SOFR Futures and Options: Essential Tools for Risk Management in Today's Financial Landscape
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SOFR Futures and Options: Essential Tools for Risk Management in Today’s Financial Landscape

Introduction

The financial markets have experienced significant shifts in recent years, with various instruments evolving to accommodate the changing landscape. One such development is the increasing adoption of the Secured Overnight Financing Rate (SOFR) as a benchmark for short-term interest rates. This article will explore SOFR futures and options, their role in risk management, and their applications for global intra-day traders, swing traders, and position traders.

What are SOFR Futures and Options?

SOFR futures and options are derivatives contracts based on the Secured Overnight Financing Rate (SOFR). The SOFR is an interest rate benchmark that reflects the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. It is published by the Federal Reserve Bank of New York and has been designed as an alternative to the London Interbank Offered Rate (LIBOR).

SOFR futures and options provide market participants with a means to hedge their exposure to short-term interest rate movements. These instruments have gained considerable traction due to their deep liquidity pools and broad participation from global banks, hedge funds, asset managers, principal trading firms, and other types of traders.

Applications in Risk Management

SOFR futures and options have several applications in risk management for various types of traders:

  1. Interest Rate Hedging: Traders can use SOFR futures and options to hedge their exposure to interest rate fluctuations. As Dr. Glen Brown, President & CEO of Global Financial Engineering and Global Accountancy Institute, states, “SOFR-based derivatives are essential tools for market participants looking to hedge interest rate risk in today’s evolving financial landscape.”
  2. Portfolio Diversification: SOFR futures and options can be utilized to diversify a portfolio, as they offer exposure to different sectors of the economy. Dr. Brown highlights that “incorporating SOFR derivatives into a trading strategy can provide valuable diversification benefits and help manage risk more effectively.”
  3. Trading Strategies: SOFR futures and options can be used to implement various trading strategies, such as spread trading, curve trading, and relative value trading. These strategies can be beneficial for global intra-day traders, swing traders, and position traders, as they seek to capitalize on market inefficiencies and short-term interest rate movements.
  4. Transition from LIBOR: The phase-out of LIBOR has necessitated the adoption of alternative benchmarks like SOFR. “The transition from LIBOR to SOFR has presented both challenges and opportunities for market participants,” says Dr. Brown. “SOFR futures and options have emerged as vital instruments for managing risk during this transition.”

Conclusion

As the financial markets continue to evolve, SOFR futures and options have solidified their position as leading tools for hedging short-term interest rates. With deep liquidity pools and broad participation from various market participants, they offer numerous risk management applications for global intra-day traders, swing traders, and position traders. Dr. Glen Brown’s insights emphasize the growing importance of SOFR derivatives in today’s complex financial landscape, making them essential instruments for effective risk management.

Global Hybrid Forex Trading Strategy(GHFTS) executed on the Global Algorithmic Trading Software(GATS)-System#0-#6
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Global Hybrid Forex Trading Strategy(GHFTS)

Global Hybrid Forex Trading Strategy(GHFTS) executed on the Global Algorithmic Trading Software(GATS)-System#0-#6

The Global Hybrid Forex Trading Strategy(GHFTS) is a trend following strategy that was developed by Dr. Glen Brown. The strategy is executed on the Global Algorithmic Trading Software(GATS) using its seven(7) sub-systems from the Based system to system #6.

Global Hybrid Forex Trading Strategy trade in the direction of the Micro, Short, Medium, and Long Term trends using Global Algorithmic Trading Systems(GATS)#0, #1, #2, #3, #4, #5, and #6.

This account is for research purposes and hence should not be deemed as investment advice.

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Global Algorithmic Trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders.

Global Algorithmic Trading Software(GATS)-System #0 to System #6 uses computer codes and chart analysis to enter and exit trades according to to set parameters such as price movements or volatility levels. Once the current market conditions match any predetermined criteria within the software, the trading algorithms will execute a buy or sell order on our behalf.

Global Algorithmic Trading Software(GATS)-System #0 to System #6 runs on MetaTrader 4, the most popular trading platform in the world. MetaTrader 4 is an advanced trading platform that gives you access to a range of tools and features to help you carry out analysis and customize your trading experience.

