seasonal chart?
Basically…
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Specific assets in specific periods of the year tend to have flows that repeat year after year.
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Think of it as trends that repeat annually in specific periods of the year.
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Here’s the S&P500 for example:

There are many instances here of seasonal patterns but let’s take a random one.

Look at the chart from late June to late July…

Notice the impulsive rally on the seasonal chart during this period?

That’s not random.

That’s a seasonal trend.

The S&P500 in specific period of the year ALWAYS tends to rally.

Literally.

Always.

Here’s exactly the S&P500 year by year between June 27 and July 24:

Interesting right?

But why that happens?

Well, the market is not made just of speculators.

There are many flows like commercial activity and portfolio rebalancing.

The start of July is a particularly interesting one because it marks the start of Q3, and so the turn from the first half of the year to the second half.

So we can imagine there are some sort of repeated flows that have to happen regularly at that time of the year for reasons related to the turn of the quarter and the start of the second half of the year.

We can’t know for certain.

But that’s what the seasonal charts are there for.

They show us when those seasonal patterns happen.

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THE POINT?

The point is that we can use these moves to our advantage.

Same happens in currencies, of course.

There are specific seasonal periods where there’s historically more demand for Dollars.

And other periods where there’s less.

And the same is true for all other currencies, and commodities, and to some extent crypto too.

IN OTHER WORDS…

Seasonal charts allow us to spot these patterns to first avoid getting caught in the wrong direction of one of these seasonal flows, and second ideally position for it.

Simple but REALLY useful.

Posted on

How to use the institutional activity data

HOW TO...

Trades
besomebodyfx terminal
HOW TO USE THE INSTITUTIONAL ACTIVITY SCORE

This data is extremely helpful for you to get a view on what the institutions are doing in the markets, being able to see week after week their activity will give you a great edge every week.

But how can you make use of it?

Well, first of all, you can of course follow the trades shared.

Easy to do, very relaxing approach and you can set and forget the pending orders, the trades on the institutional activity section are based mostly on that plus of course some technical and some fundies.

But at the same time you have the freedom to use the data for your own intraweek trading.

The concept here is simple…

If institutions are adding for instance longs on the EUR then for that week you want to look ONLY for EUR longs.

That way having the smart money on your side will allow you to ride the big moves and not get trapped in the wrong direction.

But let’s see some real life examples.

EUR DATA SENT SUNDAY 10/27/2019

This is just the first example, you can clearly see how by having access to this type of data you can get a clear bias for the week ahead and be always in the right direction.

AUD DATA SENT ON SUNDAY 10/13/2019

I can go ahead with these examples for pages and pages.

With this info you have the power of having a clear directional bias for the entire week.

It’s useful for intraday trades, for swing traders, for everybody.

Knowking where the money are moving and in which direction is what will make you profitable over the long run.

CAD AND JPY DATA SENT SUNDAY 10/20/2019

With some common sense and some basic technical analysis, you are able to catch the best entries.

And the best way of doing this would be to pair a currency where institutions are moving in a specific direction against a currency where they are moving in the opposite direction.

For instance…

In the example above you can see we sent the institutional data Sunday 10/20/2019, and from that there was a clear bias to long the CAD against the JPY.

Institutions were adding longs in the CAD while adding shorts and closing longs in the JPY.

Volume during the week wasn’t much but still a solid gain with a good technical entry.

We can go on and on...

I can keep sharing examples, but i think we have proved a point here, the most info you have the better odds of taking a good trade you have.

Knowing where institutions are moving money, having a fundamental factor backing up the direction (you can have this by reading our daily briefings in the network channel) can be your holy grail if you use it wisely.

But so what does -10/+10 etc mean?

You will see how the institutional activity is illustrated in “scores”, between -10 and +10.

What does the score represent?

The score represents the average amount of money moved by institutions in the given currency.

For example…

A -10 in longs means that institutions have closed a relatively big amount of positions relative to their average activity.

While instead a +3 in longs in the CAD will be a relatively average low size and thus not much relevant.

OUR TRADES...

On the same page every week you will see our trades.

These are literally the easiest signals to follow, you have no excuses here.

The trades are sent usually as pending order on a Sunday before the market open, and you have all the time in the world to set and forget the order on a Monday.

Literally you can follow the instructions and forget about the trade until the next update on the next Sunday.

Down below you can see an example of a recent trade in AUDUSD.

Pending order set at the market open and the update is then sent the next Sunday…

After that the next update will be the next Sunday and so on.

Makes sense?

With these type of trades no action is taken during the week.

This is a great way of trading for traders that don’t have time to follow the markets during the week or that want to have some freedom while trading.

And this is why we use both approaches…

This long term relaxing approach and a more intraweek approach in the telegram channel, you can easily follow both by being a private network member.

The good aspect of this is let’s say you got bored of trading every day and you want to go on holiday or you want to take a break, easy peasy, switch to a longer term trading style, it takes literally 1 hour on a Sunday to study the institutional activity and find trades or to follow our long term trades, 1 hour on a Sunday to be free the entire week.

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