Why do prices move in the same direction but with a lag on correlated instruments? - page 4

 
prostotrader #:

You're beautiful!

Strong knowledge!

FOREX differs from FOREX in that on FOREX you trade with a DC computer, and on the exchange you trade with real opponents!

Individual, Bank, Entity.

Yes! Very strong knowledge. I give you a standing ovation.

 
Vitaly Muzichenko #:

I've been doing correlation since 2015, the first 2 years were very bad and unstable until I realised the whole point.

What subtraction, it's not like that at all?

Now some more people will come and tell me that there is no correlation in forex. Well, let it be so, no means no.

If you do something for a long time, you can find something that others do not see. Everything is there if you look for it right. The only question is how to look for it. Share your experiences, it's interesting. I understand that it doesn't work out of the box.
 
Dmitry Fedoseev #:

Yes! Very strong knowledge. I give you a standing ovation.

You can still jump.

 
Vitaly Muzichenko #:

I've been doing correlation since 2015, the first 2 years were very bad and unstable until I realised the whole point.

What subtraction, it's not like that at all?

Now some more people will come and tell me that there is no correlation in forex. Well, let it be so, no means no.

Vitaly!

Do not get upset! You are doing well so far, and all in all, but...

Pairwise trading (according to your correlation) is valid only on the symbols from one industry.

For example Lukoil and Rosneft.

In your case, the FOREX pairs are not instruments from the same industry, even though they are both currencies.

The thing is that the value of different currencies depends on different factors, e.g. the Australian dollar strongly depends on the price of gold.

That's why it's very difficult to account for pairs in the FOREX market.

It is much safer to trade synthetics on the FOREX, i.e. to form an artificial instrument from the other two against the original.

 
prostotrader #:

Vitaly!

Don't get upset! You are doing well so far, and all in all, but...

Pairwise trading (according to your correlation) is valid only on the symbols from one industry.

For example Lukoil and Rosneft.

In your case, the FOREX pairs are not instruments from the same industry, even though they are both currencies.

The thing is that the value of different currencies depends on different factors, e.g. the Australian dollar strongly depends on the price of gold.

That's why it's very difficult to account for pairs in the FOREX market.

It is much safer to trade synthetics on the FOREX, i.e. to form an artificial instrument from the other two against the original one.

I don't understand anything at all, can you give a simple example?

 
Vitaly Muzichenko #:

I don't get it at all, can I give you a simple example?

Lukoil and Rosneft are both oil producers and refiners, hence

external factors, economic and political, will affect them in the same way (in general).

There will still be a delta correlation because the assets and capabilities of these companies are different, but

the probability of an average delta is much higher than if you take Rosneft and Gazprom.

So your earnings, your return to the average, the correlation of the instruments is very high.

Thus, your earnings are most likely.

On the FOREX, instrument pricing may have nothing to do with economic or political factors.

 
prostotrader #:

You can also jump around.

And bang a drum?

 
Dmitry Fedoseev #:

What about banging a drum?

A tambourine, please.

And in general, Dimitri, from a respectable man, here on the forum, you have descended into parsley!

 

The problem is not that there is no correlation, there just is. Where can it go? The problem is that it is not clear who is leading who, the leader changes.

 
prostotrader #:

Tambourine, please.

And in general, Dimitri, from a respectable man, here on the forum, you've descended into parsley!

Well set it up.