News

Webinar: Surprising Realities about Risk Perception - Events

2012-05-16T20:29:31Z

Denise K. Shull curates the relevant information in emotion neuroscience to bring us the latest in the rapidly-expanding world of perception, judgment, and decision-making science.

Shull addresses how our minds and bodies react to uncertainty and ambiguous data as well as how we make judgment calls in these situations. For traders and their trading decisions, she explains the important value of emotional context and the answer to "why (or how) did I do that again?"

Win a signed Denise K. Shull book:
Everyone who registers for this webinar will be entered into a drawing for a chance to win a signed copy of Shull's latest book, Market Mind Games: A Radical Psychology of Investing, Trading, and Risk.

Learn more about Shull's approach to trading psychology and the markets by listening to part 1 and part 2 of CQG's interview podcast.

Presenter:
Denise K. Shull, M.A.
CEO of The ReThink Group

Date & Time:
June 5, 2012
3:00 p.m. CDT

Bio:
Denise K. Shull is CEO of The ReThink Group, a psychological risk management and human performance consultancy, which includes the division TraderPsyches. Shull is a thought-leader in the psychology of risk, uncertainty, and exceptional performance. She blogs for Psychology Today; has written for All About Alpha and AR/Absolute Return; and has appeared on CNBC, PBS' Nightly Business Report, MarketWatch, ABC News Now, and Fox's Money for Breakfast, among other programs. A former member of the CME Group, Shull is also the author of highly-acclaimed Market Mind Games: A Radical Psychology of Investing, Trading, and Risk.

Disclaimer:
Trading and investment carry a high level of risk, and CQG, Inc. does not make any recommendations for buying or selling any financial instruments. We offer educational information on ways to use our sophisticated CQG trading tools, but it is up to our customers and other readers to make their own trading and investment decisions or to consult with a registered investment advisor.

CQG Powers Options Trade Execution in WhenTech Markets® - News

2012-05-16T16:22:55Z

WhenTech LLC and CQG have partnered to integrate CQG Trader into WhenTech Markets. The integration allows WhenTech Markets' customers to route options orders through CQG's low-latency trade execution infrastructure. Learn about the agreement in this recent press release.

Dave Wender, WhenTech Founder and CEO, commented on the new relationship:

"We are delighted to have CQG as our newest partner with whom we offer execution capability. In addition to offering another high-quality execution platform as a partner, CQG is recognized as a global leader in the delivery and support of sophisticated trading solutions, which will enable WhenTech to gain greater international market penetration."

CQG, through its Continuum division, continues to partner with companies needing trade routing and data integrated with their platforms.

CQG's Market Aggregation Available for New ICE Grain Contracts - News

2012-05-14T20:36:09Z

CQG supports ICE Futures U.S.'s newly-launched Corn, Wheat, Soybeans, Soybean Oil, and Soybean Meal contracts. Futures contracts are available as of today, May 14, 2012, with trading on calendar spreads and options contracts launching tomorrow.

ICE Futures U.S. grain contracts are fully compatible with equivalent CBOT markets, and customers can take advantage of CQG's server-side market aggregation to access liquidity on both exchanges with smart order routing.

Learn more about CQG's server-side aggregation by contacting your account manager or e-mailing tellmemore@cqg.com. Visit the ICE website for additional details on the new contracts.

CQG Blogger Richard Weissman Featured in YourTradingEdge Magazine - News

2012-05-14T19:06:07Z

CQG customer and CQG News Commentary blogger Richard Weissman (The Weissman Edge) was recently featured in a YourTradingEdge interview. The interview discusses Weissman's "casino paradigm" concept from his new book, Trade Like a Casino: Find Your Edge, Manage Risk, and Win Like the House.

On his trading progression, Weissman states, "The main thing in my favour was I was undercapitalised and was losing very small amounts of money. As I got more experienced I learned how to lose even less; then learned how to become a really, really good risk manager; and finally, I learned 'positive expectancy' (profitable) models and started making money."

Trading with Ichimoku Clouds Recorded Webinar - Events

2012-05-09T21:53:40Z

View this webinar to learn how this powerful indicator can enhance your trading experience. The Ichimoku Cloud, or Ichimoku Kinko Hyo, is a popular Japanese trend-based chart that has been used for more than half a century. It identifies the trend and indicates entry and exit points.

Technical Analyst Manesh Patel, who has spent many years trading with and teaching traders about Ichimoku Clouds, provides a comprehensive overview of the study. He discusses the entry and money management rules as well as the various instruments and time frames.

