For those who have (are) seriously engaged in co-movement analysis of financial instruments (> 2) - page 16

[hrenfx]

Read it carefully:

$333 - это маржа (залог), который вы внесете, покупая/продавая ФИ.

Here is another comment on the description of Recycle:

The weighting coefficients after normalization will show how much of the total margin allowed to trade should be eaten by the margin of the corresponding FI (leverage is the same for all FI). The sign of weights indicates direction of opening.

For example, the weighting ratio is 0.2 for EURUSD. It means that a position on EURUSD should be opened with such a volume that the margin requirement takes up 20% of the allowed amount to be traded (e.g. deposit).

[Aleksander]

all the same... Equity shown by the Indicator does not correspond to the actual behaviour...

[hrenfx]

Aleksander:
All the same... Equity shown by the Indicator does not correspond to the actual behaviour...

You probably know more about the indicator than I do. The indicator shows synthetic, not equity.

Construct the equity by weighting and find 10 differences.

[Sceptic Philozoff]

OK, hrenfx, let synthetic.

When we talk about FI cointegration, we are obviously referring to the stationarity of equity. It is for equitability that your instrument will be as clear as possible.

[Aleksander]

hrenfx:

Turning:

You have $1000. You know that some FI is up 1%. That means that if you had invested your $1000 in that FI (bought) at the start of the rise, the return would have been 1% - $10.

Get those pipsdollars and other crap out of your head. Why complicate things? How will you trade if one FI has USD as base currency, and another one has EUR? And if there are a bunch of base currencies?

Forget all this nonsense about pipsollars, lots and lots like a bad dream. There is a concept of investing through buying and selling FIs, buying and selling a portfolio, buying and selling TSs...

Recycle in particular and from these considerations is universal.

. You know that some FI is up 1%. This means that if you had invested your $1000 in that FI (bought) at the start of the rise, the return would have been 1% - $10.

it's because you don't count pipsdollars that you've fallen into the AWESOME

conventionally:

EURUSD has risen by 10% - then yes, because Pips = 1 - the kickback would be = $100.

but if EurGbp grows by 10% - so the yield will be about $154, since pipsdollar = 1.54

====

Ps - i'm actually being a bit lazy here :) as you'll buy a smaller lot for the $1000 invested...

----

but still you have a mistake there - in the part of the Display where 0.3 is FI

[hrenfx]

Turning (continued):

Script:

#property show_inputs

extern double Amount = 333.33;

double OpenPosition( string Symb, int Type, double Amount )
{
  double Price, Lot;
  
  if (Type == OP_BUY)
    Price = MarketInfo(Symb, MODE_ASK);
  else
    Price = MarketInfo(Symb, MODE_BID);
   
  Lot = Amount / MarketInfo(Symb, MODE_MARGINREQUIRED);
  
  OrderSend(Symb, Type, NormalizeDouble(Lot, 1), Price, 0, 0, 0);
  
  return(Lot);
}

void start()
{
  Print(OpenPosition("EURUSD", OP_BUY, Amount));
  Print(OpenPosition("GBPUSD", OP_SELL, Amount));
  Print(OpenPosition("EURGBP", OP_SELL, Amount));
  
  return;
}

Result:

The pipsollar bullshit is useful to get out of your head.

P.S. A buddy comes to you and says: "I have an inside tip that so-and-so's FI will go up 1% tomorrow. Which means that if you invest $1000 in it today, you'll make a profit of $10 tomorrow". And that would be fine, but you discourage him with the bluntness of your question: "what is the base currency of this FI?".

Now, who cares what the base currency of the FI is and what it's called anyway! Tomorrow it will rise by 1%, which means it will give a return of $10 on the $1000 invested. But no, that's not enough for someone...

[hrenfx]

Aleksander:

but you still have an error there - in the part of the Display where 0.3 is for FI

If you mean the coefficients on the screenshot are not exactly 1/3, it's understandable. Recycle has received 288 closing prices for EURUSD, GBPUSD and EURGBP. A total of 288 and gave a pretty accurate estimate of what we know (and he doesn't even know the FI names) about 1/3 by analyzing such a small sample. And when you give a larger sample, you will see a picture like this:

[hrenfx]

Mathemat:

When we talk about FI cointegration, we are obviously referring to the stationarity of equity. It is for equitability that your instrument will be as clear as possible.

I know exactly what I'm talking about. Plot the equity graph and compare it with the synthetic.

[Aleksander]

then how do you (let's keep it on a first-come-first-served basis :) - Fluctuations, and then what do they reflect...

because when you invest equal capital in FI, closing the triangle, we get LOC - the essence of constant (there is a tiny plus minus due to floating spread of instruments) - the behaviour of the chart... and you're getting some kind of spikes....

[hrenfx]

Aleksander:

For when investing equal capital in FI, closing the triangle, we get LOC - the essence of unchanging (there is a tiny plus minus due to the floating spread of instruments) - the behaviour of the graph... and you're getting some kind of spikes....

Let's take a brokerage company with a fixed spread, open the "ring" and observe the fluctuations in equity. These fluctuations are visible.