Indicators: Arbitrage II

[Automated-Trading]

Arbitrage II:

The indicator plots two lines that represent the difference between two currencies derived from three pairs/currencies.

Author: pipPod

[VIMALSHAH]

i m using this indicator on pair of eurousd gbpusg and eurogbp 

 from last 3 weeks 

bt still not understanding how to use this indicator 

 

can u please send theory or working principle of this indicator

anything u can tell

i will thnkful to u 

[e-mail] 

[DenisovOleg]

Как разность, т.е. результат вычисления может быть представлен в виде двух линий? можно по подробнее описать процесс вычислений? 

[Alexey Oreshkin]

DenisovOleg:

But the difference of two currencies out of three currency pairs does not raise any questions. Everything is clear and understandable here.

[Rodrigo da Silva Boa]

Very good, nice work.

[Rodrigo da Silva Boa]

Very Good Good job.

[Andrey Stashenkov]

Hello! I'm just starting to study arbitrage, can you describe in detail the technology of work on these indicators?

[Heroix]

Who is looking at who?

This is to say that there is no point in the indicator. You can tell from the price whether the lines in the indicator are converging or diverging. And vice versa.

For statistical arbitrage it is important to create a stable flat portfolio over time. I emphasise - stable.

[Alexey Volchanskiy]

Heroix:
Who is looking at who?

This is to say that there is no point in the indicator. You can tell from the price whether the lines in the indicator are converging or diverging. And vice versa.

For statistical arbitrage it is important to create a stable flat portfolio over time. I emphasise - stable.

But it can't be stable statically, can it? I think, only dynamically, perhaps even with changing and/or adding currency pairs. I have been thinking about this topic myself for some time now.

[Renat Akhtyamov]

Alexey Volchanskiy:
But it can't be stable statically, can it? I think only dynamically, perhaps even with the replacement and/or addition of currency pairs. I've been thinking about it myself for a while now.

It can, but not for long. If it were permanent, such a strategy would be worthless.

Stat arbitrage is a temporary adjustment to stability

[A. Forex]

VIMALSHAH:

i m using this indicator on pair of eurousd gbpusg and eurogbp 

 from last 3 weeks 

bt still not understanding how to use this indicator 

 

can u please send theory or working principle of this indicator

anything u can tell

i will thnkful to u 

[e-mail] 

3 weeks not enough... Try Fibonacci approach. 34 weeks must work definitely.