Please read the complete course description, watch the intro video and free preview videos before taking this course. Thank you.
There are two terms we used in the title - "An Investment Banking Perspective" and "The Four Pillars" that need to be explained in more detail.
The Investment Banking Perspective - Many courses in trading are taught from the perspective of a retail trader who is a few layers away from the "core" of the FX markets. In the OTC foreign exchange market, the market makers or price makers on the interbank desk are at the core of the action. To understand the Forex market "under the hood", we need to learn what the market makers know. To play the game at a level playing field we need to acquire their same skills.
This course teaches with that perspective, the strategies used by market makers to trade the markets. By mixing fundamentals, technicals, money management techniques and gaining the knowledge of how central bankers determine the monetary policy - by the end of the course you will have acquired the knowledge and techniques used by investment bankers in trading vanilla financial markets.
Why we consider this course to be a "complete" trading course - The Four Pillars of Trading any Market
There are traders who use only technicals for trading, traders who use only fundamentals for trading and those that use both. Both technicals and fundamentals have their merits and demerits, which we shall compare. When we take positions in a FX simulator we will make a very strong case that by using both tools our profitability increases. We also become more aware of what the big players or "strong hands" are looking for.
What we strive for in this course is to gain the knowledge of the "strong hands". In FX, commodities, stock trading the strong hands are those that have all the skills, technology, training, and many more tools that assist them in their decision making process.
So how does the lone trader compete with the "strong hands" in this complex integrated financial system? The answer is
Four essential skills for any trader -
Once we arm ourselves with these four pillars we should be able to gain a "complete" picture of the trading environment.
Who is course is designed for - If you're looking at investment banking as a career, or you are a retail / corporate trader who is looking at deeper insights to how the FX OTC market functions then this course is ideal for you. If you are a stock , commodity, or bond trader and looking to implement what's taught in this course then the first section on FX math may or may not be of interest to you. However you could easily use the same principles of technicals, trading strategies, fundamentals and central bank sections for the markets of your interest. This course could also be relevant to those trading cryptocurrencies and want to trade other currencies.
Indicative timelines -
Week 1 - Quickly move through the basic math and move to the more advanced topics. Begin mock trading even if you don't have any views. Join the community of traders on Facebook.
Week 2 - Understand the best practices of technical analysis and begin implementing them in your daily trading.
Week 3 - Create your impact analysis spreadsheet and start mixing techs and fundamentals in your daily trading
Week 4 - Understand central bank's monetary policy determination (added as a bonus section)
For those who are not familiar with economic indicators there is a coupon inside for the Tradeonomics course as a bonus for making it to the fundamentals section.
Request for Review
Please also take the time and effort to leave a honest review that would benefit your fellow students and any constructive feedback would be appreciated.
If you do take this course please participate on the FB group, course discussions, make hundreds of trades on the simulator - win or lose.
If you need further information you could write to me at firstname.lastname@example.org
Hope you enjoy and look forward to seeing you in this journey to becoming a sound disciplined trader.
In the words of Rudyard Kipling...
"If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools:
If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: ‘Hold on!’...."
Rudyard Kipling, IF
Basics on exchange rates quotation
What are direct or indirect methods of quotations?
What bid and ask quotes and spreads are in the perspective of the market makers and price takers. What side to buy or sell and how to trend prices.
Calculating cross rates using mid rates
Calculate cross rates using bid and ask side
Recap theory learnt so far
Basics of FX quoting you must know
Understanding the FX Transaction Lifecycle
The decision making process before making the trade
How FX is traded in the interbank OTC markets
Once the deal is done the transaction details flow to the backoffice
How transactions are confirmed between two counterparties
The settlement process overview
CLS - Continuous Linked Settlements
Last step of the FX transaction Lifecycle
Join the FB Group and start mock trades
Intro to slightly more advanced topics of - Outrights, FX swaps and how to price
How outrights are quoted
How outrights are priced using spot rates and FX swap rates
Calculating outright forwards - USDJPY example
Outright forward uses
A British company imports 10 million pounds of goods from the US. Payment is due 1 month from today.
The C/S rate is 3/4
1M rate is 32/33
Spot rate is 1.3030-31
The company asks you for a price to hedge its imports. What rate would you quote the importer?
Introduction to Foreign Exchange Swaps
Pricing FX swaps using the No Arbitrage Model used to price derivatives
How to determine premiums and discounts in FX swaps
How to initiate a carry trade
Conducting an arbitrage by covering your FX position risk
How FX swap traders play the yield curve
Calculating FX swap points for broken dates
Test your basic knowledge on the FX swap markets
Before starting Technical analysis understanding the landscape is beneficial
Get a perspective on the volumes done by currency pairs
Volumes by spot, outrights, FX swaps
Volumes by region - Asia, Europe and North America
Understand the various players in the market
Volumes done by various players
Volumes done by Financial Institutions
Volumes done by Corporate and Retail traders
Algo trading - a brief intro
The most important tool in trading - technical analysis
Technicals, fundamentals or both?
Basic tenets of Dow theory. The foundations of technical analysis
How price charts are formed
A trend is your friend. Identify long, medium, short term trends
Best practices of drawing trendlines
Different types of price gaps
Intro to patterns that determine a trend is continuing
Long term continuation patterns
Introduction to trend reversal patterns
Reversal Days, Key Reversal Days
The most popular reversal pattern - The head and shoulders reversal pattern
The inverse head and shoulders continuation pattern
Differences between the reversal HnS and the continuation HnS
Double tops, double bottoms and spikes. Commonly found reversal patterns
Taking positions using technical knowledge
Taking USDJPY positions in the simulator
More insights on USDJPY position
I've completed a Bachelor of Computer Engineering and a MBA from Queen's University Canada. I've worked 8 years in the investment banking division and 11 years in Oracle Financial Services Software Ltd as an IT and banking consultant. During my stint at Oracle I've worked in various projects - at the IMF in Washington, built trading systems at an investment bank in London for the algorithmic trading desk, implemented a complex core banking software system at banks such as Bank of Montreal, Wells Fargo.