Accounting Treatment of Forward Cover in Different scenario

Former investment bank FX trader: Risk management part 3/3

Former investment bank FX trader: Risk management part 3/3
Welcome to the third and final part of this chapter.
Thank you all for the 100s of comments and upvotes - maybe this post will take us above 1,000 for this topic!
Keep any feedback or questions coming in the replies below.
Before you read this note, please start with Part I and then Part II so it hangs together and makes sense.
Part III
  • Squeezes and other risks
  • Market positioning
  • Bet correlation
  • Crap trades, timeouts and monthly limits

Squeezes and other risks

We are going to cover three common risks that traders face: events; squeezes, asymmetric bets.

Events

Economic releases can cause large short-term volatility. The most famous is Non Farm Payrolls, which is the most widely watched measure of US employment levels and affects the price of many instruments.On an NFP announcement currencies like EURUSD might jump (or drop) 100 pips no problem.
This is fine and there are trading strategies that one may employ around this but the key thing is to be aware of these releases.You can find economic calendars all over the internet - including on this site - and you need only check if there are any major releases each day or week.
For example, if you are trading off some intraday chart and scalping a few pips here and there it would be highly sensible to go into a known data release flat as it is pure coin-toss and not the reason for your trading. It only takes five minutes each day to plan for the day ahead so do not get caught out by this. Many retail traders get stopped out on such events when price volatility is at its peak.

Squeezes

Short squeezes bring a lot of danger and perhaps some opportunity.
The story of VW and Porsche is the best short squeeze ever. Throughout these articles we've used FX examples wherever possible but in this one instance the concept (which is also highly relevant in FX) is best illustrated with an historical lesson from a different asset class.
A short squeeze is when a participant ends up in a short position they are forced to cover. Especially when the rest of the market knows that this participant can be bullied into stopping out at terrible levels, provided the market can briefly drive the price into their pain zone.

There's a reason for the car, don't worry
Hedge funds had been shorting VW stock. However the amount of VW stock available to buy in the open market was actually quite limited. The local government owned a chunk and Porsche itself had bought and locked away around 30%. Neither of these would sell to the hedge-funds so a good amount of the stock was un-buyable at any price.
If you sell or short a stock you must be prepared to buy it back to go flat at some point.
To cut a long story short, Porsche bought a lot of call options on VW stock. These options gave them the right to purchase VW stock from banks at slightly above market price.
Eventually the banks who had sold these options realised there was no VW stock to go out and buy since the German government wouldn’t sell its allocation and Porsche wouldn’t either. If Porsche called in the options the banks were in trouble.
Porsche called in the options which forced the shorts to buy stock - at whatever price they could get it.
The price squeezed higher as those that were short got massively squeezed and stopped out. For one brief moment in 2008, VW was the world’s most valuable company. Shorts were burned hard.

Incredible event
Porsche apparently made $11.5 billion on the trade. The BBC described Porsche as “a hedge fund with a carmaker attached.”
If this all seems exotic then know that the same thing happens in FX all the time. If everyone in the market is talking about a key level in EURUSD being 1.2050 then you can bet the market will try to push through 1.2050 just to take out any short stops at that level. Whether it then rallies higher or fails and trades back lower is a different matter entirely.
This brings us on to the matter of crowded trades. We will look at positioning in more detail in the next section. Crowded trades are dangerous for PNL. If everyone believes EURUSD is going down and has already sold EURUSD then you run the risk of a short squeeze.
For additional selling to take place you need a very good reason for people to add to their position whereas a move in the other direction could force mass buying to cover their shorts.
A trading mentor when I worked at the investment bank once advised me:
Always think about which move would cause the maximum people the maximum pain. That move is precisely what you should be watching out for at all times.

Asymmetric losses

Also known as picking up pennies in front of a steamroller. This risk has caught out many a retail trader. Sometimes it is referred to as a "negative skew" strategy.
Ideally what you are looking for is asymmetric risk trade set-ups: that is where the downside is clearly defined and smaller than the upside. What you want to avoid is the opposite.
A famous example of this going wrong was the Swiss National Bank de-peg in 2012.
The Swiss National Bank had said they would defend the price of EURCHF so that it did not go below 1.2. Many people believed it could never go below 1.2 due to this. Many retail traders therefore opted for a strategy that some describe as ‘picking up pennies in front of a steam-roller’.
They would would buy EURCHF above the peg level and hope for a tiny rally of several pips before selling them back and keep doing this repeatedly. Often they were highly leveraged at 100:1 so that they could amplify the profit of the tiny 5-10 pip rally.
Then this happened.

Something that changed FX markets forever
The SNB suddenly did the unthinkable. They stopped defending the price. CHF jumped and so EURCHF (the number of CHF per 1 EUR) dropped to new lows very fast. Clearly, this trade had horrific risk : reward asymmetry: you risked 30% to make 0.05%.
Other strategies like naively selling options have the same result. You win a small amount of money each day and then spectacularly blow up at some point down the line.

Market positioning

We have talked about short squeezes. But how do you know what the market position is? And should you care?
Let’s start with the first. You should definitely care.
Let’s imagine the entire market is exceptionally long EURUSD and positioning reaches extreme levels. This makes EURUSD very vulnerable.
To keep the price going higher EURUSD needs to attract fresh buy orders. If everyone is already long and has no room to add, what can incentivise people to keep buying? The news flow might be good. They may believe EURUSD goes higher. But they have already bought and have their maximum position on.
On the flip side, if there’s an unexpected event and EURUSD gaps lower you will have the entire market trying to exit the position at the same time. Like a herd of cows running through a single doorway. Messy.
We are going to look at this in more detail in a later chapter, where we discuss ‘carry’ trades. For now this TRYJPY chart might provide some idea of what a rush to the exits of a crowded position looks like.

A carry trade position clear-out in action
Knowing if the market is currently at extreme levels of long or short can therefore be helpful.
The CFTC makes available a weekly report, which details the overall positions of speculative traders “Non Commercial Traders” in some of the major futures products. This includes futures tied to deliverable FX pairs such as EURUSD as well as products such as gold. The report is called “CFTC Commitments of Traders” ("COT").
This is a great benchmark. It is far more representative of the overall market than the proprietary ones offered by retail brokers as it covers a far larger cross-section of the institutional market.
Generally market participants will not pay a lot of attention to commercial hedgers, which are also detailed in the report. This data is worth tracking but these folks are simply hedging real-world transactions rather than speculating so their activity is far less revealing and far more noisy.
You can find the data online for free and download it directly here.

Raw format is kinda hard to work with

However, many websites will chart this for you free of charge and you may find it more convenient to look at it that way. Just google “CFTC positioning charts”.

But you can easily get visualisations
You can visually spot extreme positioning. It is extremely powerful.
Bear in mind the reports come out Friday afternoon US time and the report is a snapshot up to the prior Tuesday. That means it is a lagged report - by the time it is released it is a few days out of date. For longer term trades where you hold positions for weeks this is of course still pretty helpful information.
As well as the absolute level (is the speculative market net long or short) you can also use this to pick up on changes in positioning.
For example if bad news comes out how much does the net short increase? If good news comes out, the market may remain net short but how much did they buy back?
A lot of traders ask themselves “Does the market have this trade on?” The positioning data is a good method for answering this. It provides a good finger on the pulse of the wider market sentiment and activity.
For example you might say: “There was lots of noise about the good employment numbers in the US. However, there wasn’t actually a lot of position change on the back of it. Maybe everyone who wants to buy already has. What would happen now if bad news came out?”
In general traders will be wary of entering a crowded position because it will be hard to attract additional buyers or sellers and there could be an aggressive exit.
If you want to enter a trade that is showing extreme levels of positioning you must think carefully about this dynamic.

Bet correlation

Retail traders often drastically underestimate how correlated their bets are.
Through bitter experience, I have learned that a mistake in position correlation is the root of some of the most serious problems in trading. If you have eight highly correlated positions, then you are really trading one position that is eight times as large.
Bruce Kovner of hedge fund, Caxton Associates
For example, if you are trading a bunch of pairs against the USD you will end up with a simply huge USD exposure. A single USD-trigger can ruin all your bets. Your ideal scenario — and it isn’t always possible — would be to have a highly diversified portfolio of bets that do not move in tandem.
Look at this chart. Inverted USD index (DXY) is green. AUDUSD is orange. EURUSD is blue.

Chart from TradingView
So the whole thing is just one big USD trade! If you are long AUDUSD, long EURUSD, and short DXY you have three anti USD bets that are all likely to work or fail together.
The more diversified your portfolio of bets are, the more risk you can take on each.
There’s a really good video, explaining the benefits of diversification from Ray Dalio.
A systematic fund with access to an investable universe of 10,000 instruments has more opportunity to make a better risk-adjusted return than a trader who only focuses on three symbols. Diversification really is the closest thing to a free lunch in finance.
But let’s be pragmatic and realistic. Human retail traders don’t have capacity to run even one hundred bets at a time. More realistic would be an average of 2-3 trades on simultaneously. So what can be done?
For example:
  • You might diversify across time horizons by having a mix of short-term and long-term trades.
  • You might diversify across asset classes - trading some FX but also crypto and equities.
  • You might diversify your trade generation approach so you are not relying on the same indicators or drivers on each trade.
  • You might diversify your exposure to the market regime by having some trades that assume a trend will continue (momentum) and some that assume we will be range-bound (carry).
And so on. Basically you want to scan your portfolio of trades and make sure you are not putting all your eggs in one basket. If some trades underperform others will perform - assuming the bets are not correlated - and that way you can ensure your overall portfolio takes less risk per unit of return.
The key thing is to start thinking about a portfolio of bets and what each new trade offers to your existing portfolio of risk. Will it diversify or amplify a current exposure?

Crap trades, timeouts and monthly limits

One common mistake is to get bored and restless and put on crap trades. This just means trades in which you have low conviction.
It is perfectly fine not to trade. If you feel like you do not understand the market at a particular point, simply choose not to trade.
Flat is a position.
Do not waste your bullets on rubbish trades. Only enter a trade when you have carefully considered it from all angles and feel good about the risk. This will make it far easier to hold onto the trade if it moves against you at any point. You actually believe in it.
Equally, you need to set monthly limits. A standard limit might be a 10% account balance stop per month. At that point you close all your positions immediately and stop trading till next month.

Be strict with yourself and walk away
Let’s assume you started the year with $100k and made 5% in January so enter Feb with $105k balance. Your stop is therefore 10% of $105k or $10.5k . If your account balance dips to $94.5k ($105k-$10.5k) then you stop yourself out and don’t resume trading till March the first.
Having monthly calendar breaks is nice for another reason. Say you made a load of money in January. You don’t want to start February feeling you are up 5% or it is too tempting to avoid trading all month and protect the existing win. Each month and each year should feel like a clean slate and an independent period.
Everyone has trading slumps. It is perfectly normal. It will definitely happen to you at some stage. The trick is to take a break and refocus. Conserve your capital by not trading a lot whilst you are on a losing streak. This period will be much harder for you emotionally and you’ll end up making suboptimal decisions. An enforced break will help you see the bigger picture.
Put in place a process before you start trading and then it’ll be easy to follow and will feel much less emotional. Remember: the market doesn’t care if you win or lose, it is nothing personal.
When your head has cooled and you feel calm you return the next month and begin the task of building back your account balance.

That's a wrap on risk management

Thanks for taking time to read this three-part chapter on risk management. I hope you enjoyed it. Do comment in the replies if you have any questions or feedback.
Remember: the most important part of trading is not making money. It is not losing money. Always start with that principle. I hope these three notes have provided some food for thought on how you might approach risk management and are of practical use to you when trading. Avoiding mistakes is not a sexy tagline but it is an effective and reliable way to improve results.
Next up I will be writing about an exciting topic I think many traders should look at rather differently: news trading. Please follow on here to receive notifications and the broad outline is below.
News Trading Part I
  • Introduction
  • Why use the economic calendar
  • Reading the economic calendar
  • Knowing what's priced in
  • Surveys
  • Interest rates
  • First order thinking vs second order thinking
News Trading Part II
  • Preparing for quantitative and qualitative releases
  • Data surprise index
  • Using recent events to predict future reactions
  • Buy the rumour, sell the fact
  • The mysterious 'position trim' effect
  • Reversals
  • Some key FX releases
***

Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
submitted by getmrmarket to Forex [link] [comments]

Hibiscus Petroleum Berhad (5199.KL)


https://preview.redd.it/gp18bjnlabr41.jpg?width=768&format=pjpg&auto=webp&s=6054e7f52e8d52da403016139ae43e0e799abf15
Download PDF of this article here: https://docdro.id/6eLgUPo
In light of the recent fall in oil prices due to the Saudi-Russian dispute and dampening demand for oil due to the lockdowns implemented globally, O&G stocks have taken a severe beating, falling approximately 50% from their highs at the beginning of the year. Not spared from this onslaught is Hibiscus Petroleum Berhad (Hibiscus), a listed oil and gas (O&G) exploration and production (E&P) company.
Why invest in O&G stocks in this particularly uncertain period? For one, valuations of these stocks have fallen to multi-year lows, bringing the potential ROI on these stocks to attractive levels. Oil prices are cyclical, and are bound to return to the mean given a sufficiently long time horizon. The trick is to find those companies who can survive through this downturn and emerge into “normal” profitability once oil prices rebound.
In this article, I will explore the upsides and downsides of investing in Hibiscus. I will do my best to cater this report to newcomers to the O&G industry – rather than address exclusively experts and veterans of the O&G sector. As an equity analyst, I aim to provide a view on the company primarily, and will generally refrain from providing macro views on oil or opinions about secular trends of the sector. I hope you enjoy reading it!
Stock code: 5199.KL
Stock name: Hibiscus Petroleum Berhad
Financial information and financial reports: https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=5199
Company website: https://www.hibiscuspetroleum.com/

