Pair trading. How to close orders with maximum profit? - page 5

 

Can you tell me how you can lose with this strategy?

The option on the screenshot should not be taken into account.

 
edutak:

Can you tell me how you can lose with this strategy?

The variant on the screenshot should not be taken into account.

What does pair trading have to do with opening a USDCHF position?

You need to open EURUSD USDCHF at the same time. OR open one position on EURCHF - from the channel border to the opposite border.

 

Pair trading is for the stock market or for inter-market trading.

There is no paired trading in forex - that's what the majors are for in forex

 
Дмитрий:

Pair trading is for the stock market or for inter-market trading.

There is no paired trading in forex - that's what the majors are for in forex

Is that what you suggest?
 
Дмитрий:

Pair trading is for the stock market or for inter-market trading.

There is no paired trading in forex - that's what the majors are for in forex

Why do you think there are such swaps on mirror pairs.

The link is not attaching. http://www.fxpro.ru/trading/forex

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Дмитрий:

What does pair trading have to do with opening a USDCHF position?

You should open EURUSD USDCHF at the same time. OR open one position on EURCHF - from the channel boundary to the opposite boundary.

Yes, but there might have been a plunge in the CHF. This is not an option to consider.
 
edutak:
Yes, it could have been a loss in the bullion. We don't need to consider that option.

If you choose two instruments that are highly correlated, their major has to go in a channel.

Horizontal, slanted - doesn't matter.

You take a major, draw a channel, open when the price touches/approaches/breaks the border of the channel and close the position when it touches/approaches/breaks the opposite border of the channel. And at the same time you open the opposite position.

 

But there are no such instruments in forex - the correlation coefficient changes all the time.

Open the majorchart - the channels are constantly changing (slope of channel borders).

 
Дмитрий:

If you choose two instruments that are highly correlated, their major has to go in a channel.

Horizontal, slanted - doesn't matter.

You take a major, draw a channel, open when the price touches/approaches/breaks the border of the channel and close the position when it touches/approaches/breaks the opposite border of the channel. You open the opposite position at the same time.

Then we face two questions.

1. Is it guaranteed that the price moves in the required direction?

2. Should I place a stop loss?

 
edutak:

Two questions then.

1. is the price guaranteed to go in the right direction?

2. should we place a stop?

)))))

If the correlation coefficient does NOT change over time, it will go (but it does).

If the correlation coefficient does NOT change over time, then you do NOT need to put a stop (but it does change).

Reason: