New Trading Instrument

Newbie Joined: Feb 01, 2007 Posts: 9

i've tried a number of different brokers. so far, the most honest i've seen is oanda.com. i just noticed they have a new trading instrument i've not seen elsewhere-- the Box Option.

the way it works is similar to a regular option trade. so you can limit your downside to the amount of your trade. it's like betting against the house. say you specify $20 for your trade. then you specify whether the pair will cross inside a box you draw on the chart.

oanda servers will then give you a Payout value for if you're correct. if you're right, you get that payout (really the difference between your trade and the payout). if you're wrong, you would lose the amount of your trade, in this case $20.

the server algorithms seem to be based on technical analysis, so if you're good at that you should be good at box options.

Newbie Joined: Mar 12, 2007 Posts: 5

Hi orange, I have not signed up for any brokers yet. This sounds interesting. Can you make some good money? or should I say is it easy? lol

fxnoob

Newbie Joined: Feb 01, 2007 Posts: 9

fxnoob wrote:

Hi orange, I have not signed up for any brokers yet. This sounds interesting. Can you make some good money? or should I say is it easy? lol

fxnoob

well, fxnoob, i would say that sometimes it's easy and sometimes it's hard. when it's hard then after a couple of failed trades you just quit and come back later. sometimes technical analysis just doesn't work like it should, sometimes quant just doesn't work like it should. in other words, sometimes the fix is in. other times you can do no wrong. Laughing

Newbie Joined: Mar 12, 2007 Posts: 5

lol, quant what is quant?

Can you post any pics of this box instrument?

fxnoob

Newbie Joined: Feb 01, 2007 Posts: 9

fxnoob wrote:

lol, quant what is quant?

Can you post any pics of this box instrument?

fxnoob

i'll be glad to post a pic later, fxnoob--- right now i'm in the middle of a trade. Shocked

quant is "quantitative analysis". it's similar to TA or "technical analysis" but with some key differences. TA indicators can be used for almost any stock with about the same degree of reliability on each. with quant, you develop your own indicators custom-tailored to the stock you're watching. the advantage of this is that you can more often avoid the waiting time and frequent "fakeouts" of TA.

the fakeouts in TA happen because practically everybody is using and reacting to the same indicators. of course, it's also a big part of the reason why TA often works- everybody moves the same direction at the same time. but fakeouts happen because market makers (mm's) and large institutional players are able to manipulate the market and the charts based on the TA that they believe everybody will act upon. Laughing

quant, on the other hand, is used by very few traders. and those who use it are almost all acting on completely different algorithms (indicators) that they personally developed, so it tends to have much fewer fakeouts than TA and the timing is usually much more precise so you don't have to hold for days waiting for the run. quant is not hard to learn- it doesn't even require any heavy math because your computer already has the necessary program to do the math for you. amazon.com has books on quant or (hope admin doesn't mind), there's info at my site http://www.orangequant.com. quant can easily be applied to FOREX too. i'll post that pic after i get done with this forex trade....