Company Snapshot

Hibiscus Petroleum Berhad (5199.KL) is an oil and gas (O&G) upstream exploration and production (E&P) company located in Malaysia. As an E&P company, their business can be basically described as:
· looking for oil,
· drawing it out of the ground, and
· selling it on global oil markets.
This means Hibiscus’s profits are particularly exposed to fluctuating oil prices. With oil prices falling to sub-$30 from about $60 at the beginning of the year, Hibiscus’s stock price has also fallen by about 50% YTD – from around RM 1.00 to RM 0.45 (as of 5 April 2020).
https://preview.redd.it/3dqc4jraabr41.png?width=641&format=png&auto=webp&s=7ba0e8614c4e9d781edfc670016a874b90560684
https://preview.redd.it/lvdkrf0cabr41.png?width=356&format=png&auto=webp&s=46f250a713887b06986932fa475dc59c7c28582e
While the company is domiciled in Malaysia, its two main oil producing fields are located in both Malaysia and the UK. The Malaysian oil field is commonly referred to as the North Sabah field, while the UK oil field is commonly referred to as the Anasuria oil field. Hibiscus has licenses to other oil fields in different parts of the world, notably the Marigold/Sunflower oil fields in the UK and the VIC cluster in Australia, but its revenues and profits mainly stem from the former two oil producing fields.
Given that it’s a small player and has only two primary producing oil fields, it’s not surprising that Hibiscus sells its oil to a concentrated pool of customers, with 2 of them representing 80% of its revenues (i.e. Petronas and BP). Fortunately, both these customers are oil supermajors, and are unlikely to default on their obligations despite low oil prices.
At RM 0.45 per share, the market capitalization is RM 714.7m and it has a trailing PE ratio of about 5x. It doesn’t carry any debt, and it hasn’t paid a dividend in its listing history. The MD, Mr. Kenneth Gerard Pereira, owns about 10% of the company’s outstanding shares.

Reserves (Total recoverable oil) & Production (bbl/day)

To begin analyzing the company, it’s necessary to understand a little of the industry jargon. We’ll start with Reserves and Production.
In general, there are three types of categories for a company’s recoverable oil volumes – Reserves, Contingent Resources and Prospective Resources. Reserves are those oil fields which are “commercial”, which is defined as below:
As defined by the SPE PRMS, Reserves are “… quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.” Therefore, Reserves must be discovered (by drilling, recoverable (with current technology), remaining in the subsurface (at the effective date of the evaluation) and “commercial” based on the development project proposed.)
Note that Reserves are associated with development projects. To be considered as “commercial”, there must be a firm intention to proceed with the project in a reasonable time frame (typically 5 years, and such intention must be based upon all of the following criteria:)
- A reasonable assessment of the future economics of the development project meeting defined investment and operating criteria; - A reasonable expectation that there will be a market for all or at least the expected sales quantities of production required to justify development; - Evidence that the necessary production and transportation facilities are available or can be made available; and - Evidence that legal, contractual, environmental and other social and economic concerns will allow for the actual implementation of the recovery project being evaluated.
Contingent Resources and Prospective Resources are further defined as below:
- Contingent Resources: potentially recoverable volumes associated with a development plan that targets discovered volumes but is not (yet commercial (as defined above); and) - Prospective Resources: potentially recoverable volumes associated with a development plan that targets as yet undiscovered volumes.
In the industry lingo, we generally refer to Reserves as ‘P’ and Contingent Resources as ‘C’. These ‘P’ and ‘C’ resources can be further categorized into 1P/2P/3P resources and 1C/2C/3C resources, each referring to a low/medium/high estimate of the company’s potential recoverable oil volumes:
- Low/1C/1P estimate: there should be reasonable certainty that volumes actually recovered will equal or exceed the estimate; - Best/2C/2P estimate: there should be an equal likelihood of the actual volumes of petroleum being larger or smaller than the estimate; and - High/3C/3P estimate: there is a low probability that the estimate will be exceeded.
Hence in the E&P industry, it is easy to see why most investors and analysts refer to the 2P estimate as the best estimate for a company’s actual recoverable oil volumes. This is because 2P reserves (‘2P’ referring to ‘Proved and Probable’) are a middle estimate of the recoverable oil volumes legally recognized as “commercial”.
However, there’s nothing stopping you from including 2C resources (riskier) or utilizing 1P resources (conservative) as your estimate for total recoverable oil volumes, depending on your risk appetite. In this instance, the company has provided a snapshot of its 2P and 2C resources in its analyst presentation:
https://preview.redd.it/o8qejdyc8br41.png?width=710&format=png&auto=webp&s=b3ab9be8f83badf0206adc982feda3a558d43e78
Basically, what the company is saying here is that by 2021, it will have classified as 2P reserves at least 23.7 million bbl from its Anasuria field and 20.5 million bbl from its North Sabah field – for total 2P reserves of 44.2 million bbl (we are ignoring the Australian VIC cluster as it is only estimated to reach first oil by 2022).
Furthermore, the company is stating that they have discovered (but not yet legally classified as “commercial”) a further 71 million bbl of oil from both the Anasuria and North Sabah fields, as well as the Marigold/Sunflower fields. If we include these 2C resources, the total potential recoverable oil volumes could exceed 100 million bbl.
In this report, we shall explore all valuation scenarios giving consideration to both 2P and 2C resources.
https://preview.redd.it/gk54qplf8br41.png?width=489&format=png&auto=webp&s=c905b7a6328432218b5b9dfd53cc9ef1390bd604
The company further targets a 2021 production rate of 20,000 bbl (LTM: 8,000 bbl), which includes 5,000 bbl from its Anasuria field (LTM: 2,500 bbl) and 7,000 bbl from its North Sabah field (LTM: 5,300 bbl).
This is a substantial increase in forecasted production from both existing and prospective oil fields. If it materializes, annual production rate could be as high as 7,300 mmbbl, and 2021 revenues (given FY20 USD/bbl of $60) could exceed RM 1.5 billion (FY20: RM 988 million).
However, this targeted forecast is quite a stretch from current production levels. Nevertheless, we shall consider all provided information in estimating a valuation for Hibiscus.
To understand Hibiscus’s oil production capacity and forecast its revenues and profits, we need to have a better appreciation of the performance of its two main cash-generating assets – the North Sabah field and the Anasuria field.

North Sabah oil field
https://preview.redd.it/62nssexj8br41.png?width=1003&format=png&auto=webp&s=cd78f86d51165fb9a93015e49496f7f98dad64dd
Hibiscus owns a 50% interest in the North Sabah field together with its partner Petronas, and has production rights over the field up to year 2040. The asset contains 4 oil fields, namely the St Joseph field, South Furious field, SF 30 field and Barton field.
For the sake of brevity, we shall not delve deep into the operational aspects of the fields or the contractual nature of its production sharing contract (PSC). We’ll just focus on the factors which relate to its financial performance. These are:
· Average uptime
· Total oil sold
· Average realized oil price
· Average OPEX per bbl
With regards to average uptime, we can see that the company maintains relative high facility availability, exceeding 90% uptime in all quarters of the LTM with exception of Jul-Sep 2019. The dip in average uptime was due to production enhancement projects and maintenance activities undertaken to improve the production capacity of the St Joseph and SF30 oil fields.
Hence, we can conclude that management has a good handle on operational performance. It also implies that there is little room for further improvement in production resulting from increased uptime.
As North Sabah is under a production sharing contract (PSC), there is a distinction between gross oil production and net oil production. The former relates to total oil drawn out of the ground, whereas the latter refers to Hibiscus’s share of oil production after taxes, royalties and expenses are accounted for. In this case, we want to pay attention to net oil production, not gross.
We can arrive at Hibiscus’s total oil sold for the last twelve months (LTM) by adding up the total oil sold for each of the last 4 quarters. Summing up the figures yields total oil sold for the LTM of approximately 2,075,305 bbl.
Then, we can arrive at an average realized oil price over the LTM by averaging the average realized oil price for the last 4 quarters, giving us an average realized oil price over the LTM of USD 68.57/bbl. We can do the same for average OPEX per bbl, giving us an average OPEX per bbl over the LTM of USD 13.23/bbl.
Thus, we can sum up the above financial performance of the North Sabah field with the following figures:
· Total oil sold: 2,075,305 bbl
· Average realized oil price: USD 68.57/bbl
· Average OPEX per bbl: USD 13.23/bbl

Anasuria oil field
https://preview.redd.it/586u4kfo8br41.png?width=1038&format=png&auto=webp&s=7580fc7f7df7e948754d025745a5cf47d4393c0f
Doing the same exercise as above for the Anasuria field, we arrive at the following financial performance for the Anasuria field:
· Total oil sold: 1,073,304 bbl
· Average realized oil price: USD 63.57/bbl
· Average OPEX per bbl: USD 23.22/bbl
As gas production is relatively immaterial, and to be conservative, we shall only consider the crude oil production from the Anasuria field in forecasting revenues.

Valuation (Method 1)

Putting the figures from both oil fields together, we get the following data:
https://preview.redd.it/7y6064dq8br41.png?width=700&format=png&auto=webp&s=2a4120563a011cf61fc6090e1cd5932602599dc2
Given that we have determined LTM EBITDA of RM 632m, the next step would be to subtract ITDA (interest, tax, depreciation & amortization) from it to obtain estimated LTM Net Profit. Using FY2020’s ITDA of approximately RM 318m as a guideline, we arrive at an estimated LTM Net Profit of RM 314m (FY20: 230m). Given the current market capitalization of RM 714.7m, this implies a trailing LTM PE of 2.3x.
Performing a sensitivity analysis given different oil prices, we arrive at the following net profit table for the company under different oil price scenarios, assuming oil production rate and ITDA remain constant:
https://preview.redd.it/xixge5sr8br41.png?width=433&format=png&auto=webp&s=288a00f6e5088d01936f0217ae7798d2cfcf11f2
From the above exercise, it becomes apparent that Hibiscus has a breakeven oil price of about USD 41.8863/bbl, and has a lot of operating leverage given the exponential rate of increase in its Net Profit with each consequent increase in oil prices.
Considering that the oil production rate (EBITDA) is likely to increase faster than ITDA’s proportion to revenues (fixed costs), at an implied PE of 4.33x, it seems likely that an investment in Hibiscus will be profitable over the next 10 years (with the assumption that oil prices will revert to the mean in the long-term).

Valuation (Method 2)

Of course, there are a lot of assumptions behind the above method of valuation. Hence, it would be prudent to perform multiple methods of valuation and compare the figures to one another.
As opposed to the profit/loss assessment in Valuation (Method 1), another way of performing a valuation would be to estimate its balance sheet value, i.e. total revenues from 2P Reserves, and assign a reasonable margin to it.
https://preview.redd.it/o2eiss6u8br41.png?width=710&format=png&auto=webp&s=03960cce698d9cedb076f3d5f571b3c59d908fa8
From the above, we understand that Hibiscus’s 2P reserves from the North Sabah and Anasuria fields alone are approximately 44.2 mmbbl (we ignore contribution from Australia’s VIC cluster as it hasn’t been developed yet).
Doing a similar sensitivity analysis of different oil prices as above, we arrive at the following estimated total revenues and accumulated net profit:
https://preview.redd.it/h8hubrmw8br41.png?width=450&format=png&auto=webp&s=6d23f0f9c3dafda89e758b815072ba335467f33e
Let’s assume that the above average of RM 9.68 billion in total realizable revenues from current 2P reserves holds true. If we assign a conservative Net Profit margin of 15% (FY20: 23%; past 5 years average: 16%), we arrive at estimated accumulated Net Profit from 2P Reserves of RM 1.452 billion. Given the current market capitalization of RM 714 million, we might be able to say that the equity is worth about twice the current share price.
However, it is understandable that some readers might feel that the figures used in the above estimate (e.g. net profit margin of 15%) were randomly plucked from the sky. So how do we reconcile them with figures from the financial statements? Fortunately, there appears to be a way to do just that.
Intangible Assets
I refer you to a figure in the financial statements which provides a shortcut to the valuation of 2P Reserves. This is the carrying value of Intangible Assets on the Balance Sheet.
As of 2QFY21, that amount was RM 1,468,860,000 (i.e. RM 1.468 billion).
https://preview.redd.it/hse8ttb09br41.png?width=881&format=png&auto=webp&s=82e48b5961c905fe9273cb6346368de60202ebec
Quite coincidentally, one might observe that this figure is dangerously close to the estimated accumulated Net Profit from 2P Reserves of RM 1.452 billion we calculated earlier. But why would this amount matter at all?
To answer that, I refer you to the notes of the Annual Report FY20 (AR20). On page 148 of the AR20, we find the following two paragraphs:
E&E assets comprise of rights and concession and conventional studies. Following the acquisition of a concession right to explore a licensed area, the costs incurred such as geological and geophysical surveys, drilling, commercial appraisal costs and other directly attributable costs of exploration and appraisal including technical and administrative costs, are capitalised as conventional studies, presented as intangible assets.
E&E assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an E&E asset may exceed its recoverable amount. The Group will allocate E&E assets to cash generating unit (“CGU”s or groups of CGUs for the purpose of assessing such assets for impairment. Each CGU or group of units to which an E&E asset is allocated will not be larger than an operating segment as disclosed in Note 39 to the financial statements.)
Hence, we can determine that firstly, the intangible asset value represents capitalized costs of acquisition of the oil fields, including technical exploration costs and costs of acquiring the relevant licenses. Secondly, an impairment review will be carried out when “the carrying amount of an E&E asset may exceed its recoverable amount”, with E&E assets being allocated to “cash generating units” (CGU) for the purposes of assessment.
On page 169 of the AR20, we find the following:
Carrying amounts of the Group’s intangible assets, oil and gas assets and FPSO are reviewed for possible impairment annually including any indicators of impairment. For the purpose of assessing impairment, assets are grouped at the lowest level CGUs for which there is a separately identifiable cash flow available. These CGUs are based on operating areas, represented by the 2011 North Sabah EOR PSC (“North Sabah”, the Anasuria Cluster, the Marigold and Sunflower fields, the VIC/P57 exploration permit (“VIC/P57”) and the VIC/L31 production license (“VIC/L31”).)
So apparently, the CGUs that have been assigned refer to the respective oil producing fields, two of which include the North Sabah field and the Anasuria field. In order to perform the impairment review, estimates of future cash flow will be made by management to assess the “recoverable amount” (as described above), subject to assumptions and an appropriate discount rate.
Hence, what we can gather up to now is that management will estimate future recoverable cash flows from a CGU (i.e. the North Sabah and Anasuria oil fields), compare that to their carrying value, and perform an impairment if their future recoverable cash flows are less than their carrying value. In other words, if estimated accumulated profits from the North Sabah and Anasuria oil fields are less than their carrying value, an impairment is required.
So where do we find the carrying values for the North Sabah and Anasuria oil fields? Further down on page 184 in the AR20, we see the following:
Included in rights and concession are the carrying amounts of producing field licenses in the Anasuria Cluster amounting to RM668,211,518 (2018: RM687,664,530, producing field licenses in North Sabah amounting to RM471,031,008 (2018: RM414,333,116))
Hence, we can determine that the carrying values for the North Sabah and Anasuria oil fields are RM 471m and RM 668m respectively. But where do we find the future recoverable cash flows of the fields as estimated by management, and what are the assumptions used in that calculation?
Fortunately, we find just that on page 185:
17 INTANGIBLE ASSETS (CONTINUED)
(a Anasuria Cluster)
The Directors have concluded that there is no impairment indicator for Anasuria Cluster during the current financial year. In the previous financial year, due to uncertainties in crude oil prices, the Group has assessed the recoverable amount of the intangible assets, oil and gas assets and FPSO relating to the Anasuria Cluster. The recoverable amount is determined using the FVLCTS model based on discounted cash flows (“DCF” derived from the expected cash in/outflow pattern over the production lives.)
The key assumptions used to determine the recoverable amount for the Anasuria Cluster were as follows:
(i Discount rate of 10%;)
(ii Future cost inflation factor of 2% per annum;)
(iii Oil price forecast based on the oil price forward curve from independent parties; and,)
(iv Oil production profile based on the assessment by independent oil and gas reserve experts.)
Based on the assessments performed, the Directors concluded that the recoverable amount calculated based on the valuation model is higher than the carrying amount.
(b North Sabah)
The acquisition of the North Sabah assets was completed in the previous financial year. Details of the acquisition are as disclosed in Note 15 to the financial statements.
The Directors have concluded that there is no impairment indicator for North Sabah during the current financial year.
Here, we can see that the recoverable amount of the Anasuria field was estimated based on a DCF of expected future cash flows over the production life of the asset. The key assumptions used by management all seem appropriate, including a discount rate of 10% and oil price and oil production estimates based on independent assessment. From there, management concludes that the recoverable amount of the Anasuria field is higher than its carrying amount (i.e. no impairment required). Likewise, for the North Sabah field.
How do we interpret this? Basically, what management is saying is that given a 10% discount rate and independent oil price and oil production estimates, the accumulated profits (i.e. recoverable amount) from both the North Sabah and the Anasuria fields exceed their carrying amounts of RM 471m and RM 668m respectively.
In other words, according to management’s own estimates, the carrying value of the Intangible Assets of RM 1.468 billion approximates the accumulated Net Profit recoverable from 2P reserves.
To conclude Valuation (Method 2), we arrive at the following:

Our estimates Management estimates
Accumulated Net Profit from 2P Reserves RM 1.452 billion RM 1.468 billion

Financials

By now, we have established the basic economics of Hibiscus’s business, including its revenues (i.e. oil production and oil price scenarios), costs (OPEX, ITDA), profitability (breakeven, future earnings potential) and balance sheet value (2P reserves, valuation). Moving on, we want to gain a deeper understanding of the 3 statements to anticipate any blind spots and risks. We’ll refer to the financial statements of both the FY20 annual report and the 2Q21 quarterly report in this analysis.
For the sake of brevity, I’ll only point out those line items which need extra attention, and skip over the rest. Feel free to go through the financial statements on your own to gain a better familiarity of the business.
https://preview.redd.it/h689bss79br41.png?width=810&format=png&auto=webp&s=ed47fce6a5c3815dd3d4f819e31f1ce39ccf4a0b
Income Statement
First, we’ll start with the Income Statement on page 135 of the AR20. Revenues are straightforward, as we’ve discussed above. Cost of Sales and Administrative Expenses fall under the jurisdiction of OPEX, which we’ve also seen earlier. Other Expenses are mostly made up of Depreciation & Amortization of RM 115m.
Finance Costs are where things start to get tricky. Why does a company which carries no debt have such huge amounts of finance costs? The reason can be found in Note 8, where it is revealed that the bulk of finance costs relate to the unwinding of discount of provision for decommissioning costs of RM 25m (Note 32).
https://preview.redd.it/4omjptbe9br41.png?width=1019&format=png&auto=webp&s=eaabfc824134063100afa62edfd36a34a680fb60
This actually refers to the expected future costs of restoring the Anasuria and North Sabah fields to their original condition once the oil reserves have been depleted. Accounting standards require the company to provide for these decommissioning costs as they are estimable and probable. The way the decommissioning costs are accounted for is the same as an amortized loan, where the initial carrying value is recognized as a liability and the discount rate applied is reversed each year as an expense on the Income Statement. However, these expenses are largely non-cash in nature and do not necessitate a cash outflow every year (FY20: RM 69m).
Unwinding of discount on non-current other payables of RM 12m relate to contractual payments to the North Sabah sellers. We will discuss it later.
Taxation is another tricky subject, and is even more significant than Finance Costs at RM 161m. In gist, Hibiscus is subject to the 38% PITA (Petroleum Income Tax Act) under Malaysian jurisdiction, and the 30% Petroleum tax + 10% Supplementary tax under UK jurisdiction. Of the RM 161m, RM 41m of it relates to deferred tax which originates from the difference between tax treatment and accounting treatment on capitalized assets (accelerated depreciation vs straight-line depreciation). Nonetheless, what you should take away from this is that the tax expense is a tangible expense and material to breakeven analysis.
Fortunately, tax is a variable expense, and should not materially impact the cash flow of Hibiscus in today’s low oil price environment.
Note: Cash outflows for Tax Paid in FY20 was RM 97m, substantially below the RM 161m tax expense.
https://preview.redd.it/1xrnwzm89br41.png?width=732&format=png&auto=webp&s=c078bc3e18d9c79d9a6fbe1187803612753f69d8
Balance Sheet
The balance sheet of Hibiscus is unexciting; I’ll just bring your attention to those line items which need additional scrutiny. I’ll use the figures in the latest 2Q21 quarterly report (2Q21) and refer to the notes in AR20 for clarity.
We’ve already discussed Intangible Assets in the section above, so I won’t dwell on it again.
Moving on, the company has Equipment of RM 582m, largely relating to O&G assets (e.g. the Anasuria FPSO vessel and CAPEX incurred on production enhancement projects). Restricted cash and bank balances represent contractual obligations for decommissioning costs of the Anasuria Cluster, and are inaccessible for use in operations.
Inventories are relatively low, despite Hibiscus being an E&P company, so forex fluctuations on carrying value of inventories are relatively immaterial. Trade receivables largely relate to entitlements from Petronas and BP (both oil supermajors), and are hence quite safe from impairment. Other receivables, deposits and prepayments are significant as they relate to security deposits placed with sellers of the oil fields acquired; these should be ignored for cash flow purposes.
Note: Total cash and bank balances do not include approximately RM 105 m proceeds from the North Sabah December 2019 offtake (which was received in January 2020)
Cash and bank balances of RM 90m do not include RM 105m of proceeds from offtake received in 3Q21 (Jan 2020). Hence, the actual cash and bank balances as of 2Q21 approximate RM 200m.
Liabilities are a little more interesting. First, I’ll draw your attention to the significant Deferred tax liabilities of RM 457m. These largely relate to the amortization of CAPEX (i.e. Equipment and capitalized E&E expenses), which is given an accelerated depreciation treatment for tax purposes.
The way this works is that the government gives Hibiscus a favorable tax treatment on capital expenditures incurred via an accelerated depreciation schedule, so that the taxable income is less than usual. However, this leads to the taxable depreciation being utilized quicker than accounting depreciation, hence the tax payable merely deferred to a later period – when the tax depreciation runs out but accounting depreciation remains. Given the capital intensive nature of the business, it is understandable why Deferred tax liabilities are so large.
We’ve discussed Provision for decommissioning costs under the Finance Costs section earlier. They are also quite significant at RM 266m.
Notably, the Other Payables and Accruals are a hefty RM 431m. What do they relate to? Basically, they are contractual obligations to the sellers of the oil fields which are only payable upon oil prices reaching certain thresholds. Hence, while they are current in nature, they will only become payable when oil prices recover to previous highs, and are hence not an immediate cash outflow concern given today’s low oil prices.
Cash Flow Statement
There is nothing in the cash flow statement which warrants concern.
Notably, the company generated OCF of approximately RM 500m in FY20 and RM 116m in 2Q21. It further incurred RM 330m and RM 234m of CAPEX in FY20 and 2Q21 respectively, largely owing to production enhancement projects to increase the production rate of the Anasuria and North Sabah fields, which according to management estimates are accretive to ROI.
Tax paid was RM 97m in FY20 and RM 61m in 2Q21 (tax expense: RM 161m and RM 62m respectively).

Risks

There are a few obvious and not-so-obvious risks that one should be aware of before investing in Hibiscus. We shall not consider operational risks (e.g. uptime, OPEX) as they are outside the jurisdiction of the equity analyst. Instead, we shall focus on the financial and strategic risks largely outside the control of management. The main ones are:
· Oil prices remaining subdued for long periods of time
· Fluctuation of exchange rates
· Customer concentration risk
· 2P Reserves being less than estimated
· Significant current and non-current liabilities
· Potential issuance of equity
Oil prices remaining subdued
Of topmost concern in the minds of most analysts is whether Hibiscus has the wherewithal to sustain itself through this period of low oil prices (sub-$30). A quick and dirty estimate of annual cash outflow (i.e. burn rate) assuming a $20 oil world and historical production rates is between RM 50m-70m per year, which considering the RM 200m cash balance implies about 3-4 years of sustainability before the company runs out of cash and has to rely on external assistance for financing.
Table 1: Hibiscus EBITDA at different oil price and exchange rates
https://preview.redd.it/gxnekd6h9br41.png?width=670&format=png&auto=webp&s=edbfb9621a43480d11e3b49de79f61a6337b3d51
The above table shows different EBITDA scenarios (RM ‘m) given different oil prices (left column) and USD:MYR exchange rates (top row). Currently, oil prices are $27 and USD:MYR is 1:4.36.
Given conservative assumptions of average OPEX/bbl of $20 (current: $15), we can safely say that the company will be loss-making as long as oil remains at $20 or below (red). However, we can see that once oil prices hit $25, the company can tank the lower-end estimate of the annual burn rate of RM 50m (orange), while at RM $27 it can sufficiently muddle through the higher-end estimate of the annual burn rate of RM 70m (green).
Hence, we can assume that as long as the average oil price over the next 3-4 years remains above $25, Hibiscus should come out of this fine without the need for any external financing.
Customer Concentration Risk
With regards to customer concentration risk, there is not much the analyst or investor can do except to accept the risk. Fortunately, 80% of revenues can be attributed to two oil supermajors (Petronas and BP), hence the risk of default on contractual obligations and trade receivables seems to be quite diminished.
2P Reserves being less than estimated
2P Reserves being less than estimated is another risk that one should keep in mind. Fortunately, the current market cap is merely RM 714m – at half of estimated recoverable amounts of RM 1.468 billion – so there’s a decent margin of safety. In addition, there are other mitigating factors which shall be discussed in the next section (‘Opportunities’).
Significant non-current and current liabilities
The significant non-current and current liabilities have been addressed in the previous section. It has been determined that they pose no threat to immediate cash flow due to them being long-term in nature (e.g. decommissioning costs, deferred tax, etc). Hence, for the purpose of assessing going concern, their amounts should not be a cause for concern.
Potential issuance of equity
Finally, we come to the possibility of external financing being required in this low oil price environment. While the company should last 3-4 years on existing cash reserves, there is always the risk of other black swan events materializing (e.g. coronavirus) or simply oil prices remaining muted for longer than 4 years.
Furthermore, management has hinted that they wish to acquire new oil assets at presently depressed prices to increase daily production rate to a targeted 20,000 bbl by end-2021. They have room to acquire debt, but they may also wish to issue equity for this purpose. Hence, the possibility of dilution to existing shareholders cannot be entirely ruled out.
However, given management’s historical track record of prioritizing ROI and optimal capital allocation, and in consideration of the fact that the MD owns 10% of outstanding shares, there is some assurance that any potential acquisitions will be accretive to EPS and therefore valuations.

