http://www.futuresmag.com/Issues/2009/September2009/Pages/default.aspx
http://www.futuresmag.com/Issues/2009/September2009/Pages/Gelet-Automating-Elite-systems.aspx
BUYER BEWARE
Forex Factory has no affiliation with any product or service offered on the Commercial Forum, nor is an ensorement of any product or service being made. Please read the Forex Factory disclaimer.
Welcome to the beta version of the new Commercial Forum. This forum will contain threads that are dedicated to or started by commercial entities in the Forex industry.
If you've been a member of Forex Factory for a substantial amount of time you might be surprised to see a forum dedicated to commercial activity. For the past 5 years we've fought tooth-and-nail to keep commercial activity off the forums under the presumption that commercial agendas compromise the integrity of the forum discussions. In hindsight we believe this was the right policy, but it hasn't been without flaws. Often our strict policy forced us to do things that we didn't want to, such as banning long-standing valuable members because they started to offer commercial services. Some members were so valuable to the community that we allowed them to bend the rules, which only created more tension by setting up a double-standard. It's been long evident that a policy modification was needed to address these issues.
Earlier this year we came up with a plan for modifying the policies and member-structure to accommodate commercial operators. We haven't implemented the plan because we're busy with some big projects, and we still aren't ready to implement it. The Commercial Forum you are looking at is a temporary measure that resolves a few current issues; the rules, policies, and site changes for the Commercial Forum are still about 30-60 days from being announced. Our plan calls for creating two classes of membership, trader and commercial, then setting up separate forums and permissions that put up a one-way wall. Traders will be able to go into the commercial domain, but commercials will not interfere with the Traders' sections.
Because the Commercial Forum is a temporary measure, and the rules and procedures are not in place, there will be little clarity as to how we manage this forum and what the rules are. When we announce the new policy in 30-60 days the structure will be very clear. Please bear with us during this transitional period.
Fyi, it's not too late to influence our new policy! Please post your ideas here and they will definitely be taken into consideration!
http://www.forexfactory.com/showthread.php?t=184345
EES responds:
The paradox is the following:
Those who are "Forex Professionals" meaning anyone whose primary income is from Forex (regardless if you are a broker, trader, programmer, or secretary of a Forex company) have in many cases more knowledge than non-professionals. But professionals can basically only promote their own product, because it's what they feel is the best solution for Forex market. In other words, if someone asks a broker 'who is the best broker' he will probably say the company he works for, and what's wrong with that? Limiting discussion to non-professionals ends up being without the knowledge of pros. This should seem obvious but commercial products are seen as 'bad' where as amateur products are seen as 'real'. This stigma should be stopped, and this commercial forum is a step in the right direction. We can contribute our content including strategies for free to Forex Factory due to this significant change.
Link to commercial forum:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aL1LRQuQcBf4
Testosterone-Charged Women Take More Financial and Career Risks
Aug. 24 (Bloomberg) -- The sex hormone testosterone, already linked to better performance among male stock market traders, may spur women to make riskier financial and career decisions, research showed.
http://www.banktech.com/news/showArticle.jhtml?articleID=219401165&cid=RSSfeed_TechWeb
WASHINGTON, Aug. 22 (UPI) -- Troubled Texas lender Guaranty Bank has been sold to a Spanish bank after the U.S. government agreed to absorb about $3 billion of its losses, officials say.
Under the deal, announced Friday by the Federal Deposit Insurance Corp., regulators took over the bank, based in Austin, Texas, then brokered its sale to the American subsidiary of Banco Bilbao Vizcaya Argentaria in one of the largest-ever government-assisted deals with a foreign firm, The New York Times reported.
This is quite a turnaround for Boeing, which is America's largest exporter. Barely a year ago, the company was doing well. Or so it seemed. ... http://www.usatoday.com/money/industries/manufacturing/2009-08-05-boeing-problems-dreamliner_N.htm
http://seattletimes.nwsource.com/html/businesstechnology/2009381335_787flaw250.html
The structural flaw that has grounded Boeing's 787 Dreamliner will likely add months of delay to the new jet program, an executive with one of Boeing's key Japanese partners said Wednesday.
Kiyotaka Ichimaru, an executive at the aerospace division of Mitsubishi Heavy Industries (MHI), which makes the 787's carbon-fiber composite plastic wings in Japan, also said the problem announced Tuesday stems from Boeing's engineering design, not MHI's — an assessment confirmed by Boeing.
