We recently published a number of articles of the study of correlations between currencies, volatility and spread trading managing to close with moderate success trading positions open. What we have designed is a trading strategy known as intraday Spread Trading Forex and adapted to, or at the foreign exchange market. There are several ways to spread trading but we adapted it to our needs, and especially on the forex market.
What is Spread Trading?
The Spread Trading is the study of the strength of 2 currency pairs at the same time in order to assess which of the pair is able to outperform the other. The object of the study is the correlation, volatility in the time and the strength of trend.
What are the advantages of Spread Trading?
The benefits are numerous and can be summarized in the following points:
- hedging portfolio by not using Stop Loss
- never victims of Hunting Stop Loss that brokers are so good at doing!
- do not need to worry about a market crash
- like the recent decision of the Swiss National Bank to abandon the defense share of 1.20 EURCHF
- the repercussions of the decisions of the ECB rate
- or policies of quantitative easing etc. etc.
Example Spread Trading?
You can read the following articles we have published in the past:
- http://www.tradingonline-news.com/2015/01/euro-giu-e-sterlina-su-come-fare-spread-trading-sul-forex/
- http://www.tradingonline-news.com/2014/12/dove-andra-leuro-grecia-bce-qe-risultati-trading/
- http://www.tradingonline-news.com/2014/12/eurusd-il-rialzo-non-e-finito-idee-di-trading/
- http://www.tradingonline-news.com/2014/12/eurusd-nuovi-minimi-come-fare-spread-trading/
Indicators for the Spread Trading
We made two indicators for MT4 to study the trend of spreads related:
- Spread Force (to assess the currency pair stronger and the trend of the spread)
- Spread Ratio (to assess the "weight" of each currency pair of choice)
Also you need to study the updated tables of correlation of different TF, volatility and also the value of the pip updated.
Start making Spread Trading Today!
for more info you can write an email to info@tradingonline-news.com
