To experiment with any potential outcome for the Dec 2015 trade –

Managed accounts are available for this trading strategy

1) Click here in 4 minutes Fed chair Yellen sees the Fed funds rate and when.

2) Right click here and open the  ZQZ15 risk/reward spreadsheet in a new window, enable it.

3) Right click here and open (ZQZ15) Fed funds quotes in a new window.

Click on any image to enlarge it.

4) Enter the current (or any contract price) in cell B-2
To convert the contract price into rate 100.00 – the contract price = the rate
Example 100.00 – 99.67 = 0.33%

X

5) The rate shows in cell C-2

x

6) Net profit or loss shows in cell E-2

x

7) Net liquidation value after all bid/ask and fees shows in cell G-2
x

8) Risk reward using the current settings with no hedge

If the Fed funds rate goes to 0.00% and stays there;

Enter 100.00 in cell B-2
Net loss for the trade shows in cell E-2 of -$54,500
x

9) If the Fed funds rate stays the same between now and  December 2015

Enter 99.6850 in cell B-2
Net loss for the trade shows in cell E-2 of -$2,000
X

10) If the Fed fund rate goes to the low end of the Fed’s target for 2015 of 0.6250% by 31 December 2015, click here for where Fed chair Yellen sees the Fed funds rate that the Fed sets and when. 

Enter 98.3750 in cell B-2
Net profit shows in cell E-2 of $49,667
X

11) To the top end of the Fed’s current target range of 1.1250% by Dec 2015

Enter 98.8750 in cell B-2 the net profit shows in cell E-2 of $133,000.
x

12) Hedging risk

Enter 100.00 in cell B-2, an ugly loss of -$54,500 shows in cell  E-2

x

13) Hedge it up, enter 40 in cell G-5 the loss at 0.00% is cut to -$17,229  in E-2
x

14) Hedging the position allows you to trade more than twice the size with less risk versus an outright position

Enter a $1,000 deposit per position in cell G-3, (grey)
Hedge the total position up by entering 100 in cell G-5, (yellow)
The total loss at 0.00% shows in cell E-2 of $43,073
x

15) At the low end of the Fed’s current 2015 target 0.6250%

Enter 99.3750 in cell B-2
Net profit of $48,072 shows in cell E-2

x

x
16) If the Fed is right about the rate they set and Fed Funds move from the current 0.3150% to the Fed’s current 2015 target of 1.1250% on or before 31 December 2015

Enter 98.8750 in cell B-2
Net profit of $256,406 shows in cell E-2

x

17) At  2.50%, enter 97.50 in cell B-2
Net profit of $829,323 shows in cell E-2

x

18) At  3.75%, enter 96.25 in cell B-2
Net profit of $1,350,156 shows in cell E-2

x

19) Capturing half of the Fed’s disclosed move between now and 31 December 2017 to 1.8750%

Enter 98.1250 in cell B-2
Net profit of $586,906 shows in cell E-2

x

20) To change the investment amount

Enter any amount in cell D-2
Example $5,000

Make sure you adjust the option hedge in cell G-5
Using $5,000 allowing $1,000 per position change G-5 to 5

x

21) There are over 100 liquid interest rates contracts traded globally on heavily regulated exchanges with fully transparent and verified pricing.

My team works for the client not the firm

22) Compensation is based on 0.00% management fee and 10% of net new high profits monthly, quarterly or annually, your choice.

23) We review global markets, the corresponding delivery months and return on defined risk trades. Click here  for US markets, Asian see Osaka and here & Euronext  for European.

24) We qualify your
iiiiXMarkets of interest
iiiiXObjectives; hedging risk or speculating for gain
iiiiXAmount of capital for the account
iiiiXRisk tolerance

25) We structure defined risk on trades and the duration of the trading period.

26) We provide

iiiiXSpecific fully disclosed plans for your market(s) of interest and risk profile
iiiiXObjective risk reward analysis based on your criteria
iiiiXRisk analysis tools including but not limited to interactive spreadsheets
iiiiXOrder placement, trade execution with review of time and sales on all trades
iiiiXAll positions are within defined risk and brokerage reports are correct
27) All recommended trades are structured so they cannot be “stopped” out or put us in jeopardy of having a margin call regardless of volatility. The only reasons for liquidation of a position is at our profit objective, to move to a forward delivery month that has a higher return on defined defined risk or to “roll” the position” as we near expiration (for example from December 2015 to any delivery month out to 2024 (what ever delivery month has the highest return on risk and liquidity).

28) Minimums

Test accounts 5K to 25K USD or equivalent major currency dependent on market
Full account 50K to 500K depending on your criteria and risk profile

29) We can accommodate strategy and management for any liquid market including but not limited to interest rates on the following exchanges.

US CME
Eurex
Euronext
Osaka

x

Click here for contact details

 

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RISK DISCLOSURE STATEMENT PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

UNTIL REGULATORY REFORM IS ESTABLISHED IN THE U.S.  WE ARE NO LONGER ACCEPTING U.S. ACCOUNTS.

EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

BID/ASK SPREADS, BROKERAGE COMMISSION, CLEARING, EXCHANGE AND REGULATORY FEES WILL HAVE AN ADVERSE IMPACT ON THE NET OVERALL PERFORMANCE OF YOUR ACCOUNT. PRIOR TO MAKING A DECISION TO PARTICIPATE IN ANY INVESTMENT MAKE SURE YOU FULLY UNDERSTAND THE FEES ASSOCIATED WITH TRADING.

THE INFORMATION PROVIDED IN THIS REPORT CONTAINS RESEARCH, MARKET COMMENTARY AND TRADE RECOMMENDATIONS. YOU MAY BE SOLICITED FOR AN ACCOUNT BY ONE OF OUR REPRESENTATIVES OR EMPLOYEES. IT SHOULD BE KNOWN THAT THE REPRESENTATIVES OF ANY FIRM MAY TRADE FUTURES AND OPTIONS FOR THEIR OWN ACCOUNTS OR THOSE OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS MARGIN REQUIREMENTS, RISK FACTORS, TRADING OBJECTIVES, TRADING INSTRUCTIONS, TRADING STRATEGIES, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE LIQUIDATION OR INITIATION OF FUTURES OR OPTIONS POSITIONS MAY DIFFER FROM THE OPINIONS AND RECOMMENDATIONS FOUND IN THIS REPORT.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN DERIVATIVE CONTRACTS CAN BE SUBSTANTIAL THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING ANY LEVERAGED POSITION AND MUST BE IN A POSITION ASSUME LOSS FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR TRADE RESULTS.

PLEASE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND RESOURCES.