Opportunities

As with the existence of risk, the presence of material opportunities also looms over the company. Some of them are discussed below:
· Increased Daily Oil Production Rate
· Inclusion of 2C Resources
· Future oil prices exceeding $50 and effects from coronavirus dissipating
Increased Daily Oil Production Rate
The first and most obvious opportunity is the potential for increased production rate. We’ve seen in the last quarter (2Q21) that the North Sabah field increased its daily production rate by approximately 20% as a result of production enhancement projects (infill drilling), lowering OPEX/bbl as a result. To vastly oversimplify, infill drilling is the process of maximizing well density by drilling in the spaces between existing wells to improve oil production.
The same improvements are being undertaken at the Anasuria field via infill drilling, subsea debottlenecking, water injection and sidetracking of existing wells. Without boring you with industry jargon, this basically means future production rate is likely to improve going forward.
By how much can the oil production rate be improved by? Management estimates in their analyst presentation that enhancements in the Anasuria field will be able to yield 5,000 bbl/day by 2021 (current: 2,500 bbl/day).
Similarly, improvements in the North Sabah field is expected to yield 7,000 bbl/day by 2021 (current: 5,300 bbl/day).
This implies a total 2021 expected daily production rate from the two fields alone of 12,000 bbl/day (current: 8,000 bbl/day). That’s a 50% increase in yields which we haven’t factored into our valuation yet.
Furthermore, we haven’t considered any production from existing 2C resources (e.g. Marigold/Sunflower) or any potential acquisitions which may occur in the future. By management estimates, this can potentially increase production by another 8,000 bbl/day, bringing total production to 20,000 bbl/day.
While this seems like a stretch of the imagination, it pays to keep them in mind when forecasting future revenues and valuations.
Just to play around with the numbers, I’ve come up with a sensitivity analysis of possible annual EBITDA at different oil prices and daily oil production rates:
Table 2: Hibiscus EBITDA at different oil price and daily oil production rates
https://preview.redd.it/jnpfhr5n9br41.png?width=814&format=png&auto=webp&s=bbe4b512bc17f576d87529651140cc74cde3d159
The left column represents different oil prices while the top row represents different daily oil production rates.
The green column represents EBITDA at current daily production rate of 8,000 bbl/day; the orange column represents EBITDA at targeted daily production rate of 12,000 bbl/day; while the purple column represents EBITDA at maximum daily production rate of 20,000 bbl/day.
Even conservatively assuming increased estimated annual ITDA of RM 500m (FY20: RM 318m), and long-term average oil prices of $50 (FY20: $60), the estimated Net Profit and P/E ratio is potentially lucrative at daily oil production rates of 12,000 bbl/day and above.
2C Resources
Since we’re on the topic of improved daily oil production rate, it bears to pay in mind the relatively enormous potential from Hibiscus’s 2C Resources. North Sabah’s 2C Resources alone exceed 30 mmbbl; while those from the yet undiagnosed Marigold/Sunflower fields also reach 30 mmbbl. Altogether, 2C Resources exceed 70 mmbbl, which dwarfs the 44 mmbbl of 2P Reserves we have considered up to this point in our valuation estimates.
To refresh your memory, 2C Resources represents oil volumes which have been discovered but are not yet classified as “commercial”. This means that there is reasonable certainty of the oil being recoverable, as opposed to simply being in the very early stages of exploration. So, to be conservative, we will imagine that only 50% of 2C Resources are eligible for reclassification to 2P reserves, i.e. 35 mmbbl of oil.
https://preview.redd.it/mto11iz7abr41.png?width=375&format=png&auto=webp&s=e9028ab0816b3d3e25067447f2c70acd3ebfc41a
This additional 35 mmbbl of oil represents an 80% increase to existing 2P reserves. Assuming the daily oil production rate increases similarly by 80%, we will arrive at 14,400 bbl/day of oil production. According to Table 2 above, this would yield an EBITDA of roughly RM 630m assuming $50 oil.
Comparing that estimated EBITDA to FY20’s actual EBITDA:
FY20 FY21 (incl. 2C) Difference
Daily oil production (bbl/day) 8,626 14,400 +66%
Average oil price (USD/bbl) $68.57 $50 -27%
Average OPEX/bbl (USD) $16.64 $20 +20%
EBITDA (RM ‘m) 632 630 -
Hence, even conservatively assuming lower oil prices and higher OPEX/bbl (which should decrease in the presence of higher oil volumes) than last year, we get approximately the same EBITDA as FY20.
For the sake of completeness, let’s assume that Hibiscus issues twice the no. of existing shares over the next 10 years, effectively diluting shareholders by 50%. Even without accounting for the possibility of the acquisition of new oil fields, at the current market capitalization of RM 714m, the prospective P/E would be about 10x. Not too shabby.
Future oil prices exceeding $50 and effects from coronavirus dissipating
Hibiscus shares have recently been hit by a one-two punch from oil prices cratering from $60 to $30, as a result of both the Saudi-Russian dispute and depressed demand for oil due to coronavirus. This has massively increased supply and at the same time hugely depressed demand for oil (due to the globally coordinated lockdowns being implemented).
Given a long enough timeframe, I fully expect OPEC+ to come to an agreement and the economic effects from the coronavirus to dissipate, allowing oil prices to rebound. As we equity investors are aware, oil prices are cyclical and are bound to recover over the next 10 years.
When it does, valuations of O&G stocks (including Hibiscus’s) are likely to improve as investors overshoot expectations and begin to forecast higher oil prices into perpetuity, as they always tend to do in good times. When that time arrives, Hibiscus’s valuations are likely to become overoptimistic as all O&G stocks tend to do during oil upcycles, resulting in valuations far exceeding reasonable estimates of future earnings. If you can hold the shares up until then, it’s likely you will make much more on your investment than what we’ve been estimating.

Conclusion

Wrapping up what we’ve discussed so far, we can conclude that Hibiscus’s market capitalization of RM 714m far undershoots reasonable estimates of fair value even under conservative assumptions of recoverable oil volumes and long-term average oil prices. As a value investor, I hesitate to assign a target share price, but it’s safe to say that this stock is worth at least RM 1.00 (current: RM 0.45). Risk is relatively contained and the upside far exceeds the downside. While I have no opinion on the short-term trajectory of oil prices, I can safely recommend this stock as a long-term Buy based on fundamental research.
submitted by investorinvestor to SecurityAnalysis [link] [comments]

XAU/USD forecast: Gold market will face a turmoil

XAU/USD forecast: Gold market will face a turmoil

Fundamental gold price forecast for today

Coronavirus vaccines will hold XAU/USD bulls back

Mass gold sell-offs in the mid-August discouraged the gold bulls. However, a quick rebound above $2000 per ounce allowed large banks to resume their recommendations to buy. According to Credit Suisse forecasts, gold prices will grow to $2500 in 2021. Standard Chartered Bank believes investors will use any price decline to open long positions amid the weak dollar, low bond rates, and substantial fiscal stimuli. There are enough bulls in the gold market, and this fact alone raises concerns in the extended rally of the XAU/USD. Can there be turmoil?
Many bullish factors have already been priced in the XAUUSD, and there are not so many growth drivers left. I mean the long-term dollar weakness and the Fed’s willingness to put up with the inflation above its 2% target for as long as it is necessary. The problem is whether consumer prices will grow. The inflation level, expected by the bond market, returned to the January level in five years; but it is still below the Fed’s target. Inflation-adjusted five-year options suggest a little chance that the indicator will be above 3%. It is more likely to slide below 1%. The story of 2009-2011 can repeat in the gold market. Then, the gold price, having reached its all-time high, crashed, as investors didn’t nay more believe that the fiscal stimulus could accelerate the PCE.
In my opinion, the bond market can give a clue on the future gold trends. Gold price correlates with the Treasury Inflation-Protected Securities (TIPS). The increase in the TIPS yields on August 11-12 triggered an XAU/USD correction.

Dynamics of gold and TIPS yields



Source: Wall Street Journal
The gold rally takes place ahead of auctions and amid talks about the Russian vaccine. The more is fiscal stimulus, the more money needs Treasury. The initial public offering makes investors sell securities in the secondary market, which pushes up the yields. Taking into account vast scales of the state funding, such a situation could repeat, which increases the risks of instability in the gold market.
Still, the most significant danger for the gold buyers could result from good news about the COVID-19 vaccine. The Treasury yields are quite responsive to the pandemic. Positive information about vaccines will support the economy, but, at the same time, it will weigh on gold. Purchasing managers think the glass is half-full, and the continuous rally of the US PMI must support the growth of the global bond market rates.

Dynamics of US PMI and Treasury yields



Source: Nordea Markets
Therefore, gold bulls still have two big advantages. They are the greenback weakness and the Fed’s willingness to put up with a high inflation rate. Nonetheless, unless the consumer price growth accelerates and the USD crashes, the XAU/USD will hardly continue to rally. On the contrary, an increase in the Treasury yields looks more likely, which suggests the relevance of the gold sales on the rise to $2050-2055 and $2130-2135.
For more information follow the link to the website of the LiteForex
https://www.liteforex.com/blog/analysts-opinions/xauusd-forecast-gold-market-will-face-a-turmoil/?uid=285861726&cid=79634
submitted by Maxvelgus to Finance_analytics [link] [comments]

Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

Send Money Abroad

The world has become more connected; more people or corporates need to send money abroad for many reasons. If you live and working away from the home, time will definitely come when you have to make transfer to abroad to support your loved ones and other reasons.
Outward Remittance is basically the same as an international money transfer. Many of the sender /customers live overseas and send their hard money to support their loved ones. For example, Parents do a wire transfer to University or their son/daughter’s account for the purpose of their education.
To help them, please visit your nearest branch of Orient exchange or go to the website www.orientexchange.in
Some of the tips to be followed for good convenience:
The right place to Approach
· Telegraphic transfers or process of sending money are made through ADII RBI license holders or banks or money changers.
· Customers should remember that you just can not trust any individuals with the responsibility of sending money.
· Experts recommend choosing a better exchange house /bank that has the international footprint which makes your money transfer easier and secure.
Mode of transfer
You need to choose the option to send money. One is Wire transfer and another is Demand draft. Wire transfer is done via SWIFT i.e. Society for Worldwide Interbank Financial Telecommunications.
A swift transfer is the most secure and standard system which can be done by banks to their correspondents with each other. A demand draft can be sent abroad physically and takes a little bit of time to get cleared. In most of the time remittance will be received by the beneficiary bank in 48 hrs.
Process of application
Primarily, the customer has to send their documents /upload either online or visit the office or request for home verification of KYC and other relevant documents. The requirement of documents may slightly vary with the purpose behind sending the money. There is a limit set by RBI to individuals who remitting money abroad. RBI has placed an annual cap of $ 250000 to the individuals
· Rate fixing: Customer can book their forex rate by paying 2% of the transaction value or they may pay after verification of documents.
· Fees/charges: Many banks are involved in a single outward remittance through the SWIFT network. The customer is liable to pay extra fees. Two to three intermediary banks may handle the transfers so they can add their own charges. In addition to that own bank & receipt bank charges are also included in what you pay.
Duration: Remitter to receiver ‘s account
A swift transfer is transferring money between multiple banks before the funds credited to the seller’s /beneficiary account. This process will be completed from 1 to 5 working days depending on the countries where you transfer.
What details are must for outward remittance transfer?
*Beneficiary Details :
Name of the beneficiary &
Address of the Beneficiary
*Payee Bank details :
1) SWIFT CODE: Swift code is known as Bank ID /SWIFT CODE/Identifier code.
Each financial institution is having its own unique swift code. Swift code usually has 8 to 11 digit or characters.
For Ex: BANK OF AMERICA transfer, SWIFT CODE is “ BOFAUS3N”
2) Beneficiary bank name
3) Beneficiary Bank Address and branch name
4) Beneficiary Bank Account Number
5) Currency wise bank details are additionally required:
i) AED – IBAN
ii) GBP – IBAN, Sort Code
iii) CAD – Transit Number
iv) AUD – BSB Code
v) EUNZD/THB/SEK/SGD – IBAN
Attention on the exchange rate:
Customers always think about the best way to send Wire transfer at a cheap cost.
In the current market scenario, customers should know that most of the banks or money exchangers don’t use the real exchange rate. Instead of that, add more margin on top of live rates. So, customers pay more or beneficiary to receive less. To avoid these hidden charges try using online services that provide you the live /real exchange rates on all wire transfers, Currency Exchange, forex card etc….
submitted by Orient_Exchange to u/Orient_Exchange [link] [comments]

A Quick List of the Best Forex Signal Service Providers (Paid and Free)

A Quick List of the Best Forex Signal Service Providers (Paid and Free)
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Already opened an account and ready to try your luck and polish your skill in Forex trading platforms? In case you are a newbie you have to take support of the expert trader to gain as much experience as possible. Even this will help you to be successful in the long run. But have you ever thought about the ways to start trading?
Probably, following trading style of any experienced trader will be really helpful and saves much energy and time as well. Moreover, you can come to learn several new as well as efficient trading strategies at the same time. Sounds great and pretty simple, right? But the troublesome is regarding the selection of the trustworthy Forex signal service provider.
While you are in trouble this blog is perfect for you! It entails the leading and best Forex trading signal service providers from both paid and free category. So what are you waiting for! Just go through it once to narrow your choice and select the most coherent one to enjoy trading.

