Equity and Fixed Interest Futures- Standard Deviation Price Tables

In the world of asset management there are many "tools" that managers cling to, to either make or support their investment decisions. Some will rely on "Fundamental" Company Balance Sheet and "Earnings" (EPS) analysis, some will draw on the voodoo world of Charting and Technical analysis . The fact that people do so doesn't mean that it is right............ unless you can prove it works!

True, the number of Fund Managers who consider "Technical Analysis" a key part of their decision making armoury has grown substantially in the past 20 years, but again "Does it work?"
Over the years it always amazed me that Traders would look at a Daily bar Chart without really knowing whether that timescale was the optimm one for their application of Risk and the timeframe for that Risk......Or why use a 50 day moving average rather than a 33?

Trading strategies can vary from one asset class to another and for different instruments within an asset class. There is no one single trading strategy that can be employed profitably for all assets and instrumentS. Specific price action tendancies dictate what type of trading strategies are appropriate for a particular asset class or instrument.

For further information on our specific validated Trading methodologies send e-mail to : research@gccquantsignals.com

So then, without giving direct "Buy" or "Sell" recommendations please find a Summary of statistically generated prices that may or may not represent "Support" and "Resistance" levels for a series of derivative instruments. The numbers are derived from a simple Standard deviation calculation from a particular moving average set across 3 different Trading time horizons (Weekly, Daily and 30 minutes).

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Fig 1. above shows the front month futures contract across a series of Equity Exchange traded futures and highlights where the current price ( in Black) is relative to the standard deviation price calculations  mentioned earlier

Prices movements are dynamic and are constantly changing but this "snapshot" may provide an insight to relative strength.

Price closes above the YELLOW median highlighted number can be contrued as being "positive" and trending upwards.
The RED highlighted areas are where statistically the Price is overbought and should experience some Reversion to Mean
The BLUE highlighted area are where statistically the Price is Oversold and should experience some reversion to Mean


Fig 2 below shows a similar representation across a series of Fixed Interest futures as of todays trading date

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If you would like further information on the content of this Blog Please send e-mail to :research@gccquantsignals.com

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