More begginner CHF/JPY questions

HATEtheRisk · Aug 27, 2011

Quote from atticus:

The point is that there are constraints related to the 3-way arbitrage. It's not simply that they're loosely correlated like Oil and the SPX, or DAX and FTSE. Just realize that your missive has absolutely nothing to do with the movement in the pair.

I understand your point. But i dont think you got it what i meant before in my post to oldman. Of course you can not say that CHFJPY will move just because USDJPY + USDCHF are moving.
But i am talking from my technical view and experience, you could say it is already a part of my trading strategy, that if i have a certain pattern on USDJPY, so most time there is the same on USDCHF, so check CHFJPY there should be also some kind of pattern.
If the USDJPY have started and the USDCHF not, i wait for entry on USDCHF, it will come so long the USD go on. and then the same for CHFJPY.

thats what i meant. thats just what i see every day, and how i am able to maximize my daily profits, by switching one positions to another trade and so on.

What else could i do as a no institutional 1 person trader.

thanks

HATEtheRisk · Aug 27, 2011

Quote from atticus:

You don't need institutional access. I have quotes from IB feeding excel and calculating the synthetics in r/t. It's computationally-insignificant. You just should know how to derive synthetics, not price them all the time.

Very interesting.
So you trade synthetics ? Is it worth all the work ?

I think i dont need that, to complicated. I like it easy.
I just trade the pair how it is.

Until i dont trade institutional volume and want to enter order with billions over billions, i dont need that.
And maybe then, i just could trade on a longer term strategy and wait for the volume on the market i want for getting in and out, step by step.

But very interesting.

Thanks

atticus · Aug 27, 2011

Quote from HATEtheRisk:

Very interesting.
So you trade synthetics ? Is it worth all the work ?

I think i dont need that, to complicated. I like it easy.
I just trade the pair how it is.

Until i dont trade institutional volume and want to enter order with billions over billions, i dont need that.
And maybe then, i just could trade on a longer term strategy and wait for the volume on the market i want for getting in and out, step by step.

But very interesting.

Thanks

I quote synthetics in case the (synthetic) is cheaper than the natural. It also helps you to realize what is driving the pair (i.e., is the swiss weak or the yen strong?).

HATEtheRisk · Aug 27, 2011

Quote from atticus:

I quote synthetics in case the (synthetic) is cheaper than the natural. It also helps you to realize what is driving the pair (i.e., is the swiss weak or the yen strong?).

cool

HATEtheRisk · Aug 27, 2011

Quote from atticus:

I quote synthetics in case the (synthetic) is cheaper than the natural. It also helps you to realize what is driving the pair (i.e., is the swiss weak or the yen strong?).

now you got my interest.

are the money you can safe with that, so much significant ?
and how many times it happens ? Makes it the difference for you ?

I have to pay costs all the time, spread, not the best entry price but still okay for entry, swaps, commissions and now synthetic possilbe costs. Oh my god.