Alphachain Capital Welcome Pack

WELCOME TO ALPHACHAIN ROUTE TO BECOMING A PROPRIETARY TRADER

UNDERSTAND THE TERMINOLOGY “Failure to prepare, is preparing to fail.”

This welcome pack will include the steps required before beginning your programme with Alphachain Capital and an overview of what to expect. Having a firm grasp of the most commonly-used market terms will make your entry into the programme much simpler. Some words and phrases you’ll hear over and over again include: Base currency: The currency you are holding. If you’re from the United States, your base currency is most likely the U.S. dollar.

Quote/Term currency: The currency you are going to purchase.

Bid price: The price that your broker would be willing to “bid” or “buy” the base currency you are holding.

Ask price: The price that your broker will “ask” you for in exchange for buying your quote currency of choice. The ask price is always higher than the bid price.

Spread: The difference between the bid price and the ask price. This is the broker’s commission.

Pip: The smallest measurable value of currency movement. The word “pip” is an acronym standing for “percentage in point,” and a single pip is equal to 1/100th of 1% of your currency. For example, if the value of the USD rises by a single pip, that means it increased in value by $0.0001

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ANALYSE THE WORLD ECONOMY “Every battle is won or lost before it’s ever fought.”

Making money trading currencies is about accurately predicting the movement of the global economy. To be a profitable trader, you must convert your base currency into a quote currency set to rise in value, then convert your quote currency back to your base currency when the value peaks.

Research the trading positions, GDPs and political climates of countries you are interested in purchasing currency from, and you’ll get a great “lead” on which quote currency is worth your investment and which countries have economies projected for growth.

It is recommended to begin reading news from publications such as Bloomberg and Reuters to begin understanding the current climate and fundamental opinions.

Fundamental analysis: This type of analysis involves looking at a country's economic fundamentals and using this information to influence your trading decisions.

Sentiment analysis: This kind of analysis is largely subjective. Essentially you try to analyse the mood of the market to figure out if it's "bearish" or "bullish."

While you can't always put your finger on market sentiment, you can often make a good guess that can influence your trades.

Technical analysis: Technical analysis involves reviewing charts or historical data to predict how the currency will move based on past events. You can usually obtain charts from your broker or use a popular platform like Metatrader 4.

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PROGRAMME OUTLINE Step 1 Junior Traders can only trade the Foreign Exchange Market Continue self-development with recommended reading list All positions must open and close between Sunday 10pm to Friday 10pm GMT All positions must be within the risk management rules set Create a demo trading account on MT4 with $20,000 starting capital Step 2 On-going development and mentoring throughout programme Introduction to Trading Material / Allocation of Trading Desk / Programme Prep Learn to Trade Programme Create notes and ask questions Put emphasis on practical application of theory Step 3 Intensive Strategy Programme Alphachain Strategy Document Step 4 Floor Trader Application of Strategies and Theoretical concepts Back-test / forward test and building a trade plan Live trading prep / completion of assessment docs / Competition End of Programme Overall performance review and Feedback Report and complete assessment documentation CPD Certificate Begin Assessment Trading on Live $20,000 account with target of 10% ROI

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RECOMMENDED READING LIST “A well-known Wall Street Trader had gone on a fishing trip for a week, he hired a fly-fishing guide and off they set. By the end of the week not only did the trader catch a 24 pound sea-run brown trout on a fly but returned the favour to his guide by offering him a trading job. He provided a list of books to read and when he finished reading them, to give him a call.”

Please aim to read the following books in this order before and during your course at Alphachain Capital.

We believe self-study is as important as completing the programme. In trading you never stop learning.

Technical Analysis:

Technical Analysis of the Financial Markets

by John J. Murphy - Compulsory It is considered by many to be the best single source of information on technical analysis.

Getting Started in Technical Analysis

by Jack D. Schwager Technical Analysis Explained

by Martin Pring Psychology:

Trading in the Zone

by Mark Douglas Market Wizards; The New Market Wizards; Hedge Fund Market Wizards

by Jack D. Schwager All three books are based around conversations with top traders and hedge fund managers – an insightful look into how the experts go about their trading.

Reminiscences of a Stock Operator

by Edwin Lefevre

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PROGRAMME TIMELINE Sign Up Welcome Pack DAY 1 Programme Prep: Allocation of trading desk / introduction to trading programme MONTH 1 Learn to trade programme Intensive strategy programme MONTH 2 Application of strategies and theoretical concepts.

MONTH 3 Back test / forward test / building a trading plan.

Live trading prep / completion of assessment docs / completion Trader Presentations / Evaluation End of Month Overall performance review and feedback / CPD certificate (120 credits)

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