Pair trading and multicurrency arbitrage. The showdown. - page 317
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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.
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
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
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.
Final review
Final review
I’ve had a look at the screenshot in this review. Here’s the question that’s important to me: Which signal takes priority when opening a trade – the signal from the i-Spr_Signal indicator or the signal from the i-Spr_BB indicator?
I’ve had a look at the screenshot in this review. Here’s the question that’s important to me: Which signal takes priority when opening a trade – the signal from the i-Spr_Signal indicator or the signal from the i-Spr_BB indicator?
i-Spr_Signal is the very first and most important, whilst i-Spr_BB serves as confirmation.
Let’s say there’s a sell signal for the first pair and a buy signal for the second, but at the same time the i-Spr_BB is below the zero line and the central line between the bands – the signal might not trigger, so to speak – I ignore that one.
Compare i-Spr_BB with the first pair, not the second
Let’s say, in the screenshot, the first pair is brown = the signal is cancelled
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Let’s say the first pair is green (Buy), whilst the second is brown (Sell); i-Spr_BB is below zero and rising = an excellent entry signal.
Yes, thank you very much. I’d like to ask about Reverse. It’s enabled by default. And when it’s enabled, a strong Threshold signal of over 50 per cent appears. For example, today it was 68 per cent. But if you switch Reverse off, the signal in the table is only +18 per cent.
So I’m not entirely sure how to interpret the table correctly in the first place… After all, you need to look at it with Reverse switched off, as that will give you the true picture.
And if there’s a very strong signal with Reverse enabled, plus a threshold above 50 per cent, does that mean nothing? Because without Reverse, the percentage is much lower than the threshold level.
Yes, thank you very much. I’d like to ask about Reverse. It’s enabled by default. And when it’s enabled, a strong Threshold signal of over 50 per cent appears. For example, today it was 68 per cent. But if you switch Reverse off, the signal in the table is only +18 per cent.
That’s why I’m not quite sure how to interpret the table correctly in the first place… After all, you need to look at it with Reverse switched off, as that will give you the true picture.
And if, with Reverse enabled, there’s a very strong signal plus a threshold above 50 per cent, does that mean nothing? Because without Reverse, the percentage is much lower than the threshold level.
Reversal is, as it were, implemented with automatic activation based on Spearman’s correlation; it doesn’t work 100 per cent correctly, but it’s generally accurate. You can double-check the pairs’ movements using the ‘ZScore_Reversion_S2’ indicator, which also has a Reversal button
What you see when the reversal button is enabled, provided it has worked correctly: there are two mirror pairs and you see a divergence with a small percentage – in other words, a genuine one
When the button is off, the gap on the mirrored pair is huge, which makes sense – the pairs are mirrored, and the readings are completely irrelevant
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As I wrote earlier, if the pairs are mirrored – 2 in Buy or 2 in Sell
Reversion is, as it were, implemented with automatic activation based on Spearman’s correlation; it doesn’t work 100 per cent correctly, but it’s mostly accurate. You can double-check the pairs’ performance using the ‘ZScore_Reversion_S2’ indicator, which also features a ‘Reversion’ button.
What you see when the reversal button is enabled, provided it has worked correctly: there are two mirror-image pairs and you see a gap with a small percentage – that is, a real
When the button is off, the spread on the mirrored pair is huge, which makes sense – the pairs are mirrored, and the readings are completely irrelevant
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As I wrote earlier, if the pairs are mirrored – 2 in Buy or 2 in Sell