Alpha Academic

A brief overview of the company

Alpha Academic has established itself as a leading provider of vocational education in the heart of the City of London. Our unique trading courses are led by a practising market maker, and our algorithmic trading courses are led by a former consultant to Microsoft.

At Alpha Academic, you can trade a wide range of products, including but not limited to fixed income, currencies, commodities, indices and equities all through our futures trading platforms. Alpha Academic also supports its traders in specialising in the asset class or products. By using innovative technology, our expert team develop qualitative and quantitative research models which focus on trading opportunities across an array of financial markets.

I would be the first to agree that interest rates should normalise. However, I believe this could take up to a decade to achieve due to the mountain of debt accrued at these ridiculously low rates which the Central Banks have imposed over the past nine years.

The biggest benefactors of the low rates have been the banks that created the sub-prime in the first place. They have been able to take in very cheap money and lend it back out at much higher rates, profiting from the wide spread, thereby increasing their capital reserves back to pre-subprime levels.

If Central banks need to curb spending and drain money from the system they should start selling out part of their massive portfolios of assets they are sitting on.

Public debt is already back to pre-subprime levels and every quarter percent the Central Banks raises rates will hurt the public in their pocket and reduce their disposable income. Soon they will be back to buying what they need rather than what they want.

The key issue is public earnings has not increased and therefore purchases have been based more on credit rather than from earnings. Although unemployment is low companies have been spoilt for many years having their choice of skilled labour without having to pay more for it.

If rates increase any more than half a percent per year the next recession is just around the corner.

USA: The economic condition, according to recent data, is not as strong as most expected and this will mean the Fed must slow their rate increases. This will only change if Trump begins to have success with his expansion plans and this will depend on if he can persuade Congress to start supporting his plans. He will benefit from any asset sales by the Fed, providing much needed funds to initiate his fiscal policies.

EU: Germany have benefited immensely from the weak Euro which is reflected in their trade surplus. Here lies the problem though, as Germany have continued to prosper many other countries within the EU such as Greece, Italy and Portugal are still fighting to recover from the sub-prime and recession.

Draghi has a very difficult task balancing the diverse economic situations of countries within the Eurozone. He is also being pressured by the Germans to reduce the monetary easing bias which will become more relevant when Draghi retires as President of the ECB in 2019 as Weidmann is being promoted by the Germans to replace him. This would probably lead to an end to Quantitative Easing and negative rates.

UK: Brexit and a disastrous general election has left the UK in a weaker position. The UK is resilient though and we love to spend! Inflation is an issue due to the weaker Pound leading to higher import prices. As long as negotiations do not disintegrate the Pound should strengthen over time.

Inflated cost of leaving the EU is now up to €100 bln. Whatever the final number we should not forget that as one the top contributors into the EU we must own a large share of the €1.5 trln of assets the ECB are holding, which should mean the EU would still owe the UK when the final figure is agreed.

The Bank of England could act to increase rates, however, as another debt driven economy it would really impact the spending of low to middle income households.

I believe as consumers generally make up around 70% of an economy it is key not to reduce household’s disposable income, especially with inflation higher or the economy will grind to a quick halt and lead to another recession.


As predicted, the FOMC raised rates yesterday to 1.0%. Yellen was slightly dovish with response to the Q&A regarding the speed further rate increases will come this year. Of course, we know there will be further increases, it is just a matter of if there are only 2 or the 3 some analysts expect. Much of this will depend on if Trump is allowed to break the US debt ceiling and introduce his expansion plans.
Although he has signed the Executive orders he still needs to convince Congress and have them passed.

Below is yesterdays dot plot. (courtesy of the Feds website) which reflects the members of the FOMC expectations of rates for the future. As expected they continue to show rates will continue to increase over the next few years and return from the historic lows to closer to normality.

The key fear with these rate rises will be; as they have been low for some considerable time, will there be another credit bubble to burst as they increase!!

image

stock-bubble
The story this week has been the strength of equities. With the Dow Jones smashing through the 2100 level, it has dragged the rest of the global equity markets up with it…perhaps too far and unjustified! With the success of Snapchat this week, 44% up on first day, maybe another equity bubble is beginning!
President Trump has improved his image this week with his first address to Congress. His address was very structured rather than many of his off the cuff speeches since his Presidency began. I believe this is the beginning of trying to win Congress over to pass his Executive Orders. He provided further insight into his expansion plans for the USA. However, he is yet to explain how he will finance this and of course, may have his plans trimmed by Congress due to testing the debt ceiling.
Here in the UK, triggering article 50 is remaining a challenge for the government as the House of Lords added an amendment regarding immigrants already in the UK, although the government can bypass this it is highlighting key issues. For May, this would be a difficult promise as she needs to keep this as one of her bargaining chips.
Pressure is building all round for there to be a final vote once terms have been agreed; although quarterly reports may be agreed to by the government.
Markets seem to be more politically motivated at present rather than economically driven, with Brexit, Trump, and 3 European elections.  However, that said; all eyes are on the Fed for their meeting middle of this month with high expectations of a rate hike. Next Fridays NFP will perhaps provide the best insight into this.