View Now >

Presenter:
Manesh Patel
Technical Analyst
E.I.I. Capital Group

Bio:
After graduating from Georgia Institute of Technology with a Masters in Engineering, Manesh Patel managed engineering projects for firms such as Lucent Technologies and Bell Labs worldwide. He then retired from the engineering field and became a full-time trader while launching The School of Ichimoku with E.I.I. Capital Group. During this time, Patel built black-box trading modules and worked for institutions on equity and currency trading desks, where he traded through the 2008 financial collapse and 2010 Flash Crash. Patel has achieved a Series 3 License and operates as a CTA. Patel also published the book Trading with Ichimoku Clouds, John Wiley & Sons.

Recently, Patel has toured the globe as an instructor, teaching traders how to use Ichimoku Clouds to improve their trading and overall businesses.

TD Meghan™: Qualifying Signals - Commentary

2012-05-09T07:33:49Z

Whilst it is true to say that one of the advantages of TD Meghan (read TD Meghan™ and Stocks: Less is More) is the relatively low number of trade signals it produces, there are still some traditional ways of filtering signals further so that your portfolio remains manageable. This is especially true if trying to embrace a buy-and-hold strategy. An obvious qualifier is to look at volume. Ideally, any indicator that suggests a reversal of trend should have high volume associated with the pattern. TD Meghan's pattern is built over the previous three or four bars. Therefore, volume can be assessed over that period. One method would be to take the four-bar Moving Average of volume and state that it must be higher than the days before the pattern. A simpler option is to concentrate on the signal bar volume itself. The table below adds the qualifier that volume must be 25% higher on the signal bar than on the previous bar. An expansion of range is already built into the pattern. Over the test period back to 2009, there were a total of 117 trades, and, at ten bars after entry, an accuracy of just over 70%, equating to a profit of 356%.

Whilst these numbers are superficially impressive, the profit curve below shows that performance has gradually flattened out over time.

There were also a relatively large number of positions if a buy-and-hold strategy was employed. One way to filter signals still further is by using TD Combo^®. It is unlikely that a TD Meghan pattern will coincide exactly with a traditional TD Combo 13. Therefore, a timing window has been created by stating that a 13 has appeared within the last twenty days before a TD Meghan signal appeared. The following table shows that the trade count has dropped by two-thirds, but profitability by only half.

Again, whilst this seems impressive, analysis of the signal confluence shows that there are long periods lacking signals entirely. This may not be a problem in itself, and closer analysis shows that areas where signals are concentrated provide insight into the overall performance of the Dow Jones Industrial Average itself. The chart below shows the three areas where a concentration occurred. The first was at a major low, the second at the end of a corrective phase, and the third at a period of volatile sideways action.

Shaun Downey is a Technical Analyst at CQG and author of the book Trading Time. He can be reached at shaun@cqg.com.

Trading in 2 Minutes: Swing Measure - News

2012-05-08T21:45:12Z

Our Trading in 2 video series features easy tips and tricks for trading in just two minutes. Tune in to Trading in 2 to learn how to enhance your own trading strategies.

In this video, CQG Product Specialist Jim Stavros shows you how to refine your exit strategy with the ZigZag study, a useful graphical tool that connects significant chart points together.

To learn more, view the following:

New Online Training Library - News

2012-05-04T15:44:11Z

CQG has launched an online training library to help customers quickly learn about the extensive trade routing and technical analysis tools in CQG Integrated Client.

The training pages include concise tutorial videos with corresponding instructions, tips and tricks videos conducted by CQG product specialists, related webinars, and links to web pages that provide a complete overview of our tools.

Browse our list of features in the following categories:

CQG basics
Trading
Charting and studies
Advanced analytics
Options
CQG Spreader

Trend Following Kept Simple: The 200-Day Simple Moving Average - Commentary

2012-04-29T20:54:03Z

Many technicians use complex technical indicators such as Average True Range, but experienced ones use them in conjunction with basic indicators such as volume and long-term simple moving averages. Arguably the most important of trend-following indicators is the Simple Moving Average, and the gold standard of moving averages is the two-hundred-day simple moving average. This is because it gives a simple, mathematically objective answer to the question all traders and analysts need to know: What is the market's long-term trend?

Because of the prevalence of the two-hundred-day simple moving average, it tends to act as support in bull markets and resistance during bear markets. Perhaps more importantly, a close which breaks the two-hundred-day simple moving average sometimes marks an intermediate to long-term change in trend (as shown in the Cash US Dollar-Japanese Yen chart below).

