Pair theory
О! Looks like we're witnessing the birth of a new religion.
That's funny...
Greetings, O prophet!
Now that's a bummer:
Зарабатывать деньги, используя теорию пар очень просто. Достаточно найти участки TR1 и TR2 торговой сессии, обладающие свойствами простой пары или анти пары
I.e. the first part of the pairing is identified, and then it's either the pairing or the anti-pairing.
Now that's a bummer:
I.e. we define the first part of a pair, and then either a pair or an anti-pair.
First, we look for a pair on history that has the stable properties of a simple pair or anti-pair, and then we start using it.
Example: If we see that market movements in the intervals 02:00 - 02:43 and 07:00 - 08:00 on Fridays on the pair USD/XXX are always stably opposed to each other, this is an anti-pair of trajectories.
And then on Fridays, we should open a position at 07:00 in the direction opposite to the market direction during the 02:00 - 02:43 interval.
And how was TP/SL chosen in the system?
Started with 25 pips (250 pips for 5 sign DCs). Then optimization. The resulting profit margin is 39 pips (390 pips for 5-digit DTs).
First we look for a pair on the history, which has stable properties of a simple pair or anti pair, and then we start to use it.
Example: If we see that the market movements of USD/XXX on Fridays in the intervals 02:00 - 02:43 and 07:00 - 08:00 are always stably opposed to each other, this is an anti-pair of trajectories.
And then on Fridays, we should open a position at 07:00 in the direction opposite to the market direction during the 02:00 - 02:43 interval.
I would believe it if I hadn't already been through this maze. The market has no stable properties. You can handle a thousand twists of fate, tomorrow there will be a thousand firsts. It's like guessing on a bridge what colour the next car will pass from what the previous one was.
I would believe it if I hadn't already been through this maze. The market has no stable properties. You can handle a thousand twists of fate, tomorrow there will be a thousand firsts. It's like guessing on a bridge what colour the next car will pass from what the previous one was.
I would believe that there is a correlation between different instruments, but imho - technically all the orders (market and limit) are in the same instrument, if there is a breakdown of stops, then only on one instrument.
I would believe it if I hadn't already been through this thicket. The market does not have sustainable properties. You can handle 1,000 twists of fate, tomorrow there will be 1,000 firsts. It's like guessing on a bridge what colour the next car will pass from what the previous one was.
If there were no stable properties, there would be no strategies for trading.
Every strategy is based on a stable market property.
As soon as this property loses sustainability, the strategy dies.
In no way am I discouraging you, flag in your own hand. I just wanted to warn you against disappointment. Good luck!
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The theory of trajectory pairs. A new analytical method.
Simple pairs. Anti-pairs. Continuation points.
Fracture points.
The theory is based on an examination of the price movements of the following instruments:
Gazprom shares, data source: Moscow Stock Exchange, period: 1999,
USD/JPY currency pair, data source: RosBusinessConsulting, period: 1999,
USD/CHF currency pair, data source: Forexclub, period: 2008.
The essence of the pair theory is that there is a pair of trajectories of price changes, the beginning and the end of which are tied to the time of the trading session, and their direction is always stably opposite to each other, or always the same.
The direction of trajectories is considered to be the same if both trajectories are directed upwards or both trajectories are directed downwards. The direction is considered to be opposite if one of the two trajectories is directed upwards and the other is directed downwards.
The principle of a simple pair:
There is a pair of trajectories of price changes, whose time of beginning and end is fixed relative to the time of the beginning of the trading session, and whose direction always coincides steadily. Such a pair of trajectories is called a "simple pair". [Fig. 1].
If the trajectories, forming a simple pair, adjoin each other, they form a trend continuation point. [Fig. 2].
Fig. 1 Fig. 2
The principle of anti-pairing:
There is a pair of trajectories of price changes, the beginning and the end of which are fixed relative to the time of the trading session beginning, and the direction of which is always steadily opposite. This pair of trajectories is called "anti-pair". [Fig. 3].
If the trajectories, forming the anti-pair, adjoin each other, they form a trend break point. [Fig. 4]
Fig. 3 Fig. 4
TR1 and TR2 in the figures are symbols for the first and second trajectories of the pair, respectively. The beginning and the end of the trajectories in the figures are connected by a straight line. The points of the beginning and the end of the trajectories are shifted in time relative to the moment of the beginning of the trading session by a constant fixed value.
Identified properties of simple pairs and anti-pairs:
1. Each trading session of T duration is divided into 5 sub-sessions of T/5 duration. Each sub-session may also divide into 5 sessions of a still smaller order and so on to infinity.
If there are simple pair or anti-pair of trajectories for a trading session of length T, then there can also be simple pair or anti-pair of trajectories of higher and lower orders with the same properties for a trading session of length T, respectively.
For instance, if in a trading session of the duration T, there is an anti-pair of trajectories forming a breaking point distant from the session start by K x T, where K is a coefficient less than one, then for a trading session of the duration T/5, there can also be an anti-pair forming a breaking point distant from the session start by K x T/5. 2.
2. the trajectories making up a simple pair or an anti pair may be located in different trading sessions.
The points of beginning and the end of one trajectory, which form an easy pair or an anti pair, may be located in different trading sessions. 4.
4. Several simple pairs or anti pairs may have common trajectories.
5. The theory of pairs may be applied to the dynamics of activity changes of any processes in nature, not only to the dynamics of prices of financial instruments.
The analytical method based on the pair theory.
The analytical method comes down to searching for simple pairs and anti-pairs of trajectories, analysis of what is the actual direction of the first trajectory of the pair, and determination of the probable future direction of the second trajectory based on the direction of the first.
It is very easy to make money using the theory of pairs. It is enough to find areas TR1 and TR2 of the trading session, which have properties of a simple pair or anti pair, that is areas of the trading session, which always have the same direction or always have an opposite direction. Further, after the market has passed the first TR1 section of the trading session, we determine the direction of market movement in that section. Knowing this direction, we can determine exactly how the market will move in the second leg of the TR2 trading session. We will open a position at the beginning of the TR2 section.
Statistics of the trading strategy based on the pair theory.
Initial deposit: $1000
Maximum leverage: 1:500
Trading interval: 6 months
Instrument: USD/CHF (US Dollar vs. Swiss Franc), period: 1 minute (M1)
Method: One break point inside each evening
12 hour trading session.
Initial TP = 39 pips, SL = 35 pips at point size: 0.0001
With fixed lot:
Without profit reinvestment, but with limited 2-step lot progression in case of losing trades:
With profit reinvestment and limited 2-step lot progression in case of losing trades:
The effectiveness of a trading strategy based on pair theory depends largely on the method of analysing the working direction of the first pair trajectory.
Pair theory allows predicting changes in trends in the activity of any processes, so there is a possibility of using it for military purposes as well. The greatest damage can be inflicted on the enemy at a time when the trend of the enemy's activity changes to a downward one.
Using pair theory in combat would look something like this:
There is a trend breaking point in the trend of any opponent's activity, when the trend necessarily reverses. The breaking point is formed by an anti-pair of trajectories adjacent to each other and having the opposite direction. The breaking point is fixed relative to the moment of the start of combat (interaction).
If the breaking point is preceded by an increase in the opponent's activity, it means that the opponent begins to fall at the breaking point and therefore a decisive blow must be struck at the breaking point. In boxing, in order to knock your opponent out, it is enough to correctly apply the blow at a certain point in time, measured from the start of the fight.
It is important to note that determining the moment of a breaking point may not be such a difficult task, because in the case of trends in the activity of all processes occurring in nature, breaking points, continuation points, simple pairs and anti-pairs may all be the same!
To be continued...