Pair trading and multicurrency arbitrage. The showdown. - page 303

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mvf358 #:
I’ll add my two cents: EURAUD 0.1 sell, GBPNZD 0.8 buy. Based on the current position, profit is $50 and loss is -$150 – not the best time to jump in on a crash. EURAUD 0.13, GBPNZD 0.1 – these show more stable performance. That’s according to my maths; I’m not claiming to be an expert.

The lot sizes have been chosen so that this is essentially trading the pound against the Oceania currencies. That’s completely wrong for a currency pair.


 
Vitaly Muzichenko #:

The lots have been selected in such a way that this is essentially trading the pound against the Oceania currencies. This is not at all correct for a currency pair.


But he’s got no experience in this, and there’s no point in explaining anything to him, as he’s got his own hang-ups.
 
Renat Akhtyamov #:
Well, he’s got no experience in this, and there’s no point in explaining anything to him, as he’s got his own hang-ups
Aren’t you tired of promoting yourself in every thread?
 
Vitaly Muzichenko #:
Have a look at this – I haven’t managed to close out for a profit any other way.

I’m racking my brains over this one too. Essentially, we’re not closing just one profit, but two, on two different charts with different pip values and different instrument volatility.

It’s simpler to start from the entry point, where the positions are already open, and mark out a grid in percentages for the spread narrowing: -25%, -50%, -75%.

And in the bot, which closes positions based on a monetary threshold, instead of specifying a monetary amount in the code, enter the percentage that seems most likely to be reached by the prices.

 
It might be easier to take profits if you enable the Trailing Stop feature built into MT5 for each currency pair. In other words, we’ll enable two trailing stops – it couldn’t be simpler.
 
Sergey2134 #:
It may be easier to take profits if you enable the Trailing Stop feature built into MT5 for each currency pair. In other words, we’ll enable two trailing stops – it couldn’t be simpler.
Most trades close with one leg at a loss and the other at a profit, so the trailing stop should be set based on profit rather than pips.
 
Vitaly Muzichenko #:
Most of the closing trades involve one leg at a loss and the other at a profit, so the trailing stop should be based on profit rather than on points.
The best approach is to use a percentage of your open positions. Example: if you have two positions of 0.1 each, that makes a total of 0.2, i.e. $200; in your case, 5 per cent; your profit is $10. And there’s no need to change the settings in future if your deposit changes.
 
Vitaly Muzichenko #:
Most of the closing positions involve one leg at a loss and the other at a profit, so if the trailing stop is based on profit rather than pips.
Yes. But in the trading terminal, the trailing stop is only based on pips. And if I’m closing the position based on the total profit, how do I calculate that in advance? It depends on how many of my own pips each leg moves.
 
Sergey2134 #:
Yes. And in the terminal, trailing stops are only set in pips. But if I’m to close the position based on total profit, how do I work that out in advance? It depends on how many of my own pips each leg moves.
Don’t overcomplicate things. In that case, trade using technical analysis with a single instrument. You’d probably be better off asking Roman – he’s really sharp when it comes to maths. He’ll teach you how to calculate it in no time.
 
Sergey2134 #:
It depends on how many of its own points each leg covers.
It doesn’t depend on that for me; I’ve already described the exit strategy earlier, and I always use it.
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