Main Features of the Global Algorithmic Trading Software(GATS)

**Global Algorithmic Trading Software(GATS)-System #0 to #6 is used to execute our trading decisions in over 60 countries worldwide
**Global Algorithmic Trading Software(GATS)-Systems #0 to #6 can be used for Equities, Futures, Commodities, Options, Bonds, Currencies, and mutual funds
**Volatility Based Risk Management System
**Volatility-Based Position Sizing Management System

In this research, we will combine all seven(7) subsystems and apply the strategy to 8 major forex currency pairs. Majors are generally the most popular type of currency pair to trade.

The most traded forex pairs at Global Financial Engineering and Global Accountancy Institute.

*EUR/USD (euro/US dollar)
*GBP/USD (British pound/US dollar)
*USD/JPY (US dollar/Japanese yen)
*USD/CHF (US dollar/Swiss franc)
*USD/CAD (US dollar/Canadian dollar)
*AUD/USD (Australian dollar/US dollar)
*NZD/USD (New Zealand Dollar/US dollar)
*EUR/JPY (Euro/Japanese yen)

Let us track our trades for the Global Hybrid Forex Trading Strategy(GHFTS) and analyze them in order to create a successful transition and operational excellence using the above currency pairs.

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Let us analyze our current open trades:


As at December 5, 2022, We have decided to use a Hard Stop Loss and an initial trailing stop given by one times the twelve monthly average true range(ATR12) with a 0.07 % risk per trade per subsystem. We will also activate a normal trailing stop given by 10% of the initial risk. Our profit target is three times the initial risk

Trading Risk Disclaimer

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Futures trading involves the potential for a substantial risk of loss as well as substantial gains and is not suitable for every investor. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses, or can work for you, leading to large gains. If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account.

You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor. All trading strategies are used at your own risk. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.

U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

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Global Accountancy Institute Weekly Commentary for 3M Co.( $MMM) by Dr. Glen Brown
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Global Accountancy Institute Weekly Commentary for 3M Co.( $MMM) by Dr. Glen Brown

3M Co. is a technology company, which manufactures industrial, safety, and consumer products. It operates through the following segments: Safety and Industrial, Transportation and Electronics, Health Care, Consumer, and Corporate and Unallocated. The Safety and Industrial segment consists of personal safety, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules. The Transportation and Electronics segment includes electronics, automotive and aerospace, commercial solutions, advanced materials, and transportation safety. The Health Care segment offers medical and surgical supplies, skin health and infection prevention products, oral care solutions, separation and purification sciences, health information systems, inhalation and transdermal drug delivery systems, and food safety products. The Consumer segment covers consumer healthcare, home care, home improvement, and stationery and office products, such as consumer bandages, braces, supports, respirators, cleaning products, retail abrasives, picture hanging, and consumer air quality solutions. The Corporate and Unallocated segment refers to special items and other corporate expense-net. The company was founded by Henry S. Bryan, Hermon W. Cable, John Dwan, William A. McGonagle, and J. Danley Budd in 1902 and is headquartered in St. Paul, MN. (SOURCE:https://www.wsj.com/market-data/quotes/MMM/company-people)

At Global Accountancy Institute,Inc., we believe that each trade should have a name. Hence within our trading models, we have four(4) types of trades that we execute daily.

These are:

Global MMM Micro-Trend Trades
Global MMM Short-Term Trend Trades
Global MMM Medium-Term Trend Trades
Global MMM Long-Term Trend Trades.

The Global MMM Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #0,#1 & #2 which trade in the direction of our Four Hour Time Bars(FHTB) with a Trailing Stop Loss given by two(2) to four(4) times the Daily Average True Range(DATR) using period 25 using period 25.

The Global MMM Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #3 which trade in the direction of our Daily Time Bars(DTB) with a Trailing Stop Loss given by five(5) times the Daily Average True Range(DATR) using period 25.

The Global MMM Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #4 which trade in the direction of our Weekly Time Bars(WTB) with a Trailing Stop Loss given by six(6) times the Daily Average True Range(DATR) using period 25.

