Fraud Christopher Angus talks about playing the long game

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Video Background

Convicted fraud and self-confessed criminal Christopher Angus is kicking off a confidence series, providing free video tutorials on how to defraud investors. This third video is 22:36 & was shared on March 18, 2016. The criminal who shared these videos delivered over a 99% investment loss, as he simply stole the money and integrated it into other investment scams abroad.
https://www.oxfordmail.co.uk/news/18263036.christopher-angus-jailed-fraud-friend-philippines/
Crown Police never followed the money trail.

Christopher Angus is associated with Stella Huh and Timothy Barton, who stand trial in the United States on November 2, 2026.
http://www.seobook.com/stella-huh/criminal-case-docket-sheet%204-22-2026-(22-cr-00352).pdf

Video Highlights

• 0 minutes 40 seconds: did not do any trades because risk in market was too high, sat on hands
• 3 minutes 30 seconds: talks about how 5 point range in S&P 500 is absurdly tight & how normal range is 17 to 20 points
• 5 minutes 20 seconds: gambling is not what we do
• 6 minutes 20 seconds: difference between high volatility & low volatility markets in terms of margin of safety in entry and exits
• 12 minutes 5 seconds: does not believe in crystal ball & only trades reactively to good trade set ups
• 15 minutes 10 seconds: again talks about hedging any positions
• 16 minutes 20 seconds: vix at 20 is often a decent entry point to start buying
• 19 minutes 20 seconds: (over next 1 minute & 10 seconds) explains how low volatility makes entries harder & states he thinks options get too complicated. mentions most the smart people in options make money selling premium, which is writing options betting volatility will fall. then states he can't deviate from what he does, which works even in bad markets we still make money.
• 20 minutes 30 seconds: states importance of discipline & states people who lose it and start fooling around are basically gambling

A copy of this video is also available at
https://www.dropbox.com/s/6gk39go5yqwm9m7/video%202%202016%20mar%2018.flv?dl=0

Video Transcript

00:00 Christopher Angus: Okay, so just a quick recap. We didn't place any trades today as I suspected. I thought today was gonna be another horrendous day, and it was. This is just... Let me just go back a little here, what time is it? Let's see if I can...

[pause]

00:35 Christopher Angus: Sorry I'm just... It's not good.

[pause]

00:50 Christopher Angus: Let me do it like this. So yesterday we closed at down here. And once the cash opened, it basically would've just gapped up. That's not really a trade there. You would've just found the cash there, and then had to decide are we gonna buy it here, 'cause you ain't selling it there, that's for sure. And if you had decided to buy it, which of course I didn't 'cause I just... Instinctively, I knew it was gonna happen. I just watched it and it just fell off again and turned around and came back up. As you can see, it's so volatile just on the open from 9:30 US time to 10:00 that you always have these really big moves. These moves aren't really big enough to make decent kind of money. This one here is like around half a point, which would've actually been able to make money, but we weren't really in that frame of mind where we're trying to take half a point because you're not gonna get half a point. You're not gonna get it right on the bottom; you're gonna get it here, like at 17.2. And then as it comes up, you're not gonna get it at 16.2; you're gonna sell it something down there at like 17.4.

02:20 Christopher Angus: Plus, you have to take 0.1 into consideration, so 17.2 to 17.4's 0.2. And then there's 0.1 in commission that you're paying back. Of course we get some of that back, but in a sense we would've made 0.1. We would've made one tick on that. That's not really a trade. And this, of course, is not a trade at all. There's there's nothing in that like. You're not gonna nail this at 7.04, so 17.1, 17.30. They would've had to have complete precision to make 0.1 after you've paid your commission. And that's not a trade, that you would've not even broken even. So there's just been no opportunities. But like I said, we wanted to see the VIX drop-off. Thankfully, at the end of the day, it sort of dropped again.

03:15 Christopher Angus: Again, the contracts rolling over, the March contract is expiring. Which means that we can now get on and trade tomorrow because we may have been able to make a little money today if I'd really worked like a son-of-a-bitch. Wouldn't have been easy and I wouldn't have made a lot but, with the Fed stuff coming up, that's all Bloomberg's talking about, getting us ready for a June rate increase. No, a cut, sorry about that. Basically, no one's ready trading. Or people are trading, but they're just gently buying it. And you'll see some interesting stuff. If I look at the S&P, so S&P had a big gap down on the open opposite to the volatility, as you could see. And you could see everyone selling into the open here and then covering their positions at the close of the day. These people got short and I guess probably hoping for a breakdown or something. That didn't happen, so everyone just settled at the end of the day.

