Pair trading and multicurrency arbitrage. The showdown. - page 269
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one of the visible effects of market pricing is price averaging. To be more precise, prices rise/fall, 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 a high probability) will fall (rollback) to others.
- At the American peak (~15:30) it will be the same thing
It's simple as hell: what sells high, buys low. 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 track it more or less reliably only on a daily basis during the night flat, where there is almost no volatility.
am I the only one who doesn't understand what is written here? )
It's a lockdown.
Hedging - opening on another market (instrument)
when on one instrument, it is still closing ;-) locking is deception.
without going outside the market, you can hedge the risks of the transaction on other available instruments.
According to the above and praying, you can hedge the risk of buying EURUSD by buying a little USDCHF. Of course, this is not a very good option, but without going outside the forex :-)
Am I the only one who doesn't understand what is written here? )
Yeah, but it's never too late to learn.
the latest development of the topic is approximately from here https://www.mql5.com/ru/forum/448777/page262#comment_57519768
and up to the current moment, and then we'll see further.
that is what it is, but with illustrations :-))
"Seek and ye shall find" :-) I think your education is more than enough to enter the topic after reading it.
by the way, the whole topic is not a thesis, but a process of exchange of opinions and findings over time.
the latest development of the theme from about
I am unlikely to be able to handle Proteus like Menelaus, and even get banned in the process.
I would just need a translation into ordinary language to express: "One of the visible effects of market price formation is price averaging. More precisely, the rise/fall of prices, because the absolute price at a single point in time does not play a role."
I don't think I can handle Proteus like Menelaus, and I won't get banned in the process.
I would just like a translation into ordinary language to express: "One of the visible effects of market price formation is price averaging. More precisely, the rise/fall of prices, because the absolute price at a single point in time does not play a role."
the observed effect is that it's not the price of one currency averaging with the price of another currency (both expressed through a third currency).
but the growth rate of one with the growth rate of the other.
There is no reversion to the mean, but there is a tendency to average the rates. The fastest growing will be slowed down at the expense of the laggards.
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If you have traded "hands", you are familiar with it: you think for personal reasons that EUR will grow for a week, you open and it really grows, and on the first day it makes 70% of the forecast. What do you do? And pay attention - you are not interested in the absolute value of EUR, you are interested in the change in % and time. You have almost made a weekly norm during the day - you will close the position. If you are sure of the previous forecast, you will add a lower limit.
That's how the market works in total. Taking into account that growth/decline are relative concepts, against each other, not just one USD
the observed effect is that it is not the price of one currency that is averaged with the price of another currency (both expressed through a third currency).
but the growth rate of one with the growth rate of the other.
There is no return to the mean, but there is a tendency to average the rates. The fastest growing will be slowed down at the expense of the laggards.
I'm sort of starting to realise that your "price averaging" means price moving towards the mean, not at all a trader's action of building up a position against a move/correction.
Something like that comes to mind. Was there something about cocoon folding/unfolding in there by any chance?
I'm sort of starting to realise that your "price averaging" means price moving towards the mean, not at all a trader's action of building up a position against a move/correction.
Something like that comes to mind. Was there something about cocoon folding/unfolding in there by any chance?
You should haggle. That's a good reference.
haggle. That's a good recommendation.
In the classics, you have to ask for a steate. For some reason it is considered an indulgence for lack of clear presentation of thoughts.
I gave a link to the beginning... you can read and try, methods, justifications and examples are given in maximum detail. And don't make things up, no one is demanding steitas from you here.
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