Pair trading and multicurrency arbitrage. The showdown. - page 317

[Vitaly Muzichenko]

I’ve posted a working system; anyone who’s interested can work it out and carry on, and anyone who isn’t will look for another one.

If it works for me, it should work for others too.

In all these years, I’ve never once claimed that the system can move mountains; on the contrary, I’ve always stated that the return isn’t 100,500 per cent a month – it’s simply a system that works and is consistently profitable.

With a $100 deposit, the profit will be modest; it’s just simple maths again.

Perhaps someone might opt for pip trading on the M1 timeframe; the profit there will be higher, but so will the risks.

[Roman Shiredchenko]

Vitaly Muzichenko #:

It’s a whole system; you can’t just make a decision on a whim.

I’ve laid everything out down to the last kopeck; I used to trade without some of the indicators, but now I’ve included them too – it’s made the selection process much easier and the entry points more accurate

When opening trades on the outlier pairs, I was also guided by these

Thanks, but how do I use the i-Equity indicator ? When does it deviate significantly? Should I sell when it’s high, and buy when it’s low—even if it’s rebounding upwards? Is that roughly how it works?

[Vitaly Muzichenko]

Roman Shiredchenko #:
Thank you. How do I use the i-Equity indicator ? When will it deviate significantly? Should I sell when it’s high, and buy when it’s low – even if it rebounds upwards? Is that roughly how it works?

It’s simply a calculation of the change in equity from the starting point to the end point – as if you were to open positions at some point in the past and watch how the equity changed in real time (there’s a very small margin of error of ~$2).

Let’s say you opened positions on 1 June, and today’s result is +$175 and -$117; that’s exactly the range within which the equity fluctuated

The result of the change in equity

[Roman Shiredchenko]

Vitaly Muzichenko #:

This is simply a calculation of the change in equity from the starting point to the end point – it’s as if you were to open positions at some point in the past and watch how the equity changed in real time (there is a very small margin of error of ~$2)

Let’s assume that on 1 June we opened the following pairs

Result of the change in equity

Got it. Thanks.

[Vitaly Muzichenko]

Final review

The screenshot shows a comprehensive statistical pair trading system for Forex symbols, combining a market scanner...

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