Pair trading and multicurrency arbitrage. The showdown. - page 314

[mvf358]

Sergey2134 #:
Roman, what are the two instruments in the same window linked to? How do you overlay them on the price chart? The price chart for one instrument isn’t the same as that for the second, is it?

So why overlay them at all, then?

[Roman Shiredchenko]

Sergey2134 #:
Roman, what are the two instruments in a single window linked to? How do you overlay them on the price scale? The price scale for one instrument isn’t the same as that for the second, is it?

I overlay them based on the weight of the spread symbols – see the thread at the end – learn how to make money, you lot. Set the scale in pips and dollars – and off you go, taking into account tick size, tick volume and so on. The indicator is posted there – I trade using it, and for custom symbol spreads, you can immediately generate an up-to-date formula, create the symbol spread, and off you go!

[Roman Shiredchenko]

mvf358 #:
So why set them at all, then?

You don’t have to place them straight away; you can form a spread curve and trade it – buying at the lower end and selling at the upper end.

Within a single framework, carry out your calculations in points-per-dollar terms and consolidate the balances of ticks, tick prices, tick sizes and tick values into a single balance calculation, and off you go. Don’t forget to also take into account the volatility of the symbols on Forex to balance the final lots for each symbol in the spread.

From page 175, but preferably from page 160 onwards until the end of the thread - #1747

Exactly! There’s no point in overlapping them – I thought I was replying to Sergey2134... ) - #3131

[Vitaly Muzichenko]

Entered the market

[Vitaly Muzichenko]

On a slightly related note:

We’ve received a few signals, but we’re already in the market on AUDNZD/EURCAD

The other signals involve currency pairs that we already have in our trades = there are currently no further entry points according to the system; we’re waiting.

[Sergey2134]

Vitaly, this ‘reverse’ feature is a bit confusing me. I’m tempted to open two opposing positions when ‘reverse’ is enabled. But actually, you’re not supposed to do that.

Why is the reverse view on the chart? For better visualisation? And how do we enter a trade when we get a signal on reverse pairs?

[Vitaly Muzichenko]

Sergey2134 #:

Vitaly, this ‘reverse’ function is really throwing me off) I feel like opening two opposite positions when ‘reverse’ is enabled. But in reality, you’re not supposed to do that.

Why is the reverse display on the chart? For better visualisation? And how do we enter a trade when we get a signal on reverse pairs?

Reverse is enabled so that we can see the actual spread and receive signals from mirror pairs:

rather than like this, where it looks as if there’s a spread, but in reality there isn’t, because the pairs are mirror pairs

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In the top screenshot, we can see a genuine divergence – two pairs at the top = sell both

[Vitaly Muzichenko]

You have a brilliant tool at your disposal, ‘i_Equity’, without which it is extremely difficult to analyse the quality of signals

Look for a similar signal on the historical data and see how it played out – perhaps it’s best not to enter the trade, but to choose other currency pairs or enter at a different time

[Sergey2134]

Roman Shiredchenko #:
The indicator’s been posted there – I trade using it, and by using custom symbols for spreads, you can instantly generate the relevant formula, create a spread symbol, and off you go!

You posted a screenshot there; it looks like you’ve already written a bot and are testing it. What are the results of trading with the bot? What are the pros and cons? )

[Vitaly Muzichenko]

Sergey2134 #:
You posted a screenshot over there; it seems you’ve already written the bot and are testing it. How’s trading with the bot going? What are the pros and cons? )

No, I haven’t written one; there’s no point

Manually, like this – I’m about to close a position I opened earlier

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It’s closed