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davidmaria1 · Jul 16, 2009

Quote from cabletrader:

So a kind of hedge? Something like short Eur/Usd and short Usd/Chf and hope they go out of sync in your favor?

How about triangular arbitrage, people say there aren't many opportunities any more, has anyone tried it lately?

Triangular arbitrage.
Like a "3 way"?
My wife said no.

r4Nd.m · Jul 16, 2009

As per mataf.net, Eurusd & Eurchf correlate at -98.8 on the hour & -95.8 on the daily, so really those pairs wouldn't be the best candidates.

cabletrader · Jul 16, 2009

Quote from davidmaria1:

Triangular arbitrage.
Like a "3 way"?
My wife said no.

LOLOL

Ah you missed your chance, your mother in law's gone home now!

I met an older woman at a bar last night, she wasn't bad for 57. After a few drinks we got to chatting about sex and she asked if I'd ever had a mother and daughter threesome? I said no. We drank a bit more, then she said that tonight was my lucky night! We went back to her place, she put the hall light on and shouted upstairs "mom, you still awake?"

cabletrader · Jul 16, 2009

Quote from r4Nd.m:

As per mataf.net, Eurusd & Eurchf correlate at -98.8 on the hour & -95.8 on the daily, so really those pairs wouldn't be the best candidates.

How about Eur/Usd and Usd/Chf, they're inversely correlated.

aiyah_mark_lah · Jul 17, 2009

Quote from cabletrader:

LOLOL

Ah you missed your chance, your mother in law's gone home now!

I met an older woman at a bar last night, she wasn't bad for 57. After a few drinks we got to chatting about sex and she asked if I'd ever had a mother and daughter threesome? I said no. We drank a bit more, then she said that tonight was my lucky night! We went back to her place, she put the hall light on and shouted upstairs "mom, you still awake?"

LOL ROFL

tradingkevin · Jul 17, 2009

LOL cabletrader.

davidmaria1 · Jul 17, 2009

Quote from cabletrader:

LOLOL

Ah you missed your chance, your mother in law's gone home now!

I just puked in my mouth.

As far as reverse correlation, my suggestion is AUD/USD-EUR/AUD.
Time frames seem to be important, as far as tolerance. The pairs sometimes move in the same direction (consolidation).

aceholic · Jul 17, 2009

Quote from tradingkevin:

Out of the following pairs:
AUD/USD
AUD/JPY
EUR/JPY
EUR/USD
GBP/JPY
GBP/USD
USD/CAD
USD/CHF
USD/JPY

I notice that from all those pairs many have the same chart structure i.e. 5 of them look the same : AUD/USD , AUD/JPY, EUR/JPY, GBP/JPY, USD/JPY

I personally decided not to trade them all but just pick one of them since they will moving in the same direction.

the other are not has much corrolated in price structure.
EUR/USD, GBP/CHF, GBP/USD, USD/CAD, USD/CHF

see the picture below

Do yourself a favor. Try putting the USD as the denominator in all charts where it's part of a pair (chart it as 1/USDCAD, 1/USDCHF, 1/USDJPY, EURUSD, GBPUSD, AUDUSD). Tell me what you see and which one stands out.

Then put JPY in the denominator of all your charts... that should be easy enough and take a look. The relationships tend to stand out a lot more when you do it that way.

How about triangular arbitrage, people say there aren't many opportunities any more, has anyone tried it lately?

The opportunity is always there. To do it, you have to be measuring your speeds to each leg in milliseconds. Or, you need to find someone else who's really slow... but you'd probably do just as well for less effort by picking them off in a standard like-for-like arbitrage.

increasenow · Jul 18, 2009

Quote from cabletrader:

There's a useful overlay tool for MT4 here, it's interesting to compare correlation over various time frames.

There are probably similar tools for other charting packages.

Apart from filtering out which pairs to trade, how else could it be used? Does any pair lead another pair often enough to be useful?

hey Cabletrader...how do you get this on IBFX MT4?...I downloaded it but does not show up on the trading plstform?...is it hidden somewhere on it?..what do I need to do to get this app on it?...thanks...

cabletrader · Jul 18, 2009

Quote from aceholic:

The opportunity is always there. To do it, you have to be measuring your speeds to each leg in milliseconds. Or, you need to find someone else who's really slow... but you'd probably do just as well for less effort by picking them off in a standard like-for-like arbitrage.

Thanks, it sounds like it's something more suitable for an automated system which can respond quicker.