The Global MMM Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #5 & #6 which trade in the direction of our Monthly Time Bars(MTB) with a Trailing Stop Loss equal to seven(7) to eight(8) times the Daily Average True Range(DATR) using period 25.

Our Global Algorithmic Trading Software (GATS) #3 on September 03, 2022, indicates the following for 3M Co.( $MMM):

The MMM Long Term Trend (LTT) is currently Bearish
The MMM Medium Term Trend (MTT) is currently Bearish
The MMM Short Term Trend (STT) is currently Bearish
The MMM Micro Trend (MT) is currently Bearish

3M Co.( $MMM) P/E Ratio (TTM): P/E Ratio (TTM) = 17.01(09/02/22)
The Price to Earnings (P/E) ratio, a key valuation measure, is calculated by dividing the stock’s most recent closing price by the sum of the diluted earnings per share from continuing operations for the trailing 12 month period.

3M Co.( $MMM) Earnings Per Share (TTM):EPS (TTM) = $7.15
A company’s net income for the trailing twelve month period expressed as a dollar amount per fully diluted shares outstanding.

3M Co.( $MMM) Market Capitalization: Market Cap= $69.29B
Reflects the total market value of a company. Market Cap is calculated by multiplying the number of shares outstanding by the stock’s price. For companies with multiple common share classes, market capitalization includes both classes.

3M Co.( $MMM) Shares Outstanding:Shares Outstanding = 569.60 M
Number of shares that are currently held by investors, including restricted shares owned by the company’s officers and insiders as well as those held by the public.

3M Co.( $MMM) Public Float: Public Float = 568.98 M
The number of shares in the hands of public investors and available to trade. To calculate, start with total shares outstanding and subtract the number of restricted shares. Restricted stock typically is that issued to company insiders with limits on when it may be traded.

3M Co.( $MMM)Dividend Yield: Yield = 4.90%(09/02/22)
A company’s dividend expressed as a percentage of its current stock price.

Dark days might be ahead for 3M Co.( $MMM)!. The company filed for bankruptcy for Aearo Technologies, a subsidiary that once made the earplugs, as a way to fence off the litigation from the rest of 3M.
We will attempt a Bearish 3M Co.( $MMM) trade based on the current bearish market structure as shown on the Global Algorithmic Trading Software (GATS) #5 with potential trade entry signal as follows:

Global Potential Trade Entry Signal #1 :$121.33
Global Maximum Catastrophe Hard Stop Loss GAP:7×3.4024)=$10.21
Global Maximum Catastrophe Trailing Stop: 7×3.4024= $10.21
Global Maximum Profit Target: 3 x $10.21 = $30.63

Global Take Profit Target = $121.33 – $30.63 = $90.70

Current Price as at September 03,2022: $121.34
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Dark days might be ahead for 3M Co.( $MMM)!. We could see the MMM trading at $90.70 within a few weeks!
Trade at your own risk!. This is not an investment advice!

MITx MicroMasters® Program in Finance

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Global Accountancy Institute Weekly Commentary for EURUSD by Dr. Glen Brown
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Global Accountancy Institute Weekly Commentary for EURUSD by Dr. Glen Brown

At Global Accountancy Institute,Inc., we believe that each trade should have a name. Hence within our trading models, we have four(4) types of trades that we execute daily.

MITx MicroMasters® Program in Finance

These are:

Global EURUSD Micro-Trend Trades
Global EURUSD Short-Term Trend Trades
Global EURUSD Medium-Term Trend Trades
Global EURUSD Long-Term Trend Trades.

The Global EURUSD Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #0,#1 & #2 which trade in the direction of our Four Hour Time Bars(FHTB) with a Trailing Stop Loss given by two(2) to four(4) times the Daily Average True Range(DATR) using period 25 using period 25.

The Global EURUSD Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #3 which trade in the direction of our Daily Time Bars(DTB) with a Trailing Stop Loss given by five(5) times the Daily Average True Range(DATR) using period 25.

The Global EURUSD Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #4 which trade in the direction of our Weekly Time Bars(WTB) with a Trailing Stop Loss given by six(6) times the Daily Average True Range(DATR) using period 25.

