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, and 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 these type of data 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, 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 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
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, so for instance a +3 in longs in the CAD will be a relatively average low size and thus not much impactful.
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, you have all the time in the world to set and forget the order on a Monday, literally 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…
The next Sunday here is the update, the order has been filled and it’s now running, the next update will be the next Sunday and so on, 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.