Pair trading and multicurrency arbitrage. The showdown. - page 323

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Vitaly Muzichenko #:
I reckon this week I need to add a couple more indicators, and then remove the unnecessary ones from the system, leaving just three.

So, testing your strategy for a crash

Let’s look at the white equity line and say unequivocally:

ultimately, the strategy is a losing one, regardless of the currency pairs used!

Now that’s a different story altogether!


Renat Akhtyamov #:

So, testing your strategy for a crash

Let’s look at the white equity line and say unequivocally:

Ultimately, the strategy is a losing one, regardless of the currency pairs used!

Now that’s a different story altogether!


Ha-ha-ha-ha hee-hee-hee-hee )))

Vitaly Muzichenko #:

I opened two positions a month ago to test the‘i-Equity’ indicator’s readings

As can be seen in the screenshot, a very large swap has been charged on AUDCAD, but the indicator has also taken this into account


Current result = -19.33

Current result according to the indicator = -22.18

A difference of 2.85 is quite acceptable over such a long stretch

Why not trade on a swap-free account, so as not to lose that portion of the profit?
OGNS #:
Why not trade on a swap-free account, so as not to lose that portion of your profit?
Because not everyone has such accounts, and if there are no swap charges, there are other costs involved – perhaps in the form of a couple of pips’ spread.
Vitaly Muzichenko #:
This is because not everyone has such accounts, and if there is no swap, it means there are other costs, perhaps in the form of a couple of pip spreads.
You can easily set up a swap-free account on many popular exchanges; the absence of swaps doesn’t affect the final spread – that’s determined by the account type. Besides, what difference does a +1/-1 pip spread make to you? It seems you’re not doing HFT or scalping; your trades tend to run for days or weeks

I was wondering how you’re getting on with pair trading? I started looking into it a year ago, tried out loads of indicators, methods and my own strategies, and it all boils down to one thing: there are periods where trades are quick and profitable, but then there comes a point where you get stuck in a trade for a very long time. I don’t like holding trades for a long time (especially for weeks on end).

They don’t drag on for weeks; that’s extremely rare.

Usually, you close out the position on the same day and open a position in another pair.

P.S. There was only one person on this forum who traded pairs (Leonid), but he’s long since left. Everyone else has no idea what proper pairs trading is, but they’ve ‘tried it and it doesn’t work’.
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