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Traders & Investors Club Meeting - 22nd September 2009
The Binary Option
When trading intraday, volatility is our best friend. If we don't get decent price movements, we don't get a paycheck. However, volatility is a double-edged sword; a sudden move in the price against us will often take out our stop before the move resumes in our direction leaving us standing on the sideline. Therefore, why not forget about using stops altogether?
Uh oh, he's flipped!
Maybe not. Tonight, Kevin Barry of the Traders & Investors Club will be giving us a brief introduction to a trading instrument that is gaining in popularity known as the binary option. A binary option is a bet that the price of an instrument will reach a certain price level on the upside, or the downside, so the outcome at expiration is either a loss or a win. The binary option is especially well-suited to trading fast-moving markets such as FX. Because your risk and potential profits are clearly defined in advance, you can give your trade room to move because you don't need to worry about placing a stop. No matter how far the market moves against your position, your potential loss is capped.
How do binary options compare to the more traditional methods of speculation? Come along and find out.
Towards An Automated Trading System
Traders are generally divided between two camps; Discretionary Traders, who trade using their judgement, and System Traders, who trade strictly according to a set of pre-defined rules. If we are able to formulate a set of rules that enables us to place profitable trades on a consistent basis, why not remove the Trader altogether and have our orders placed in the market automatically when our system flags a trading opportunity?
Welcome to the world of Algorithmic Trading.
This evening, we are very pleased to welcome Daniel Rolles of the Traders & Investors Club will be discussing the concepts behind algorithmic trading, detailing the pros and cons of the approach and describing the steps involved in the development of algorithmic trading strategies.
This is the first of a two-parter that will provide the framework for next month's presentation during which Daniel and Stuart will introduce their Asian Channel Break strategy and provide an overview of its implementation on the Ninja Trader platform. Similar techniques may be used on many other trading platforms.
Even if you decide not to go all the way down this road yourself, this is a great opportunity to see how two experienced System Traders approach the design, testing and implementation of a robust trading system and join the debate on the philosophical questions that are raised by such an approach.
Market Roundup And Open Forum
In order to be a successful trader in the modern world, you must be aware of how the price of wheat or an after dinner speech by Ben Bernanke will affect your stock, commodity and property portfolios. Kevin Barry of the Traders & Investors Club and Simon Dixon of Benedix will present a summary of the recent global market action and throw the floor open to the audience for their take on the current trading environment.
Our Month In The Market
Members are encouraged to share their successful, or just as importantly, not so successful, trades with the Club. Have you discovered a strategy that works for you or would you like to learn how other traders have become successful? Bring your trades along and perhaps get a different perspective on how to best manage them.
Tonight's Speakers
Simon Dixon was originally trained in Corporate Finance as a Stock Broker and Market Maker. Simon is well-known for his unique insights into Market Maker manipulation and revealing institutional trading secrets. Simon speaks for top institutions such as TD Waterhouse, and Bloomberg amongst others. He lso contributes to the BBC, Investors Chronicle and the Information Exchange. Simon is currently Head of Training & Research at Benedix providing training and recruitment services for the banking and finance sector.
Daniel Rolles is a Private Trader with an interest in trading systems development.
Kevin Barry is a full-time trader. His preferred investment vehicles include options, spread betting and foreign exchange.