Basic Triange Arbitrage

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Here's one method you hedging in forex transactions.

1.Tidak all pairs in the Triangle can be used to arbitrage trading

2. Use the following pairs, others please test yourself
- Long EUR / USD&USD/CHF-----> basket 1
- Short EUR / USD&USD/CHF-----> basket 2
- Long GBP / USD&USD / CHF
- Short GBP / USD&USD / CHF
- Long EUR / USD&GBP / USD
- Short EUR / USD&GBP / USD

How to use:
1. OP single entry Long EUR / USD&USD / CHF unison, without SL
2. as Multiply entry
3. The third pair as a 'fire brigade'
============ ========= ========= ========= =======
Tracking correlation profit trade:
- 2 pair as a whole (at entry and at exit), not
SL needs to exist, having been protected by another pair though not
perfect hedging

- Pseudo hedging, pairs should follow the trend to unity as OP OP
usual (via the indicator masing2), another pair should resist the trend (one
red, one green) --- monitor P / L its course

- Entry strategy masing2 wear indicator which is very familiar, or
wear naked chart, pairs 2 pairs in MT4 Window, there will
look,,,,, pair a ride, the second pair also increases or vice versa

- Take profit strategy:
----- One red, one green ---- P / L may be harvested green ...
----- One red, one green ---- P / L red .... leave until the P / L green

2 pair red ----- if ?======= ===

---- How to help the 2 pairs of red:

Add a third Pairs OP (taken from the correlation triangle) for
interventions so that the P / L red to green or breakeven MINIMAL

- Added advantage of individual third pair, if P / L red and are willing buru2
Breakeven or harvest

Example:
Sell 0.1 lot EUR/USD------red
Sell 0.1 lot USD/CHF------red
--- Tsmbah to 3 positions
0.1 lot buy GBP / USD

Example:
Sell 0.1 lot of EUR / USD (1.5921) green ------
0.1 lot sell EUR / CHF (0.8886-red )----
------------ ------ P / L red

a few days later, plus 2 pair for Rescue
Sell 0.1 lot of EUR / USD (1.5468)
0.1 lot sell EUR / CHF (1.0528)
------- Total P / L will be green

Excerpted from Live Webinar: Correlation trading

PS. It's just dasar2 correlation trading to hunt and Pip
help position the 'sick'

 

