Pair trading and multicurrency arbitrage. The showdown. - page 71

 
Vladislav Vidiukov #:
You don't understand. It is necessary to wait for sliding and put buy stops at the lower pair and sell stops at the upper pair, then 1) pairs converge - profit. 2) correlated pairs go in the same direction - profit. 3) pairs diverge even more, but this will not happen as they are correlated and will go in one direction - profit. So in 90% of cases there will be profit

Have you checked?

 
Ivan Butko #:

Did you check?

No, unfortunately. This is a mental experiment .so there should be profit not only at convergence, but also at correlated movement in one direction and NOT necessarily at convergence, but at correlated movement in one direction. 2 and 1 ORDER are sufficient (3 in total).
 
Vladislav Vidiukov #:
You don't understand. It is necessary to wait for sliding and put buy stops at the lower pair and sell stops at the upper pair, then 1) pairs converge - profit. 2) correlated pairs go in the same direction - profit. 3) pairs diverge even more, but this will not happen as they are correlated and will go in one direction - profit. So in 90% of cases there will be profit

1. pairs converge = profit. Depends on how it was used, but always if it was 0 at the start, the run-up started, and when/if they finally converge it is 0 again (and minus 2 spreads, swaps and other overheads).

2. Unfortunately, "correlated" pairs can go in any direction. It depends on the reporting point and its relative drift and fluctuations. We don't have a fixed reference point, it can't be chosen.

3. Even in a more geometrically convenient world, correlation says nothing about convergence/divergence or parallelism.

Correlation says nothing at all about movements and trends.

 

figuratively - all pairs are 99% correlated, they are part of the same process, with deep internal interrelations and a constant total sum.

On the stock exchange, you can always build a kind of "consolidated glass" EURUSD from EURUSD itself and glasses of pairs adjacent to EUR and USD. Another thing is that no one has money to do this in real-time and mt5 stacks are distrusted.

EURUSD will not move up without working out limits in this summary. Otherwise arbitrage and there are specially hired companies that do not allow it

 
Maxim Kuznetsov #:

1. pairs converge = profit. Depends on how it was used, but always if it was 0 at the start, the run-up started, and when/if they finally converge it is 0 again (and minus 2 spreads, swaps and other overheads).

2. Unfortunately, "correlated" pairs can go in any direction. It depends on the reporting point and its relative drift and fluctuations. We do not have a fixed reference point, it cannot be chosen.

3. even in a more geometrically convenient world, correlation says nothing about convergence/divergence or parallelism.

Correlation says nothing at all about movements and trends.

the point of reference starts at the moment of market entry
entry can happen at any moment

because at any moment the balance is zero.

However, so far no one here has correctly identified what will happen beyond the starting point.
 
Renat Akhtyamov #:

the reference point starts from the moment of market entry
entry can occur at any moment

because at any moment of time the balance is equal to zero.

However, so far no one here has correctly identified what will happen beyond the starting point.

Renat, don't make people laugh...

You're running around with the "secret of a hidden stash" :-))

Of course, when a deal is opened (or just fixed a glance) you can and should consider that __went__ and all from a single point.

And even see (imagine/imagine) how your volume is dismantled into parts and what goes where. It is possible to trade in this bundle, in fact, that is the topic of the whole thread

By virtue of fixing the POV (Point Of View), everything will gradually converge (by invariable sqrt(T)) into a common stream. You can even draw geodesic lines of convergence.

There are no secrets here, everyone knows everything.....

 
Maxim Kuznetsov #:

Renate, don't be ridiculous.

You're running around with the "secret of a hidden stash" :-))

of course, when a deal is opened (or just fixed a glance), it is possible and necessary to consider that __went__ and all from a single point.

And even see (imagine/imagine) how your volume is dismantled into parts and what goes where. It is possible to trade in this bundle, in fact, this is what the whole topic is about

By virtue of fixing the POV (Point Of View), everything will gradually converge (by invariable sqrt(T)) into a common stream. You can even draw geodesic lines of convergence

There are no secrets here, everyone knows everything.....

in forex nothing is sorted out, it is immediately hedged by a .rocker.

on their sites everything is detailed

 
Renat Akhtyamov #:

in forex, nothing gets sorted out, it gets hedged right away .rocker.

It's all detailed on their websites.

You should have a doctor...the very Who :-)

 
Maxim Kuznetsov #:

you should see a doctor...the one who :-)

Fora matrix is a very interesting thing.

Read, search, delve into it.

So far, your posts do not show an absolute understanding of the market from the category of ordinary people.
 

I made a panel for pair trading.


please criticise the appearance

Reason: