Presentation example 1 Building blocks of trading strategy General

7/22/2013
example 1
BuildingPresentation
blocks of trading
strategyDate 2013
Vito Henjoto
Senior Technical Strategist
July 2013
Twitter @vhenjoto
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General Advice and Risk Warning
Please note that any advice given by Invast staff is deemed to be GENERAL advice, as the information or
advice given does not take into account your particular objectives, financial situation or needs.
Therefore at all times you should consider the appropriateness of the advice before you act further.
CFDs and Forex are leveraged products and carry a high level of risk and are not suitable for everyone. You
can lose more than your initial deposit so you should ensure CFD and Forex trading meets your investment
objectives. We recommend you seek independent advice. Strategies and charts used in this presentation are
for example only. You are reminded that past performance is not indicative of future performance.
Invast Financial Services is regulated by ASIC. It's important for you to read and consider the relevant Product
Disclosure Statement and Financial Services Guide which contains details of our fees and charges before you
decide whether or not to acquire any financial products. These documents are available at
www.invast.com.au
Invast Financial Services Pty Ltd ABN: 48 162 400 035. Australian Financial Services Licence No.438 283
Twitter @vhenjoto
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Agenda
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Identify your style
Time-frame consideration
Analysis methods
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Price analysis
Indicator based analysis
Important Tips to consider
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Identify your trading style
Are you a :
• Scalper
• Intraday trader
• Swing trader
• Position trader
A trading Strategy will vary depending on the trading style.
The same strategy that works for one trader might not work for
another because of this.
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Example GBP/USD 15-Minutes
Source: Invast Mt4
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Example GBP/USD 5-Minutes
Source: Invast Mt4
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Things to consider
• Same entry strategies but likely a different- exit
strategies.
• This is due to range of the market as reflected on a
different time periods
• Consider price range when creating a strategy.
• Ideally, every trader have multiple trading strategies to
accommodate different market conditions
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Tools of Choice
• Fundamental analysis
• Technical Analysis
• Price Analysis
• Indicator Based Analysis
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Price Analysis
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Trendlines
Chart Patterns
Elliot Wave Theory
Harmonic Patterns
Fibonacci based analysis
Candlestick Patterns
Renko
Advantage
 Quick to react to price changes
 No Ambiguity
 Precise Exit Levels laid out
Disadvantage
 Takes time and experience to properly utilize
 Can be subjective if the signs are not obvious or rules misunderstood
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Chart Pattern Examples
Source: Invast Mt4
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Fibonacci Examples
Source: Invast Mt4
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Indicator Based Analysis
Most Commonly Used Indicators
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Moving Average
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Bollinger bands
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Stochastics
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RSI
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MACD
Advantage
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Relatively easy to learn
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Widely used by traders of all levels
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Can be easily adjusted to suit different needs
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Some Indicators able to filter out market noises
Disadvantage
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Majority of Indicators are lagging
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Reacts slower to market changes
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Entry and Exit not optimal
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Technical Indicator
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Metrics derived from price/value
Aim to Predict future market movement
All Technical Indicators are based on past price information
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Categorize into 3 main type:
 Trend Confirmation
 Oscillator (Overbought/Oversold)
 Market Limiter
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Bollinger Bands
Envelope indicator based on Moving Average and standard deviation of price.
Bollinger bands consist of the following:
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Middle Band
Upper Band
Lower Band
= N period SMA.
= Middle band + 2 Standard Deviation.
= Middle Band – 2 Standard Deviation.
Bands = volatility of the market.
Wide Apart = Higher Volatility
Narrow = Lower Volatility
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Bollinger Band Examples
Source: Invast Mt4
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Bollinger Band Examples
Source: Invast Mt4
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Other important tidbits
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Exit Planning
Keep a Journal (see Note)
Learn to properly manage your position
Market volatility created by traders trading the market
Market is trader against trader
Market mentality = herd mentality
Key to success – figure out which side you have to be on, BEFORE
the herd has moved
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Summary
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Identifying trading style is crucial
There is no such thing as a multi purpose trading strategies
Always have multiple strategies available to suit different market conditions
Keep a record of your trading
Understand the nature of the market
Understand what is the current market condition
Review your strategy every few months, market is dynamic and ever-changing
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$100 Deposit Bonus – Invast Expo Special
How to Claim your bonus
1. Open an account between 19 th – 31st July 2013
2. Deposit $1,000 or more into your trading account
Speak to our friendly staff for more details
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Invast Seminar Schedule
19
Friday & Saturday
Time
Title
Presenter
Location
10:15am
Biggest moves overnight – identifying the key levels to
plan ahead
Vito Henjoto
Stand 326
Register at the Invast Stand [326]
and receive:
11:00am
Strategies to unlock and ride the big trends
Vito Henjoto
Stand 326
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•
•
11:45am
Post Aussie Dollar and Resources Market Slump – Where
the Smart Money is flowing Now
Peter Esho
Exhibitor Seminar
Room 1
12:00pm
From 80’s cowboys to the high-tech present day – How FX
trading has evolved
Gavin White
Stand 326
1:00pm
From Amateur to Professional Trader – the No.1 Missing
element
Ashley Jessen
Stand 326
2:00pm
Two quick ways to value a stock for quality investment
decision making
Peter Esho
Stand 326
3:00pm
Professional versus Amateur Mindset – Are you making
these mistakes
Vito Henjoto
Stand 326
4:00pm
How to create High probability trading strategies
Vito Henjoto
Stand 326
All Slides emailed to you
Invite to our advanced trading webinar
Free $20,000 Demo Account
During this webinar Peter &Vito
will cover:
•
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Analysis of the Forex markets
Analysis of the leading Aussie stocks
Live Q&A Session
Bring your favourite charts for
the team to provide analysis over.
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