Basket trading, pair trading. - page 12
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.... is still ahead of the curve. For classic, it looks like you need a fast computer, fast internet and a direct gateway. Then it might work. I'll have to think...
I looked at the code of your indicators - I do not even want to comment on them, at least show me how to use them for pair trading
It says that they are needed for a simple initial visual assessment of the correlation, and how to trade on them is another matter, these indicators can help determine the tools for spread trading
Greetings to all of the inhabitants of this thread! While searching for information about steam trading I came across this thread by accident. For some time now I've been developing this system (or rather adapting it to my needs), but I mostly work in MT4, due to well-known reasons mentioned in this thread. I have my own developments, some kind of Expert Advisor, which even trades and most interestingly, profits :) I have recently started thinking about maybe moving to MT5, but I don't have much experience and knowledge about the new platform yet ... I don't know if it is allowed to post links to other forums, but if necessary I can indicate the main place of my current abode, as well as my (and not only my) experience with this system. I hope on possible productive cooperation in this field, so I'll probably appear here from time to time ;)
And now on the topic:
When choosing trading instruments for paired trading and selecting baskets (synthetic instruments) everyone usually thinks about the correlation of currency pairs, but in fact the most important thing is not correlation but cointegration, which is certainly difficult to grasp, but you can try. Does anyone have any experience with it?
It depends in what context you propose to consider cointegration - in fact, correlation is just a more obvious, so to speak, more visible and predictable manifestation of cointegration. In other words, cointegration, in one way or another, occurs in almost all economically determined processes, it just needs to be discerned. Are you suggesting to pay attention to anything other than currency pairs? say price indices, commodities, oil?
As hrenfx rightly pointed out - it all comes down to finding correlations and working with short-term deviations from the usual rhythm. But it's not just a matter of finding what those correlations are, it's also a matter of finding the right method to analyse and interpret the data available.
Greetings to all of the inhabitants of this thread! While searching for information about steam trading I came across this thread by accident. For some time now I've been developing this system (or rather adapting it to my needs), but I mostly work in MT4, due to well-known reasons mentioned in this thread. I have my own developments, some kind of Expert Advisor, which even trades and most interestingly, profits :) I have recently started thinking about maybe moving to MT5, but I don't have much experience and knowledge about the new platform yet ... I don't know if it is allowed to post links to other forums, but if necessary I can indicate the main place of my current abode, as well as my (and not only my) experience with this system. I hope on possible productive cooperation in this field, so I'll probably appear here from time to time ;)
And now on topic:
It depends on the context in which you propose to consider cointegration - in fact, correlation is just a more obvious, so to speak, more visible and predictable manifestation of cointegration. In other words, cointegration, in one way or another, happens in almost all economically determined processes, it just needs to be seen. Are you suggesting to look at anything other than currency pairs? say price indices, commodities, oil?
As hrenfx rightly pointed out - it all comes down to finding correlations and working with a short-term deviation from the usual rhythm. But it's not just a question of finding what-if connections, but also of finding the right method of analyzing and interpreting the data at hand.
When choosing trading instruments for pair trading and selecting baskets (synthetic instruments) everybody usually thinks about the correlation of currency pairs, but it's not really about correlation but about cointegration, it's hard to figure out but it's worth trying. Does anybody have any experience with it?
Do brokers with MT5 only provide "currency pairs" or any "stocks" as well?
To answer your question: I don't have much experience, but "currency pairs" are a vicious circle. For example: EURUSD; USDJPY; EURJPY. And so on and so forth. In my opinion, this is a road to nowhere.