1. JKonFX

While you are hunting for a reliable as well as profitable online trading signals provider along with track record there is the team of JKonFX lead by Joel Kruger. This personality has a reputation in this type of trading with about 59.16% of journal performance for the year 2016.
He has offered real-time fundamental and technical insights and that too in an utmost transparency to its 30000 subscribers. Being the lower frequency trader, sending trading alert is only a minor part of this Forex trading signal provider. If it is about comparing numerous options to choose from then you may look for other reliable ones.
  • Verified statistics: Not verified independently
  • Price: $30 monthly
  • Year founded: 2014
  • Suitable for beginners: Yes (including easy-to-follow video updates)

2. Forex Signals

Since its establishment in 2012, it is the top trading signals provider to provide 24-hour accessibility to the trading rooms and that too live. There you get the chance to observe the ways by which experienced trading coaches execute the trade and share the market action whenever it gets revealed in real time.
Besides signal service, it also offers access to the track record of the profits where investment can be made through the managed account. It is only signal provider that owns verified statistics independently on myfxbook. The link is also given to their respective live account of the master.
As it offers everything in such a transparent way, Forex trading by selecting this provider becomes much easier and profitable in the long run.
  • Verified statistics: Yes
  • Price: $97 every month
  • Year founded: 2012
  • Suitable for beginners: Yes

3. DDMarkets

Since May, 2014, DDMarkets (Digital Derivatives Markets) is offering the trading alert services in the form of a detailed document regarding the respective trading ideas in utmost explicit manners. Its procedure is quite simple all you have to do is to perform an extensive research for sharing the analytics while delivering the triggered trading signal.
After its get issued, you will receive daily updates via email. It doesn’t bear floating of the open drawdown to put effort to make profit anyhow. This technique is only followed by the renowned providers for fudging the trading performances.
  • Verified statistics: Not verified independently.
  • Price: plans from $74.40 monthly
  • Year founded: 2014
  • Suitable for beginners: Yes (including easy-to-follow trade analysis)

4. 1000pip Builder

The leading trading signal provider is 1000pip Builder and is one of the few to offer independently verified and tracked results. It focuses on developing potential as well as consistent outcome with little to no drawdown. By following this strategy they are the only one to generate about 6000 pips in just 1 and half years.
Every complicated analytics (key component of the Forex trading) are done by the leading trader Bob. Whenever you take a trade via this trading signal provider, an instant message filled with other crucial pieces of information will be sent via SMS or email. Generally, it includes taking of profit level, stop loss and entry price so that these can be followed by you in an appropriate way.
  • Verified statistics: Yes
  • Price: $97 monthly along with 30% discount
  • Year founded: 2016
  • Suitable for beginners: Yes

5. Traders Academy Club

Previously known as Vladimir Forex Signals, the Traders Academy Club is established in 2011. It offers standard signals which are sent to the traders via a specific Skype group or Email. But primarily it is an online Forex trading education centre.
As there isn’t any verified statistics statistically, it exhibits every previous signal and trade through which comparison will be much easier with your original outcome. Live trading experience and hundreds of educational trading videos are offered via this signal.
  • Verified statistics: No
  • Price: $97 annually
  • Year founded: 2011
  • Suitable for beginners: Yes

6. Forex Mentor Pro

Play every day videos of the team of Forex Mentor Pro for listening into their insights of the market for upcoming weeks and days. Since its introduction in 2008, the team offers the accessibility to 3 trading systems by eradicating the necessity of the performance statistics. But step-by-step guide of the training videos will be posted so that you can attain the much-required speed.
  • Verified statistics: No statistics mentioned
  • Price: from $16.40/month annually or $47/monthly
  • Year founded: 2008
  • Suitable for beginners: Yes (including training videos and systems)

7. Honest Forex Signals

Since 2011, Honest Forex Signal commences offering a trade copier signal service. It has developed a specific page dedicated to the trading statistics that comes with links for displaying the last return on the myfxbook. But it never link myfxbook directly and hence it doesn’t look so independent. However, certain good reviews have acquired by it on the web and several traders comment that its services are quite helpful.
  • Verified statistics: No
  • Price: $177 per month
  • Year founded: 2011
  • Suitable for beginners: Yes

8. Daily Forex

Apart from offering free signals, both video and written instructions are provided by it which makes it unique from others. It will interact with you regarding the ideas under the traders which things are important to look for to enter this market.
Other crucial pieces of information can be also gained on its site. This will be quite interesting if you still stuck to it on completion of trial period.
  • Verified statistics: No-free service offers market feedback
  • Price: Free
  • Year founded: 2006
  • Suitable for beginners: Moderate

9. Baby Pips

This signal provider considers every trader as newbie and so offers detailed information in the “About Us” section. Even the information is really helpful to train the novice Forex traders. Also market signals and analysis is provided by them which can be easily founded under “Pick of the Day” section.
Its main motto is to teach the relevant reasons underneath every decision of trading so that you can become an expert one soon. Signals can be received via their posted blogs on the site via Facebook and Twitter.
  • Verified statistics: No-free service offers market feedback
  • Price: Free
  • Year founded: 2005
  • Suitable for beginners: Yes

10. Forex Peace Army

Though it is popular for the recorded reviews on the Forex yet it offers a few free trading signals as well. It has a set up of its forum style where an article is posted every day filled with detailed instructions on the way to act on every particular bit of news on the basis of the immediate effects.
Even summary of the tradable news is posted on a weekly basis where you can come to know about what is coming up next week as well.
Verified statistics: No-free service offers market feedback
  • Price: Free
  • Year founded: 2006
  • Suitable for beginners: Moderate
These are the best Forex trading signal service providers you can ever find. However, you are not insisted to choose any of them if you can find much better than these then, you are supposed to choose that one. But you should look for a reliable signal provider on the basis of the considerable aspects.
Technical Trading Signals is also there which can be your perfect trading partner as well. Even it offers both automated and manual system of sending notification to the traders via Telegram, Email, SMS and WhatsApp regarding every step of trading.
As it comprises of maximum risk it is not an ideal option for every investor. Every sort of leverage gets against your trading step. You may lose consecutively your investment as well. Financial advice is better to seek before starting trading.
submitted by ttsignals to u/ttsignals [link] [comments]

Causes and consequences of forex slippage

Causes and consequences of forex slippage

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The decline in forex prices is a common problem that does not allow many traders to achieve the desired financial result.
Slippage is a mismatch between the price of opening a new position and the value that the trader saw when sending the order. In other words, the trader sends an order at the same price, but during the signal the course undergoes changes, as a result of which the order is opened at a completely different price.
This situation may occur due to the fault of the broker, Internet provider or as a result of too high a trend movement speed.
Due to slippage, the Forex trader loses part of his profit. As a rule, these are just a few items that are relevant only for short-term trading. However, when trading in large volumes, the loss of this part of the profit is very unpleasant. Most Forex brokers allow traders to set the maximum allowable slippage parameters in the trading terminal. In the event of a large discrepancy between the strike price and the price indicated in the offer, the order simply will not be executed.
The elimination of such a problem depends on the cause of its occurrence. There are the following ways to prevent slippage:
1) If a trader is confident in the quality of his Internet connection and there is no quick trend in the market, the problem arises through the fault of a brokerage company. In this case, you can choose another dealing center for cooperation or switch to another version of order execution. Slippage often appears when working with cent accounts, it can disappear when switching to standard type accounts.
2) If the cause of slippage is a poor Internet connection, you just need to change the provider. However, most often with a slow Internet, the order is not executed at all due to a change in the current price.
3) When a fast trend prevails in the market, the speed can change by several tens of points in just a couple of seconds. In this case, the system does not cope with the execution of the order, since all signals arrive late. To solve this problem, you can use pending orders that will work with a sharp trend movement.
The trader should know that if the Forex broker indicates in the trading conditions the execution of orders using the Instant Execution system, then price slippage should not occur. This option assumes accurate execution of orders or refusal to conduct an operation. In the event of a price mismatch, the trader can decide for himself whether he is satisfied with the new course or not.
submitted by alex_fortran to u/alex_fortran [link] [comments]

[EVENT] 2021 People's Bank of China Statement

Press Conference with the Governor of the People's Bank of China 任中国人民银行行长 Yi Gang 易纲 on current monetary and regulatory matters in the People's Republic of China for the year 2021
Dear Ladies and Gentlemen,
I shall be presenting the position of the People's Bank of China on the current forecast for the fiscal year 2021, with emphasis on the growth predicted for the country and the ramifications it has for the monetary policy of the PBOC. Additionally, I shall address the demand for the People's renminbi as a reserve currency for the Federal Republic of India.
Concerning the growth of the economy for 2021, official growth stands at 6,3 percent. We raise our satisfaction with some positive changes have occurred in the structural adjustments of the Chinese economy in previous quarters, but deep problems remain amid uncertainties. While the the trade war with the United States has been officially ended and there has been regulatory and financial reform, we raise concerns with the additional oversight that has been placed on the digital economy and infrastructure of firms operating in the country. We would like to raise - in coordination with the State Council, that the policy is in response to both the U.S. CLOUD Act and European GPDR to which the burden is regrettable.
Of more pressing concern is the slowing growth for the year that has missed the official target of the PBOC and the government. Thus I shall state that the People's Bank will continue the prudent monetary policy that is neither too loose or too tight, and ensure reasonably ample liquidity in the interbank market. However. The Bank shall begin a further stimulus package to address the slowing growth through creating further domestic credit growth and boost consumer demand.
The additional aim will be to allow for easier borrowing for businesses that does not hold substantial non-performing loans that have been flagged to the Ministry of Finance. This relates to the new Supplementary Measures that are now being issued:
Regarding State-Owned Enterprises, credit expansion will delegated by State-owned Assets Supervision and Administration Commission (SASAC), under guidance by the PBOC.
With this screening policy in place - essentially window guidance, we hope to avoid flooding of inefficient credit creation.
As to the matter of the size of the stimulus, the PBOC shall roll out a $260 billion package, with targeted support for performing small- and medium banks that have has viable credit profiles. Banks that fail to meet this requirement shall be reported to regulators to shore up, with asset sell-offs and NPL write offs - with the State-owned Assets Supervision and Administration Commission (a percentage of the $144 billion operating budget has been allocated for this write-off, complimented with the National Debt Service allocations as outlined by the Ministry of Finance's projected budget for 2021)
Concerning the state of the renminbi and its valuation, should growth projections worsen, the Bank is willing act robustly in the defence of the currency. Current repo rates shall remain in line and compliment current inflation metrics.
Concerning more fascinating matters, the internationalisation of the renminbi is a policy that we at the PBOC would encourage policy makers to continue upon. Due to the dominance of the American dollar, the US government can issue debt and print money freely. It gains from seigniorage, as people hold dollars for use in transactions. As the world has seen, especially in recent years, control of dollar-clearing systems enables the United States to limit others’ financial access - which is of particular concern for the PBOC. Many global goods, especially commodities, are priced in dollars. These benefits also provide the United States with political gains and soft power. The same can be assumed for the renminbi and China should further relaxation of capital accounts and the not too loose or restricted monetary policy of the PBOC continues as it has.
From 2009, the dollar has held steady at 60% of global reserves over the past decade, after declining from 70%. With the euro area’s troubles, the euro’s share has slipped; developing economies now hold about 24% of their reserves in euros, down from 31% in 2009. Other currencies – Swiss, Australian, Canadian – increased their attractiveness for a time, but their market size is limited and cyclical conditions have dampened some interest. The Japanese yen and British pound will continue to play a modest role, though we remain pessimistic on the role of the British pound should a No Deal Brexit be followed through. SDRs, which represent less than 3% of global reserves, suffer from a lack of private trading, invoicing, borrowing and lending, granted the renminbi has been added to the basket peg in which SDRs are issued by the IMF.
Given the decision of the Indian government to divest from the their dollar holdings, the PBOC shall announce the sell of $20 billion of National Government Bonds to the Reserve bank of India as well as a purchase of $30 billion worth of renminbi to be held in forex reserves.
Due to this measure, we hope to see that the liquidity of the Renminbi expands as international interest picks up, to which the PBOC shall facilitate all currency purchases as well as bond issuance to those who seek a stable investment.
submitted by Relativity_One to GlobalPowers [link] [comments]

Everything You Need to Know About WaykiChain

Everything You Need to Know About WaykiChain
https://preview.redd.it/6gvkwst0chw11.png?width=880&format=png&auto=webp&s=8e34f501819e16b6c2c286b9c02c9f357a15ba0a

What is WaykiChain?

WaykiChain is a block public chain focusing on blockchain technology development and related operations. WaykiChain has positioned itself as an infrastructure that is based on both Ethereum and Blockchain, intending to trigger a collective growth of different industries by presenting an enterprise solution.