The Global EURUSD Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #5 & #6 which trade in the direction of our Monthly Time Bars(MTB) with a Trailing Stop Loss equal to seven(7) to eight(8) times the Daily Average True Range(DATR) using period 25.

Our Global Algorithmic Trading Software (GATS) #3 on September 03, 2022, indicates the following for EURUSD:

The EURUSD Long Term Trend (LTT) is currently Bearish
The EURUSD Medium Term Trend (MTT) is currently Bearish
The EURUSD Short Term Trend (STT) is currently Bearish
The EURUSD Micro Trend (MT) is currently Bearish

We will attempt a Bearish EURUSD trade based on the current bearish market structure as shown on the Global Algorithmic Trading Software (GATS) #5 with potential trade entry signal as follows:

Global Potential Trade Entry Signal #1 : 0.9954
Global Maximum Catastrophe Hard Stop Loss GAP:7×99=693 Pips =6930 Points
Global Maximum Catastrophe Trailing Stop: 7×99=693 Pips =6930 Points
Global Maximum Profit Target: 3 x 693 Pips = 2079 Pips = 20790 Points

Global Take Profit Target = 0.9954 – (7 x0.0099) = 0.9261

Current Price as at September 03, 2022: 0.9954
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We could see the EUR/USD trading at 0.9261 within a few weeks!
Trade at your own risk!. This is not an investment advice!

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Global Accountancy Institute Micro Trend Trades Analysis for Bitcoin
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Global Accountancy Institute Weekly Commentary for Bitcoin by Dr. Glen Brown

Updated: September 3, 2022

Bitcoin is the world’s most-traded cryptocurrency which represents a massive share of the cryptocurrency market. It was the first cryptocurrency that was introduced to the public and has therefore the most developed infrastructure. It is often considered to be a trendsetter in the cryptocurrency world. Bitcoin essentially created an alternative asset class and can be used in portfolio hedging strategies, especially during turbulent markets. (Source: Trading View)

At Global Accountancy Institute, Inc., we believe that each trade should have a name. Hence within our trading models, we have four(4) types of trades that we execute daily.

These are:

  • Global Micro-Trend Trades
  • Global Short-Term Trend Trades
  • Global Medium-Term Trend Trades
  • Global Long-Term Trend Trades.

The Global Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #0,#1 & #2 which trade in the direction of our Four Hour Time Bars(FHTB) with a Trailing Stop Loss given by four(4) times the Daily Average True Range(DATR) using period 25.

The Global Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #3  which trade in the direction of our Daily Time Bars(DTB) with a Trailing Stop Loss given by five(5) times the Daily Average True Range(DATR) using period 25.

The Global Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #4 which trade in the direction of our Weekly Time Bars(WTB) with a Trailing Stop Loss given by six(6) times the Daily Average True Range(DATR) using period 25.

The Global Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #5 & #6 which trade in the direction of our Monthly Time Bars(MTB) with a Trailing Stop Loss equal to seven(7) and eight(8) times the Daily Average True Range(DATR) using period 25.

Our Global Algorithmic Trading Software (GATS) #5 on September 03, 2022, indicates the following for Bitcoin

The Long Term Trend (LTT): Bearish
The Medium Term Trend (MTT): Bearish
The Short Term Trend (STT): Bearish
The Micro Trend (MT): Bearish

We are currently Bearish on Bitcoin and hence decide to execute a long term Bearish trade with a potential trade entry signal as follows:

Global Potential Trade Entry Signal #1:17575
Global Maximum Catastrophe Hard Stop Loss GAP:6613
Global Maximum Catastrophe Trailing Stop:6613
Global Minimum Profit Target: 6613
Global Maximum Profit Target: 13226

Current Price as at September 03,2022:19788

Bitcoin could drop by a further $6613 to a low of $13,175 within a few weeks if we break the current support level at $17575.
$13175 is a dangerous level since many bulls will give up and sell Bitcoin.

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends, or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute, Inc. or Global Financial Engineering, Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives, or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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The History of Global Accountancy Institute,Inc.

