Absolute courses - page 106

 

Tripod


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Tripod


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I wonder... How did you solve the problem?
 
Maxim Romanov:
I wonder... How did you solve the problem?

The problem is solved by, shall we say, building a closed-loop system.

The output quantities -- the triangle components A, B, C -- are fully "adequate" and are checked against the input reference signals. Here all operations are performed in C0 space, i.e. without involving derivatives. Therefore the bases A, B, C are "floating", i.e. are not "absolute rates".

In the next step, derivatives will be introduced in the required quantity to produce the output "absolute rates" of A, B, C.

 
Maxim Romanov:

I too have thought long and hard about the problem of how to determine the absolute value of the dollar and the value of the euro. Even if in some abstract units. So far I've come to the following conclusions:

- There is inflation. There is more money, and euros and dollars. Accordingly, the absolute value is falling. So what does the rate depend on?

- The exchange rate depends on the number of people using the money, the total mass of money m3 and the velocity of money turnover (which depends on the number of goods that can be bought).

- I have managed to roughly calculate the value and ratio of these values, but the difference with the real exchange rate is still quite large and the statistics are not accurate enough to use it in trading.

So far I have settled on the idea that if an approximate exchange rate can be deduced from macroeconomic indicators, then it means that the value of a currency can also be deduced roughly from the exchange rate.

Basically, the absolute value of a currency (or more correctly, its value) is the number of money divided by the number of people who use it, and multiplied by the rate of exchange. The value of one currency is then divided by the value of the other to arrive at the exchange rate.

another option
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Олег avtomat:

The problem is solved by, shall we say, building a closed-loop system.

The output quantities -- the triangle components A, B, C -- are fully "adequate" and are checked against the input reference signals. Here all operations are performed in C0 space, i.e. without involving derivatives. Therefore the bases A, B, C are "floating", i.e. are not "absolute rates".

The next step is to enter the derivatives in the right amount to get the output of "absolute rates" A, B, C.

I think I understand how it's done) I also solved this problem, only I use 8 currencies to determine the exchange rate. And also came to the solution of a closed system. And it worked out something similar. I even made custom charts for 8 major currencies in my terminal.

 

So with the addition of derivatives it will be interesting... where to add them and what will come out

 
Maxim Romanov:

I think I figured out how to do it) I also solved this problem, only I use 8 currencies to determine the exchange rate. And I too came up with a closed loop solution. And it turned out something similar. I even made custom charts for 8 major currencies in my terminal.

Forum on trading, automated trading systems and trading strategies testing

The market is a controlled dynamic system.

Oleg avtomat, 2020.03.13 11:21

From a set of currency pairs offered by a brokerage company it is possible to make some limited set of closed triangles :

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In more general form :


or in this representation :

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In its most general form, a ring can be constructed comprising all available currency pairs :

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The direction of movement of currency pairs of the triangle depends on the ratio of velocities of the currencies comprising the triangle.

Knowing the direction of movement and velocities of the currencies that make up the triangle uniquely determines the optimal working currency pair and trading direction.



In its most general form, a ring can be constructed comprising all available currency pairs :

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Maxim Romanov:

So with the addition of the derivatives it will be interesting... where to add them and what will come out

Yes. It looks like.

With derivatives it will be more complicated, but much more interesting and correct.

Let's do a reconciliation. I've got 17:46. In 15 minutes, at 6:00 p.m. I'll do an update. I mean, next hour, let's see.

Periods H1, H4, D.
 
Do you use a period to convert a currency pair to currencies?
 

Tripod H1 18:00


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Reason: