TL;DR This is a continuation of the post made on November 28th where we converted Goldman Sachs ECB QE 2015 trade recommendations [9] into UltraCoin trade setups: Receive exposure to the SPDR Eurostoxx 50 long ETF (speculating that the top 50 EZ equities will rise from currency wars & QE [10]) and pay exposure to the ProShares Ultra Euro ETF (ULE) (with minimum of 2x leverage set in UltraCoin client, up to a practical limit of 50x) seeking to provide twice the exposure to the performance of euro versus the U.S. dollar on a daily basis (speculating the euro will fall relative to the US dollar as a result of currency wars & QE). This trade can be made cleaner by shorting the EURUSD pair directly with a healthy dose of leverage. This would be entered into UltraCoin as "pay" EURUSD (with system leverage set at 50x). Since November 28th, this trade would have been unwound by the UltraCoin server with a near 100% (gross of fees) gain using anything over 7x leverage. There are still some legs left on the trade short term, but we are suspicious of the european equity markets being fully able to benefit from this round of QE to the extent anticipated by the media and sell side analysts.
This is what the trade would today, long FEZ and short ULE for an approximate gain of 18.61%, unlevered, 6x leverage would have pushed this towards a 100% gain.
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This trade setup was made before we instituted leverage directly into the system. Now, you can go into the "Advanced" tab and turn the leverage up. We recommend leveraging 2x to 50x, contingent upon your risk tolerance and collateral posting (the more collateral posted, the less chance of getting the contract unwound as your trade goes out of the money.
You can also use the direct forex pair EURUSD (levered ETFs suffer from decay issues) and turn the leverage up even more in the UltraCoin client, which gives the same exaggerated price movement, but will track the primary underlying asset more closely. The trade pictured above, would have unwound in your favor by now with anything over 6x leverage with a near 100% return on invested capital. Not bad for 2 and a half months.
See the full analysis [9]. This trade was initially posted on November 28tth, 2014. It did very well. For those who are not familiar with my previous calls, reference: - 1. Reggie Middleton via Wikipedia [11]- 1. A list of many (but not all) of my calls and mentions in the media [12] And a simple walk through video of a sample Ultra-Coin trade: A Simple Apple Trade Using A Pure Bitcoin Wallet: The UltraCoin Client [13]
New comers to BTC derivative trading are urged to download our:
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tutorial [14]
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spreadsheet-based trade model [15] to assist you designing your own custom made swaps before committing capital
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- and of course, the UltraCoin BTC wallet for Windows [16] - or - Mac & Linux [17], which doubles as the trading client. The wallets have a "Demo Mode" which allows you to trade on testnet if, after using the spreadsheet modeler, you are still not comfortable committing live coins. You can get the demo (testnet) coins here [18].
Feel free to contact us [19].