Determined to build a world-class decentralized platform and ecosystem, WaykiChain launched the first smart-contract-based game prediction DApp in May 2018 with over 130,000 install volume, token WICC listed in 100+ exchanges, peaking at $3, community members over 300K, is believed to be innovating a new business model in the new era.
WaykiChain, a team focused on blockchain industry’s foundation and application development, now consisting of nearly 70 people, with core members from world-renowned companies such as Alibaba, Tencent, Morgan Stanley and Intel, is hoping to ultimately achieve an ecosystem that everyone can participate in the building and share the results.

Where is WaykiChain Heading?

The future of WaykiChain is a big community-driven public chain ecosystem. WaykiChain aims to build a decentralized application platform that can provide users with complete on-chain smart contract system. Anyone can realize their business ideas on WaykiChain and develop their own DApp, and build their own brands.
WaykiChain takes decentralized prediction, assets trading and forex trading as entry industries to expand markets in the early stage. After accumulating plenty of application users and developers, WaykiChain will gradually perfect its upper blockchain applications.
Currently, WaykiChain tech team is focusing on underlying public chain development. WaykiChain will provide friendly development environment to developers with sufficient development templates an interfaces. Besides, WaykiChain team plans to take a part of WICC as reward those developers who have made important contributions to the community. WaykiChain is committed to building an underlying technology platform that truly integrates blockchain application and real business. Along with its development, WaykiChain will gradually grow into a big ecosystem with totally decentralized operations, and brings the convenience of blockchain to every user.

Further Reading

White Paper
WaykiChain white paper is in update now, and will be available soon.
Huobi Project Center
https://www.huobi.br.com/projectcenteproject/?id=91&utm_source=Marketing&utm_medium=Referral&utm_campaign=WICC
Waykichain Developer-Friendly Community
http://www.waykichain.com/announcement.html?id=887

WaykiChain’s Technology

Consensus Mechanism
Delegated Proof of Stake (DPoS) is a consensus algorithm maintaining irrefutable agreement on the truth across the network, validating transactions and acting as a form of digital democracy. Delegated through token holders’ vote, ledgers nodes will package all the transactions in the block and get corresponding reward. DPOS can maximize token holders’ interests and network performance, meanwhile minimize the maintenance and operation costs.
WaykiChain adopts DPoS, which is the most adaptive consensus mechanism for developing and operating applications on chain. The block is successively generated by 11 ledger nodes. Every 10 seconds, a new block will be generated on WaykiChain. Verified by WaykiChain mainnet operation, the transaction confirmation speed can reach 1000+tps.
Vote Mechanism
WaykiChain adopts DPOS consensus mechanism with 11 ledger nodes. When a block is generated, a node is elected with the most votes according to random perturbation algorithm from the 11 nodes. Then ledger node gains all of the transaction fee in its ledger block. Users can get proportionate votes by locking their WICC. Every node can be cast for 11 candidates at most. Every voted user will be awarded proportionate interest. When users’ corresponding accounts’ votes changes, the interest from voting will be received automatically. The first year’s rate of interest is 5% and it will decrease 1% annually during the following years. Finally, the annual rate of interest will be fixed at 1% permanently.
Smart Contracts
WaykiChain is a smart contract platform that supports Turing devices. These smart contracts can help in a variety of real-world applications including copyright issues, decentralized exchanges and asset problems. It adopts DPOS consensus mechanism, sets up 11 voting nodes, and generates a new block every 10 seconds. According to detailed calculation by WaykiChain team, currently, the confirmed transaction speed can reach 1000+tps.
WaykiChain’s smart contract can be built using the programming language Lua. Lua was developed in the early 1990s and has an extensive developer community. It has been used in desktop development, web development and the Internet of Things. It also is one of the easiest programming languages and hence it provides an incentive for developers to code on WaykiChain’s platform.
Sidechain
The most popular smart contract cryptocurrency Ethereum, failed when Cryptokitties were released. Ethereum’s network was unable to handle the massive influx of users. Thus, scalability remains a huge problem. Fortunately, WaykiChain has a feature known as sidechains which can deal with huge amount of users. Applications built on WaykiChains will have their own sidechains and they are not linked in any way to each other.
WaykiChain Ecosystem Development System
WaykiChain ecosystem development system is driven and co-developed by three parties: WaykiChain core developers, open source community developers and business developers. In the decentralized system, WaykiChain team will provide technical standards and community contribution incentives to ensure that the entire ecosystem moves forward as a whole. On the basis of the underlying public chain, plug-ins, and smart contracts, business developers are able to develop applications efficiently and build their own brands with blockchain’s credit endorsement.
WaykiChain plans to establish Technology Research Academy to gather a group of outstanding developers with decentralized blockchain beliefs. WaykiChain will provide underlying technology support and standards. Developers in the academy can free communicate, learn from each other and co-develop a fully decentralized community.
Ecosystem Layered Architecture
WaykiChain technology stack consists of four layers: the core node layer, the wallet node layer, the application platform layer, and the DApp application layer. Any developer can choose which layer to start development based on their own development capability, business needs, and application flexibility needs. WaykiChain core technology team is committed to providing the develop-friendly interfaces of each layer and improving the technical documentation to help the community better build the ecosystem.

Further Reading

WaykiChain Github: https://github.com/WaykiChain/WaykiChain
How Does WaykiChain Work?
WaykiChain uses a DPoS consensus mechanism with eleven accounting nodes. The annual rate of return is 5% for the first year, with a 1% increase with every year that goes by. Each time a block is created, an accounting node is randomly associated. The accounting node gains all of the transaction fees in its accounting block. Users can earn interest by locking WaykiChain coins. The interest is automatically determined each time the votes for the corresponding user account change.
The terms of betting are triggered by the initiator through smart contract transactions. Users can initiate various betting contract transactions, all of which can be searched and identified in the block browsers. When the betting is over, the bet initiation will publish the final results and the gaining will be then shared accordingly. In short, the betting revenue is automatically issued to the user’s wallet after the betting results are displayed.
The smart contract provided by the platform makes it possible for asset initiations to create dividend sharing rules. These rules are only triggered by various conditions. Hence, the final price of the assets in circulation will be determined by the market’s behavior towards the object in the transaction.

WaykiChain Applications

Token System
Waykichain Token, WICC is a token only used and circulated in WaykiChain Wallet DApp. WICC itself does not have any FIAT characteristics. By consuming WICC as a kind of fuel, users can use applications on WaykiChain; by locking their WICC for a certain period of time, users can share the revenue from WICC Lock Revenue Sharing Plan; and by voting for effective and stable accounting nodes, users can earn related interest. WICC can be obtained by participating in the lock plan, by accounting, voting, and subscription, or by trading with other holders. This means WICC will be listed on lots of exchanges and traded with other cryptocurrencies, thus WICC also has trade value.
WaykiChain Block Explorer
WaykiChain official block explorer is a data display system for WaykiChian applications, which displays the WICC transfer and transaction records, account balances, prediction games transactions, and payout results according to application data on the blockchain. All data is open and transparent and inherently irreversible.
WICC Lock & Revenue Sharing Plan
In order to reward all community supporters and provide a channel for application operators to make retribution to community, WaykiChain launched WICC Lock & Revenue Sharing Plan. Application operators can provide a portion of the proceeds to the community members to encourage their contribution to the entire public chain, and to motivate the community to continuously improve the public chain as a more robust underlying system. Investors can lock their own WICC, as a way of showing long-term optimism about the project, to get a certain amount of revenue.
Investors can lock a certain number of mainnet WICC through the entrance in WaykiChain DApp. During the lock period, this part of WICC cannot be traded, transferred, or consumed as transaction fee. When the lock period expired, WICC will be automatically unlocked and become tradable. During the lock period, investors will receive WICC revenue at the end of each month. The amount of each investor’s WICC revenue is related to his/her WICC lock volume and duration, total WICC revenue generated during the period, and the total WICC lock volume and duration of all investors participating in the lock plan during this period. Specific calculating formula is as follows:
WICC Lock revenue Calculation Formula:
Each investor’s daily WICC revenue = Each investor’s lock index / The sum of each investor’s lock index * Total WICC revenue that day
Each investor’s lock index = Each investor’s WICC lock volume * Time index * Volume index

https://preview.redd.it/7c273o53chw11.png?width=689&format=png&auto=webp&s=219d1e810f4d9217c55c336273b6d2f021257dfa
Time Index Table
Decentralized App
The first smart contract based application delivered by WaykiChain’s team is the WaykiChain decentralized betting application. In this application, the smart contract will assign a time duration in which the user can engage in the betting process. All the conditions related to betting will be given. When a bet is finished, the contract will release the results. The smart contract will then reward the winners.
This DApp was launched in May 2018, attracting over 130,000 users to download and bet and has been upgraded to V2.1 ever since. The latest product WaykiBet DApp V2.5 is planned to launch in November along with a new WaykiChain wallet.
WaykiBet V2.5 enables a new feature that everyone can be a bookmaker. With the authoritative event data and services provided by WaykiChain DApp, user even without any technical or product background can build a bet in simply one-click. And at the end of the game, WaykiBet will automatically call the smart contract to calculate the bet results and deliver payouts, without any manual participation.
Besides, WaykiBet V2.5 has exempted the betting fee through the structure optimization and allows the player to participate in the betting directly after creating a new wallet without activation to ensure users outside of the cryptocurrency industry can be involved in the easiest manner.
WaykiTimes Wallet
The new WaykiChain wallet, named as WaykiTimes will retain the original wallet functions, such as Lock Revenue Sharing and node voting. The newly added “Forum” gathers the community of WaykiChain and blockchain together, will become an ecology of open communication. Meanwhile it will has a “News” section to meet different users’ needs. In the future, WaykiTimes will implement WaykiChain token economy to encourage the community members.
Getting Setup
Download WaykiBet DApp V.2.5 at official website: https://www.waykichain.com/

Meet the Team

WaykiChain team is comprised out of over 60 individuals with relevant experience in marketing, business, betting, lottery, betting and crypto industries.
Wayki Sun, Founder & CSO
One of the earliest digital currency investors and entrepreneurs in China. The founder of Xinhuo Network, the founder of Ou Lu Zhong Chou and the Managing Director of Jufeng Digital Asset Management Co., Ltd. Sun led an investment team of hundreds of people with great achievements made in stock, foreign exchange, futures and digital currency markets.
Gordon Gao, CEO
Gordon Gao, an alumni of Columbia University, ex-Lead Data Scientist of Fishbowl in Wall Street, ex-Senior Data Analyst of Alibaba Group, senior member of Mensa International Club. He is responsible for offering support to WaykiChain’s commercial model designing and strategy planning, building up a digitalized monitor system for products and operation and promoting WaykiChain overseas with his international background.
Tony Chau, Co-founder & CBO
Bachelor’s Degree in Finance from the University of Toronto in Canada and served in Hongshang Asset Management Co., Ltd. Focused on industrial surveys and commercial analysis, with in-depth research and distinctive perception on business operation models, and professional financial knowledge and complete project experience.
Tame Huang, Chief Consultant
The founder of BTC38, served as Product Manager and Project Manager of Tencent, Vice President of Fantasy Basketball, and Chief Strategy Officer of Licai Box; Huang was involved in the investment on more than ten high-tech enterprises, such as Jidian Technology, Yixiang Network, Maoming Rural and Commercial Bank, Jujin Technology, Cointime, etc., and established the Bitcoin Time Digital Currency Exchange in May 2013.
Xi Zhang, CPO
Tsinghua MBA, former Senior Product Manager of Tencent. Xi Zhang has been engaged in Internet industry for 14 years with several entrepreneurial experiences. In 2008, he joined aibo123.com as Product Director, responsible for the product design and operation of Olympics lottery. In 2014, he stared his own business and founded QiuShang APP, the first prediction APP in China applying big data prediction with 8% return rate and 67% win rate. In 2016, as a partner, he joined the Haiqiu Technology founded by famous football player Sun Jihai, responsible for the Miaohai business unit. He was fully responsible for the products, technology, operations, and marketing of Miaohai sports short video APP. The total downloads of Miaohai APP were 6 million and daily active users were 1 million.
Richard Chen, CTO
Master of Computer Science from the National University of Singapore and Bachelor of Communication Engineering from Shanghai Jiao Tong University. Richard worked for Alibaba and was responsible for the internal and external information security system construction of the entire groups Customer Service Department. Prior to this, Richard also served as Senior Vice President for the worlds top investment bank Morgan Stanley for 3 years and Intel Chief Architect for 8 years. Richard has received four US patents and won Intel Achievement Award (IAA). Richard has published several global patents in encryption technology, distributed network communication and collaboration, and big data.
Xiang Li, CMO
MBA degree from Tsinghua University, former COO of Brightoil Online under Brightoil Petroleum (Holdings) Limited, senior manager of Dacheng Food (Asia) Limited, has over a decade of experience in marketing and brand building. Ms. Li is an expert in building brand strategy, brand positioning, advertising channels, event marketing, crisis management, etc. Now Ms. Li is the marketing director of WaykiChain, responsible for the brand operation of WaykiChain in the global market and marketing cooperation.
Getting Connected:
  1. Website: https://www.waykichain.com/aboutUs.html
  2. Telegram: https://t.me/wiccofficial

FAQ:

What is WICC? How to Buy WICC?
WICC is the token launched by WaykiChain. In order to buy WaykiChain (WICC), we recommend you to buy some BTC or ETH (the highest volume trading pairs) from an exchange that accepts them. Then, you will have to find a marketplace that sells WICC in exchange for the aforementioned cryptocurrencies. We recommend you to buy WICC at AEX or Huobi Exchange (AEX has already supported WICC mainnet migration, Huobi will support the migration in November, 2018). For more information on this matter, you can visit CoinMarketCap.
When it comes to storing your WICC coins, it’s recommended that you use the official WaykiChain wallet. By consuming the tokens, you can also use various applications on WaykiChain.
What is the use of WICC?
WICC is a token used and circulated in WaykiChain Wallet DApp. WICC itself does not have any FIAT characteristics. By consuming WICC as a kind of fuel, users can use applications on WaykiChain; by locking their WICC for a certain period of time, users can share the revenue from WICC lock plan; and by voting for effective and stable accounting nodes, users can earn related interest. WICC can be obtained by participating in the lock plan, by accounting, voting, and subscription, or by trading with other holders. WICC has been listed on over 100 exchanges and trading with other cryptocurrencies for almost 1 year, thus WICC also has trade value.
What are WaykiChain’s advantages as a public chain 3.0?
There are three different types of blockchain: public chain, consortium chain, and private chain. Public chain refers to the consensual blockchain that any individual or team can read and send transactions to, and obtain valid confirmation. Public chain, also known as the non-license chain, is totally open to the whole network that any node can access or leave at any time without any permission. As a public chain of blockchain 3.0, WaykiChain has the advantages of high speed, high stability and flexibility, and low handling fee, providing rich development tools and perfect development environment for worldwide developers. Adopting DPoS consensus mechanism, sidechain technology and other technologies, WaykiChain can process 1000+ transaction requests per second. Relying on its strong strength of underlying technology and innovation, WaykiChain can effectively support high-traffic application scenarios and realize the landing of WaykiChain ecological applications.
What is WaykiChain decentralized betting application?
WaykiChain decentralized betting application is the first smart contract application launched by WaykiChain team. Each betting is triggered by the application developer via a smart contract. During the period specified in the contract, the users can initiate betting transaction, and all betting records can be traced on the blockchain browser and can never be tampered with. The smart contract will automatically reward the winners based on the final result. WaykiChain will use smart contract to automatically execute the game rule on its public chain. Instead of relying on trust between people, WaykiChain betting application adopts trust among machines to save credit costs, and guarantees full compliance with the rules setting. Besides WaykiChain Official, the developers of the decentralized applications can be any other third-parties. WaykiChain welcomes all developers to join.
What is WaykiChain Address?
WaykiChain address is a 34-bit string consisting of English letters and numbers that may look like digital gibberish. My WaykiChain address WXv6xP8yVW4PkZ3DPvxqfBtfz7Bof1RJHm, as an example, looks like this. All transfer records for each WaykiChain address can be found through the blockchain explorer. The address is a personal WaykiChain account like your bank account number. Anyone can transfer WICC to you via your WaykiChain address. How do I get my own WaykiChain address then? You can download a WaykiChain Wallet on WaykiChain official website, or register one on trading platforms. Each user’s WaykiChain address is unique. It should be noted that each WaykiChain wallet can only create one address, therefore the wallet mnemonics must be kept carefully.
What consensus mechanism does WaykiChain adopt?
WaykiChain adopts DPOS consensus mechanism, a new algorithm to guarantee the security of cryptocurrency network. DPOS consensus mechanism can offset the negative effects of centralization through implementing technology-based democracy, and maximize the effectiveness of the public chain through nodes accounting. DPOS can be understood as giving the token holders a key to open the voting rights corresponding to their tokens, instead of giving them a shovel to mine. DPOS can maximize the profitability of the token holders, minimize the cost of network security, maximize the efficiency of network, and minimize the cost of network operation. WaykiChain has 11 accounting nodes in total. The nodes are generated by the token holders’voting. If nodes are making trouble or cannot account normally, the token holders can change their votes, so that there will be other nodes to replace to ensure that the public chain can be operating normally.
What is WaykiChain mainnet migration?
WaykiChain (WICC) mainnet migration is the process of replacing the previous Ethereum-based token ERC20 TOKEN with WaykiChain mainnet token. WaykiChain public chain, through several months of testing and rigorous evaluation from the exchange platforms after its release, has been fully proven to operate efficiently and stably. Mainnet migration marks that WaykiChain public chain is actually putting into use. After the mainnet migration, various applications and developments based on WaykiChain can be launched, and the service period of WaykiChain public chain truly starts. The dividend mechanism, voting mechanism, gas consumption, and accounting fees on WaykiChain ecosystem are all completed by the mainnet token. The previous ERC20 tokens do not have these functions. By the end of June 26th, AEX Exchange, CEO Exchange, and Bying Wallet have supported WICC mainnet migration. There will be more exchanges and wallets supporting the migration in the future. Please follow WaykiChain’s Wechat official account for more details.
Are there any requirements or restrictions for developing projects on WaykiChain?
WaykiChain’s code is completely open. WaykiChain welcomes third parties worldwide to develop, carry and operate various application products on WaykiChain, and finally form a diversiform public chain community ecology. WaykiChain is happy to provide public chain technology support for any individuals or third parties. Applications developed and operated by third parties, based on WaykiChain public chain, need to comply with local laws and policies. Only after obtaining related licenses, permits or qualifications required by local laws and policies, developers and operators can launch and operate their applications on WaykiChain. Because of blockchain public chain’s globality, anonymity, open code, and the limitation of our ability, WaykiChain Official cannot judge the identity of third parties, nor have the ability and right to verify, supervise, control or interfere the third parties. Therefore, third parties should bear responsibility of their own actions.
What is WaykiChain Block Explorer?
WaykiChain Block Explorer is a system that displays all transaction information on WaykiChain and provides visualized track services. Technically, a block explorer works by scanning the block into the database server and then setting up a Web access service. Users only need to import the transaction hash to check whether the transaction has been packaged and confirmed. From the point of product, block explorer is more suitable to be called as asset explorer, which provides asset certification for users so that they don’t have to visually identify or manually analyze the transactions themselves. The block explorer also provides statistics of blocks and transactions, helping users to directly understand the activity of the blockchain. The statistics can also be translated into various indexes for investors to understand the project. To track the transactions, users can search relevant information on WaykiChain official website through WaykiChain wallet address, transaction hash or block height.

Further Reading

https://www.waykichain.com/question.html

Wish List for WaykiChain

Just thinking it would be great to create a post for everyone to post what they want to have for future releases of the Waykichain DApp or anything related to using Waykichain.
Welcome feedback from the community, so please do get in touch. Want to dive in further? Follow WaykiChain onTwitter, Medium and LinkedIn.
submitted by Waykichain to u/Waykichain [link] [comments]

Everything You Need to Know About WaykiChain

Everything You Need to Know About WaykiChain

https://preview.redd.it/uho8eww9npw11.png?width=880&format=png&auto=webp&s=960d1dc0f9afa9c17633a4fae2c43a41ace45260

What is WaykiChain?

WaykiChain is a block public chain focusing on blockchain technology development and related operations. WaykiChain has positioned itself as an infrastructure that is based on both Ethereum and Blockchain, intending to trigger a collective growth of different industries by presenting an enterprise solution.

Determined to build a world-class decentralized platform and ecosystem, WaykiChain launched the first smart-contract-based game prediction DApp in May 2018 with over 130,000 install volume, token WICC listed in 100+ exchanges, peaking at $3, community members over 300K, is believed to be innovating a new business model in the new era.
WaykiChain, a team focused on blockchain industry’s foundation and application development, now consisting of nearly 70 people, with core members from world-renowned companies such as Alibaba, Tencent, Morgan Stanley and Intel, is hoping to ultimately achieve an ecosystem that everyone can participate in the building and share the results.

Where is WaykiChain Heading?

The future of WaykiChain is a big community-driven public chain ecosystem. WaykiChain aims to build a decentralized application platform that can provide users with complete on-chain smart contract system. Anyone can realize their business ideas on WaykiChain and develop their own DApp, and build their own brands.
WaykiChain takes decentralized prediction, assets trading and forex trading as entry industries to expand markets in the early stage. After accumulating plenty of application users and developers, WaykiChain will gradually perfect its upper blockchain applications.
Currently, WaykiChain tech team is focusing on underlying public chain development. WaykiChain will provide friendly development environment to developers with sufficient development templates an interfaces. Besides, WaykiChain team plans to take a part of WICC as reward those developers who have made important contributions to the community. WaykiChain is committed to building an underlying technology platform that truly integrates blockchain application and real business. Along with its development, WaykiChain will gradually grow into a big ecosystem with totally decentralized operations, and brings the convenience of blockchain to every user.

Further Reading

White Paper
WaykiChain white paper is in update now, and will be available soon.
Huobi Project Center
https://www.huobi.br.com/projectcenteproject/?id=91&utm_source=Marketing&utm_medium=Referral&utm_campaign=WICC
Waykichain Developer-Friendly Community
http://www.waykichain.com/announcement.html?id=887

WaykiChain’s Technology

Consensus Mechanism
Delegated Proof of Stake (DPoS) is a consensus algorithm maintaining irrefutable agreement on the truth across the network, validating transactions and acting as a form of digital democracy. Delegated through token holders’ vote, ledgers nodes will package all the transactions in the block and get corresponding reward. DPOS can maximize token holders’ interests and network performance, meanwhile minimize the maintenance and operation costs.
WaykiChain adopts DPoS, which is the most adaptive consensus mechanism for developing and operating applications on chain. The block is successively generated by 11 ledger nodes. Every 10 seconds, a new block will be generated on WaykiChain. Verified by WaykiChain mainnet operation, the transaction confirmation speed can reach 1000+tps.
Vote Mechanism
WaykiChain adopts DPOS consensus mechanism with 11 ledger nodes. When a block is generated, a node is elected with the most votes according to random perturbation algorithm from the 11 nodes. Then ledger node gains all of the transaction fee in its ledger block. Users can get proportionate votes by locking their WICC. Every node can be cast for 11 candidates at most. Every voted user will be awarded proportionate interest. When users’ corresponding accounts’ votes changes, the interest from voting will be received automatically. The first year’s rate of interest is 5% and it will decrease 1% annually during the following years. Finally, the annual rate of interest will be fixed at 1% permanently.
Smart Contracts
WaykiChain is a smart contract platform that supports Turing devices. These smart contracts can help in a variety of real-world applications including copyright issues, decentralized exchanges and asset problems. It adopts DPOS consensus mechanism, sets up 11 voting nodes, and generates a new block every 10 seconds. According to detailed calculation by WaykiChain team, currently, the confirmed transaction speed can reach 1000+tps.
WaykiChain’s smart contract can be built using the programming language Lua. Lua was developed in the early 1990s and has an extensive developer community. It has been used in desktop development, web development and the Internet of Things. It also is one of the easiest programming languages and hence it provides an incentive for developers to code on WaykiChain’s platform.
Sidechain
The most popular smart contract cryptocurrency Ethereum, failed when Cryptokitties were released. Ethereum’s network was unable to handle the massive influx of users. Thus, scalability remains a huge problem. Fortunately, WaykiChain has a feature known as sidechains which can deal with huge amount of users. Applications built on WaykiChains will have their own sidechains and they are not linked in any way to each other.
WaykiChain Ecosystem Development System
WaykiChain ecosystem development system is driven and co-developed by three parties: WaykiChain core developers, open source community developers and business developers. In the decentralized system, WaykiChain team will provide technical standards and community contribution incentives to ensure that the entire ecosystem moves forward as a whole. On the basis of the underlying public chain, plug-ins, and smart contracts, business developers are able to develop applications efficiently and build their own brands with blockchain’s credit endorsement.
WaykiChain plans to establish Technology Research Academy to gather a group of outstanding developers with decentralized blockchain beliefs. WaykiChain will provide underlying technology support and standards. Developers in the academy can free communicate, learn from each other and co-develop a fully decentralized community.
Ecosystem Layered Architecture
WaykiChain technology stack consists of four layers: the core node layer, the wallet node layer, the application platform layer, and the DApp application layer. Any developer can choose which layer to start development based on their own development capability, business needs, and application flexibility needs. WaykiChain core technology team is committed to providing the develop-friendly interfaces of each layer and improving the technical documentation to help the community better build the ecosystem.

Further Reading

WaykiChain Github: https://github.com/WaykiChain/WaykiChain
How Does WaykiChain Work?
WaykiChain uses a DPoS consensus mechanism with eleven accounting nodes. The annual rate of return is 5% for the first year, with a 1% increase with every year that goes by. Each time a block is created, an accounting node is randomly associated. The accounting node gains all of the transaction fees in its accounting block. Users can earn interest by locking WaykiChain coins. The interest is automatically determined each time the votes for the corresponding user account change.
The terms of betting are triggered by the initiator through smart contract transactions. Users can initiate various betting contract transactions, all of which can be searched and identified in the block browsers. When the betting is over, the bet initiation will publish the final results and the gaining will be then shared accordingly. In short, the betting revenue is automatically issued to the user’s wallet after the betting results are displayed.
The smart contract provided by the platform makes it possible for asset initiations to create dividend sharing rules. These rules are only triggered by various conditions. Hence, the final price of the assets in circulation will be determined by the market’s behavior towards the object in the transaction.

