Trading Evolution

Markets are never wrong - opinions often are

Federal Reserve starts to get nervous

Like I mentioned before Federal Reserve is unlikely to continue hiking rates if current market volatility stays or increases. Now we have a confirmation of that. Reuters reports that Fed's Kaplan is hinting: four hikes not a sure thing in 2016.

Four U.S. interest-rate hikes are "not baked in the cake" for the Federal Reserve this year, particularly given global stock market volatility set off by fears over a cooling Chinese economy

How to enable API access in TWS


  1. File ⇒ Global Configuration or Edit ⇒ Global Configuration (Classic TWS)
  2. API ⇒ Settings
  3. Check "Enable ActiveX and Socket Clients"
  4. Uncheck "Read-Only API"
  5. Verify socket port. The default it 7496
  6. Check "Allow connections from localhost only"


More details on Trader Workstation API Settings

Trader Workstation talks

Every trader gets bored during trading day so I decided to spice up my life and created a little app that plays random audio clips from famous movies based on your trading. The app connects to Interactive Brokers TWS and if you open position might say "And don't screw it up, sport" (Wall Street / 1987) or it might say "Now I wanna dance, I wanna win. I want that trophy" (Pulp Fiction). If position is closed with loss it might say "I told you not to go there! I told you not to go there!" (Anger Management / 2003). For profit "Ah, Buddy, Buddy, I hate to tell you this, but you are a genius!" (Wall Street / 1987). Which movie quotes would you play and when?


If you want to add your quotes and know a little bit of XML then open IbTalks.exe.config with any XML or text editor and add your own mp3 links. 
Here is an example:
  <!-- Close Position With Profit -->
    <Sound FileName="Sounds/Pulp Fiction/What-happened-here-was-a-miracle-and-I-want-you-to-fucking-acknowledge-it-!.mp3" />
    <Sound FileName="Sounds/Wall Street/Ah-Buddy-Buddy-I-hate-to-tell-you-this-but-you-are-a-genius!.mp3" />
    <Sound FileName="Sounds/Zombieland/All-I-could-think-of-was-What-are-the-odds.mp3" />
  <!-- Close Position With Loss -->
    <Sound FileName="Sounds/Anger Management/I-told-you-not-to-go-there!-I-told-you-not-to-go-there!.mp3" />
    <Sound FileName="Sounds/Pulp Fiction/Everybody-be-cool-!-This-is-a-robbery.mp3" />
    <Sound FileName="Sounds/Pulp Fiction/lm-through-never-again-too-dangerous.mp3" />
    <Sound FileName="Sounds/Pulp Fiction/Oh-fuck-me-Fuck-me-!.mp3" />
    <Sound FileName="Sounds/Trading Places/Business-is-business-Ill-go-for-a-walk.mp3" />
    <Sound FileName="Sounds/Wall Street/Almost.mp3" />

S&P 1000 is much smaller than S&P 900

The picture below should put in a perspective the relationship between different S&P indexes such as S&P 500S&P 400S&P 600S&P 900, and S&P 1000. S&P 900 is a combination of S&P 500 and S&P 400 which covers $20.3 trillion as of today when S&P 1000 is a combination of S&P 400 and S&P 600 indexes and has total market capitalization of just $2.2 trillion which is much smaller than $20.3. So here you go welcome to financial world where 900 can be much bigger than a 1000.
S&P 500, S&P 400, S&P 600

Oil is going to rally soon

After the worst first week of trading it is good to remind everybody that the market does not always go down. Stocks are paying close attention to the price of oil recently and if oil starts to recover so will stock prices. Seasonal factors are a strong force in price of any commodity and oil is not an exception. Next week marks the end of negative seasonal factors and the start of positive seasonal tail wind for oil. If oil starts to stabilize and go higher the markets will feel better after rough start of the year.