We’re pleased to announce that Alpha Academic will be holding a series of seminars focusing on theories behind financial markets and macroeconomics with a practical perspective on trading strategy, risk management and trading psychology. This is achieved through case studies.

https://www.eventbrite.co.uk/e/trumps-impact-on-the-dollar-and-global-financial-market-financial-trading-seminar-series-1-tickets-31093295885

Join us on 13th January and find out if a trading career or a career in investment is right for you?

This week we will go through a number of case studies including the arise of Trump and how it might affect the market.

https://www.eventbrite.co.uk/e/introduction-to-professional-financial-trading-tickets-30029748787

The first week of our new course is over and the guys got to experience NFP first week. It’s great for them to see the markets react to big data.

They are now looking forward to Trump being sworn in and as their understanding of the markets grows what that will mean for the markets! In the meantime they will continue their theory and going through the detailed trading regime we set our guys.

This week is experimenting trading all the asset classes and a variety of strategies, with the assistance of technical analysis.
Donald-Trump-is-Elected-as-the-President-of-the-United-States

The final day of the Advanced Financial Trading Programme has been a significant journey for all our students. The November students have really enjoyed the course, not just learning the theory but also putting it into practise trading data and the ONLY Fed rate increase of the year. Not to mention the ECB tapering their QE to €60bln from next April and extending for 9 months. Then ofcourse the excitement of trading Donald Trumps triumph of being elected US President.

On behalf of the Alpha team, I want to thank everyone who has worked so hard to get to the finishing line. Congratulation to all our students on embarking on a successful journey to become a professional trader and employable graduate. And also, most importantly, to have the time and tools to enjoy that journey and to be able to reflect on and articular these experience, both while at Alpha Academic and beyond.

Next year will offer amazing opportunities to our traders and our new trainees alike with three major elections in Germany, France and Holland. It will also be interesting to see how President Trump plans to finance his huge expansion plans for the US and if Italy can solve its banking crisis. Last but definitely not least: Brexit, the triggering of article 50 and the beginning of negotiations for the divorce from Europe!

 

What a fantastic year it has been and cannot wait for 2017 to meet our new intakes.

 

Congratulations to our intern William for securing an internship next summer with JP Morgan. You have been awesome and I am sure you will be a great asset to them with your knowledge, drive and enthusiasm.

 

I would like to finish by saying a huge thanks to all our traders for a great year. I look forward to watching our fantastic family grow even more next year using their innovative trading approach.

 

Merry Christmas to all and a happy and prosperous 2017.

 

 

 

Chris Tubby

CEO Alpha Academic

 

 

Eurex Training 1

Eurex Training 2 Eurex Training 3

AS

London­-based training and trading firm plans to launch the diploma next month

Trader training firm Alpha Academic plans to start its first advanced financial trading diploma next month after receiving approval to run the course.

City of London-­based Alpha Academic, run by chief executive Chris Tubby, said it will open its first level five advanced diploma in financial trading on November 14. The course will run for five weeks and cover financial markets and operations, products and trading techniques.

The move follows Alpha Academic securing approval to host the course from the Vocational Training Charitable Trust, a government body that oversees vocational training in the UK.

The firm told FOW in a statement: “At Alpha Academic, you will learn from industry experts with multi asset trading experience across all major exchanges around the world. The ability to put theory into practice makes our graduates highly attractive to employers and opens the door to many other career opportunities in the finance industry.”

It added: “Our ambitious objective is to deliver the best financial trading programme in Europe and this cannot be achieved without implementing the highest possible standards in our teaching.”

Alpha Academic began life as LDN and rebranded in September when it appointed Tubby, LDN’s head of market­ making, as its CEO.

Prior to joining LDN in 2014, Tubby was an exchange consultant at T1CL, a firm he founded in June 2012. Before this he was a senior commodities trader at Oak Capital Management for 18 months.

Before Oak he spent four years as an energy trader at Goldenberg Hehmeyer and three years as a market­maker with Fineco. For the 12 years to 1997 he was a proprietary trader.

A cocoa trading veteran, Tubby has led the firm’s market-­making activities for CME Group’s euro­denominated cocoa contract since it launched in March last year alongside a rival contract from exchange giant the Intercontinental Exchange.

Futures Exchange Information
Abbr Exchange
CBOT Chicago Board of Trade – Division of CME Group
CME Chicago Mercantile Exchange
CMX COMEX Division – New York Mercantile Exchange
Division of CME Group
NYBOT New York Board of Trade
KCBT Kansas City Board of Trade
MGE Minneapolis Grain Exchange
MATIF ParisBourse SA
SFE Sydney Futures Exchange
NYM NYMEX Division – New York Mercantile Exchange
Division of CME Group
LIFFE London Int’l Financial Futures Exchange
EUREX Eurex
ICE Int’l Commodity Exchange

 

 

Month Codes
Code Month
F January
G February
H March
J April
K May
M June
N July
Q August
U September
V October
X November
Z December

 

 

