Has anyone tried index trading? - page 4

 
meat:
It seems to me that it makes no sense to look at 5-milliseconds in this case, because one has to see the full picture, not the transient bursts and other noise. As far as I understand, the man means that the currency itself has a greater inertia, than the currency pair with its participation. And that makes sense, but you have to look at the daily and above to appreciate the difference.

Where is the logic in that?

The movement of a currency pair consists of the movement of 2 currencies. And it can in no way outperform the movement of either currency, a priori.

It may be stronger if the currencies are moving in different directions at the same time, but that has nothing to do with being ahead of them.

As for the timeframe, it doesn't make any difference either - look at ticks.

 

It's strange that the topic hasn't found any support. Apparently, no one wants to try it themselves.

Well, then I'll come back here with a ready-made code to test it.

Thank you all for your participation!

 
komposter:

It's strange that the topic hasn't found any support. Apparently, no one wants to try it themselves.

Well, then I'll come back here with a ready-made code to test it.

Thank you all for your participation!

I tried index trading. Same eggs, only in profile. Although the movements seem to be more predictable, spread and slippage losses are higher.
 
meat:
It seems to me that it is meaningless to look at the 5-minute data in this case, because you need to see the full picture, not the short-term bursts and other noise. As far as I understood, the man meant that the currency itself has more inertia, than the currency pair with its participation. And that's quite logical. But you have to look at the daily and above to appreciate the difference.
I don't see the logic either). I would support the topic, but I'm short of time at the moment. The topic is an interesting one.



 
I tried this idea once. If you take the euro/dollar exchange rate and multiply it by the dollar/franc. The result would be something close to euro/franc. You may try such a basket of more pairs. There was an Expert Advisor written for about 8 pairs. But the mistake was that the lot for EUR/USD and USD/Franc is different. That's why it won't work for dollar/frank. There are more thoughts on this subject. It would be interesting for anyone. By the way the EA lost some money and was stopped. I would be happy to develop the idea.
 
The question is not why the cost of the tick is different. The question is how to equalise the difference in lots. I think there is no way and therefore abandoned the topic. But if others care about the topic, maybe they have an idea how to even out the difference. The price difference can be adjusted by starting with a whole lot and setting its value in increments of 0.01 for each pair. I think this is not our direction. And starting with 0.1 lot the 0.01 step is too big.
 
komposter:

Where is the logic in that?

The movement of a currency pair consists of the movement of 2 currencies. And it can in no way outperform the movement of either currency, a priori.

It may be stronger if the currencies are moving in different directions at the same time, but that has nothing to do with being ahead of them.

As for the timeframe, it makes no difference, look at the ticks.

I do not quite understand what lead has to do with it. I meant inertia, i.e. the object tends to keep its motion trajectory. But perhaps it is more correct to use the word "inertness" here, i.e. resistance to external actions while keeping the trajectory. And the logic is in the base. It cannot change quickly, accordingly, the currency will continue to strengthen (weaken) by inertia for some time. But a currency pair can reverse very rapidly - simply due to the fact that one of the currencies began to strengthen (weaken) at a faster rate than the other.

The ticks do not show any of this, it is just intraday noise, and we are talking about fundamental trends.

 
komposter:

I wonder if no one has thought about trading "pure" USD or GBP?

Why does everyone analyse their ratio and trade it specifically?

Roughly speaking, why predict the ratio of the price of potatoes to the price of petrol? Wouldn't it be easier to look at each price separately?

Of course, and the ratios have their patterns. But they seem to me to be much less pronounced and much more difficult to formulate.

Who would be interested in looking at a chart of a pure currency and trading a basket that follows the movements of that currency as closely as possible?

Who has any thoughts on making and balancing this basket? Or maybe actual experience?

what are you going to buy?

if you want to trade in pure dollars and you have dollars in your depo, how will you buy dollars? )

If you want to buy real dollars, how do you buy them with dollars?

The coefficient is quite simple, direct pairs are one, inverse pairs the coefficient is searched for from the price:

2014.04.30 14:34:20 Buy 1.00 AUDUSD 0.9293

0.9249
145.47 -440.00
2014.04.30 14:34:16 Buy 1.00 EURUSD 1.3872

1.3595
-76.35 -2 770.00
2014.04.30 14:34:18 Buy 1.00 GBPUSD 1.6850

1.6742
-70.61 -1 080.00
2014.04.30 14:34:22 Sell 1.10 USDCAD 1.0957

1.0905
8.25 524.53
2014.04.30 14:34:24 Sell 0.88 USDCHF 0.8795

0.8992
-80.90 -1 927.94
2014.04.30 14:34:26 Sell 1.02 USDJPY 102.26

102.36
-89.36 -99.65


then it turns out something like this:

Screenshots of the MetaTrader trading platform

GOLD, H4, 2014.06.23

E-Global Trade & Finance Group, Inc., MetaTrader 4, Demo

GOLD, H4, 2014.06.23, E-Global Trade & Finance Group, Inc., MetaTrader 4, Demo

Screenshots of MetaTrader trading platform

GOLD, D1, 2014.06.23

E-Global Trade & Finance Group, Inc., MetaTrader 4, Demo

GOLD, D1, 2014.06.23, E-Global Trade & Finance Group, Inc., MetaTrader 4, Demo

the theme is old - at 4 the dickfix was trying to create an ever increasing or ever flat index, I don't know if it worked or not, but its recycle is somewhere in the database

 
papaklass:

There seems to be no way to make money "head-on". Brokers track currency fluctuations through other currencies. The total spread (baskets) and the total commission will go straight into minus and there is no way out of minus. Moreover, irrespective of the portfolio opening direction.

Pictures of neutral portfolios on majors. Blue chart - buy, red - sell.

We can see that the total fluctuations are not significant and are not going in the plus. Although each chart is a portfolio of 7 currencies.

Brokers (the real ones) do not care, arbitrageurs smooth everything out.
 
papaklass:

Of course the lots will be different.

Have you ever thought about the question: why the EURUSD tick value is constant, while USDCHF varies? Maybe, to compensate for the difference in lots?)

Maybe because a EURUSD tick is expressed in dollars, and USDCHF tick is expressed in USD.)
Reason: