Discussion of article "Triangular arbitrage" - page 3
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This is the current moment. Let's do the math: Buy eurobucks 1 lot and sell the other two pairs.
Buy and sell should be the same. I think this point is not controversial, i.e. EURUSD 1 lot BUY and EURGBP 1 lot SELL. At the output we have no euro. it remains to adjust USD and GBP.
Let's look at EURGBP - we sold 100000€ and bought 90204 pounds, and it is from them we need to get rid of now, that is we sell 0.90 GBPUSD. As I wrote earlier, the volume of the third pair is the quote of the second pair. But it works if the triangles are made according to the rule as it is written in the article. No matter how we make them, the result will still be the same, just this arrangement allows us to remove unnecessary calculations.
As a result, we still have a directed position for 204 pounds - we can not get rid of it, or we need to increase trading volumes.
What other variants of calculating volumes in a triangle can be?
It doesn't work. If we do the opposite, then we would close in the plus, but we need to correctly determine the direction of buying/selling.
If it does not close quickly, then we will lose swaps, and we will never close in the plus.
Checked on history
That's a wild misconception. You can talk about efficiency in different markets, yes, but to say that it doesn't exist is a misconception.This is the only correct statement, you should not confuse triangular arbitrage with pair trading. Triangular arbitrage does not exist in the sense that you have stated, it has been chewed over and over again. There is no reason for the cross rate to lag behind or outperform the synthetics, they are absolutely identical at all times. Even in theory it is impossible to imagine such a situation when they would differ.
It doesn't work. If we do the opposite, then we would close in the plus, but we need to correctly determine the direction of buying/selling.
If it does not close quickly, then we will lose swaps, and we will never close in the plus.
I checked it on history
It is not a question of direction, it is clear that the presented situation does not give a profit, the question is in the calculation of volumes.
And by the way, if we did the opposite it would still be a minus.
p.s. to be honest I am surprised by the comments, I thought that everybody knows everything about triangles and there will be no questions, and here we are chewing over such alphabetical points..... I'll probably write an article on how to trade on MACD and crossing of pips - I suspect the article will be a bomb :)
It is not a question of direction, it is clear that the presented situation does not give a profit, the question is in the calculation of volumes.
And by the way, if we did the opposite, it would still be a minus.
p.s. to be honest I am surprised by the comments, I thought that everybody knows everything about triangles and there will be no questions, and here we are chewing over such alphabetical points..... I'll probably write an article on how to trade on MACD and crossing of dips - I suspect the article will be a bomb :)
Triangle has been chewed up long time ago, it doesn't work.
I am now trying to understand pair trading, here there are hopes for success.
The triangle has been chewed up for a long time, and it doesn't work.
I am now trying to understand pair trading, and there are hopes for success here.
I will not change everyone's mind. Whoever is looking for it will find a way to make money from a triangle.
Pair trading has also been chewed up long ago and everything has been written out on the shelves already. I can give you a hint in pair trading - you should forget about correlation.
Why don't you like the code? On the contrary, I tried to make it as simple and simple as possible so that everyone could understand it. People here are different, not everyone understands even simple OOP.
Or don't you like empty operators? I always use them in branching - it's logically easier to understand.
It's sad if it's easier. This is really an example of how not to program.
Where can I download a ready-made robot working on this strategy?
I have no idea, I am not interested in arbitrageurs. I read the article for fun)
Wait for the release of news on the % rates of countries, open 2 accounts, each account with the same deposit. Open 2 orders 2 minutes before the news release on 2 accounts in different directions, but so that the funds for 50 pips pullback was enough, if the % rate changes, there will be a strong gap of 100 pips. If it stays at the same level, weak strengthening.
Just recently gbpcad, went down 300 pips in about 30 minutes when the interest rate was raised from 0.75 to 1.0% Canada.
This is rare but not uncommon. The point is that you do not need super conditions for trading here, as for arbitrage systems.
I'm not going to change everyone's mind. Those who are looking for it will find a way to make money from the triangle.
Pair trading has also been chewed up long ago and everything has been written out in the same way. I can give a hint in pair trading - you should forget about correlation.
Just make a little lifehack - take a couple of symbols from one broker and the 3rd from the other, and it will be more fun :) and trades should be opened in both offices.
and be sure to control the speed of execution and slippages. Well and transfer money from account to account periodically.
A schoolboy tired of science
He was talking rubbish:
He said that the Triangle
Their teacher of labour.
https://docs.google.com/document/d/11R0EbJqsr8XMYJbewq1Wk5Lj1Bi1WBFy2hLURIKFJOM/