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Calculation needed for trading FOREX – 2 currency pairs

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JohnCobb
169
JohnCobb  

I am going to trade 2 currency pairs: USD/CHF and CHF/JPY.

I need to calculate how many lots of the second currency I need to balance my trade.

USD/CHF is trading at: 0.97910 and CHF/JPY is trading at: 79.870

If I take USD/CHF as one lot then how many lots I will need of the second currency pair to make even balance.

Currencies move (fluctuate) in a certain range over period of time. To make my strategy complete I need to work out trading range. They (those 2 currency pairs) have different trading ranges.

Over a period of time USD/CHF has been trading in a range: 0.96770 – 0.99830

Over a period of time CHF/JPY has been trading in a range: 78.150 – 83.980

The trading range has to be added and calculated (translated to lots) together with the previous calculation to work out how many lots of the second currency I have to buy for trading to make a balanced trade.

Is it possible to make these calculations in Excel or maybe in some other program?

I hope that I have explained it clearly. If you need more clarifications please ask.

Waiting for your help.

John.

Mehrdad Shiri
4586
Mehrdad Shiri  

HI;

I THINK :

1) YOU MUST STUDY ABOUT CORRELATION BETWEEN CURRENCY PAIR  ( CORRELATION IS NOT 100% )

2)  VALUE OF AMOUNT:

             Profit or Loss= (Sell Price – Buy Price) * (Amount)

              ----------------------------------------------------------------

                 EX:

                      EUR/USD
                      Buy Price= 1.2717
                      Sell Price= 1.2744
                      Contract Size= 0.5 Lot or 50K
                      Profit or Loss = (1.2744 – 1.2717) * 50000= 135$

Documentation on MQL5: Standard Constants, Enumerations and Structures / Environment State / Symbol Properties
Documentation on MQL5: Standard Constants, Enumerations and Structures / Environment State / Symbol Properties
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Standard Constants, Enumerations and Structures / Environment State / Symbol Properties - Documentation on MQL5
JohnCobb
169
JohnCobb  

Hello,

Thank you for your reply. And thanks for the example, but that's not what I asked for.

I need this calculation for trading correlated currency pairs.

I studied correlation between currency pair. I have been trading for a long time. Now I trade correlated currency pairs and for the first time I  am actualy winning. 

My strategy works but to help me make more acurate and quick decision I need that currency pair calculation. Can anyone help?

Waiting for replies.

John

Mehrdad Shiri
4586
Mehrdad Shiri  

hi;

very nice idea ;

if you reach to any result ;

can you please tell me about it ?

by.

smithjames
4
smithjames  
JohnCobb:

I am going to trade 2 currency pairs: USD/CHF and CHF/JPY.

I need to calculate how many lots of the second currency I need to balance my trade.

USD/CHF is trading at: 0.97910 and CHF/JPY is trading at: 79.870

If I take USD/CHF as one lot then how many lots I will need of the second currency pair to make even balance.

Currencies move (fluctuate) in a certain range over period of time. To make my strategy complete I need to work out trading range. They (those 2 currency pairs) have different trading ranges.

Over a period of time USD/CHF has been trading in a range: 0.96770 – 0.99830

Over a period of time CHF/JPY has been trading in a range: 78.150 – 83.980

The trading range has to be added and calculated (translated to lots) together with the previous calculation to work out how many lots of the second currency I have to buy for trading to make a balanced trade.

Is it possible to make these calculations in Excel or maybe in some other program?

I hope that I have explained it clearly. If you need more clarifications please ask.

Waiting for your help.

John.

You have to take knowledge of Correlation, generally correlation means relationship in between two variables , as I  heard there are two kind of correlation positive and negative correlation. For more you can contact currency online for getting services related to correlation. 

Mirza Baig
2420
Mirza Baig  
As far as my wisdom says, you won't have a perfect correlation (an absolute 1.00 or 100%) because of the spreads. And sometimes, correlation between pairs (such as GBPUSD and USDJPY) doesn't hold true. 
fxmelvin
16
fxmelvin  

please anytime i download an indicator, it tells me error...what do i do?

Alain Verleyen
Moderator
32427
Alain Verleyen  
fxmelvin:

please anytime i download an indicator, it tells me error...what do i do?

Hello,

  • When you have a question, don't post it to an unrelated topic, you can create your own.
  • Also, don't double posts, ask your question and be patient.
  • What indicator are downloading, from where ? to where ? What's the error ?
JohnCobb
169
JohnCobb  
TIMisthebest:

hi;

very nice idea ;

if you reach to any result ;

can you please tell me about it ?

by.

Almost 2 years later and YES, my strategy works. Made stedy profit trading on small amounts, but you need patience.
Mehrdad Shiri
4586
Mehrdad Shiri  
JohnCobb:
Almost 2 years later and YES, my strategy works. Made stedy profit trading on small amounts, but you need patience.

hi;

wish the best for you

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