On the unequal probability of a price move up or down - page 143

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Vitaly Muzichenko:

I don't quite understand the question.

Understand what exactly?

 
Vitaly Muzichenko:

Or hit a U-turn and make a loss. We do not consider pure hypotheticals, because that cannot happen. We trade realities. The cross does not stand still.

I have shown that the possibility to separately manage the components of the cross in some situation gives an advantage. And it is always possible to get into a reversal, including cross trading.

 
khorosh:

I have shown that the ability to separately manage the components of a cross gives an advantage in some situations.

The only one, is to close the profitable leg at some reversal level and wait for a pullback on the unprofitable one and close it too, but this is no longer "paired".

 
Vitaly Muzichenko:

The only one is to close the profitable leg at some reversal level and wait for a pullback on the losing leg and close it too, but this is no longer "pairing".

I don't have much experience in pair trading and I cannot give any real trading examples yet. That's why I gave you a hypothetical example. But I am sure that the separate management of the cross components gives more possibilities in trading.

 
khorosh:
Vitaly Muzichenko:

Friends, I don't understand if it's just the extra spread that's causing the disagreement?

 
Aleksei Stepanenko:

Friends, I don't understand if it's just the extra spread that's causing the disagreement?

Not only that.

 
Mikhael1983:

A structure with two points of support is an unstable structure. Introducing a dummy fulcrum does not solve the stability problem.

The most stable construction is a construction with three points of support.
In order to realise this construction it is necessary to extract from the relations {A/C; B/C; A/B} their components {A; B; C}, bearing in mind that these components themselves are functions of time.
And this is a solvable problem.

 

I will make this model. I'll call it atripod, of course.


.

 
Олег avtomat:

I will make this model. I'll call it atripod, of course.


I'll adjust the logo:


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