ActivTrades Tools: SmartTemplate

The leading broker ActivTrades has developed very useful tool for MetaTrader 4 to help traders with their trading decisions. Unlike most indicators on the market, the add-on indicates unique long and short trading opportunities based on chart signals and puts them in context with the respective trend strength.
The tool measures the market strength, the daily market, market direction, overall strenght, etc.

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Four reasons why the bitcoin went crasy (2)

2. The process of producing bitcoins is delayed

The way of producing the bitcoins is based on sophisticated technological processes and calculations. Their production is decentralized and the speed of the "blocks" process is slowing down, at least compared to what was necessary a few years ago.

3. The potential for the emergence of an ETF fund

After the US regulator, in the face of the SEC, dismissed the plans of the Wincliffe twins to submit a bitcoin based index, in March, the cost of the bitcoin dropped after its strong growth earlier. At the end of March, however, the two brothers filed an appeal against the decision that a higher instance would soon pronounce.

4. Increasing market uncertainty

The factor that always influences positively on the cost of the bitcoin is market uncertainty. The digital currency is seen by many investors as a "rescue island" in a situation of uncertainty. Investors looked at the bitcoin during the Greek crisis, for example.

Four reasons why the bitcoin went crasy (1)

The bitcoin continues with its record highs, pointing to the $2,000 psychological limit. For the past month, the virtual currency has risen by 60% and last year's appreciation is 320%. Since the beginning of the year, the growth of the currency has reached 80%.
The bitcoin, registers a new record every few days. For investors who are not particularly familiar with the currency, perhaps the logical question arises - what is the basis of this appreciation?

Here are four reasons for the dizzying increase in encrypted currency.

1. Japan and Russia

On April 1, Japan officially recognized the bitcoin as a legal form of payment. Only a month later, the bitcoin still felt the positive effects of it. Japan's decision means that the country's bitcoin market will be regulated under the AML and KYC policies.
According to CryptoCompare's graphs, about 46% of the bitcoin trade is currently in Japanese yen. This is the biggest activity. Traditionally, the US dollar or the Chinese yuan have been the leaders.
In addition, according to a Bloomberg publication on 10 April, Russia is expected to take such action next year. The central bank of the country works with the government to legalize the currency.

The mysterious trader "50 cent" made $27 million profit for a day from VIX (2)

The broad S&P 500, on Wednesday, noted its biggest daily decline since September 9, largely due to political uncertainty.
Despite the big profit on Wednesday, "50 cent" is still far from profits, overall, given the fact that his bets on increasing volatility in recent months have not been justified and have brought him substantial losses.
Experts estimate, after the profit of 27 million dollars on Wednesday, the trader still has about 90 million loss.
Recently, The Financial Times identified the trader as the London-based investment manager Ruffer LLP, referring to unnamed bankers.

The mysterious trader "50 cent" made $27 million profit for a day from VIX (1)

The mysterious US trader with options - nicknamed "50 cent" - has earned strong earnings after the sharp rise in volatility on Wednesday, according to the financial institution Macro Risk Advisors.
The trader, at least on paper, has earned $27 million, according to Pravit Chintawangvich, head of the option trading unit at the institution.
The VIX Index is one of the most widely watched indicators and a barometer of expected market volatility in the short term. On Wednesday, the index ended with an increase of 4.94 points, or its biggest daily increase since September.
The strong rise in the indicator has gravely favored the mysterious "50 cent" trader, who has periodically bought call-based options worth about 50 cents.
Index-based call options are pledged to raise the asset that is tied to a market sale.

Fed on its way to $2 trillion mistake? (2)

Some experts say that this way of thinking is not particularly good overall. Because the Fed's balance sheet consists largely of mortgage bonds expiring in terms of whether people will choose to pay their debts. As a result, the Fed may lose control of an important tool in its policy if a large percentage of Americans decide, surprisingly, to close their mortgage loans.
The question arises as to why the Fed will try to reduce its balance?
The very act, threatening future economic development and by itself, can have a destructive impact on the economy, which eventually leads to new stimulus measures, recession and a new balance.
Some experts argue that with its current record balance, the Fed will have difficulty reacting to future shrinking of the economy in the direction of its monetary policy. Changing the latter policy itself may, however, jeopardize the stability of the economy.
Overall, it can be said that the option of maintaining a neutral balance-sheet policy may be the better option for the Fed. What will happen, however, is yet to be seen.

Fed on its way to $2 trillion mistake? (1)

Later this, or early next year, the Fed is expected to resort to a strange maneuver - a reduction in the balance of holdings of US bonds.
The securities were bought over the last decade to "pump the liquid" into the market, stimulating the economy, lending and low interest rates.
What, however, will mean a reduction in the Fed's balance sheet?
In general terms, the reverse of the process of buying of government bonds during the crisis or liquidity out of the market. In itself, the action will lead to an increase in interest rates.
The decrease is expected to be high. The Fed's current asset balance is at more than $4 trillion, and according to some experts it is appropriate to cut it by half, or about $2 trillion, over the next few years.
The Fed's plans are to gradually reduce the balance by simply not renewing current bonds at their expiration.

What to buy when S&P 500 is correcting? (2)

Let me give an example with such a company. It's Michael Kors. The manufacturer of luxury goods has been experiencing serious difficulties lately, because of the challenges in the sector and its ongoing restructuring. The company has a negative beta of 0.45.
It can not be ignored that the close levels at which the company shares are traded to their lowest values ​​for the past one year. At levels of nearly $36, the company's shares are only about 3% of its annual bottom. Or, there is a very good level to place a close stop.
At the same time, slightly less bad quarterly results than expectations, which are, by the way, extremely negative, could trigger a serious increase in the shares of the luxury goods maker.
Still, we should not outwit the good growth of the Asian economies that the expansion of the company is focusing on. As a bonus, the company's price/earnings ratio is only 8.2 or nearly half that of the companies in the sector.

What to buy when S&P 500 is correcting? (1)

Did the US indexes started correcting? This is the issue that tortures all investors, after a long-awaited decline in the US market on Wednesday. What is certain is that times of record low volatility may have ended.
The VIX, or the volatility index, is the first suspect to get into the eyes of any investor who wants to insure themselves from a further fall in the indices.
The fear index reached a 23-year minimum in the past week and yesterday saw a significant depreciation of its lowest values. However, as history shows, this may only be the beginning of the indicator's appreciation. It is quite possible to witness a test at the highest levels of the indicator of more than 16 points.
What else can be traded by investors fearing a further fall in the indices. A completely logical answer is - companies with a negative relationship with the market, or with a negative beta.

ActivTrades Tools: SmartPattern

SmartPattern is a powerful indicator for MetaTrader 4 and MetaTrader 5 platforms, available only to ActivTrades customers with real accounts.

This impressive tool automatically registers formations on the chart, scans historical data to detect reps, and generates statistics for possible upcoming market moves.

All data can be easily and clearly located on your graphs to help you save time and find trading opportunities that could otherwise be missed.
SmartPattern is the perfect solution for traders who believe the story is repeated!

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