Founded in 2016 by Dr. Glen Brown, Global Accountancy Institute started as a tuition provider for the following Professional Accountancy Qualifications:
• Association of Chartered Certified Accountants(ACCA)
• Foundations in Accountancy(FIA)
• Certified Accounting Technician(CAT)
• Certified Public Accountant (CPA)
• Certified Management Accountant(CMA)
• Chartered Institute of Management Accountants(CIMA)
• Certified Internal Auditor(CIA)
• Chartered Financial Analyst® (CFA)

In 2019 Dr. Glen Brown redefined Accountancy and bridges Accountancy, Finance, Investments, Trading and Technology together in order for Global Accountancy Institute to become a Global Multi-Asset Class Proprietary Trading Firm.
This allow the institute to convert all its intellectual capital into practical applications in the various industries.
We utilize our own capital to engaged in securities, futures, options and commodities trading in the global financial markets. We are a dynamic company. We are forward looking and quickly let go of past successes and failures.

Global Accountancy Institute brings a scientific approach to trading the global financial markets. We operate within sophisticated virtual computing environments that puts our financial engineers at the forefront of innovation in the world of algorithmic trading.

We are accountants, economists, mathematicians, computer scientists, statisticians, physicists and financial engineers. We research and develop automated trading algorithms using advanced machine learning techniques including but not limited to Regression, Classification, Clustering, Dimensionality Reduction, Ensemble Methods, Neural Nets and Deep Learning, Transfer Learning, Reinforcement Learning, Natural Language Processing, and Word Embeddings.
We have just completed the Global Algorithmic Trading Software(GATS) and have since created Global Professional Proprietary Trading Course for our internal Prop. Traders.

The Global Algorithmic Trading Software(GATS)  help us to make better investment decisions.

We believe the Global Algorithmic Trading Software(GATS) and the Global Professional Proprietary Trading Course can us avoid the negative consequences of retirement.
Many Finance professionals go home at age 65 to die. I have retired into something great. Yes, I have retired into my own Proprietary Trading Firm and continue to build wealth.
“According to Dan Sullivan: “Retirement is a GPS signal for death to come and find you. It’s important to always be engaged with an interesting future.” You can retire from an activity but never retire from life.

Global Accountancy Institute Technical Trade Analysis for LSB Industries, Inc. (LXU)
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Global Accountancy Institute Technical Trade Analysis for LSB Industries, Inc. (LXU)

LSB Industries, Inc. (LXU) engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration. In addition, the company provides industrial grade ammonium nitrate, ammonium nitrate, and HDAN solutions for ammonium nitrate fuel oil and specialty emulsions for mining, surface mining, quarries, and construction applications. It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.( Yahoo Finance)

Our Global Algorithmic Trading Software (GATS) System#6 indicates the following for LSB Industries, Inc. (LXU) as at March 21,2022:
The LSB Industries, Inc. (LXU) Long Term Trend (LTT) is currently Bullish
The LSB Industries, Inc. (LXU) Medium Term Trend (MTT) is currently Bullish
The LSB Industries, Inc. (LXU) Short Term Trend (STT) is currently Bullish
The LSB Industries, Inc. (LXU) Micro Trend (MT) is currently Bullish

We are Bullish on LSB Industries, Inc. (LXU) with previous trade entry signal as follows:

Current Price for LSB Industries, Inc. (LXU):$22.98
Global Entry Signal for LSB Industries, Inc. (LXU) : Buy at $5.86
Global Trailing Stop Distance for LSB Industries, Inc. (LXU): $17.27
Global Target Profit for LSB Industries, Inc. (LXU): $46.11

Global Accountancy Institute Technical Trade Analysis for LSB Industries, Inc. (LXU)

Global Accountancy Institute Technical Trade Analysis for LSB Industries, Inc. (LXU)

 

 

 

 

 

 

 

 

 

 

 

Trade at your own risk!. This is not an investment advice!

Global Accountancy institute Team up with How To Trade to provide 5 Star Trading Education

Further Risk Warning:

Stocks, Futures and Forex Trading involves a substantial risk of loss and is not appropriate for all investors. Past performance is not indicative of future performance.