WaykiChain Applications

Token System
Waykichain Token, WICC is a token only used and circulated in WaykiChain Wallet DApp. WICC itself does not have any FIAT characteristics. By consuming WICC as a kind of fuel, users can use applications on WaykiChain; by locking their WICC for a certain period of time, users can share the revenue from WICC Lock Revenue Sharing Plan; and by voting for effective and stable accounting nodes, users can earn related interest. WICC can be obtained by participating in the lock plan, by accounting, voting, and subscription, or by trading with other holders. This means WICC will be listed on lots of exchanges and traded with other cryptocurrencies, thus WICC also has trade value.
WaykiChain Block Explorer
WaykiChain official block explorer is a data display system for WaykiChian applications, which displays the WICC transfer and transaction records, account balances, prediction games transactions, and payout results according to application data on the blockchain. All data is open and transparent and inherently irreversible.
WICC Lock & Revenue Sharing Plan
In order to reward all community supporters and provide a channel for application operators to make retribution to community, WaykiChain launched WICC Lock & Revenue Sharing Plan. Application operators can provide a portion of the proceeds to the community members to encourage their contribution to the entire public chain, and to motivate the community to continuously improve the public chain as a more robust underlying system. Investors can lock their own WICC, as a way of showing long-term optimism about the project, to get a certain amount of revenue.
Investors can lock a certain number of mainnet WICC through the entrance in WaykiChain DApp. During the lock period, this part of WICC cannot be traded, transferred, or consumed as transaction fee. When the lock period expired, WICC will be automatically unlocked and become tradable. During the lock period, investors will receive WICC revenue at the end of each month. The amount of each investor’s WICC revenue is related to his/her WICC lock volume and duration, total WICC revenue generated during the period, and the total WICC lock volume and duration of all investors participating in the lock plan during this period. Specific calculating formula is as follows:
WICC Lock revenue Calculation Formula:
Each investor’s daily WICC revenue = Each investor’s lock index / The sum of each investor’s lock index * Total WICC revenue that day
Each investor’s lock index = Each investor’s WICC lock volume * Time index * Volume index
Time Index Table
Decentralized App
The first smart contract based application delivered by WaykiChain’s team is the WaykiChain decentralized betting application. In this application, the smart contract will assign a time duration in which the user can engage in the betting process. All the conditions related to betting will be given. When a bet is finished, the contract will release the results. The smart contract will then reward the winners.
This DApp was launched in May 2018, attracting over 130,000 users to download and bet and has been upgraded to V2.1 ever since. The latest product WaykiBet DApp V2.5 is planned to launch in November along with a new WaykiChain wallet.
WaykiBet V2.5 enables a new feature that everyone can be a bookmaker. With the authoritative event data and services provided by WaykiChain DApp, user even without any technical or product background can build a bet in simply one-click. And at the end of the game, WaykiBet will automatically call the smart contract to calculate the bet results and deliver payouts, without any manual participation.
Besides, WaykiBet V2.5 has exempted the betting fee through the structure optimization and allows the player to participate in the betting directly after creating a new wallet without activation to ensure users outside of the cryptocurrency industry can be involved in the easiest manner.
WaykiTimes Wallet
The new WaykiChain wallet, named as WaykiTimes will retain the original wallet functions, such as Lock Revenue Sharing and node voting. The newly added “Forum” gathers the community of WaykiChain and blockchain together, will become an ecology of open communication. Meanwhile it will has a “News” section to meet different users’ needs. In the future, WaykiTimes will implement WaykiChain token economy to encourage the community members.
Getting Setup
Download WaykiBet DApp V.2.5 at official website: https://www.waykichain.com/

Meet the Team

WaykiChain team is comprised out of over 60 individuals with relevant experience in marketing, business, betting, lottery, betting and crypto industries.
Wayki Sun, Founder & CSO
One of the earliest digital currency investors and entrepreneurs in China. The founder of Xinhuo Network, the founder of Ou Lu Zhong Chou and the Managing Director of Jufeng Digital Asset Management Co., Ltd. Sun led an investment team of hundreds of people with great achievements made in stock, foreign exchange, futures and digital currency markets.
Gordon Gao, CEO
Gordon Gao, an alumni of Columbia University, ex-Lead Data Scientist of Fishbowl in Wall Street, ex-Senior Data Analyst of Alibaba Group, senior member of Mensa International Club. He is responsible for offering support to WaykiChain’s commercial model designing and strategy planning, building up a digitalized monitor system for products and operation and promoting WaykiChain overseas with his international background.
Tony Chau, Co-founder & CBO
Bachelor’s Degree in Finance from the University of Toronto in Canada and served in Hongshang Asset Management Co., Ltd. Focused on industrial surveys and commercial analysis, with in-depth research and distinctive perception on business operation models, and professional financial knowledge and complete project experience.
Tame Huang, Chief Consultant
The founder of BTC38, served as Product Manager and Project Manager of Tencent, Vice President of Fantasy Basketball, and Chief Strategy Officer of Licai Box; Huang was involved in the investment on more than ten high-tech enterprises, such as Jidian Technology, Yixiang Network, Maoming Rural and Commercial Bank, Jujin Technology, Cointime, etc., and established the Bitcoin Time Digital Currency Exchange in May 2013.
Xi Zhang, CPO
Tsinghua MBA, former Senior Product Manager of Tencent. Xi Zhang has been engaged in Internet industry for 14 years with several entrepreneurial experiences. In 2008, he joined aibo123.com as Product Director, responsible for the product design and operation of Olympics lottery. In 2014, he stared his own business and founded QiuShang APP, the first prediction APP in China applying big data prediction with 8% return rate and 67% win rate. In 2016, as a partner, he joined the Haiqiu Technology founded by famous football player Sun Jihai, responsible for the Miaohai business unit. He was fully responsible for the products, technology, operations, and marketing of Miaohai sports short video APP. The total downloads of Miaohai APP were 6 million and daily active users were 1 million.
Richard Chen, CTO
Master of Computer Science from the National University of Singapore and Bachelor of Communication Engineering from Shanghai Jiao Tong University. Richard worked for Alibaba and was responsible for the internal and external information security system construction of the entire groups Customer Service Department. Prior to this, Richard also served as Senior Vice President for the worlds top investment bank Morgan Stanley for 3 years and Intel Chief Architect for 8 years. Richard has received four US patents and won Intel Achievement Award (IAA). Richard has published several global patents in encryption technology, distributed network communication and collaboration, and big data.
Xiang Li, CMO
MBA degree from Tsinghua University, former COO of Brightoil Online under Brightoil Petroleum (Holdings) Limited, senior manager of Dacheng Food (Asia) Limited, has over a decade of experience in marketing and brand building. Ms. Li is an expert in building brand strategy, brand positioning, advertising channels, event marketing, crisis management, etc. Now Ms. Li is the marketing director of WaykiChain, responsible for the brand operation of WaykiChain in the global market and marketing cooperation.
Getting Connected:
  1. Website: https://www.waykichain.com/aboutUs.html
  2. Telegram: https://t.me/wiccofficial

FAQ:

What is WICC? How to Buy WICC?
WICC is the token launched by WaykiChain. In order to buy WaykiChain (WICC), we recommend you to buy some BTC or ETH (the highest volume trading pairs) from an exchange that accepts them. Then, you will have to find a marketplace that sells WICC in exchange for the aforementioned cryptocurrencies. We recommend you to buy WICC at AEX or Huobi Exchange (AEX has already supported WICC mainnet migration, Huobi will support the migration in November, 2018). For more information on this matter, you can visit CoinMarketCap.
When it comes to storing your WICC coins, it’s recommended that you use the official WaykiChain wallet. By consuming the tokens, you can also use various applications on WaykiChain.
What is the use of WICC?
WICC is a token used and circulated in WaykiChain Wallet DApp. WICC itself does not have any FIAT characteristics. By consuming WICC as a kind of fuel, users can use applications on WaykiChain; by locking their WICC for a certain period of time, users can share the revenue from WICC lock plan; and by voting for effective and stable accounting nodes, users can earn related interest. WICC can be obtained by participating in the lock plan, by accounting, voting, and subscription, or by trading with other holders. WICC has been listed on over 100 exchanges and trading with other cryptocurrencies for almost 1 year, thus WICC also has trade value.
What are WaykiChain’s advantages as a public chain 3.0?
There are three different types of blockchain: public chain, consortium chain, and private chain. Public chain refers to the consensual blockchain that any individual or team can read and send transactions to, and obtain valid confirmation. Public chain, also known as the non-license chain, is totally open to the whole network that any node can access or leave at any time without any permission. As a public chain of blockchain 3.0, WaykiChain has the advantages of high speed, high stability and flexibility, and low handling fee, providing rich development tools and perfect development environment for worldwide developers. Adopting DPoS consensus mechanism, sidechain technology and other technologies, WaykiChain can process 1000+ transaction requests per second. Relying on its strong strength of underlying technology and innovation, WaykiChain can effectively support high-traffic application scenarios and realize the landing of WaykiChain ecological applications.
What is WaykiChain decentralized betting application?
WaykiChain decentralized betting application is the first smart contract application launched by WaykiChain team. Each betting is triggered by the application developer via a smart contract. During the period specified in the contract, the users can initiate betting transaction, and all betting records can be traced on the blockchain browser and can never be tampered with. The smart contract will automatically reward the winners based on the final result. WaykiChain will use smart contract to automatically execute the game rule on its public chain. Instead of relying on trust between people, WaykiChain betting application adopts trust among machines to save credit costs, and guarantees full compliance with the rules setting. Besides WaykiChain Official, the developers of the decentralized applications can be any other third-parties. WaykiChain welcomes all developers to join.
What is WaykiChain Address?
WaykiChain address is a 34-bit string consisting of English letters and numbers that may look like digital gibberish. My WaykiChain address WXv6xP8yVW4PkZ3DPvxqfBtfz7Bof1RJHm, as an example, looks like this. All transfer records for each WaykiChain address can be found through the blockchain explorer. The address is a personal WaykiChain account like your bank account number. Anyone can transfer WICC to you via your WaykiChain address. How do I get my own WaykiChain address then? You can download a WaykiChain Wallet on WaykiChain official website, or register one on trading platforms. Each user’s WaykiChain address is unique. It should be noted that each WaykiChain wallet can only create one address, therefore the wallet mnemonics must be kept carefully.
What consensus mechanism does WaykiChain adopt?
WaykiChain adopts DPOS consensus mechanism, a new algorithm to guarantee the security of cryptocurrency network. DPOS consensus mechanism can offset the negative effects of centralization through implementing technology-based democracy, and maximize the effectiveness of the public chain through nodes accounting. DPOS can be understood as giving the token holders a key to open the voting rights corresponding to their tokens, instead of giving them a shovel to mine. DPOS can maximize the profitability of the token holders, minimize the cost of network security, maximize the efficiency of network, and minimize the cost of network operation. WaykiChain has 11 accounting nodes in total. The nodes are generated by the token holders’voting. If nodes are making trouble or cannot account normally, the token holders can change their votes, so that there will be other nodes to replace to ensure that the public chain can be operating normally.
What is WaykiChain mainnet migration?
WaykiChain (WICC) mainnet migration is the process of replacing the previous Ethereum-based token ERC20 TOKEN with WaykiChain mainnet token. WaykiChain public chain, through several months of testing and rigorous evaluation from the exchange platforms after its release, has been fully proven to operate efficiently and stably. Mainnet migration marks that WaykiChain public chain is actually putting into use. After the mainnet migration, various applications and developments based on WaykiChain can be launched, and the service period of WaykiChain public chain truly starts. The dividend mechanism, voting mechanism, gas consumption, and accounting fees on WaykiChain ecosystem are all completed by the mainnet token. The previous ERC20 tokens do not have these functions. By the end of June 26th, AEX Exchange, CEO Exchange, and Bying Wallet have supported WICC mainnet migration. There will be more exchanges and wallets supporting the migration in the future. Please follow WaykiChain’s Wechat official account for more details.
Are there any requirements or restrictions for developing projects on WaykiChain?
WaykiChain’s code is completely open. WaykiChain welcomes third parties worldwide to develop, carry and operate various application products on WaykiChain, and finally form a diversiform public chain community ecology. WaykiChain is happy to provide public chain technology support for any individuals or third parties. Applications developed and operated by third parties, based on WaykiChain public chain, need to comply with local laws and policies. Only after obtaining related licenses, permits or qualifications required by local laws and policies, developers and operators can launch and operate their applications on WaykiChain. Because of blockchain public chain’s globality, anonymity, open code, and the limitation of our ability, WaykiChain Official cannot judge the identity of third parties, nor have the ability and right to verify, supervise, control or interfere the third parties. Therefore, third parties should bear responsibility of their own actions.
What is WaykiChain Block Explorer?
WaykiChain Block Explorer is a system that displays all transaction information on WaykiChain and provides visualized track services. Technically, a block explorer works by scanning the block into the database server and then setting up a Web access service. Users only need to import the transaction hash to check whether the transaction has been packaged and confirmed. From the point of product, block explorer is more suitable to be called as asset explorer, which provides asset certification for users so that they don’t have to visually identify or manually analyze the transactions themselves. The block explorer also provides statistics of blocks and transactions, helping users to directly understand the activity of the blockchain. The statistics can also be translated into various indexes for investors to understand the project. To track the transactions, users can search relevant information on WaykiChain official website through WaykiChain wallet address, transaction hash or block height.

Further Reading

https://www.waykichain.com/question.html

Wish List for WaykiChain

Just thinking it would be great to create a post for everyone to post what they want to have for future releases of the Waykichain DApp or anything related to using Waykichain.
Welcome feedback from the community, so please do get in touch. Want to dive in further? Follow WaykiChain on Telegram, Twitter, Medium and LinkedIn.
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