On the unequal probability of a price move up or down - page 170

 
Younga:

The branch seems to fit.

Here's an idea. We open a triangle of pairs (full, with equal lots). We do not set takeoffs and stops right away - the target for each pair (currency), let us assume 200 points and stop-loss 200. There may be 8 outcomes: TTT, ... CCC. There will be such points (times), at which Take of one pair will be reached (relative to an arbitrary point). Unclosed pairs relative to the same arbitrary point must close in zero (on the average). Is it possible to test it with mql4? If you observe and advise me, I will write an EA.

Explain the highlighted in bold. What do we buy - what do we sell?

 
Aleksandr Volotko:

Boldly highlighted, please explain. What do we buy - what do we sell?

https://www.mql5.com/ru/articles/3150

Треугольный арбитраж
Треугольный арбитраж
  • www.mql5.com
Тема треугольного арбитража с завидной периодичностью поднимается на тематических форумах в Сети. Что же это такое? Слово "арбитраж" в этом термине подразумевает некоторую нейтральность к рынку. "Треугольный" означает, что портфель состоит из трёх инструментов. Возьмём самый популярный пример: треугольник "евро — фунт — доллар". В валютных...
 
Vladimir Baskakov:
Here is a suggestion. Remove threads on trading systems gurus from the forum (such as this), not confirmed by monitoring the top starter (and there are many such threads).
Who's in favour?

A counter-proposal to all who are not interested - just don't enter such threads and don't write anything in them. Start your own proper branches and monitor there what you want. The server has enough space for all. What is the problem? Nothing to say about the market? /Frankly speaking, traders forums, unfortunately, are already burnt out, so if you want to kill them with such proposals ... Well... /

 
Wizard2018:

A counter-proposal to those who are not interested: just don't enter such threads and don't write anything in them. Start your own proper branches and monitor what you want there. The server has enough room for all. What is the problem? Nothing to say about the market? /Frankly speaking, traders forums, unfortunately, are already burnt out, so if you want to kill them with such proposals ... Well... /

Of course, it's better to bullshit
 
There are interesting ideas in the midst of the blizzard. And there is always something to laugh about)
 
Younga:

The branch seems to fit

Here's an idea. Open a triangle of pairs (full, with equal lots). We do not set takeoffs and stops right away - each pair (currency) is targeted at 200 p, with a stop loss of 200. There may be 8 possible outcomes: TTT, ... CCC. There will be such points (times), at which Take of one pair will be reached (relative to an arbitrary point). Unclosed pairs relative to the same arbitrary point must close in zero (on the average). Is it possible to test it with mql4? If you observe and advise me, I will write an EA.

If you drop dough in the market on the triangle, you will tell me ...

 
khorosh:

If you buy the pound and the euro, it will not be paired trading, because paired trading is supposed to be hedged. And in this case there will be no hedging. This is just trading two symbols, but not pair trading. You should enter in one direction on two symbols in pair trading only on symbols with inverse correlation, for example EURUSD and USDCHF.

I thought about it and had some doubts. If the GBP and EUR have negative correlation at some time interval, then why do not we enter in one direction: both of them are in buy or both of them are in sell. It is quite logical. The hedging will be at this point, but one has to exit in time, when the correlation rises.

So I think that I was not quite right. Such sectors occur less frequently than sectors with positive correlation. But they do occur nevertheless.

 
khorosh:

I've been thinking about it and have doubts. Why, if the pound and the euro have a negative correlation in some timeframe, then why not enter in the same direction: both to buy or both to sell. It is quite logical. The hedging will be at this point, but one has to exit in time, when the correlation rises.

So I think that I was not quite right. Such sectors occur less frequently than sectors with positive correlation. But they do occur nevertheless.

That's what I thought.

It only comes in because of greed.

of course the profit can be large, but time will force a reduction in risk and overall profit as there will be no more hedging

 
Renat Akhtyamov:

That's what I used to think.

they are entering only because of greed.

Of course the profit may be large, but time will force to reduce the risk and the overall profit, as there will be no hedging

As long as the correlation is negative the hedging will be there, as well asEURUSD and USDCHF having negative correlation, they also enter in the same direction.

 
khorosh:

As long as the correlation is negative, the hedging will be the same as forEURUSD and USDCHF pairswith negative correlation, which are also entering in the same direction.

In pairs, as in the rest of trading, you shouldn't hope for there to be

we're just being stingy with what we have.

the point values of both the eu and the pound are always equal, the trades are opposite,

Hence the hedge is already in place, no need to invent anything else.

Reason: