Futures Basics Guide
Futures are financial derivatives derived from physical assets, contrasting with spot trading. A futures contract is a standardized agreement, set by a futures exchange, to buy or sell a specific quantity of an underlying asset at a predetermined price on a specified future date and location. Futures can be based on either commodities (like oil…
Forex Hedging Strategies
The foreign exchange market is the largest and most liquid market in the world—so high volatility is simply part of the game. For forex traders, volatility is the norm. To mitigate the currency risk that comes with every trade, different strategies can be used. In forex trading, hedging is a method of protecting yourself from…
In-Depth Guide to the Fractal Indicator
Traders often seek strategies grounded in mathematics to gain an edge in the markets. The fractal indicator, based on chaos theory and fractal geometry, is one such tool. By capturing the nonlinear behavior of price movements, fractals help traders spot potential market turning points that might otherwise go unnoticed. As a trading tool, the fractal…
Trading Strategy: The Five-Step Counter-Trend Method
The counter-trend trading strategy goes against the market’s general direction. It’s not the easiest approach for beginners—getting started can be tough—but if executed correctly, the rewards can be substantial. This article aims to help you understand how this strategy works and how to apply it effectively. What is a Counter-Trend Market? A counter-trend market refers…
Forex Arbitrage Strategies
Forex arbitrage may sound complex, but it’s actually an old and highly profitable investment method. At its core, it’s about spotting inefficiencies in the financial system—buying an asset at a lower price in one place and selling it at a higher price in another. That’s essentially what forex arbitrage is: identifying tiny discrepancies in currency…
A Detailed Explanation of the Aroon Indicator
The Aroon Indicator, developed by Tushar Chande in the 1990s, is a technical analysis tool designed to help identify changes in market trends. Specifically, it allows traders to observe potential future price movements and detect emerging trends in asset prices. The indicator measures the time elapsed between highs and lows in price action. Its core…
Parabolic SAR Indicator Explained
The Parabolic SAR (Stop and Reverse, or SAR for short) is a widely used technical analysis tool among traders and analysts. It helps identify potential trend reversal points and provides guidance on when to enter or exit trades. Especially useful in trend-following strategies, mastering the mechanics and applications of SAR can enhance your ability to…
Classic Quantitative Strategies in the Forex Market
The foreign exchange (forex) market attracts a large number of traders due to its high liquidity and 24-hour trading availability. Quantitative trading strategies are just as popular in forex as in other markets. Below are three classic forex trading strategies that can be implemented in quantitative systems. 1. Momentum Trading Strategy The momentum strategy is…
Quantitative Practice: In-Depth Guide to the KDJ Indicator
The KDJ indicator, also known as the Stochastic Oscillator, is a momentum-based technical indicator that measures the relationship between a stock’s closing price and its price range (the highest and lowest prices) over a certain period. It consists of three lines: the fast line K, the slow line D, and the dynamic line J. This…
Quantitative Practice: In-Depth Explanation of the RSI Indicator
The RSI (Relative Strength Index) is a momentum oscillator used in technical analysis, first introduced by J. Welles Wilder in 1978. RSI measures the speed and magnitude of price movements by comparing the average gains and losses over a specific period. It is commonly used to determine whether an asset is overbought or oversold, helping…
