DEMO and REAL differences - page 4
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The most accurate is at opening prices. Because nothing is modelled at all
Bummer. :))
No problem. Moving on.
Now the strategy... Statistical arbitrage....
The essence is that we consider two majors and a cross that combines them into a common triangle. Let's take EURUSD+GBPUSD-major, EURGBP-cross as an example.
The majors belong to different trading floors and there is a variant - when the mathematical calculation of the exchange rate of the cross does not take place through the pair-major. We have some difference-spread or spread.
There appears the option of some prediction, and for the trader, of earning.
Now the strategy... Statistical arbitrage....
The essence is that we consider two majors and a cross that combines them into a common triangle. Let's take EURUSD+GBPUSD-major, EURGBP-cross as an example.
The majors belong to different trading floors and there is a variant - when the mathematical calculation of the exchange rate of the cross does not take place through the pair-major. We have some difference-spread or spread.
There appears the option of some prediction and for the trader to make money.
And how do you test this ?
A similar tactic has been tried and written about.
And how do you test this?
I tried a similar tactic and wrote about it.
Seen it. The fact is - and this will be the second difference between Demo and Real - that :
Multiplication of two values(rates of majors)=cross rate, but no one takes into account that 2*1=2 and 1*2=2. The result is the same, and the profit will be in the negative!
To start with, I am putting up the spread indicator of a good office, hence the decomp. In the real world they made a decent amount of money through their demo today...
Oh, there will be a sequel. I don't deal with decompiled files as a matter of principle. Maybe someone else will.
Then it will be more interesting - how to calculate the spread correctly? The point is in two lines. Take a look.
The multiplication of two values (major rates)=cross rate, but no one takes into account that 2*1=2 and 1*2=2. The result is the same, and the profit will be negative!
I do not understand what you mean. If you could be more specific.
I've seen a huge thread (well, I won't throw in the names, so that people don't get lost...)
The spread should be calculated as follows:
You need to summarize the sufficient number of closing price data (let it be 1000) in the selected TF, and from each subtract the maximum current price of the two pairs. And then look at the spread.
Here's a start...