FOREX - Trends, Forecasts and Implications 2015(continued) - page 1909

 
vng_nemo:

I have already suggested that anyone who wishes to do so should type hrenfx into the search bar and find his description of the darkpools and the inner workings of banks and DCs.

Thanks.

What's the point of knowing who's supplying the boilerplate?

To come to useful conclusions gradually and on your own.

........ more importantly the principles of pricing.

That's what I'm trying to do, maybe I got off on the wrong foot....... from your point of view.

.........If you can model correlation, you're on a roll,

Can you twist the phrase like this? - "If a home internet trader can simulate correlation, he's on a roll.

The market is a self-regulating structure seeking equilibrium through arbitrage and hedging.

It's understandable. The whole universe is a self-regulating structure.

I asked one expert a question - what if the price of an instrument will be very different on different markets. And I got the answer - not a shit will happen. So what's the point of continuing this conversation?

Answer it yourself. It is logically important.

 
denniss:
This is pointless talk, there is nothing in it for trading.

That was in response to your comment about the enormous complexity of calculating the hedge.

I recently met a lady who runs a hotel. She started complaining that the price of luxury alcohol had gone up a lot. I asked her about the risks of hedging, saying that everyone in the West buys hedgehogs on the stock exchange, and she looked at me like I was an alien. Our business is in its infancy and so are the traders.

 
Lesorub:

here's a yen, for example:


I'm drooling over the yen but I'm saving margin for the pound, I don't know what he's up to.
 
Vadens:
vng_nemo:

Can you rephrase it like this? - "If a home internet trader can simulate correlation, he's on a roll.

I asked one expert here a question - what if the price of the instrument will be very different in different markets. And I got the answer - nothing will happen. Well, what is the sense of the conversation next?

Answer it yourself, please. It is logically important.

Correlation is as non-stationary as the price itself. There is no point in predicting a non-stationary process - you can never do that.

Let's put it this way - there are two electronic exchangers, one has a rate of 1.2 per dollar, the other 1.3. The goal is to make a profit. What do you need to do?

 
vng_nemo:
The answer is simply no. But you have to understand how to calculate the range from which the price will not exit with a certain probability in a certain amount of time. It will give you the ability to estimate losses in case of failure, calculate the lot you will enter, know exactly where you will exit the trade and where you will enter. And this is the mechanics. This is a trading system. And, because you know how to determine the range, you can assess the profitability of the system and accept it or discard it. Or try to reduce the risks by adding other instruments.
What a nice words! Of course, I don't need to know the technical details of an on-board computer to drive a car fast. Trading on the Internet allows many variants of trading tactics and it is impossible to grasp everything "in one hand". Everyone chooses one for himself and develops it to the best of his ability.
 
vng_nemo:

Correlation is as non-stationary asthe small price. There is no point in predicting a non-stationary process - you can never do that.

Words of gold! You've noticed how I'm leading you on with the golden words today, and now a childish question:

So why did you describe all that, if none of the above makes sense for online trading? This is an online trading forum, the pros sit in other places and live a different life in a parallel world. No offence, don't disappear, but write through the prism of internet trading.

 
Vadens:

Golden words! You've noticed how I'm leading you on with the golden words today, and now a childish question:

So why did you describe all that, if none of that makes sense for online trading? This is an internet trading forum, the pros sit elsewhere and live a different life in a parallel world. No offence, don't disappear, but write through the prism of internet trading.

Is trading a prediction of the future?

If you really think so...

 
Vadens:

Golden words! You've noticed how I'm leading you on with "golden words" today, and now a childish question:

So why did you describe all this if none of the above made sense for online trading? This is an online trading forum, the pros sit elsewhere and live a different life in a parallel world. No offence, don't disappear, but write through the prism of internet trading.

Golden words.

Only you missed that you need to be able to determine the range. Give me a method by which you can do that and I'll agree and say I was wrong.

 
denniss:

Is trading a prediction of the future?

If you really think so...

Among other things. For example, predicting out of range, volatility, discounted portfolio value, etc.
 
vng_nemo:
Including. For example, predicting range exit, volatility, discounted portfolio value, etc.
What is it like, range, exit?
Reason: