Pair trading and multicurrency arbitrage. The showdown. - page 300

 
mvf358 #:
It’s good that it’s like that and not the other way round. And how much is the debt?

I think the maximum was 32 days. I didn’t enter via the system, which I mentioned straight away; I posted a screenshot of that on the forum, followed by a screenshot showing the close and the duration.

But I didn’t do anything there; it was just a test to see if they’d match up and give +10. If the entry had been planned, I’d have exited much earlier with a single averaging trade.

 
Vitaly Muzichenko #:

I think 32 days was the maximum. I didn’t log in via the system, which I mentioned straight away; I posted a screenshot of that on the forum, followed by a screenshot showing the position’s closure and its duration.

But I didn’t do anything there; it was just a test to see if they’d match up and give +10. If the entry had been planned, I’d have exited much earlier with a single averaging trade.

32 days plus 10 – I’m curious to ask, what was the effective drawdown?
 
mvf358 #:
32 days plus 10 – I’m a bit hesitant to ask, but what was the drawdown?

Let’s start by saying that if the entry hadn’t been a test trade for the sake of argument, but a properly planned one, that would have been better than trading the euro/dollar and blowing yet another account on a margin call.

In Forex, the main objective is to preserve your deposit, not to blow it in a couple of weeks trading major pairs.

P.S. I was a bit puzzled by the ‘clever’ pair trading


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P.S. I’ve just closed a position I’d opened earlier


Everything’s closed for the weekend