From theory to practice - page 1203

 
Are you just a speculator trading on price differences, or do you set those prices?
 
Алексей Тарабанов:
Are you just a speculator trading on price differences, or do you set those prices?

A limit-setting speculator? No?

 
Andrey Dik:

a limit-setting speculator? No?

No. I don't give a shit about your lot. It means nothing. Nothing at all. No one will notice.

 
Алексей Тарабанов:

No. I don't give a shit about your lot. It means nothing. Nothing at all. No one will notice.

Depends on where. Depends on the lot.

 
multiplicator:
There is a market theory: central banks regulate the rates of their national currencies to make them stable. But they do not peg their currency to any one currency because that can also deviate.

there is an impression that no one cancelled Bretton Woods - they widened the corridor and tucked it away in a private shop, just to avoid arguing at the level of laws and ministers.

Big money (and the foreign exchange market is very big money, de facto-just-everything) is extremely conservative. Over the last 20-50 years a hell of a lot of neuro-mathematical maths has been devised, but everything is probably run by antiquated MMAs.
And because it's only been a matter of time before the planning and turnaround periods

 
multiplicator:

There is a market theory: central banks regulate the rates of their national currencies to make them stable. But they do not peg their currency to any one other currency because that too can fluctuate.
info:

And such a formula does exist. It is a simple system of linear equations describing the corresponding multicurrency basket and can be used practically.
The nominal value of this basket is equal to the AMOUNT of the unit quantities of the currencies it contains (for example, 1eur+1gbp+1usd+1chf+100jpy).
The equal values of the currency basket calculated in each of its constituent currencies (svkeur,svkgbp,svkusd,svkchf,svkjpy) are determined by a system of linear equations composed of forward and backward quotes for these currencies:
svkeur = 1+1/eurgbp+1/eurusd+1/eurchf+100/eurjpy;
svkgbp = 1+eurgbp+1/gbpusd+1/gbpchf+100/gbpjpy;
svkusd = 1+eurusd+gbpusd+1/usdchf+100/usdjpy;
svkchf = 1+eurchf+gbpchf+usdchf+100/usdjpy;
svkjpy = eurjpy+gbpjpy+usdjpy+100+chfjpy;
and their ratios are the current (and new) quotes
EURGBP=svkeur/svkgbp; EURUSD=svkeur/svkusd; EURCHF=svkeur/svkchf; EURJPY=svkeur/svkjpy;
GBPUSD=svkgbp/svkusd; GBPCHF=svkgbp/svkchf; GBPJPY=svkgbp/svkjpy;
USDCHF=svkusd/svkchf; USDJPY=svkusd/svkjpy;
CHFJPY=svkchf/svkjpy;

 
aleger:

And such a formula does exist. It is a simple system of linear equations describing the corresponding multicurrency basket and can be used practically.
The nominal value of this basket is equal to the AMOUNT of the unit amounts of the currencies it contains (for example, 1eur+1gbp+1usd+1chf+100jpy).
The equal values of the currency basket calculated in each of its constituent currencies (svkeur,svkgbp,svkusd,svkchf,svkjpy) are determined by a system of linear equations composed of forward and backward quotes for these currencies:
svkeur = 1+1/eurgbp+1/eurusd+1/eurchf+100/eurjpy;
svkgbp = 1+eurgbp+1/gbpusd+1/gbpchf+100/gbpjpy;
svkusd = 1+eurusd+gbpusd+1/usdchf+100/usdjpy;
svkchf = 1+eurchf+gbpchf+usdchf+100/usdjpy;
svkjpy = eurjpy+gbpjpy+usdjpy+100+chfjpy;
and their ratios are the current (and new) quotes
EURGBP=svkeur/svkgbp; EURUSD=svkeur/svkusd; EURCHF=svkeur/svkchf; EURJPY=svkeur/svkjpy;
GBPUSD=svkgbp/svkusd; GBPCHF=svkgbp/svkchf; GBPJPY=svkgbp/svkjpy;
USDCHF=svkusd/svkchf; USDJPY=svkusd/svkjpy;
CHFJPY=svkchf/svkjpy;

100/eurjpy

why?

Because a unit of the yen is worth 100 and the eurik is worth 1?

OK, see for yourself....

 
Martin Cheguevara:

that word alone could spark endless arguments You know it))

the main thing is to be good at maths, then no one will argue

;)

 
Andrey Dik:

Yes, loki, but loki is not an end in itself but a side effect of the strategy

Well, the question was how to bring equity to balance, and I answered - to close lots in time. Using lots actually, for sure, implicitly reduces the risks in MM. The lot size is usually calculated from the balance, and since the formal balance is less than the actual balance (equity), the risks are reduced. Therefore, if one closes positions instead of locking and simultaneously reduces the risks, the result will be the same, but the balance will coincide with equity. If your religion does not allow you to avoid locks, you can introduce virtual locking.

 
aleger:

And such a formula does exist. It is a simple system of linear equations describing the corresponding multicurrency basket and can be used practically.
The nominal value of this basket is equal to the AMOUNT of the unit amounts of the currencies it contains (for example, 1eur+1gbp+1usd+1chf+100jpy).
The equal values of the currency basket calculated in each of its constituent currencies (svkeur,svkgbp,svkusd,svkchf,svkjpy) are determined by a system of linear equations composed of forward and backward quotes for these currencies:
svkeur = 1+1/eurgbp+1/eurusd+1/eurchf+100/eurjpy;
svkgbp = 1+eurgbp+1/gbpusd+1/gbpchf+100/gbpjpy;
svkusd = 1+eurusd+gbpusd+1/usdchf+100/usdjpy;
svkchf = 1+eurchf+gbpchf+usdchf+100/usdjpy;
svkjpy = eurjpy+gbpjpy+usdjpy+100+chfjpy;
and their ratios are the current (and new) quotes
EURGBP=svkeur/svkgbp; EURUSD=svkeur/svkusd; EURCHF=svkeur/svkchf; EURJPY=svkeur/svkjpy;
GBPUSD=svkgbp/svkusd; GBPCHF=svkgbp/svkchf; GBPJPY=svkgbp/svkjpy;
USDCHF=svkusd/svkchf; USDJPY=svkusd/svkjpy;
CHFJPY=svkchf/svkjpy;

I do not agree that there is a unit volume for each currency. There is a concept known as currency basket, SDR, I think the name might be wrong, it does not contain a unit volume of currencies. It's a percentage. You may use USD EUR GBP JPY CNY, google will tell you the exact percentage. But how do we assemble this basket of currency pairs?)
Reason: