Once again, arbitrage, pair trading. - page 6

 
Maxim Dmitrievsky:

Well there are no miracles, about the same, around 100 p. I could try a non-linear model, NS or something else, then I'll try


Here's a beauty !!!!!!!!!

Only not 100 pips, but over 2000.

and proof that there is NO spread at all!
 
Renat Akhtyamov:

Here's the beauty !!!!!!!!!

only it's not 100 points, it's over 2000.


yeah, 200 on the 4 digits :) it then leveled off to 100

 
Maxim Dmitrievsky:

Yes, 200 in the 4 digits :) it was then levelled off to 100

2,000 on the 4, 20,000 on the 5!
 
Renat Akhtyamov:
2,000 on the 4 digits, 2,000!

I have 1100. But there is a small margin of error on different DTs.

As far as I remember there was a movement with a huge spread, somewhere in the region of 500pp, the movement was not clean, but it was because of spread widening, as if the main currency price quote was glitched somewhere

 
Renat Akhtyamov:
2000 on the 4 digits, 2000!

here on the chart... it looks like 30p to me :)

I'm talking specifically about the deviation from the basket, not the absolute. But you have to check everything through the TS.


 
Maxim Dmitrievsky:

on the chart here... it looks like 30p to me :)

Yes you have the colours mixed up.

The pound is going orange, and by the definition of pair trading, it was below zero and should have been bought.

 
Renat Akhtyamov:

Your colours are mixed up.

The pound is going orange, and by the definition of pair trading, it was below zero and should have been bought.


I.e. if we had sold something on top of it, the deviation would not have been so weird, e.g. NZDUSD green

GBP red, EURUSD orange.

Snapshot of the colours is not correct )

 
Maxim Dmitrievsky:

I.e. if we sold something on top of that, the deviation would not be so huge, e.g. NZDUSD green

GBP red, EURUSD orange.

It cannot be.

The other pairs did not shake out when the pound fell under the plinth.

Let's look at the picture again:

So the pound in your gif is orange

and it's down more than 1,000 4-points.

CONCLUSION: the spread does not exist at all!

 
Maxim Dmitrievsky:

I.e. if we sold something on top of it, the deviation would not be so huge, e.g. NZDUSD green

Pound is red, EURUSD is orange.

If I traded in that place with a stop, it would not be a stop loss, but a stop out, but with an increased risk, if the deposit is 100 quid, and the lot is 0.1.

In other words, you can't trade but any system will fail, it is the unpredictability of Forex.

I have already mentioned that trading with pairs is much safer than any other system.

And I already said that there was no signal for the pound in that place, and therefore there was no deal.

 
Vitaly Muzichenko:

If you trade in that place by the classical with a stop, it would work not stop, but stop-out, but with excessive risks, if the deposit of 100 quid, and the lot 0.1.

In other words, you can't trade but any system will fail, it is the unpredictability of Forex.

I have already mentioned that trading with pairs is much safer than any other system.

And I already said that there was no signal for the pound in that place, and therefore there was no deal.

The spread went on, just there was a signal to buy.