Special: Trading Ideas: David Aranzabal

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Special:

Trading Ideas
David Aranzabal
✦Degree in Software Engineering from Deusto University
MBA from IESE Business School
Founder of 2 successful software companies
Lecturer at the Financial Congress and IESE

✦Founder of FXforaliving.com, specializing in forex education. Full time trader since 2004.

✦Regular contributor to FXStreet, Estrategias de Inversión, Finanzas.com, Revista Inversión,


Trading Room, Bolsalia, and Madrid’s stock Exchange

✦Contributor to Hispatrading and Trader’s Magazine

✦Presenter for over 100 live trading sessions and over 1,000 free webinars to date

✦Creator of online educational video series, reaching 1 million views (Youtube + Vimeo)

✦Founder and organizer of Trading Week® and The Forex Day®


VOLATILITY
Trading Ideas
Volatility

 A statistical measure of price


dispersion in a currency pair.

 In general, the higher the


volatility, the higher the risk
in the pair.
Volatility periods

 Periods of low volatility


follow periods of high
volatility
 Periods of high volatility
follow periods of low
volatility
 Again and again and again..
and then it starts all over.
Bollinger Band

 Because the standard deviation is a


measure of volatility, Bollinger Bands
adjust to market conditions.
 When markets become more
volatile, the bands widen (move
further from the mean), and during
periods of lower volatility, the bands
become narrower (move closer to
the mean).
 When the bands are very close to
each other, it can be a sign that
volatility is about to rise
substantially.

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John Bollinger
Bollinger. Mean and Bands

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Bollinger trading:
 Range trading
 Within the bands

 Trend trading
 Once they get closer to the mean

 Breakout:
 With RSI filter

 For automated systems:


 B% and Bandwith

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Bollinger for Range Markets

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Bollinger for Trend Markets

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Bollinger with 2 and 4 Standard Deviations

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Bollinger Breakout

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Bollinger and RSI Breakout Filter

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Trading Ideas
VOLATILITY
AND
VIX
 VIX is the ticker symbol for the Chicago Board Options
Exchange (CBOE) Volatility Index, which shows the
market's expectation of 30-day volatility. It is constructed
using the implied volatilities of a wide range of S&P 500
index options. This volatility is meant to be forward-
looking and is calculated from both calls and puts. The
VIX is a widely used measure of market risk and is often
referred to as the "investor fear gauge”.
 VIX is the code of the Chicago Board
Options Exchange Market Volatility
Index.
13 - 19
Trading Ideas
Trading Ideas
LONDON
SESSION
Time flexibility is a great advantage for people with various
schedules and allows for adaptation to everyone's day

Since it's a global market, we can trade anywhere in the world,


even while we're travelling.

Because it's a traded market without interruptions, there are no


opening gaps each day.
This minimizes the risk of trading gaps at night caused by unexpected news,
natural disasters, wars, etc.

The advantage of not having gaps is indisputable, since it allows us to manage


risks in a much more precise way, calculating down to the last pip, because
normally we won't have the problem of slippage or trading gaps.
8:00
(LONDON)
11:00
(MOSCOW)
LIVE TRADING AT:
EXAMPLE 1:
EXAMPLE 1I:
[email protected]

@FX_FORALIVING

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