The Risk-ON/Risk-OFF analysis will help you measure relative risks of specific asset classes to gauge the overall sentiment of the market and make trades best suitable to the conditions evaluated. It is a more efficient way to view the relationships between asset classes – a cumbersome task trader do every day.
By monitoring the relevant instruments from 5 asset classes, our algorithms calculating the magnitude of the moves and detect money flow between asset classes. From this, we derive the risk indicator in real-time and monitor the behavior of this indicator for you.
Once our algorithms sense that the mood of the market is changing from Risk-ON to Risk-OFF or vice versa, you will be alerted promptly and given the information to execute trades accordingly.
Traders can also capture the emerging divergence in asset classes. When a risk basket is moving in one direction while a separate instrument is not, you will be quickly notified, and opportunities will arise for you to trade.
When the risk is perceived high (Risk-OFF), assets like Gold, German or US Treasury Bonds are often preferred, and when the risk is low (Risk-ON), assets like the S&P 500, Italian and Greek Bonds, or Copper are often preferred.
Understanding of how asset classes move in relation to risk perceived in the market is essential to creating alpha.
Find situations in which a majority of assets are moving in an upward trend and risk is perceived low, but a specific asset is not moving in the typical relation to the other asset.
For example, imagine a situation where almost all the assets are moving positively, signaling a Risk-ON mood. But, Copper is moving lower. This typically would not make sense because strong copper should be associated with a strong industrials sector. One could purchase Copper with the notion that the asset class has inadequately priced in this strength in industrials. All of this analysis can be done in real-time simply by viewing the signals given on the platform.
This information is designed for the professional trader looking to enhance their trading experience by having this large amount of information analyzed and projected for them.
This new addition to the BetterTrader platform will allow them to save time and allow them to hone in on specific securities.
BetterTrader has been pioneering this proprietary software to give users of the BetterTrader platform the edge they need to trade in complex markets.
With this powerful software, professional traders will be equipt with the best analysis of overall market sentiment in real-time.
Another feature of the software is the ability to view the risk basket on multiple timeframes. One who is looking to make short-term day trades can view the basket over the past hour, 4 hours, or day, while those looking to make swing trades can view the basket over the last 7 days.
Adjusting the time frame parallels your trade duration preference.
BetterTrader Pro Analysis provides access to world-class analysis expertise and algorithms to keep you informed in real-time.
Arviv I. Futures Trader
I love it because I'm very visual, so when I see everything in front of me, the picture becomes clearer, and I know what I need to do right away. When an event is released, I get everything I need to know to make a decision sent right to my mobile.
Edri K. Energy Trader
I can make good decisions on assets, without just relying on my memory, even assets that are new to me, because BetterTrader summarizes all I need to know, and the best part - it does so in real-time.
Jared N. FX Trader
It's been a while since I've seen something new. BetterTrader helps me make accurate trading decisions. So I understand when to buy and why.
