Market Update 30/04/2021, Open Equity
Hello traders, and welcome to the weekly Market Review for the week ending 30th of April, 2021. Well, amazingly it’s running very, very quickly, and we’re already at the end of the month. Time is flying. So let’s have a look at what’s going on in the markets today, and what we are also going to talk about today is open equity. Okay, you’ve heard that term. And being banished around. When we talk about some of our strategies and stuff. So we’re going to talk about open equity but before going to that what I’d like to remind you is, be sure to subscribe to our YouTube channels. Okay, to go to the bottom of the, of the bottom you’ll find the link to subscribe to the YouTube channels, please do go on there, have a look at the videos, and like them. As you view them so that you can get concrete information and knowledge from there. and also the traders profile on the link, there’s also a trader profile so this is to get you into an understanding of what kind of trader you are so very very good little bits of kit and information for you to take advantage of there, so be sure to do that. Subscribe to the YouTube channel and go to the trader’s profile and get yourself into a zone. Okay, open equity. Okay, what, what is open equity. So we want to look at open equity. Open equity is the point of entry on a run to the maximum reach Okay?
So, it’s from the point of entry to the maximum point. Each is classed as the open equity for a particular phase. Okay, so as we know the market moves in cycles, and each cycle has a phase. So if we’re looking at this, move from this one here. Okay? It’s going down. So, down to here would be phase one, and then going back from there to the top, would become phase two, so it’s phase one and phase two. Again, and what we’re looking for is, wherever you enter the trade the maximum point, it reaches. So for example, if we were on trade here, and we’re going to enter at the close of the confirmation bar. Okay, this one here is the confirmation bar that would enter at this point there. And the maximum point reach would be where the next swing arrow forms would be there. So this would be classed as your open equity for this trade. Okay. This is how we look at open equity. Okay, why do we need to do this? Okay. So what we want to do is we want to take trades that are gonna have some legs, so basically we want them to move for a while, you know, in a particular direction whether it be short or long. Okay, so we want, you know, a trade that goes with a bit of momentum, and has some legs on it, yeah. Trade length, yeah. We want to see how long, long it goes for how far it’s going to reach, but all of this is something that we can also quantify. Okay, so what do, what is it, what I’ve been through to the maximum point reach by, why are we doing it. Okay, because we want to make sure that we take some of the longest trades that form in the markets. Okay, and how do we measure them. So we measure them from point of entry to the maximum point reached. So wherever your entry is on your profile, if you’re taking it early, and you’re looking for, say, a primary move.
So there’s a primary there if you were to enter on the low of this salad bar there. Then, from there to the maximum point reach will be where the swing arrow forms, And that would be your open equity there. Okay? And once we’ve got that we can move, move along and measure the next one from there to the gate wherever the entry for your trade would be right. And once you’ve mentioned that you can get all the figures from all the rooms that you have from bottom to top, top to bottom again. And once you’ve taken all of them you can quantify that you’re remembering that everything we do is researched and quantified. So we quantify all the moves, and then we know that when we take in the next trade that we expecting it to run for a minimum of say 50 pips. Okay, it could be 50 pips or minimum, or it could be a minimum of 100, so we do have a strategy which is our 100 Pip move. You okay, we take a trade, wait for it to move to 100 pips, and then exit at the 100 Pip mark. Okay, we also have a trade where we take, take it to 25 pips because we know that from our research and all the quantified data that we have, that this spread moves a minimum of to the 25, Pip. mark approximately around about 80% of the time. So, therefore, we know that we have a high probability of this trade running to 25 pips and then we can exit the trade there. Okay, so in the elite room, we have some of those trades already running because that’s what we’ve done, we’ve taken the open equity, we’ve looked at where we’re moved and how far it moves, and then we placed a strategy according to that plan. Okay, so how do you measure it from your point of entry to the maximum point reach. Okay and then you quantify the results, and that tells you where you’re going to be going from there onwards. All right, so open, equity, okay, what we’ve done is, we know what it is, okay, is the maximum point of entry to the maximum point reached. Okay, why is it important, because what we want to do is we want to take long trades, long-running trades? So, we have a consolidation here we can see these small errors there, and then we have a volume there. So we would place a trade on there and expect it to move at least a minimum of what the last few trade rounds have been. And then, enjoy it when it goes further. Okay. Same again. Suppose small moves from there to there, there comes up to there, comes to the blow there and then we’ve got a breakout, the upside. Okay, so a little bit of consolidation and then we’re looking for the long move. So once we’ve quantified results for how much they move, then we can take the long trades. Okay, and this is where our strategies for, like, where we have the 20% and the 70% strategies coming into it. Okay, so we’re looking for opportunities where we can take 20% of the moves, which would be approximately like this long run there. Okay. And how do we measure it, obviously, as I said, from the point of entry to the maximum point reach, and then we quantify the results, depending on where your entry is whether it’s at the close of the confirmation bar or in a primary swing. Whichever requirement, you have or whichever rule you’re using on your strategy, that’s where you measure from and to the maximum point reached. Okay, that’s open equity, we’ll do now is move on and have a look at what the markets are doing this week. So, on the Eurodollar today I really haven’t. Okay, when I said as I said, you know, we’re looking at open equity so there you have the open equity results you can see from there. and we’ve had a nice long run there. I would say is from this point now, there’s the possibility that it’s gonna diminish because we’ve had quite a bit of a run. So what we do, what I’m looking at here is how far has the move, been alright if I measure it from the current bar to the swing. That’s 26 days. Okay, so it’s 26 days there. What was the last move from there to there were 18 days? So as you can see that it’s already gone past 18 days from the last phase. And now, it’s looking like this moving, losing a little bit of momentum with the bar to the downside to center bars there. So it’s a possible move further to the downside on the eurodollar. And this is where you can look at where the open equity is before you take opportunities on this instrument, saying, dollar Swiss very good or run to the downside, and now it’s looking like it’s, we’re getting a bit of disruption and a swing there. So something to keep an eye on a possible to move to the upside. on the dollar, Swiss POUND DOLLAR better consolidation going on there, no definite signs of a big move. We had our high peak there which was you know, One of the all-time highs for a while. And since then, we’ve got a little bit of consolidation. So, no direction as such on the POUND DOLLAR. But we are taking trades on this still DOLLAR YEN, the dollar-yen. Here is new swing is formed recently in the past week or a week ago, and now you can see that we have an inside bar forming. Does it have legs move to the upside? From the previous phases, as you can see, that is, had some more open equity so they are long-running trades on here, and therefore is a pipe loss but probability that this could be a further move to the upside but being an insider bar, you can always place your trades in either direction. So, we could wait for the high to be broken, or the low to be broken and take a trade whichever direction, it breaks out from and sees how that plays on that.
