Cash & Carry

[ElectricSavant]

Remiraz,

I know its me and not you, as others are confused too...

I follow a sort of cycle according to the unrealized. It goes up and down. If it increases more than it recovers, that tells me we need to average down tighter. But this is geometric and I must look at where we are in the cycle.

If I get to heavy in the exposure compared to the equity under management, then I need to pay attention.

Michael B.




Do you need to guage whether the market is going your way during entry? Eg. Long only when market is about to go up or going up, stay out when the market is plummeting.[/b]

 

[Remiraz]

Quote from ElectricSavant:

It is very easy to zero out and re-enter.

I made the money when all three were profitable and I did not have any losers to take out. This is a very rare condition and it would not stop!

It actually worried me as I knew we would get hit hard when ALL the pair turned. I did not think they would all trade together like that for so long (two weeks).

They seem to be back to their independent ways, but they did not come back to zero in the unrealized, which told me I need to widen the increments and add another pair, which I have done in the new Cash & Carry.

Michael B.

Hmmmm....this explains it.

Say if you're LONG in 3 pairs in equal amounts:

Pair 1
Pair 2
Pair 3

Your biggest DD comes in this scenario:

Pair 1 Down
Pair 2 Down
Pair 3 Down

Your biggest profit taking spree comes in this scenario:

Pair 1 Up
Pair 2 Up
Pair 3 Up

Is this correct?

p.s.
no way to have historical in CSV format then? yeah i read it.

 

[ElectricSavant]

Well EUR/HUF is a short play

Quote from Remiraz:

Hmmmm....this explains it.

Say if you're LONG in 3 pairs in equal amounts:

Pair 1
Pair 2
Pair 3

Your biggest DD comes in this scenario:

Pair 1 Down
Pair 2 Down
Pair 3 Down

Your biggest profit taking spree comes in this scenario:

Pair 1 Up
Pair 2 Up
Pair 3 Up

Is this correct?

p.s.
no way to have historical in CSV format then? yeah i read it.

 

[Remiraz]

Quote from ElectricSavant:

Well EUR/HUF is a short play

I see. If considering NZD/USD, AUD/JPY, GBP/CHF then the scenarios will be correct?

Normally the pairs will not be correlated so it'll look something like this:

Pair 1 Up
Pair 2 Down
Pair 3 Down

or

Pair 1 Up
Pair 2 Down
Pair 3 Up

So you use the profit from the up pairs to neutralise the biggest losers from the down pairs.

Question regarding interest payment

I understand your market maker pay/collect interests during a certain time everyday. Lets call that time X. Also, interests is paid/received when trades are closed.

Do you think interest profit will be viable if we only held pairs through X to collect that instance of interest profit? Are the interests paid/received for closing trades important?

p.s.
i got the link.

edit:

By the way how do u calculate when to add units? What is the interval and how many units?

 

[ElectricSavant]

Heres a blank spreadsheet for the new system. There are a few fields up in the Databank not finished and the graphs our not done...

 

[ElectricSavant]

The scenario's you brilliantly deduced.

Well, when closing trades on the fly and your half way through the day you will get half of the interest on the closure and if you get right back in with the same number of units you will get the other half at 17:00est.

Michael B.

Quote from Remiraz:

I see. If considering NZD/USD, AUD/JPY, GBP/CHF then the scenarios will be correct?

Normally the pairs will not be correlated so it'll look something like this:

Pair 1 Up
Pair 2 Down
Pair 3 Down

or

Pair 1 Up
Pair 2 Down
Pair 3 Up

So you use the profit from the up pairs to neutralise the biggest losers from the down pairs.

Question regarding interest payment

I understand your market maker pay/collect interests during a certain time everyday. Lets call that time X. Also, interests is paid/received when trades are closed.

Do you think interest profit will be viable if we only held pairs through X to collect that instance of interest profit? Are the interests paid/received for closing trades important?

p.s.
i got the link.

edit:

By the way how do u calculate when to add units? What is the interval and how many units?

 

[ElectricSavant]

take a look at the formula's in the new spreadsheet. This is tough to explain, I will try:

I have made an attempt to even out the exposure through proportions. The volatliity of the rolling last year with a divison gives me my base across the board beginning with AUD/JPY. I then compare AUD/JPY to the movements of the oithers and even them out with a divisor.

By the way how do u calculate when to add units? What is the interval and how many units?

 

[ElectricSavant]

Remiraz,

By the way your earlier comments about using this system to identfy trades is valid. but lets do both...

You are brilliantly digging yourself through. I am wishing you the best. make it your own. I am not trying to be cryptic.

When you get all of this you will see my problem. How to explain it! They say a good system should be explained in one paragraph...lol

Michael B.

P.S. This would be one of the system I run in FXGame to identify real trades in FXTrade. There are many uses that simulators provide. They are great to signal real trades, if you wanted to use this system just to trade and not collect interest.

 

[Remiraz]

Quote from ElectricSavant:

The scenario's you brilliantly deduced.

Well, when closing trades on the fly and your half way through the day you will get half of the interest on the closure and if you get right back in with the same number of units you will get the other half at 17:00est.

Michael B.

Say if open a LONG position that pays $0.58 per 10,000 units over 24 hours at 16:50 EST. Then closed it at 17:10 EST. How much interest do I get?

Quote from ElectricSavant:

take a look at the formula's in the new spreadsheet. This is tough to explain, I will try:

I have made an attempt to even out the exposure through proportions. The volatliity of the last year with a divison gives me my base across the board beginning with AUD/JPY. I then compare AUD/JPY to the movements of the oithers and even them out with a divisor.

I see. What happen if the volatility of last year isn't equal to the volatility of this year? What if its greater this year? Are we in any danger? Will the system fall apart?

Quote from ElectricSavant:

Remiraz,

By the way your earlier comments about using this system to identfy trades is valid. but lets do both...

You are brilliantly digging yourself through. I am wishing you the best. make it your own. I am not trying to be cryptic.

When you get all of this you will see my problem. How to explain it! They say a good system should be explained in one paragraph...lol

Michael B.

P.S. This would be one of the system I run in FXGame to identify real trades in FXTrade. There are many uses that simulators provide. They are great to signal real trades, if you wanted to use this system just to trade and not collect interest.

Wait a minute. I have no interest in the trading (a.k.a. picking trades) portion of this system. I have other systems for those.

Lets focus on the Interests Earning portion. Is it possible to end flat and with profits from Interests earned when Trading Gain/Loss is $0?

Basically i'm trying to ask: Can this system be traded without trying to make money trading but solely for the Interests Gains.

 

[Remiraz]

Quote from ElectricSavant:


P.S. This would be one of the system I run in FXGame to identify real trades in FXTrade. There are many uses that simulators provide. They are great to signal real trades, if you wanted to use this system just to trade and not collect interest.

With regards to the trading aspect of this system.

I assume you meant:

FXGAME

Pair 1 Up
Pair 2 Down
Pair 3 Down

FXTRADE

Pair 1 : Enter Long

Right?