Ichimaru said MHI engineers are drawing upon the experience of similar problems on the Mitsubishi F-2 jet-fighter program in working with Boeing to fix the problem: a need for reinforcement of the structure where the Dreamliner's wing is joined to the load-bearing box at the center of the fuselage.
Ichimaru doesn't believe the structural flaw represents a fundamental safety concern.
"We are not seeing this as a very, very serious issue," he said in an interview Wednesday.
It's the business consequences of the new delay that may be more damaging. Boeing shares fell another 5.8 percent Wednesday after losing 6.5 percent Tuesday, when the company unexpectedly said it would postpone the Dreamliner's scheduled first flight. The company's stock has lost $5.58 in two days, shrinking its total market value by $4 billion.
http://blogs.crikey.com.au/planetalking/2009/08/05/inside-and-outside-the-787-operating-theatre/
Inside and outside the 787 operating theatre
http://blogs.crikey.com.au/planetalking/2009/08/07/us-media-wakes-up-to-dreamliner-nightmare/
US media wakes up to Dreamliner nightmare
http://www.fool.com/investing/general/2009/06/24/boeings-nightmare-liner.aspx
Boeing's Nightmare Liner Two years ago, when its maiden flight was supposed to usher in a new era of high-speed, low fuel-consumption aircraft for the world's airlines -- and a new era of profits for Boeing shareholders -- the "Boeing Dreamliner" name was apropos. But now you need to make it official: The 787 is now and forevermore to be designated the Boeing Nightmare Liner.
Yesterday, Boeing announced its latest delay in the maiden voyage of "ZA001," Boeing's code for the first prototype 787. The stock promptly crashed -- down 6.5% on the day -- and has continued to burn today -- down another 6% as of this writing. Which brings Boeing to a total of over 60% worth of market cap destroyed since the company first began announcing delays in the project.
Dan Rather reports on Boeing's use of composite materials in the construction of the Boeing 787 Dreamliner and introduces the concerns of former Boeing engineer Vince Weldon to the flying public. http://www.youtube.com/watch?v=epDtuSJm0eM
http://en.wikipedia.org/wiki/Larry_Jay_Levine
Larry Jay Levine (born July 1, 1961) is an American federal prison consultant. In 2006, Larry Levine founded American Prison Consultants, a legal services firm that provides information and support to offenders that are about to enter the federal prison system. American Prison Consultants also operates under the synonymous name of Wall Street Prison Consultants.
Levine was arrested by a Federal Organized Crime Task Force in 1998, and was convicted of narcotics trafficking, securities fraud, obstruction of justice, and possession of automatic weapons. He was sentenced to ten years in federal prison by former U.S. District Judge Carlos R. Moreno who is now a Justice on the Supreme Court of California. In 2005, Levine was incarcerated at the former Nellis Federal Prison Camp outside of Las Vegas, Nevada, and upon its closure was transferred along with several hundred other Nellis white-collar inmates to the gang infested higher security La Tuna Federal Prison on the El Paso, Texas-Mexican Border. While at La Tuna, Levine single-handedly, filed a Federal Class Action
Habeas Corpus
Lawsuit in U.S. District Court against the U.S. Department of Justice and Federal Bureau of Prisons claiming that the DOJ had violated its own policies by sending the Nellis inmates into higher custody. Due to Levine's actions, the DOJ was forced to act and subsequently shifted hundreds of its inmates around the country to conform to the lawsuit's claims.
While in custody, Levine served time in 11 different Federal Correctional Institutions in California, Arizona, Texas, Nevada, and Oklahoma, where he self educated himself in Federal Criminal law, and upon release in 2007, became a renowned International expert on the U.S. Federal Criminal Justice System. Levine's advise, views, and comments, frequently appear in wire service news reports, TV, broadcast radio, magazine, and newspaper articles worldwide. Since the Bernard Madoff scandal, he has become a popular interview subject on CNN, Fox News Channel, CBS News, ABC News, MSNBC, Bloomberg and others.
In July, 2009, Levine was issued a Cease and Desist Letter by the NYSE New York Stock Exchange for copyright and trademark infringements due to Levine's use of images of the New York Stock Exchange and references to the NYSE and crime on the Wall Street Prison Consultants website.
V (Volatility) Speed is an indicator that displays the current high-low (range) of each bar on the chart, and displays it in the data window below with a smoothed average of the past x(3) bars. 3 is the default, the longer the period the more long term the value, in other words if you want a short term volatility indication to signal an increase in volatility, a lower number should be used.
EES recommends using this indicator as a measure of volatility, and to signal an increase or decrease in volatility by watching the SMA. A cross up (when the SMA is below the V Speed line and crosses above it) of the SMA indicates a decrease in volatility and conversely, a cross down indicates an increase. The SMA values can be adjusted according to the specific pair and time frame used. V Speed can be referenced by strategies as an indication of volatility.
The name speed is derived from the method to determine how 'fast' volatility is moving, specific to your pair. Monitoring the VIX is not necessarily appropriate. V speed also is a handy tool to display each bars high-low which is the range.
Download this indicator at: http://www.eesfx.com
http://eesfx.com/eesfx/index.php/docs/doc_download/3-ees-v-speed-v11-code.html
EES is developing a system of Classification and Identification for trading systems, indicators, and related files. The system will be based on existing international standards, modified for appropriate trading applications.
During recent market analysis, some words and descriptive terms are lacking to describe certain market events. EES will use existing scientific standards as a template to name our own systems and develop a trading nomenclature.
For example, we are developing an indicator that will determine market "velocity" which is the 'speed' of the pair divided by the time.
Another example, how does a trader measure the amount a pair may fluctuate in a range? It would calculate the amount of times the price crosses a line, or multiple lines, inside a trading range.
http://en.wikipedia.org/wiki/Centimetre_gram_second_system_of_units
http://en.wikipedia.org/wiki/Communications_protocol
To participate in this development, see the thread in eesfx.com:
http://eesfx.com/eesfx/index.php/forum/14-fx-systems/11-classification-and-identification.html
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aafaX5C3qFmA
Aug. 17 (Bloomberg) -- Wall Street firms are again recruiting commodities traders with promises of $1 million bonuses as prices of raw materials from oil to copper double.
Less than a year after oil tumbled a record 54 percent and the Reuters/Jefferies CRB Index was suffering its biggest drop ever, Bank of America Corp. plans to boost commodity headcount by 25 percent. London-based Barclays Plc will increase staff about 6 percent. Morgan Stanley is recruiting traders in shipping. The banks declined to comment on compensation.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNHdNnf9dDHY
Aug. 17 (Bloomberg) -- Stocks tumbled around the world, led by China, while the yen, dollar and Treasuries rose as investors speculated that a rally in riskier assets has outpaced prospects for economic growth. Energy and commodity prices also slid.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFCS3BWplJOY
Aug. 17 (Bloomberg) -- Former Credit Suisse Group AG broker Eric Butler was convicted of fraudulently selling millions of dollars in subprime securities to corporate clients.
http://articles.mql4.com/833
MetaTrader 4 and the MATLAB mathematical package have gained high popularity among users due to their positive characteristics, including "flexibility" in creation of complex calculation systems. There are three main ways of MATLAB connection with external applications, but only one of them is recommended - use of the virtual desktop MATLAB Engine. This method guarantees the full compatibility with the whole MATLAB package. Many programmers avoid this method for below reasons:
Why I recommend this method:
This article describes the way of connecting MetaTrader 4 and MATLAB ver. 7.4.0 (R2007a) via a "DLL-wrapper" written in Borland C++ Builder 6. Programmers who prefer Microsoft products will have to adapt examples to their compiler (good luck to you in this complicated matter!).
http://marcchandler.blogspot.com/2009/08/canadian-intervention-highly-doubtful.html
There is much talk today, circulating NY dealing rooms, that the Bank of Canada is getting ready to intervene in the foreign exchange market. We are dubious are that the BOC would intervene unilaterally on the CAD/USD exchange rate. In fact, we cannot recall a single episode of BOC intervening on CAD/USD in recent years, if ever.Last week, when US dollar had a CAD1.07 handle and Euro-Cad was near 1.5350 that the Canadian dollar looked vulnerable.
http://online.wsj.com/article/SB124994409537920819.html
NASHVILLE, Tenn. -- Last summer, police responding to complaints about campfires under a highway overpass found dozens of homeless people living on public land along the Cumberland River.