Aussie dollar. Looking at the equity, again, looking like it’s already distinguished, and now we’re probably having a move further to the downside on how. However, when you look at it from a life perspective, then you can see that there’s a bit of consolidation, as well going on here, and market compression, and therefore we’re reducing if we’re looking at like a possible long move big phase. Coming up, but no particular direction, probably to the downside, as it stands for now. Euro JPY. Yen, while since we’ve had a swing low possible swing high volume we have a primary formation, three Bob primary pattern as you can see there’s a lower higher and a lower low from there. So yeah, does that have more room for it to be going to the downside, again, something to keep an eye on footsy on the footsie. Same again. Bit of consolidation going on there single market, market compression, but it does look like it’s breaking out to the high side of the upside. And there we are, so we can possibly look at a further move to the upside as it stands for now. Not a lot of open equity from the last few days, obviously, this needs to be quantified for a longer duration, to give us a better understanding of where the market is going. The Dow Jones. Dow Jones steady climb still climbing to the upside. Now the inside of our format today so, you know, something to keep an eye on to see which direction it breaks into before we take further trades on this coffee. Move on a coffee, possibly, you know that lockdown is releasing and you know, People have been able to get out and about, by the probability of that. And there you can see that coffee it has rallied and gone to the upside, in sort of bar forming today we’ve got a big bar to the downside yesterday, but today is inside a bar opportunities coming up on the coffee commodity. Oil. Oil a slight move to the upside. And, but it’s losing some momentum primary setup, coming up on oil. Brent oil. Looks like is possibly going to have a move to the downside from here onwards. Nice big bar there. Gold. Gold is having a little bit of a slow move to the upside. To seller bars, but looking like it’s losing a little bit of steam there, was just something to keep an eye on to see which side it breaks out from this outside above. Bitcoin. Bitcoin has had it’s new high formed like a couple of weeks back, just over a week and a half ago that you all high of 64 871. So you’re just shy of 65,000. That’s insane. It’s lost a little bit of momentum become to the back to the downside, and yet we’ve got a little bit of consolidation going on on Bitcoin for now. You can see we’ve had a couple of swing moves formed up in the market, and an insider bar forming today. But yeah, it’s a good possibility they still got some move to the upside on the Bitcoin. Okay, that’s all for the market update for now. What we did now is I’ll give you the figures for our live trading room and our elite group, where we’ve been placing our trades on the sofa.
Today on the market we have in the elite from the primary runner strategy 20%, Oh, he, we had no trades running. So there’s 0%, on the cash in 4.0 20% Open equity Digi 0% The cash in 4.0 70% Open equity strategy we had minus naught point naught 2% loss. So we obviously manage our risk very well on there and minimize the loss that we’ve taken on that trade on the cash in 4.0 100 pips strategy we had a loss of minus naught point eight 4% And nothing on the continuation patterns, quick exits, or slow exits. That gives us a total for the leaking room of minus naught point eight 6%. And on the live trading room on the primary runner strategy, we took two trades, and they didn’t go in our favor. So as, as a result, we’ve got a minus 2% loss on the primary strategy. On the left of the 20% Open equity strategy, we had a minus naught point eight 3% loss. However on the lift-off 70% Open equity strategy. We had a 1.02% upside. So it was a winning trade for us on there because we managed our risks on there. The cash in 4.0 TSL primary strategy and minus 1.04% loss on there and on the cash in one day, exit is a minus naught point three 6% loss on there. So the total for the live trading room gives us y minus 3.21% loss, and across both rooms. We have elite room at minus naught point eight 6% and the live trading room at minus 3.21% gives us a total of minus 4.07% for this week. And that’s concluding this week’s market update. So, remember to subscribe to the YouTube channels, and also take the trader’s profile test. So we know that where you stand with yourself as a trader on your financial journey. Okay with that until next time, stay disciplined, follow the plan, keep trading, like a master.