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London Breakout Strategy

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In the world of trading, there is a strategy called the London breakout it is a strategy that many forex traders swear by. The strategies based on the fact that before the London session opens after the lower volatility Asian session is drawing to a close; as this Asian session closes in the European trading session begins there is a spike in volatility because the Europeans have the highest volume of trading activity in terms of liquidity. it is this transition from low volatility to high volatility that some advanced traders choose to monopolize on and make some decent income.

Now that you know there is a training opportunity that arises when the London stock exchange opens at 8 a.m. GMT you can prepare yourself for this awesome strategy. If you live in North-America this does mean that you have to be up and ready to trade at 3:00 a.m. eastern standard time. Some experts say that you can still make money off this strategy all the way until 11:00 a.m. eastern standard time. So first things first set your alarm clock and get ready for an early morning if you are in the united states.

The strategy is pretty simple and has only a handful of rules.

  • You must choose a deep in the money binary that expires around the end of the day which is about 3 p.m.
  • If you see a full deviation move on the deviation to that means that it is a valid trading day.
  • If there is no deviation move then there should be no trading for that day on your part with this strategy.
  • It is recommended to use the 15-minute candlesticks and the GBP/USB pairs.

For this strategy, it is suggested that you use ninjatrader because it has tools like the sharp shooter template that you can use to inform your trades. The sharpshooter template will supply you with deviation levels, expected volume, expected range and trends. If you do not have access to ninjatrader then you can use Tradingview and setup your RSI to show you when a pair is oversold or overbought which is a good buying signal if coupled with the Bollinger bands or other signals to inform your purchase.

The initial direction of the breakout is usually depending on the direction that the market is already moving in the market opening that day. As I said earlier you can use the EMA trend line and the RSI information to decide whether or not it is a good trading setup for you. If you are using a platform like [Nadex](www.nadex.com) then you may be able to start trading before the European market opens for retail traders which means you can really catch the swing right before the market opens.

This is a relatively simple strategy they can be used as the as long as you have your timing and analysis correct. The London daybreak strategy for binary options is a solid strategy but as with most strategies that focus on trading breakouts you must be wary of the possibility and that the breakout could go in the opposite direction you intended to. Give the strategy a try on the demo trading platform over at [Nadex](www.nadex.com) And see if it’s right for you. I have found that it works best during the middle of the week from Tuesday to Thursday but there is usually choppy markets on Mondays and Fridays when it comes to the strategy.

I personally like the premise behind the strategy and have even gone so far as to customize it so that I can use it for binary options trading during the opening up the American markets. Maybe in a few months after I have a good grasp on this customized strategy I will share its nuances with you guys. Until then I hope you guys enjoy this one and I hope it helps you in your trading journey!

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This article was written by @bulma and edited by @flashfiction. This article can be found on PROFITRIBES.

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Investing / Trading

Whats up with the buffet buyback?

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First what’s a stock buyback?

A stock buyback is simply when a public traded company buys shares back from the open market.

It is common for businesses to buy back shares for several reasons

  • Help boost the value of their shares. This works because when there is less shares available it influences the price of that asset.
  • Boost earnings before and upcoming report.
  • Cause speculation on the value of their asset

In the past year it has been very common for companies to buy back shares. this is often helpful in rewarding investors.

Buffet knows something you dont!

Berkshire Hathaway is a company owned by Warren Buffett who is know for buying stake in companies he believes will grow in value with time. This time they arent buying shares of other companies but are investing in itself with approximately $1 billion worth of stock buybacks.

You may be wondering why Berkshire Hathaway is buying back shares? Well, after a decade long bull market in the USA coupled with increasing stock prices(potentially in bubble teritory now), Buffett thinks a buyback make sense because there is little percieved value anywhere else. The strategy must be working berkshire reported profits increased 351% to $18.5 billion this past year. Buffets style of value investing is known as one of the best in the industry and making Buffett one of the richest men in the world with a worth of about $90 billion.

Be like Warren buffet and start making valuebuys over on the Stash App, here is $5 for free to get started

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Investing / Trading

Euro to replace the dollar?

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there is a probability

The euro is currently 1/3 of global transaction volume, and some think its potentially possible that the Euro coud be placed to surpass the dollar in importance. The euro like the dollar is a fiat currency that is used for trade between european nations and their allies when convenient. With sanctions tarifs and general economic bullying becoming the norm for america and its dollar, some nations are choosing to look for ways to escape dollar hegemony.

It’s not likely to really happen

The euro is a strong currency but it has little chance of becoming the worlds reserve currency. It is more likely that folks will choose to move away from any financial institution that can basically starve your population with financial and trade sanctions. In my opinion cryptocurrency will find it’s way into the worlds economy so that users can escape the easily restricted fiat currencies. Value based in valuless debt notes is on its way out and this will probably be the segway into the next financial crises.

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ICO / Crypto

Can cryptocurrency survive a gobal financial crisis?

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Is cryptocurrency a hedge against economic downturns?

The answer to this question is quite controversial, some would say yes because this is what crypto was made for; while others would chime that crypto is unproven in a downturn and will need to survive its first one before we can feel at ease about its survivability. Much of your perception on whether bitcoin and cryptocurrency in general will survive aneconomic crisis, is based on where you stand about cryptocurrency in general. Today we will talk about the possible survivability of cryptocurency in a crisis.

Is Venezuela a test case

Right now in Aouth America there are several financial crises transpiring that may create possible examples of how crypto will fare in a financial storm. In venezuela reports are coing out that many people are choosing to use cryptocurrency to pay for life expenses. The national government under President Maduro have begun to implement their own state backed cryptocurrency called the petro. The Petro is an asset pegged to the price of a barrel of oil and the Venezuelan government hopes it will help them escape dollar tyrany. Hyperinflation has taken its toll on Venezuelans but many of them were informed enough to seek financial refuge with cryptocurrencies. This is a great example of how when value leaves fiat the holders will seek to run to other assets to store value; that exodus now has cryptocurrency as an outlet for the fleeing fiat users.

We may see a big example soon enough

Much of the world is currently on the precipice of a financial downturn and if america keeps behaving the way it has been then we will likely see a major crises emerge in the next 5 years or so. some analysts see a move away from the dollar as a potential catalyst whilst others proclaim that the trade war and student debt will push us into the downturn of this decade. Unlike those times prior, now cryptocurrency has created and outlet for those funds that “dissappear” from markets as the major stakeholders cash out. The financial bigwigs are likely going to enter the cryptospace as they will soon see it as a way to maintain some value in the crises they create.

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