Eviction notices went up -- and then were suspended by Nashville Mayor Karl Dean, a Democrat, who said housing for the homeless should be found first.
A year later, little has been found -- and Nashville, with help from local nonprofits, is now servicing a tent city, arranging for portable toilets, trash pickup, a mobile medical van and visits from social workers. Volunteers bring in firewood for the camp's 60 or so dwellers.
http://www.nypost.com/seven/08112009/gossip/pagesix/madoff_wowed_kid_probers_183931.htm
YOUNG, inexperienced government regulators were so wowed by Bernard Madoff's ritzy Midtown headquarters that they asked about job openings and dropped off resumes while missing clear evidence he was running a massive Ponzi scheme, a new book claims.
http://www.reuters.com/article/businessNews/idUSTRE56R5OA20090728
WASHINGTON/NEW YORK (Reuters) - The Nasdaq Stock Market supports a ban on so-called "flashes," order types that it and other stock-trading venues send to a select group of traders fractions of a second before revealing them publicly, Senator Charles Schumer said on Tuesday.
http://seekingalpha.com/article/153607-flash-trading-is-here-to-stay
http://www.nytimes.com/2009/07/24/business/24trading.html?_r=1&adxnnl=1&adxnnlx=1249402696-UgY5aw4sTY/TBSx0WkH0A&pagewanted=print
"It's become a technological arms race, and what separates winners and losers is how fast they can move," said Joseph M. Mecane of NYSE Euronext, which operates the New York Stock Exchange. "Markets need liquidity, and high-frequency traders provide opportunities for other investors to buy and sell."
http://www.bloomberg.com/apps/news?pid=20601087&sid=alXddMij8xxQ
http://zerohedge.blogspot.com/2009/07/is-case-of-quant-trading-industrial.html
http://blogs.reuters.com/commentaries/2009/07/05/a-goldman-trading-scandal/
Did someone try to steal Goldman Sachs' secret sauce?
While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution—that sources say is none other than Goldman Sachs.
The allegations, if true, are big news because the codes the accused man, Sergey Aleynikov, tried to steal is the secret code to unlocking Goldman's automated stocks and commodities trading businesses. Federal authorities allege the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major "financial institution" generate millions of dollars in profits each year.
Google Search: http://www.google.com/search?q=goldman+sachs+packet+sniffing&sourceid=ie7&rls=com.microsoft:en-us:IE-SearchBox&ie=&oe= Goldman Sachs Packet Sniffing
Singapore: Morgan Stanley has hired Stuart Sopp from Citigroup as its Asia head of G-10 spot currency and forward trading, sources close to the matter said.
Sopp, who was previously Citigroup's Singapore-based head of G-10 spot FX trading, would move to Hong Kong to start his new job at Morgan Stanley, sources said.
The hiring is a sign of Morgan Stanley's focus on forex and flow business, one of the sources said, as investor appetite grows for plain vanilla products after a market meltdown last year saw demand wane for riskier derivatives and hedge funds.
Bank of America, Credit Suisse and Morgan Stanley said last month they would join a group of banks supporting a joint venture between foreign exchange settlement provider CLS Group and interdealer broker ICAP plc to reduce risks in processing.
Morgan Stanley is looking to hire sales and trading professionals in all major trading centres across the world, the source said.
Morgan Stanley, which became a bank holding company last year, repaid $10 billion from the government's troubled asset relief program in the last quarter when it posted a third straight quarterly loss.
For Citi, Sopp's departure comes less than a year after he joined the US bank from Deutsche Bank.
A Citigroup spokesman confirmed Sopp's departure. Morgan Stanley declined to comment on the move.
Citi, which vowed to remain focused on Asia, has struggled to retain high-profile executives in the past few months. The bank, one of the worst hit by the financial crisis, has taken $45 billion in bailouts from the US government.
Royal Bank of Scotland (RBS), which was bailed out by the British government, lost Ivan Ferraroni, its head of forex sales and trading in Tokyo, to Barclays, according to Barclays on Tuesday.
It comes a few months after RBS lost David Dredge, deputy global head of local markets at RBS and a key risk trader, to Artradis Fund Management, Singapore's largest hedge fund manager.
http://www.livemint.com/2009/07/28135425/Morgan-Stanley-hires-Citi821.html?h=B
EUR/USD Technical Analysis August 1st 2009 – EUR/USD short term top - selling opportunity at market open?
