Pair trading and multicurrency arbitrage. The showdown. - page 321
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I’m trying to replace the main one with a more informative one.
The bottom two
It’s not yet clear what the bottom one, Avto_Correlate, is showing.
Yes, making a simpler and more informative indicator is the right thing to do.
It is, of course, not yet clear what the bottom-most Avto_Correlate plot shows.
Yes, creating a simpler and more informative indicator is the right thing to do.
This is an attempt to determine the ‘direct/mirror’ correlation
At present, there are two options: Pearson and Spearman. They’re not bad, but they aren’t particularly suitable for our purposes.
Here are three different currency pairs, and the indicator shows their correlation – this is a very important point in pair trading: if we don’t know how the pairs will move, we could end up with either a quick profit or a long-term loss.
1. Unrelated pairs: A clear analysis of entry points is required, aided by the Equity indicator. At the moment, there may be either two positions in the same direction or two in opposite directions. Alternatively, do not enter and look for another signal
2. Positive: Buy/Sell or Sell/Buy
3. Negative: Buy/Buy or Sell/Sell
This is an attempt to determine the ‘direct/mirror’ correlation
At the moment, there are two options: Pearson and Spearman. They’re not bad, but they aren’t particularly suitable for our purposes.
If not Pearson or Spearman, then which correlation algorithm should we use? There aren’t that many scientific methods available...
If not Pearson/Spearman, then which algorithm is used to determine correlation? There aren’t that many scientific methods...
At the moment, I’m using patterns based on several candlesticks; there are a few different ways to do this as well – I’m experimenting
It’s not great, I’ll say straight away; it’s just like a floating window
you’ll end up with the same optical illusion
It’s not a great option, I’ll say straight away – it’s just like a pop-up window
you’ll get the same optical illusion
This isn’t the first time I’ve read that phrase from you.
Do you have problems with your eyes? Is your prescription off? “People tend to talk about whatever’s bothering them.”
This is an attempt to determine the ‘direct/mirror’ correlation
At the moment, there are two options: Pearson and Spearman. They’re not bad, really, but they aren’t particularly suitable for our purposes.
If you trade without full automation – that is, if you set up a semi-automated system… Would your method, involving switching the ‘Reverse’ button, then be consistently reliable for determining whether pairs are mirror images?
If you trade without full automation – that is, if you use a semi-automated system… Is your method of switching the ‘Reverse’ button consistently reliable for determining whether a pair is mirrored?
No, that was the wrong choice of automation for the Reverse button according to Pearson or Spearman.
I’m working on a more appropriate solution
As you can see, the button is pressed, and this seems correct based on Spearman’s method (the default setting)
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But in reality, this is short-term decorrelation and mirroring
The new approach should resolve this issue
A new approach should resolve this problem
Well then, I’m really looking forward to testing the new algorithm.
Is there anything useful here for our purposes? Please have a look when you have a spare moment.
https://www.mql5.com/en/articles/20945
Well then, I’m really looking forward to testing the new algorithm.
Is there anything useful here for our purposes? Please have a look when you have a spare moment.
https://www.mql5.com/en/articles/20945
There’s nothing of interest there apart from Kendell
The bottom one is Kendall’s calculation; the emissions are a bit high