Well I couldn't even say about this strategy but I will. It's so simple trade that I can barely say it's quite hard that few people may notice it... let´s show you it.
As you all probably know the Banco Espirito Santo the largest Bank in Portugal has collapsed bringing lots of investors huge headaches and lots of "MONETARY PAIN". While Some Hedge Funds Made a BIG BUCK on that short opportunity. :D
Look at chart :
This strategy merely shows you a great short opportunity If you want bet against any market.... Let me explain it to you . Notice that the Moving average of 21 periods ( Line a bit brow) is passing over 2 bars... showing down pressure from sellers... and the trick is here the previous white bar wasn't broken in any side by red bar.. THAT'S THE INSIDE BAR SHORT STRATEGY used by lots of Hedge funds world wide to GO SHORT. They simple place an order to go short if the market break down... and what happen BOOMMM.....!
I have data from you about the bucks This hedge funds have made:
Marshall Wace LLP (London) - Shorted EXACTLY AT 0.99 cents - PROFIT - 36 Million dollars
TT International (London) - Shorted AT 0.93 cents - PROFIT - 20 million dollars
Altair Investments (Bermudas) - Shorted AT 84 cents - PROFIT - 15 millions dollars.
But Here come 3 points.
- Firstly you might say FUCK WHAT HELL MONEY.... think carefully.... These Hedge funds HAVE BILLIONS UNDER MANAGEMENT... so Even though you can look at that $$$ and say WOW... for them it barely gave 1% return over their assets. BUT ATTRACT MORE POTENTIAL CUSTOMERS hehe
- Second... and the worst one for me.... MOST OF HEDGE FUNDS have "solid network connection" so you can't know more than THEM in advanced. but THEY KNOW! hehehe
- Thirdly - Hedge funds DON'T STAY LOOKING AT CHARTS WHOLE DAY.... they try to find out where the big money can be made. and place THE BET! look in the chats ... the bet was placed almost 2 months BEFORE the news COME OUT! When everyone was trying to short... IT WAS TOO LATE.
However you could use this simple strategy to make some profit... If it was correctly applied you could have made 6:1 risk reward! :D not that bad for an small trader without INFORMATION IN ADVANCED AND PRECIOUS TIME TO STAY HOURS IN FRONT OF COMPUTER....
If you want to trade like Hedge funds... LOOK AT OPPORTUNITIES...NOT AT EVERY PIP OR MOVING STOCK PRICE! You might not have the information in advanced but you can use the charts to TRACK THE BIG BOYS ; )
Link for HEADLINES... TAKE A READ ON ENTIRE HEADLINE... "MONTHS BEFORE" :D
http://online.wsj.com/articles/hedge-funds-betting-against-banco-espirito-santo-in-line-for-big-gains-1407312543
See you
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