Pair trading and multicurrency arbitrage. The showdown. - page 296
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Vitaly, could you please explain the indicator’s signals and tell me which one is the most important? I’ve had a quick look at it, and it seems the histogram is indicating a divergence between the instruments. But I need to know what the two yellow lines on this indicator mean in terms of the entry point.
Do pop over to my YouTube channel (link in my profile); there are trading videos and descriptions of the system there. If you have any questions, I’ll be happy to answer them.
I’ll also add all this to my blog later.
--
Perhaps ‘Quality’ doesn’t quite sound right.
The signal, expressed as a percentage, indicates how much the pair has diverged from its historical trend; in the image, this is 36 per cent.
The figure 69 next to it indicates how many bars back the last probable signal was
The blue line shows the correlation between the pairs
As far as I can see, there’s no real signal in your pair option, unless you’re just looking for a quick pip. 17.07 was sort of an option. But even that’s a bit iffy. However, there’s a caveat: which way the pairs will move.
That’s not my indicator in the screenshot, and judging by the screenshot, the pairs are moving in opposite directions; you need to reverse the trend and look for divergence
It’s simply not a continuous chart… the equity tends towards 0, especially if it’s periodically reset to that level. In the screenshot, it’s four periods apart
That way, you can declare any of them the ‘Holy Grail’ and save yourself the hassle of selecting pairs
https://vkvideo.ru/video-15755094_456283359
PS/ Come on, web monkeys! It’s a right pain to embed video clips
It’s not a continuous chart… the equity tends towards 0, especially if it’s periodically reset to that level.
So what’s the point of having an indicator like that in the terminal?
I’ve no idea, it’s not mine
I’m just calling it a property… because to the uninitiated, it really does look like a glitch
I’ve no idea, it’s not mine anyway
I’m just calling it a property… because to the uninitiated, it really does seem wrong
A bit about the system
The second one from the bottom is the historical equity indicator.
1, 3 and 4 are the Bollinger Bands; I’m still getting to grips with them. All three are calculated using different formulas, but they look almost identical. For the system, you need to select one and add the rest to the ‘Basket’.
The first one from the top is the currency index; I didn’t have one before – or rather, I had lots of other people’s useless ones that calculated ‘who knows what’, so there was no point in using them
The second one from the top is the signal indicator and the most important one; the system is built around it, whilst the others are auxiliary
At the bottom right is an EA that opens and closes positions based on profit. It’s set up to convert the lot size of the second instrument to that of the first
Bloch will expand
He demonstrated an incorrect login – this is not a system login; you mustn’t do that.
The lines haven’t crossed for a long time – you need to wait for them to cross, and then enter the trade on the next signal
I’ll now move into profit by averaging down, or by trading other pairs.
The position opened in the video has now been closed.
I’ll continue with what you shouldn’t do when trading currency pairs:
If you already have an open position in a particular currency, the next pairs you trade should not involve that currency.
I don’t think I need to go into too much detail as to why – ultimately, you’ll either end up with a double lot for selling or buying a single currency, or, conversely, you’ll end up locking your position.
I’ll carry on with what you shouldn’t do when trading pairs:
If you already have an open position involving a particular currency, the following pairs should not include that currency.
I don’t think I need to go into too much detail as to why – ultimately, we’ll either end up with a double lot for selling or buying a single currency, or, conversely, we’ll end up in a lock.
It’s much simpler
That’s why
in other words, a ‘virus’ has crept into trading ;)
As a result, two currency pairs are being traded (AUDCHF && EURGBP)
and this isn’t based on the algorithm and hasn’t been analysed: the spread, lot sizes, the overall direction of EURGBP, and the interdependence
the trading outcome is unpredictable in this case