Consequently, low-risk, high-reward, high-probability setups tend to occur when we enter trend-following positions near the two-hundred-day simple moving average (unless it breaks prior to settlement) and place stop and reverse orders if the market breaks this technical level. Of course, we will need to superimpose some type of criteria for exiting onto this entry setup. As shown in our US Dollar-Japanese Yen chart, I favor partial profit taking on positions that enjoy a statistically significant unrealized profit as defined by the asset's ten-day ATR low. I also favor using trailing stops set to the prior day's high (for short positions) or prior day's low (for long positions). Using this method, we simultaneously prevent a statistically-significant unrealized gain from turning into a statistically-significant realized loss while taking partial profits and allowing our winners to "run."

Richard Weissman is a Senior Associate with the Energy Management Institute (www.emi.org), Editor-in-Chief of www.weissmansignals.com, and author of Trade Like a Casino: Find Your Edge, Manage Risk and Win Like the House.

The Weissman Edge Disclaimer:
Please note that this report is intended solely for educational purposes. Mr. Weissman is not responsible for any business actions, market transactions, or decisions made by readers based on information published in this report.

CQG Disclaimer:
Trading and investment carry a high level of risk, and CQG, Inc. does not make any recommendations for buying or selling any financial instruments. We offer educational information on ways to use our sophisticated CQG trading tools, but it is up to our customers and other readers to make their own trading and investment decisions or to consult with a registered investment advisor.

CQG Sponsors WILD and Wine Event in NYC - Events

2012-04-26T22:25:50Z

Editor's Note: This event is open to all women in the listed and OTC derivatives space, not just current WILD® (Women in Listed Derivatives) members.

Event: WILD in New York
Date: May 23, 2012
Time: 5:30 - 8:00 PM EDT
Location: City Winery, 155 Varick Street New York, NY 10013 [map]

CQG is proud to sponsor a WILD event in New York City on May 23, 2012. Join CQG and WILD to taste wine and hear Denise Shull, author of Market Mind Games, speak on the topic Your Brain at Risk: Surprising Findings from Decision Science. This event is open to all women in the listed derivatives and OTC space, not just current WILD members.

Denise Shull is CEO of The ReThink Group, a human performance consultancy and the parent company of TraderPsyches. Shull is a thought-leader in the psychology of risk, uncertainty, and exceptional performance. She blogs for Psychology Today, has written for All About Alpha and AR/Absolute Return, and has appeared on CNBC, PBS' Nightly Business Report, MarketWatch, ABC News Now, and Fox's Money for Breakfast, among other programs. A former member of the CME Group, Shull is also the author of Market Mind Games, published by McGraw-Hill in 2012. For more on Shull, listen to our podcast interviews with her or view the Market Mind Games webinar.

The venue for the WILD and Wine event is City Winery, "a vibrant, interactive space in New York where folks can not only make wine, but also meet friends new and old while indulging their passion for quality food, music, art and life."

WILD is a global organization founded by derivatives-industry women with a unified goal, which is to promote the advancement of women in the derivatives and OTC industry. As its stated mission, WILD "promotes networking and relationship-building among women in derivatives management through social and educational events. Our mission is to highlight industry role models, encourage advancing careers and collectively underscore the prominence of women in listed derivatives."

RSVP >

Please RSVP by by May 17, 2012.

TD Meghan™ and Stocks: Less is More - Commentary

2012-04-25T05:16:08Z

A perennial problem in stock investing is the sheer size of the scannable database. This either has to be cut down to manageable levels, or technical code must be developed that will give relatively few signals so that the portfolio does not become so vast that managing positions is problematic. Many years ago, I was commissioned to take an in-depth look at the suite of DeMark Indicators^®, and whilst the end result was a report of nearly one thousand pages, it was clear that there were some star performers. One of these was TD Meghan (read TD Meghan™: Qualifying Signals). Its primary advantage was the rarity and accuracy of the signals.

The signal is qualified as follows:

The true range one trading day ago must be less than the true range three days ago.
For a downside move, the close one trading day ago must be greater than or equal to the high three days ago, or the current opening price must be greater than the high three or four days prior.
The current opening price must be less than or equal to the close one trading day ago, or the current opening price must be greater than or equal to the high one trading day ago.

This means that a signal bar can be at a new high or the high made one day back. The default settings allow for the multiplication of the true range, and normally what is called the "Dead Zone" is deactivated.

When placed on a chart, the study highlights the pattern by placing a line on the day whenever the pattern is true. I am not at liberty to say what additional qualifiers I use, but traders can experiment by increasing or decreasing the true range factor, analysing the pattern of the signal bar itself, or looking at traditional indicators such as volume or the Slow Stochastics. Of course, other DeMark studies can also be employed.