EUR/USD could retrace to 1.4190 based on the following factors:
• RSI on hourly above 70
• Intrepidus FX Sell Signal
• EUR/USD is up based on technical break of the hourly channel (see chart 1 below)
• Profit taking on EUR/USD longs
• 1.43 is an established daily high since may (see chart 2)
• Same logic applies on USD/CHF Long
What could cause it to go higher?
• A continued selling off of the USD
Daily EUR/USD with established high near 1.4335
* EUR/USD back and forth price action was not impressive until the better than expected US GDP release was met by a negative equity reaction which sent EUR under 1.41. After digesting the data, which included benchmark revisions, equities took back losses and EUR bounced. The advance accelerated into the 16:00bst month end fix as EUR reached 1.4180. When USD bids nowhere to be found in thin post fixing activity EUR/USD extended to 1.4279 before it ran out of steam.
This is not a recommendation to sell EUR/USD. It means that when the market opens if EUR/USD fails to break through the high, selling could continue to fibo levels and hourly trendline. If EUR/USD breaks the 1.4279 high, expect it to go much higher initially.
There is a lot of fundamental pressure short USD at the moment, so if this is not a short term top, expect the EUR to explode.
The Q3 issue of Automated Trader is out now, and there's plenty of food for thought.....but first, here's a roundup of this week's news....
Bank of America Merrill Lynch announced the addition of four new electronic options algos to their trading platform, whilst Charles River released news that their Investment Management System is fully integrated with UBS Perimeter algo allowing clients to trade US markets outside of regular hours.
Equinix continued their string of expansion announcements from last week with news that they will open a second data centre in Singapore,
Essex Radez announced the expansion of its feed offering at Equinix NY-4, AboveNet released plans to expand their dedicated London fibre network, and Savvis announced that they will host Credit Suisse's Crossfinder trading platform.
CBSX released news that they will use SunGard Assent Liquidity Services for execution and clearing, Baikal continue their use of LSE group firm UnaVista for matching, reconcilliation and data integration, and Standard Chartered have been selected by the Singapore Mercantile Exchange as clearing and settlement bank.
In other news, Senator Charles Schumer fired a warning shot across the bows of the high frequency trading community and threatened legislation with a caution to the SEC to curb traders' flash orders.
On the menu in the Q3 issue of Automated Trader.....
You want alpha with that? And do you want your order well done or scrambled? We serve up the latest in adaptive routing technology in this issue's cover story. And don't miss John Howard's interview with the team behind the Danix Master Fund who've created a healthy low volatility meal consisting of a discretionary main course with a systematic side order.
You wait all year for a round table, and then two come along at once. We've been at the heart of the industry debate on a whole variety of issues this month. First, there's our roundtable debate on latency, in which key industry figures debate not only strategies for managing (and solutions for reducing) the L-challenge, but also the prospect of a latency standard. You wouldn't think you could standardise speed, would you?
If your answer to that question is "No", maybe you should take a look to see what our panel of a dozen industry experts are thinking. Our latency debate is big - more than we could fit into a single issue of the magazine - so we've continued it online, and given you the chance to have your say. Go to our online debate to find out the panelists views and to add your own - the debate is gathering momentum even as you read this, and if you're not part of it – well, you're not part of it.
Then there's the big discussion about European equities trading, MiFID and the role of the MTFs. The table wasn't quite round, but the debate – concentration, cost, complexity, competition – was full and frank. That's what you get when you put two exchanges, four MTFs and one exchange/MTF into a small room and invite them to agree on how best to execute in Europe. Wondering how it's all going to play out? So were we as we buffed up the crystal ball and took a look at where forecasting might lead us on page 51. Has the gap between forecasts and reality widened in recent years? And if so, should we adjust our use of forecasts?
David Clayden and our US photographer, Marisa Calin, are on the loose at SIFMA in New York, while Peter Green, CEO of The Kyte Group, discusses an evolution for his firm that might just turn into an evolution for the industry. Are you a big-bank client with a little-bank client profile? Maybe it's time to change.
Enjoy the issue, and see you online.
Jenny Eastham
Managing Editor
Tel: +44-207-183-2208
www.automatedtrader.net