Question on pair trading. - page 6
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That's why I have doubts about the advantage of trading in pairs. In the case of an erroneous pair entry you can wait for the currencies to converge for a long time (stop-loss waiting) or close on a stop-loss.
That's why I have doubts about the advantage of pair trading. In the case of an erroneous entry waiting for the currencies to meet, you can sometimes wait a long time (to outlive losses) or close by a stop loss.
This is not what it looks like. here is the graph from which we make our entry decisions.
The lines cut off one cca. Immediately you can see the drawdown. If you want to have many entries, then enter at the intersection of these lines and leave the required amount of drawdown in the account. In this case you know that in 65% of cases you will not have a drawdown. If you are not satisfied with such a strategy, then draw the line in 2co and enter at its intersection. Again you have a well predicted drawdown. The time of being in the market is also well visible on the chart. And since the series shown is stationary, there will always be a return to zero. By the way, the drawdown amount will not be as dramatic as on the chart since two tools are used in the BYE-SEEL mode.
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This is not what it looks like. here is the graph from which we make our entry decisions.
The lines cut off one cca. Immediately you can see the drawdown. If you want to have many entries, then enter at the intersection of these lines and leave the required amount of drawdown in the account. In this case you know that in 65% of cases you will not have a drawdown. If you are not satisfied with such a strategy, then draw a line in 2co and enter at its intersection. Again you have a well predicted drawdown. The time of being in the market is also well visible on the chart. And since the series shown is stationary, there will always be a return to zero. By the way, the drawdown amount will not be as dramatic as on the chart, since two tools are used in the BYE-SEEL mode.
Again strange graphs with no explanation......
Is this a chart of what? The balance of what?
Again strange charts with no explanation......
This is a graph of what? The rest of what?
I assume that the trend has been removed from EURGBP.
Here's something similar (formula in the additional window):
I assume that the trend is removed from EURGBP. The formula is in the additional window.
here is something similar:
Why then is the correlation close to unity at the place indicated by the arrows, when the spread is at its maximum? Or am I misunderstanding something? What is the correct way to use correlation for this purpose?
How was it rationed? Can I have a look at the code?
Probably because you are counting it by Pearson.
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That's not what it looks like. here's the chart we use to make our entry decisions.
I assume that the trend is removed from EURGBP.
here is something similar (formula in the additional window):
If it's just a detrended series, then why is he talking his cointegration nonsense?
Perhaps it builds a cross regression through a single currency pair. But this is nonsense even more - is he determining the cointegration of the regression and the series? Doesn't he realise that this is nonsense?
In short, posting a chart should at least explain it