i think it's better to sell some spread, than to try buying @ bottom
Ag trade ideas
- Thread starter TraDaToR
- Start date
@Vyki
A short statistical point : correlation shouldnt be done between non stationary series (i.e. prices).
If you do so, you will have a lot of false positive (high correlation between random series).
This error is made by a lot of people including Analysts at Société Générale.
=> Be careful because even 80 % could be random
But you can calculate correlation between returns... And you will find much lower correlation.
A short statistical point : correlation shouldnt be done between non stationary series (i.e. prices).
If you do so, you will have a lot of false positive (high correlation between random series).
This error is made by a lot of people including Analysts at Société Générale.
=> Be careful because even 80 % could be random
But you can calculate correlation between returns... And you will find much lower correlation.
Thanks a lot for this call. Just followed you @ 4250. I guess I caught the low of the day...
yep, but keep in mind it's kinda high and one clever guy thinks spread can still visit 3.500Thanks a lot for this call. Just followed you @ 4250. I guess I caught the low of the day...