04:27 Christopher Angus: It would've been obviously virtually an equal number of buyers that wanted to fill this gap. So whenever there's a big gap, the algos are always gonna wanna fill the gap. It's a standard play, so the algos start buying it here hoping they'll get back here. And it didn't even do that. It was so lackluster it was unbelievable. If we look what happened on the open, we opened... Where's the open? Around 17.11, and we traded between 17.11 to 17.05. We closed at 17.15. It's a very, very tight range. No break out, just stuck. And this is really indicative of some really big upcoming news and... Oh, bollocks. If we look at the news that's coming up tomorrow, this the Forex Factory. It's like a Forex thing, but I use it because it lists all the upcoming events. Very, very important because that's when you get a lot of the volatility. And you can see, this is from like this an hour after the open tomorrow 'cause we're an hour ahead on Daylight Saving. That'll be evened up at the end of the week 'cause for some reason, the US changes an hour early compared to Europe, which is pretty cool for me. I wish it was always like this 'cause it lets me finish an hour earlier.

05:55 Christopher Angus: But over here, we can see there's all this, there's crude oil, there's all this FOMC, which is the Fed stuff. And it's gonna be a really kind of crazy day. And even now before the open here, we can see there's building permits which is really indicative of what the economy's doing. Not really, 'cause it's all bullshit anyway. They bend the numbers. But it does cause volatility in the market and the CPI. Tomorrow's a huge news day. Massive. Let's have a look at the end of the week. Unemployment tomorrow as well, and then the Philly Fed Manufacturing Index. Again, this is a lot of the industrial stuff and it gives an indication which way the economy is going or the industrial side because if people are not spending money on industrial goods, like investing in machinery and stuff, it's seen as usually quite a negative signal for the economy.

07:03 Christopher Angus: There's gonna be some massive volatility tomorrow and on Thursday, yay. Finally. 'Cause the last two days, I can't even remember shitty days like this. So, no trades at all. Didn't even bother. I was hardly interested 'cause I knew this is just a way to get caught under water as you try and buy this and then be unhappy. I know it. What did I wanna show you here? Let's have a look.

07:38 Christopher Angus: So I wanted to show you a time where we would hedge... Now we only would really hedge when we are selling volatility, when we buying volatility, there's not really a need to hedge because if it does run through your order and you to go under water you know it's gonna come back, especially if you buy it well. And the time when we would hedge is when we got it wrong on the sell. So let me just see if I can zoom in a little bit here give you a little example this is obviously not going to be... This is just a made up thing 'cause I haven't had to hedge but... So a hedge we would want to... We would think that the market was... This is well out.

08:31 Christopher Angus: Hedge would be once we'd be thinking that the market was going down, but actually what it did was it just turned around and went back up again. So over here last... No, give you a more recent example, yeah. So... See if I can make that a bit better. Okay, so here... It was at February, yep, alright. So we we we... Systems nearly fully automated now anyway. The hard thing is just trying to tell the system where the ranges are because we don't just buy at 14 or 15 and 16 and sell it 25. It depends on where the ranges are being established over a short amount of time. So this would be a really nice range to trade because like one point one point one point one point like it's very obvious, we wouldn't have been selling it here. We would have just bought it wait it bought it wait it... And so on.

09:49 Christopher Angus: Until it got to about here and then we would have sold it because that there becomes quite a clear place, but I want to show you a place where we would have had to hit. So what we do is when we buy volatility, we just buy it. We place it depending on where it is in relation to the bottom and this is very, very close to the bottom but depends on the size of our trade. So its a money management thing. Now, when we sell volatility, we have to have a hedge in place because volatility has unlimited upside. So say we wants to sell volatility here and have a hedge, wait what number is that... 19, have a hedge on 21. So we sell volatility and it doesn't, it goes against us and it hits our hedge, now our positions is Delta neutral. So we've locked in a loss, say we're like two grand down. Now we're gonna remain two grand down as it comes up here. Now, one position is going to be four grand up, for example, and the other is gonna be six grand down. Once it gets here, we'll start to break the hedge and take... Lift one of the legs and we would then lift some of the leg so that the... That the buy side of things has been... Is lighter than the sell side. So we now are going to start pocketing some of the profit.

