Sergey Kamenshikov, Ph.D.
IFC Markets
Summary
There is a conventional division of classic trading systems into classes: mean reversion and trend-following. In current webinar we disclose using of synthetic instruments that initially possesses trend behavior with long term memory. In this case a trader controls volatility structure with the use of technical and statistical analysis. We consider currency cross rates and some mixed instruments to reach reverse spreads. A negative correlation between underlying currencies/assets means that a basic asset growth corresponds to a quoted asset drop and vice versa. Under certain conditions these instruments are distinguished by long-term trends and short-lived flat periods. A flat movement pattern becomes unstable. We consider the trading results of a simple moving average approach filtered by correlation analysis. It has been proven that reverse spread is a perfect instrument for trend following with higher winning rate than major currency pairsLatest Live Videos
Editors’ Picks
AUD/USD edges higher as Australian CPI reaffirms RBA's hawkish stance
AUD/USD edges higher following the release of Australian consumer inflation figures, which backs the RBA's hawkish tilt and supports the Australian Dollar amid a positive risk tone. Spot prices, however, remain confined in a nearly two-week-old range amid trade-related uncertainties and ahead of Trump's State of the Union address. In the meantime, the Fed's less dovish outlook acts as a tailwind for the US Dollar and contributes to capping the currency pair.
Gold consolidates below $5,150 as traders await Trump's State of the Union address
Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.
USD/JPY struggles near two-week low amid BoJ rate hike uncertainty, ahead of Trump’s address
USD/JPY sticks to its positive bias near 156.00 during the Asian session on Wednesday and remains close to a two-week high as reports that Japan’s PM wants the BoJ to go slow on future rate hikes continue to weigh on the Japanese Yen. The US Dollar, on the other hand, draws support from the Fed's hawkish outlook and also acts as a tailwind for spot prices amid a positive risk tone. However, intervention fears could cap the currency pair ahead of Trump's State of the Union address.
Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform
Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.
The Citrini report: How a debatable AI narrative can shake Wall Street Premium
That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.
Here is what you need to know on Wednesday, February 25:
The US Dollar (USD) is on a green note on Tuesday after recovering from Monday’s decline as investors digested the United States (US) Supreme Court ruling against President Donald Trump's tariffs and the new round of levies he announced last weekend.