Pair trading and multicurrency arbitrage. The showdown. - page 268

 
Roman Shiredchenko #:

here already really went true trading signals - sppsb! and TC run-in!!!


it looks like MQ has something broken again today ;-) nothing has been working since 5am or so.

 

opened yesterday, closed today :-)

for the experiment I took not one leading pair, but two: (Buy CAD Sell EUR) and (Buy GBP, Sell AUD).

I opened both majors and crosses...

 
Maxim Kuznetsov #:

opened yesterday, closed today :-)

for the experiment I took not one leading pair, but two: (Buy CAD Sell EUR) and (Buy GBP, Sell AUD).

I opened both majors and crosses...

Super! Thanks for the broadcasts - I'm smoking smoking smoking.....)

what it means to be connected! And trading!

 
Maxim Kuznetsov #:

opened yesterday, closed today :-)

for the experiment I took not one leading pair, but two: (Buy CAD Sell EUR) and (Buy GBP, Sell AUD).

I opened both majors and crosses...

Can you please tell me what is the principle of calculating buffer lines in your turkey trader?
 
Arch #:
Please tell me what is the principle of calculating buffer lines in your turkey?

percentage difference from a given point in time.

in detail - eur(t1,t2) = log2(EURUSD[t2])-log2(EURUSD[t1])

 
Maxim Kuznetsov #:

the percentage difference from a given point in time.

quite in detail - eur(t1,t2) = log2(EURUSD[t2])-log2(EURUSD[t1])

Duly noted, thanks!
 
Arch #:
Duly noted, thanks!

you're welcome ;-)

one of the visible effects of market pricing is price averaging. More precisely, the rise/fall of prices, because the absolute price at a single moment of time does not play a role.

exactly the same mechanism as we do, can be traced in other key points:

- at the European peak (~11), the one who has grown stronger (with high probability) will fall (rollback) to others.

- At the American peak (~15:30) it will be the same.

It's simple as hell: what sells high, buys low. It's a fundamental market principle.

Only in market peaks it is extremely difficult to trace it - there is high volatility behind which it is hard to see. We can trace it more or less reliably only on a daily basis during the night flat, where there is almost no volatility.

 

"my thoughts are my horses," aka unbridled cockroaches.

---

there are regional paired currencies and their counter-theses. In the Asia-Pacific market, it's AUD,NZD vs JPY.

It is quite natural - the economic process that increases the role of AUD, at the same time increases the role of NZD, simply because their economies are strongly linked due to geography and mutual investments. JPY traded at the same time, on the same platforms, will be traded against them. Because everything is relative, if someone is rising, someone is falling.

It is the same with the Eurozone - EUR, GBP and their counter-thesis franc (CHF) are strongly linked.

That is, if there are "contras" on different sides (at least) of daily slides, it makes sense to look for another pair. For example NZD or AUD vs JPY happens very often. But this is their regional natural phenomenon.

It is quite curious with CAD: according to objective indicators it turns out that CAD is not an independent currency, but a shadow of the dollar. CAD is always somewhere near the weighted valuation of USD. It is safe to consider xxx/CAD as a predictor

 

and to conclude today, inspired by personal correspondence, a few words about hedging:

- opening a counter position on the same instrument is not hedging, it is closing it

- a transaction of a commensurate volume (margin, investment) is not a hedging transaction. Hedging volume is much smaller than the main volume. Hedge is interesting because it requires less investment.

- Hedge reduces the total return and partly averages the risk. The longer the term, the better the risk averaging. It makes no sense to hedge a reliable signal.

 
Maxim Kuznetsov #:
- opening a counter position in the same instrument is not hedging, it's closing.

It's locking.

Hedging - opening on another market (instrument)