The table below takes the Dow 30 with the high beta stocks of Apple (AAPL), Google (GOOG), and Amazon (AMZN). The Entry Signal Evaluator test uses daily data back to 2009. What stands out is the raw percentage accuracy, which touches the high fifties, and the relatively low number of trades. There are approximately twelve trades per stock over the three-year period.

The second table raises the bar in terms of what qualifies a trade. The number of trades is halved, but accuracy improves.

The following table shows the spread of results ten bars after entry.

The daily chart of Amazon below highlights some recent signals.

Shaun Downey is a Technical Analyst at CQG and author of the book Trading Time. He can be reached at shaun@cqg.com.

CQG Wins Best Technical Analysis Platform Award - News

2012-04-23T19:52:54Z

The Technical Analyst presented its 2012 awards to celebrate the best in technical analysis and automated trading at The Waldorf Hilton Hotel in London on April 19, 2012.

CQG won the Best Technical Analysis Platform category and garnered runner-up in the Best Data Provider category. Our advanced analytics combined with global real-time and historical data provide traders with critical insight into market activity. Learn more >>

Molly Morrissey, CQG's European Sales and Support Manager, and Shaun Downey, CQG Product Specialist, accepted the award at the black-tie dinner and event.

For a complete list of this year's winners, please visit the Technical Analyst's website.

[Listing image: Greg Davies (Barclays Wealth) & Trevor Neil (The Technical Analyst) ]

CQG is Finalist in 2012 PR Daily Awards - News

2012-04-19T17:08:38Z

The 2012 PR Daily Awards (presented by Ragan Communications and Dow Jones) yesterday announced the finalists in all categories. CQG is one of four finalists in the category Best Content Marketing/Brand Journalism for CQG's real-time news site. CQG is proud to be a finalist in this category along with GE Capital; Shepherd Center; and Waggener Edstrom Worldwide Inc. Bellevue and Microsoft.

The winners of the PR Daily Awards will be announced at a luncheon presented by Dow Jones in Washington, D.C., on September 11, 2012, at the conclusion of the Ragan PR Best Practices Summit.

[Listing image: Wikimedia Commons]

Options Analytics in CQG Integrated Client Recorded Webinar - Events

2012-04-16T19:36:47Z

Experienced traders know that to make the most of the options markets, you need sophisticated options analytics to gain an edge. CQG places powerful analytical modules at your fingertips for that very purpose.

CQG Product Specialist Gene O'Sullivan walks you through the options functionality in CQG Integrated Client, from basic to advanced levels.

He touches on the following in this informative webinar:

Evaluation models: volatility charts, Options Graph, and Options Calculator
Advanced options functionality: Volatility Workshop and options strategy analysis

View Now >

Presenter:
Gene O'Sullivan
CQG Product Specialist

To learn more, view the Options Analytics video or visit the CQG website.

Bio:
Gene O'Sullivan has been a product specialist at CQG for the past eight years, specializing in options analysis. He first entered the financial community to design and implement theoretical software for First Options of Chicago. After serving as the risk manager overseeing four hundred independent options traders, Gene became the first firm trader for First Options at the CBOE. Moving to the commodity asset class, Gene became the options strategist for Conti Commodity and later an institutional account manager for Shearson Lehman. Throughout his career, Gene has published options articles in major financial magazines and taught advanced options strategies for the CME.

Big Volume Confirms Key Reversals - Commentary

2012-04-16T09:33:07Z

Key reversals are one of the most popular classic technical patterns because traders seek to catch new trends in their infancy. This makes sense because participation in new trends entails lower risk and greater reward. The problem with key reversal patterns is that they are among the most rare of technical setups. Consequently, when they do occur, traders are typically so excited that they fail to distinguish between high and low probability key reversal patterns.

At first glance, the technical pattern in March 2012 Ice Brent Crude Oil futures seems to be a superb example of a key reversal (see chart below). The market has taken out the highest high over a statistically significant period and closed below the prior day's low. (In fact, it closed below the low of the prior five trading sessions.)

Below we show the same chart but have added total volume. Notice that the key reversal in Brent Crude Oil was not accompanied by a significant increase in daily trading volume. This setup is therefore suspect because it is in conflict with one of my favorite Wall Street clichés: "Big volume kills big moves."

Now compare the key reversal in March 2012 Brent Crude Oil with the CME Group May 2012 Silver chart below. Notice how Silver's daily volume spikes dramatically beyond that of prior trading days. This confirms the higher probability of a significant intermediate to long-term reversal.