A topic for traders. - page 143
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The main point is to make the recipient feel uncomfortable and frustrated and then offer a salutary solution.
Hit-and-run - pushback - pullback
This is where we chew on the granite of science!
That's not maths, that's some obscurantism 😒 at least read Wiki for starters, or any textbook.
Here is the formula. The formula calculates the ratio of the gain-minus the mean to the quadratic deviation. In simple words: if the correlation coefficient is 0.9, it means (conventionally) that the euro rises by 1000 pips, while the pound rises by 900 pips. To find the average value of the divergence, you need to multiply 0.1 by the quote, i.e. 1.2000. If the correlation is 0.9, the divergence will be 0.1*1.2000=1200 pips. Vitaly's loss may be 1200 pips. You can't trade on correlation! I have a university degree in economics. I studied higher mathematics and mathematics in economics. We did correlation at the university.
Noooooo....
Pretty much everything but the underlined one is no
Here's the formula. The formula calculates the ratio of the gain-minus the mean-to the squared deviation. In simple words: if the correlation coefficient is 0.9, it means (conventionally) that the euro rises by 1000 pips, while the pound rises by 900 pips. To find the average value of the divergence, you need to multiply 0.1 by the quote, i.e. 1.2000. If the correlation is 0.9, the divergence will be 0.1*1.2000=1200 pips. Vitaly's loss may be 1200 pips. You cannot trade by correlation! I have a college degree in Economics. I studied higher mathematics and mathematics in economics. We studied correlation at university.
Let's put it this way: you can't trade (and correlation) with a degree in economics. Hint: successful trading is about what you don't learn in higher education, and partly contradicts the
Here's the formula. The formula calculates the ratio of the increment -minus the mean to the standard deviation. In simple words: if the correlation ratio is 0.9, it means (conventionally) that the euro dollar is up by 1000 pips, the pound dollar is up by 900 pips. To find the average value of the divergence, you need to multiply 0.1 by the quote, i.e. 1.2000. If the correlation is 0.9, the divergence will be 0.1*1.2000=1200 pips. Vitaly's loss may be 1200 pips. You cannot trade by correlation! I have a college degree in Economics. I studied higher mathematics and mathematics in economics. We studied correlation at university.
Didn't study well 😏
But counting on correlation really isn't worth it.
This is a question for Mr. Muzichenko, however, as I understand it, he refused to comment on the losses.
From the point of view of strategy analysis in general, the question should be: whether the strategy is able to mainly cover losses with profits in the long term and why.
To be fair, some articles about spread trading don't have anything about stop losses either) Maybe that's one of the rules of this club)
To be fair, in some articles about spread trading there is nothing about stop-losses either) Probably, this is one of the rules of this club).
I'll add in confidence, regarding "those very articles" - stops are there and deterministic, and it should be noted also that the methodology has improved since then ...
Without stops it's the way to the plant of course to the coke oven factory 🙂
I am afraid that some of the characters here have choked on them).
I might add that sometimes myths even more absurd and naïve than what slips through the forums like here about waves and other "market laws" are found in the corporate environment.
Here is the formula. The formula calculates the ratio of growth-minus the average-to the quadratic deviation. In simple words: if the correlation coefficient is 0.9, it means (conventionally) that the euro rises by 1000 pips, and the pound rises by 900 pips. To find the average value of the divergence, you need to multiply 0.1 by the quote, i.e. 1.2000. If the correlation is 0.9, the divergence will be 0.1*1.2000=1200 pips. Vitaly's loss may be 1200 pips. You cannot trade by correlation! I have a college degree in Economics. I studied higher mathematics and mathematics in economics. We studied correlation at university.
There are opponents who do not need formulas or any evidence whatsoever. It is important for them to knock their opponent down with imaginary grandeur and the importance of eloquence, even if not always decent.
And if they expand, the loss of the deposit is assured. There is another unpleasant thing, that one can wait very long for the narrowing and the yield will be 3 roubles over the ocean.