Commodity Information
Sym Futures
Contract
Exch Futures
Delivery Months
Min
Tick
Unit
Move
Currencies
AD Australian Dollar CME H,M,U,Z 0.01 $1000
BP British Pound CME H,M,U,Z 0.01 $625
CD Canadian Dollar CME H,M,U,Z 0.01 1000
DX US Dollar Index ICE H,M,U,Z 0.01 1000
EU EuroFx CME H,M,U,Z 0.01 1250
JY Japanese Yen CME H,M,U,Z 0.01 1250
SF Swiss Franc CME H,M,U,Z 0.01 1250
Energies
CL Crude Oil NYM F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 1000
HO NY Harbor ULSD/Heating Oil NYM F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 420
HU Unleaded Gas NYM F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 420
NG Natural Gas NYM F,G,H,J,K,M,N,Q,U,V,X,Z 0.001 10,000
RB RBOB Gasoline NYM F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 420
ITCO Brent Crude ICE F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 1000
Grains & Soy Complex
BO Soybean Oil CBOT F,H,K,N,Q,U,V,Z 0.01 600
C Corn CBOT F,H,K,N,U,X,Z 1/4 50
KW Kansas City Wheat KCBT H,K,N,U,Z 1/4 50
MW Minneapolis Wheat MGE H,K,N,U,Z 1/4 50
O Oats CBOT H,K,N,U,Z 1/4 50
S Soybeans CBOT F,H,K,N,Q,U,X 1/4 50
SM Soybean Meal CBOT F,H,K,N,Q,U,V,Z 0.1 100
W Wheat CBOT H,K,N,U,Z 1/4 50
Stock Indices
DJ Dow Jones Industrials CBOT H,M,U,Z 1 10
KV Value Line (Discontinued) KCBT H,M,U,Z 0.05 250
MV Value Line (Mini) KCBT H,M,U,Z 0.05 100
ND Nasdaq-100 CME H,M,U,Z 0.25 100
RL Russell 2000 (Discontinued) CME H,M,U,Z 0.05 500
SP S & P 500 CME H,M,U,Z 0.05 250
YU NYSE Composite (Discontinued) NYFE H,M,U,Z 0.05 500
Interest Rates
ED Eurodollars CME H,M,U,Z 0.005 2500
FV 5-Yr T-Notes CBOT H,M,U,Z 1/64 1000
MB Municipal Bonds CBOT H,M,U,Z 1/32 1000
TU 2-Yr T-Notes CBOT H,M,U,Z 1/128 2000
TY 10-Yr T-Notes CBOT H,M,U,Z 1/64 1000
US 30-Yr T-Bonds CBOT H,M,U,Z 1/32 1000
Meats
FC Feeder Cattle CME F,H,J,K,Q,U,V,X 0.025 500
LC Live Cattle CME G,J,M,Q,V,Z 0.025 400
HE Lean Hogs CME G,J,K,M,N,Q,V,Z 0.025 400
PB Pork Bellies CME G,H,K,N,Q 0.025 400
DA Milk Class III CME F,G,H,J,K,M,N,Q,U,V,X,Z 0.01 2000
Metals
GC Gold CMX G,J,M,Q,V,Z 0.1 100
HG Copper CMX H,K,N,U,Z 0.05 250
PL Platinum NYM F,J,N,V 0.1 50
SI Silver CMX H,K,N,U,Z 0.005 50
Softs & Fibers
RR Rice CBOT F,H,K,N,U,X 1/2 100
CC Cocoa ICE H,K,N,U,Z 1 10
CT Cotton ICE H,K,N,V,Z 0.01 500
KC Coffee ICE H,K,N,U,Z 0.05 375
LB Lumber CME F,H,K,N,U,X 0.1 110
JO Orange Juice ICE F,H,K,N,U,X 0.05 150
SB Sugar #11 ICE H,K,N,V 0.01 1120

Latest News


Market Commentary 5/7/2017

I would be the first to agree that interest rates should normalise. However, I believe this could take up to a decade to achieve due to the mountain of debt accrued at these ridiculously low rates which the Central Banks have imposed over the past nine years. The biggest benefactors…

Market Commentary 16/3/2017

As predicted, the FOMC raised rates yesterday to 1.0%. Yellen was slightly dovish with response to the Q&A regarding the speed further rate increases will come this year. Of course, we know there will be further increases, it is just a matter of if there are only 2 or the…

Market Commentary 4/3/2017

The story this week has been the strength of equities. With the Dow Jones smashing through the 2100 level, it has dragged the rest of the global equity markets up with it…perhaps too far and unjustified! With the success of Snapchat this week, 44% up on first day, maybe another…

THE ALPHA TEAM

With a team of unique talents, we pride ourselves on developing and empowering our traders on becoming the best in the business. We currently trade all asset classes and a wide range of products via Eurex, Euronext, CBOT, CME, ICE: Options and Futures in Equities, Interest Rates, Foreign Exchange, Metals and Commodities using our Timing and Quantitative Strategies.

WE WORK WITH

  • CME
  • LME
  • SGX
  • UOB
  • Stellar Trading Systems