Pair Correlation Tables List

> AUDCAD CADJPY AUDJPY
> AUDCAD EURCAD EURAUD
> AUDCAD GBPCAD GBPAUD
> AUDCAD AUDUSD USDCAD
> AUDCHF CHFJPY AUDJPY
> AUDCHF EURCHF EURAUD
> AUDCHF GBPCHF GBPAUD
> AUDCHF USDCHF AUDUSD
> AUDJPY CADJPY AUDCAD
> AUDJPY CHFJPY AUDCHF
> AUDJPY EURJPY EURAUD
> AUDJPY GBPJPY GBPAUD
> NZDJPY AUDJPY AUDNZD
> AUDJPY USDJPY AUDUSD
> EURNZD AUDNZD EURAUD
> AUDNZD GBPNZD GBPAUD
> AUDNZD NZDUSD AUDUSD
> EURUSD AUDUSD EURAUD
> GBPAUD GBPUSD AUDUSD
> AUDUSD USDCAD AUDCAD
> AUDCHF USDCHF AUDUSD
> USDJPY AUDUSD AUDJPY
> CADJPY AUDJPY AUDCAD
> CADJPY EURJPY EURCAD
> CADJPY GBPJPY GBPCAD
> CADJPY USDJPY USDCAD
> CHFJPY AUDJPY AUDCHF
> CHFJPY EURCHF EURJPY
> CHFJPY GBPJPY GBPCHF
> EURAUD AUDCAD EURCAD
> EURAUD AUDCHF EURCHF
> EURAUD AUDJPY EURJPY
> AUDNZD EURAUD EURNZD
> EURAUD EURUSD AUDUSD
> EURAUD GBPAUD EURGBP
> EURCAD AUDCAD EURAUD
> EURCAD CADJPY EURJPY
> EURCAD GBPCAD EURCAD
> EURCAD USDCAD EURUSD
> EURCHF AUDCHF EURAUD
> CHFJPY EURCHF EURJPY
> GBPCHF EURCHF EURGBP
> EURUSD USDCHF EURCHF
> EURGBP GBPAUD EURAUD
> EURGBP GBPCAD EURCAD
> GBPCHF EURGBP EURCHF
> EURGBP EURJPY GBPJPY
> EURGBP GBPNZD EURNZD
> EURUSD GBPUSD EURGBP
> EURJPY AUDJPY EURAUD
> EURJPY CADJPY EURCAD
> CHFJPY EURCHF EURJPY
> EURJPY GBPJPY EURGBP
> EURJPY NZDJPY EURNZD
> EURUSD USDJPY EURJPY
> EURNZD AUDNZD EURAUD
> EURNZD GBPNZD EURGBP
> EURNZD NZDJPY EURJPY
> EURNZD NZDUSD EURUSD
> EURUSD AUDUSD EURAUD
> EURUSD GBPUSD GBPUSD
> EURUSD NZDUSD EURNZD
> EURUSD USDCAD EURCAD
> EURUSD USDCHF EURCHF
> EURUSD USDDKK EURDKK
> EURUSD USDJPY EURJPY
> EURUSD USDNOK EURNOK
> EURUSD USDSEK EURSEK
> GBPAUD AUDCAD GBPCAD
> GBPAUD AUDCHF GBPCHF
> GBPAUD AUDJPY GBPJPY
> GBPAUD AUDNZD GBPNZD
> GBPAUD GBPUSD AUDUSD
> GBPAUD EURAUD EURGBP
> GBPCAD AUDCAD GBPAUD
> GBPCAD CADJPY GBPJPY
> GBPCAD EURCAD EURGBP
> GBPCAD USDCAD GBPUSD
> GBPCHF AUDCHF GBPAUD
> GBPCHF CHFJPY GBPCHF
> GBPCHF EURCHF EURGBP
> GBPCHF USDCHF GBPUSD
> GBPJPY AUDJPY GBPAUD
> GBPJPY CADJPY GBPCAD
> GBPJPY GBPCHF CHFJPY
> EURJPY GBPJPY EURGBP
> GBPJPY NZDJPY GBPNZD
> GBPJPY GBPUSD USDJPY
> GBPNZD AUDNZD GBPAUD
> GBPNZD EURNZD EURGBP
> GBPNZD NZDJPY GBPJPY
> GBPNZD NZDUSD GBPUSD
> GBPUSD AUDUSD GBPAUD
> EURUSD GBPUSD EURGBP
> GBPUSD NZDUSD GBPNZD
> GBPUSD USDCAD GBPCAD
> GBPUSD USDCHF GBPCHF
> GBPUSD USDJPY GBPJPY
> NZDJPY AUDJPY AUDNZD
> NZDJPY EURJPY EURNZD
> NZDJPY GBPJPY GBPNZD
> NZDJPY USDJPY NZDUSD
> NZDUSD AUDUSD AUDNZD
> NZDUSD EURUSD EURNZD
> NZDUSD GBPUSD GBPNZD
> NZDUSD NZDJPY USDJPY
> AUDUSD USDCAD AUDCAD
> CADJPY USDCAD USDJPY
> EURCAD USDCAD EURUSD
> GBPCAD USDCAD GBPUSD
> AUDCHF USDCHF AUDUSD
> CHFJPY USDCHF USDCHF
> EURUSD USDCHF EURCHF
> GBPCHF USDCHF GBPUSD
> USDDKK EURDKK EURUSD
> USDJPY AUDUSD AUDJPY
> CADJPY USDJPY USDCAD
> CHFJPY USDJPY USDCHF
> USDJPY EURJPY EURUSD
> USDJPY GBPJPY GBPUSD
> USDJPY NZDUSD NZDJPY
> USDNOK EURNOK EURUSD
> USDSEK EURSEK EURUSD


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2 comments

  1. Unknown Said,

    Traders are taught that the Holy Grail to Investing doesn't exist. Real people were taught that all the planet's move about the earth, don't go to far out into the ocean(you'll fall off the earth), on and on..........

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    Thomas Adair
    thomasadair@live.com

    Posted on April 4, 2010 at 11:07 PM

     
  2. Anonymous Said,

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    Posted on March 11, 2012 at 11:01 AM