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. Anonymous Said,

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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