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The reader is cautioned not to rely on any information provided in this post for making decisions about trading any security. Please refer
to Risk Disclaimer at https://www.globalaccountancyinstitute.com/trading-risk-disclaimer/

 

 

Meta tidal wave and the tsunami cometh.
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Meta tidal wave and the tsunami cometh.

Facebook parent Meta misses earnings estimates and the stock (Meta Platforms, Inc.($FB)) plunges by over 20% Pre-Market.

At the time of writing, the stock price decline from the closing price of $323 to $257. This represent a decline of over 20%.

During the week of August 29, 2021, the Stock traded to a high of $383.70 then break its Support Zone at $340.38.

This was the first warning sign according to the Global Algorithmic Trading Software (GATS: System#5.

The second warning sign occurs during the week of October 24, 2021 when it traded below its 25WEMA(25 Weeks EMA).

The final exit signal was given when the stock price traded below $332.95 (383.70 -3(16.9140)).

We are still bullish on Meta Platforms, Inc.($FB). However we will only attempt a bullish breakout trade above $353.56

Our Global Algorithmic Trading Software (GATS) System#5 indicates the following for Meta Platforms, Inc.($FB) as at February 3,2022:

The Long Term Trend (LTT) is currently Bullish
The Medium Term Trend (MTT) is currently Bearish
The Short Term Trend (STT) is currently Bearish
The Micro Trend (MT) is currently Bearish

Trade at your own risk!. This is not an investment advice!

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

 

 

Natural gas surges to a daily high of $5.293!!
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Natural gas surges to a daily high of $5.293!!

Today, Natural gas prices continued to surge higher while the Global Algorithmic Trading Software-System#5 Bought 3.57 Lots of Natural Gas($NATGAS ) at $4.84 with a Stop Loss at $2.698 and a Profit Target at $11.27

This is a medium term trade in the direction of our Weekly Trend Proprietary Indicators.

Based on the current price action, we will adjust our adaptive Trailing Stop to 3.027

The pullback from previous high at $6.519 to about $3.491 was deep. Hence we are expecting a retest of $6.519. We will re-evaluate our risk within this zone.

Trade at your own risk!. This is not an investment advice!

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RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

A better way to set Stop Losses
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A better way to set Stop Losses by Dr. Glen Brown

 

Your Stop Loss should be based on the Volatility Exposure(VE) of the financial instrument .

Volatility is the  rate at which the price of a financial instrument  increases or decreases for a given set of returns.

How do we measure Volatility of a financial instrument?

Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. This shows the range to which the price of a financial instrument may increase or decrease. Hence, Volatility measures the risk of a financial instrument.

Within the Global  Algorithmic Trading Software(GATS), We use Volatility to  indicate the pricing behavior of the financial instrument which help us to estimate the fluctuations that may happen within different timeframes.

We use the PATS Average True Range(ATR) indicator to set the stop loss and profit target for the various subsystems and strategies.

At Global Financial Engineering, we believe that your stop loss should be based on the number of Volatility Exposure Periods (VEPs). 

For example: Using Average True Range(ATR) with period 200 with a conservative risk % model:

**27VEPs  is assigned to the based system which runs on the 1 minute chart where the default risk is set at 0.01% of free equity

**24VEPs is assigned to system #1 which runs on the 5 minutes chart, where the default risk is set at 0.02% of free equity

**21VEPs is assigned to system #2 which runs on the 15 minutes chart, where the default risk is set at 0.0.03% of free equity

**18VEPs is assigned to system #3 which runs on the 30 minutes chart, where the default risk is set at 0.04% of free equity

**15VEPs is assigned to system #4 which runs on the 60 minutes chart, where the default risk is set at 0.05% of free equity

**12VEPs is assigned to system #5 which runs on the 240 minutes chart, where the default risk is set at 0.06% of free equity

**9VEPs is assigned to system #6 which runs on the Daily chart, where the default risk is set at 0.07% of free equity

**6VEPs is assigned to system #7 which runs on the Weekly chart, where the default risk is set at 0.08% of free equity

**3VEPs is assigned to system #8 which runs on the Monthly chart, where the default risk is set at 0.09% of free equity

The Global Algorithmic Trading Software(GATS) will use the above inputs to calculate the position size of each financial instrument.

 

 

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute,Inc. or Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.