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Banks analysis

  • #1
  • First Post: Mar 16, 2007 4:54pm Mar 16, 2007 4:54pm
Is there a place to get what the major banks are doing in regards to forex trading?
I would assume that these players have an edge.
  • #2
  • Mar 16, 2007 4:58pm Mar 16, 2007 4:58pm
Actually, I'm thinking along the lines.....

We always find ways to predict the market and put a lot of
effort to analyze the chart. The cross of this MA with this
and that, RSI above this and that, etc.

What if we can find a way to recognize how the big boys
play this game. Has anyone done a study about this?
  • #3
  • Mar 16, 2007 5:16pm Mar 16, 2007 5:16pm
Yes, does anyone or has anyone worked for a large bank that is active in forex trading?
  • #4
  • Mar 16, 2007 5:50pm Mar 16, 2007 5:50pm
That is a hard question to answer. There is alot of psychology involved in the way banks trade. The banks need you to lose for them to win. Sometimes you can look back at the market and see area's where the banks blatantly sucked people into buy's only to allow their big money to come in and drop the market or vice versa. Best way to study where big money is getting into the market is a level 2 platform. Though sometimes if you stare at the tick chart long enough around an area where big money is slowly getting in, you can see the market pulse with their entries, then retrace, then pulse with them getting some more in, then retrace. They cannot enter everything at once, they sneak "smaller" lot sizes into the market over the course of a range.
The basis of a democratic state is liberty. ~ Aristotle
  • #5
  • Mar 16, 2007 7:08pm Mar 16, 2007 7:08pm
Quoting meltri
What if we can find a way to recognize how the big boys play this game. Has anyone done a study about this?
Yes, it's called Volume Spead Analysis. It gives you clues when the big boys/smart money are active.
  • #6
  • Mar 16, 2007 9:05pm Mar 16, 2007 9:05pm
The only thing they have that you do not; they can see their customers' order flow.....(their customers only)

You have swaps, options ect which make up the FX business...so they are not all trading spot.

We ( retail) make up 2% of the market....Guppys in the ocean.
  • #7
  • Mar 16, 2007 10:06pm Mar 16, 2007 10:06pm
actually the retail in volume is much more than that....with all thse 1:100 leverage it easily goes up to to at least 1/2 trillion a day (retail only).

what u can do is understand market psychology. Combine technicals with fundamentals.

when i say technicals are no more than trendlines and resistance/support. fundamentals can shatter trendlines and supports and change market psych.

no one bank is going to try and shatter a trendline or res/supp. There are too many big players in the game that are thinking the opposite.....unless it is a fundamental announcement

so the bottom line is, if u want to trade like using order flow, get level II. from what i've seen it really works. Not sure about tick trading...could someone confirm tick trading?
  • #8
  • Mar 17, 2007 7:46am Mar 17, 2007 7:46am
Tick trading can be successful only on an ECN platform with virtually no spread. Think... Rob Grespi type trading. I think that's how you spell his name.
The basis of a democratic state is liberty. ~ Aristotle
  • #9
  • Mar 17, 2007 8:36am Mar 17, 2007 8:36am
Quoting Vensik
Tick trading can be successful only on an ECN platform with virtually no spread. Think... Rob Grespi type trading. I think that's how you spell his name.
i agree. And it doesn't require his "special feed" u can see the orders on hotspotfxi or any onther ecn like platform.

hotspot is easily understood though
  • #10
  • Mar 17, 2007 8:41am Mar 17, 2007 8:41am
Yes, it's a very simple strategy when you get down to it. However with no spread can be pulled off for massive profits if managed correctly.
The basis of a democratic state is liberty. ~ Aristotle
  • #11
  • Mar 17, 2007 3:28pm Mar 17, 2007 3:28pm
Quoting RickW00716
Is there a place to get what the major banks are doing in regards to forex trading?
I would assume that these players have an edge.
It is, and the name was right, bank analises,...u can get them for free at some large investment bank, like my broker, its always nice to read what they think about next move,...so its a must read thing if u trade forex afterall, it is them who give credits to others, not inv, banks and afterthat they hedge the contra positions,...always doubt what ur broker says, and always listen to what banks has to say...2 cents
its just money
  • #12
  • Mar 17, 2007 4:42pm Mar 17, 2007 4:42pm
I'm not really sure banks make fortunes trading forex. As far as I know their main trading edge lies in thier orderbook. They know when their clients want to get in and which way the orderbook is stacked. I was under the impression that banks do a lot of "front running".
  • #13
  • Mar 17, 2007 5:14pm Mar 17, 2007 5:14pm
Quoting don perry
i agree. And it doesn't require his "special feed" u can see the orders on hotspotfxi or any onther ecn like platform.

hotspot is easily understood though
That is interesting. Have you be able to successfully trade this way?
  • #14
  • Mar 17, 2007 6:20pm Mar 17, 2007 6:20pm
Quoting de123
It is, and the name was right, bank analises,...u can get them for free at some large investment bank, like my broker, its always nice to read what they think about next move,...so its a must read thing if u trade forex afterall, it is them who give credits to others, not inv, banks and afterthat they hedge the contra positions,...always doubt what ur broker says, and always listen to what banks has to say...2 cents
Do you have the web address available for any of these bank analysis reports?
  • #15
  • Mar 17, 2007 9:48pm Mar 17, 2007 9:48pm
Just a small comment to add to this thread: contrary to popular belief, banks do not day-trade, they do long term and swing trades most of the time.

It also seems that they rely heavily on pivot points and fib for their entry/exit points.
  • #16
  • Mar 17, 2007 11:41pm Mar 17, 2007 11:41pm
Quoting Crestwind
That is interesting. Have you be able to successfully trade this way?
yes i have but since it is live trading i didn't want to risk it as i didn't fully understand it
  • #17
  • Mar 18, 2007 3:46am Mar 18, 2007 3:46am
  •  Trader#0000
  • | Status: Unregistered Trader
I work for a large bank and read the daily commentary on the markets (mainly fx and interest rates, sometimes comods), and I can seriously tell you that they don't carry a lot of weight. Why? Because they are written and put together by the market research department and not the traders. They are good at describing what happened last night, summing up large amounts of market data and market news, but when it comes to trading, I have found that it is wrong as often as its right.

That said, when I do see some notes coming from a real trading desk (like the spot desk), then I do sit up and take notice.
  • #18
  • Edited Mar 19, 2007 1:06pm Mar 18, 2007 3:04pm | Edited Mar 19, 2007 1:06pm
Quoting RickW00716
Do you have the web address available for any of these bank analysis reports?
NO, sorry... but can add their last analises if any good,...
its just money
  • #19
  • Edited 1:06pm Mar 19, 2007 5:07am | Edited 1:06pm
1 more,...they are all for past week,..but wtf, im gona post here what i get from now on,...
its just money
  • #20
  • Mar 19, 2007 5:33am Mar 19, 2007 5:33am
Also Mizuho bank have a good technical section.

Regards

A
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