ZLBT Chats

Tuesday, February 9, 2010

CPO >>> The Variance

Q : WTF is the Variance?

A : It is CPO fundamental stupid!.

Q : How many percentage of traders apply this Variance to their regular trading?

A : Answer : less than 0.5% >>> That is equivalent to 1 in every 200 traders.

Q : How ZL got this formula?

A : No questions asked; no lies told

Q : We saw the easy part i.e the Soybean Oil prices, MT, CPO prices & USDMYR exchange rate but how do we get to calculate the Variance Table / Scale?

A : No questions asked; no lies told

Q : How reliable and functional is the Variance application?

A : Belum cuba belum tahu :P


Variance Formula

(CBOT ESoybean Oil Benchmark x MT) - (BMD Benchmark / USD / MYR Exchange Rate)

Where >>>>>
ESoybean Oil ............. Mar 2010 ( adjustable)

MT .............................. 1 Metric Ton = 2204.62 pound4 (lbs)

BMD Benchmark ........ April 10 (adjustable)

USD / MYR ................. 1 x USD = MYR ?. ???? Exchange Rate

Note : Prices and numbers applied below is as where is. Some closed some unclosed. Some prices are still being traded. Readers are advised to apply end of day or closing figures for more consistency.

(0.3795 x 2204.62) - (2550 / 3.4385)

(836.653) - (741.602) = 95.05 VARIANCE

Variance Table / Scale
Below 85 >>>>> SELL
86 - 94 >>>>>>> Neutral
Above 95 > >>>> BUY
#Pls bear in mind this table/scale can be updated accordingly to the volatility of relevant commodities & currencies fluctuations. There is also a formula for readjusting the Variance Table/Scale.

Reminder : The Variance is nothing but brainwork plus some guesswork of economist & fundamentalist. It it not any guarantee written in stone that ensure applicants triumph. The Variance are used mainly for leveraging in lieu of the commodity markets and currency fluctuations. Naturally applicant have to use EURO if applied in Europe or Yuan in China by/for importers, exporters, stockists and sourcing agents for manufacturers of palm oil products.

Apply wisely with discreetions. TQVM

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