11:31 Christopher Angus: This isn't a profit gain, by the way. Let's start pocketing some of that profit and start to remove it bit by bit by bit. So now, by the time it gets back here, we probably only have one side of the leg back on. In effect we'd would still be two grand down but our balance would be four grand higher. But we would still be running a negative position and then we would of just let it go through. That's a really over simplified version of how hedging works. It's never... It doesn't really play out that... As simply as straightforward as that because, as I said, there is a cost attached. There's higher transactional fees. When you lift legs, often you lift a leg... Say we started lifting a leg early, we might have to put the leg back on.

12:18 Christopher Angus: It gets, as I said really, really complicated and its something which we try hard not to do because what happens is you don't lose money but you end up focusing a lot on trying to unwind hedges and you have to unwind them very, very slowly because as soon as you take off big pieces in one go, you inevitably will have to be putting them back on because you don't want it to continue out. So that's fundamentally how we handle trades that don't work this... You would have seen the market turning. Okay, maybe it's turning... This is around the level which its turned. No it didn't, caught in a hedge, picked up a hedge here, lift the leg over simplified and then let it run down and if it had turned here we would have had to put it back on again.

13:12 Christopher Angus: Often make money from hedging just because you're picking it up, it's running back down, and you'd taking some money, then you take that money you take it out then you reduce your risk on the other side. So say we'd made four grand there but was six grand down, we could basically take... Make that position a lot smaller and then we would still be two grand down but our actual risk could be much smaller because the contract numbers would be much lower, if that makes sense. The position would be much, much, much smaller. So if there is a big rip, it's not going to be hurtful. There's many ways of doing it, that's kind of my way of doing it. Anyway, like I said, we fully automated the problem teaching the computer or the algorithm and trying to train it is to train it where the ranges are. And as I said, this is obvious as a human being because you buying selling wait, buy sell wait, buy sell wait. This is also a range which we were trading, was it we were trading for you here? I don't think so. But this is a range which we were trading.

14:17 Christopher Angus: This is arranged we... I think, we traded a little bit, but you don't make as much money. This is where you make lots of money. I think I said yesterday, these big one-way moves down or up. And this is not even a range. This is just like this needs some Viagra or something because it's like nothing's happening. Anyway, this one's a little easier because we kinda knew it was at the bottom anyway because of where it had been and what the broader markets were doing. Over here, you can see I'm a little bit more cautious because I know that it's highly likely to come down a little bit further. Because that's kind of [chuckle] what it does. And I wanna get a good position. Over here, we would have handled that in a different way and been a lot smaller. But I'm looking to really try and capitalize on this and do well for us here.

15:25 Christopher Angus: So, we'll have to see. As I said, tomorrow, it's very likely that we'll start trading again, pretty much regardless of what this does. I'm not gonna be waiting around too much longer because just after the stuff in the morning... Where are we? US time. It's evening for you. But just after the stuff at 12:30 UK time, that's at 8:30. That will cause some volatility. And almost certain you'll be wanting to trade there. If unlisted, it's just flat again. But this is gonna cause some incredible volatility. And I'm gonna eat that all up. Yummy.

16:12 Christopher Angus: And then again on Thursday, I've got some unemployment stuff. Yep. Thursday I've got unemployment in the US and that is wild. So yeah. Monday and Tuesday, zero. But I'm pretty sure at end of the week we'll be where we need to be. We're at 5% at least. At least. So that's the video. Not even that interesting I'm afraid because there's so little that's happened all day. It's just been a bit of just a zero day. Nothing. Nothing's gone on. But thanks for your patience. It will come good. And it's the right thing to do. I can't just start forcing on trades because I'm getting impatient or I feel under pressure, I don't. This is what we have to do. We've just got to wait, be patient, and on average, we'll make good money. Thanks a lot. Speak to you tomorrow.