Correlation Trading, Statistical Arbitrage

 

i programmed the complete system for hedging, i'm stuck at determining which currency is weaker compared to another. For example, eurusd and usdchf, how do I determine which one of them is weaker then the other? I want to program the correct entrys long long or short short, one of them is the profit hedge, the other is loss. What tools can i use to determine the correct entry into a hedge with eurusd and usdchf?

Does anyone know anything on this subject?

http://www.ml.com/index.asp?id=7695_7696_8149_74412_76128_76518

basically i'm interested in the details behing the 3 strategies, (momentum, carry trade and US dollar)

 
I am currently using the carry trade technique with great success. For more information try www.tradefreedomrocks.com/99382
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