The correlated arb/hedge-system -
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thread: The correlated arb/hedge-system

  1. #11
    Markj:

    Thanks for the indior but I must state as toothman... how shall one utilize this indior and how to read it? There is lines throughout the area. I really do think it's a good indior as soon as you understand how to utilize it.

    Seavo:

    A much easier indior have you provided with and I know it quite a bit. However, I have one question... if the indior is below 0 is it then good or poor significance?

    ForexDude2:

    Can you describe a lite more exactly what the changes was and how to read/use it?

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

    I have to say I am very happy of all the help up to now. It's astonishing that complete strangers are willing to assist another stranger....
    I truly hope this system I'm about to make will work and be more profitable so all you guys helping me out could benifit from it.

    Thanks!

    Regards / JoLi

  2. #12
    Junior Member y's Avatar
    24
    Its USDCHF minus EURUSD. I will try to generate a more complex one since you can have different situations (both candles up, one up one down etc) but thats all for today... I'm curious if I can draw the EURCHF chart from that or it'll be something else

  3. #13
    ForexDude2:

    That seems really great.

  4. #14
    Junior Member y's Avatar
    24
    Speaking of arbitrage, read the excellent: Triangular arbitrage in the foreign exchange market by Marios Mavrides.

    The novels demones the best currencies for triangular arbitrage are the Yen, the British Pound and the US dollar. All these 3 currencies do get out of whack sometimes, but just for a couple of seconds or minutes at most.
    Is this book still valid? It quotes dollar-mark-yen...

    Thanks

  5. #15
    Joli, is your principal focus to find an indior which will compare the motions of the eur/usd and usd/chf? So if euro/$ moves 3.2 percent, and $/franc moves -1.2 percent, you want to be able to see this having an indior? Then after that you wish to have the ability to apply the correlation effect for it?

  6. #16
    Stockjay:

    Joli, is your principal focus to discover an indior that will compare the motions of this eur/usd and usd/chf? So if euro/$ moves 3.2 percent, and $/franc moves -1.2 percent, you are interested in being able to visually see this having an indior? Then after this you want to be able to apply the significance effect to it?
    The answer is: YES

    Do you know or have such indior?

    / JoLi

  7. #17
    Stockjay:



    The answer is: YES

    Do you Know or Have such indior?

    / / JoLi
    Well, indior. . Not for MT4. If you're checking into correlation, I'd take a peek at FXsol. You can open up a free demo account together. Once you do so, download their AccuCharts service. There are a lot of cool tools you can use to track correlation, compare performances of pairs etc..

    The graphics are not so good, though take a look at these. The pairs are gbp, eur and chf / JPYs. As you're most likely aware, these pairs are chronically 70% connected. Therefore, IMO, provide the best perspective if you utilize correlation.

    Http://i130.photobucket.com/albums/p...2/JPYLog-4.jpg
    http://i130.photobucket.com/albums/p...2/JPYLog-5.jpg
    http://i130.photobucket.com/albums/p...2/JPYLog-6.jpg
    http://i130.photobucket.com/albums/p...2/JPYLog-7.jpg

    Notice how the Yellow Pair matches the gap.

    If you get AccuCharts, open the chart you would like to see, EUR/USD (from first post), then use the Inversion indior under Analysis Tools. This will make an inverted line in a seperate window. Following that, overlay the USD/CHF chart and drag it into the window together with the inverted EUR/USD. This will show you the chf/usd, eur/usd contrast. It will give you a correlation, rather than - correlation perspective.

    I kinda began dring, hope it will help you a little.

  8. #18
    Member Rentt's Avatar
    32
    Is this book still legitimate? It quotes dollar-mark-yen...

    Due
    Hi,

    This publiion about triangular arbitrage from the FX market was composed when the German mark was still living, but the dollar-pound-yen combinaison still produces the best overall benefits, accompanied by dollar-mark-yen and dollar-yen-franc.

    But remember one thing: in order to exploit these inefficiencies from the FX market, you need a fast automated program, a computer, a T3 internet connection and an extremely reliable datafeed, since these inefficiencies only exist for a few seconds and are closely monitored by all the banks and major traders in the world, just because they represent totally RISK-FREE trading opportunities.

  9. #19
    Stockjay:

    I tryed to du as you describe but I can not receive the USD/CHF chart up. When I try to observe that the USD/CHF chart it only replace the EUR/USD I allready av up.

    Regards / JoLi

  10. #20
    Start with the eur/usd chart, put the inversion indior, right click on the chart and apply the overlay alternative or insert symbol option and place usd/chf. After this you should have the ability to highlight and drag the usd/chf chart into the window with the inverted indior.

    If this does not work, simply use the chf/jpy and eur/jpy. It's the chf and euro correlation you are seeking anyway with the eur/usd and usd/chf.

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