Here is a tool that I came up with a while back that helps determine the best way to enter into a position by creating synthetic alternatives. You can also use it to create market neutral carry trades (risk free profits), although at the retail level the spreads are quite thin (In most cases the carrying cost are more expensive than the transactional).
Its based on some work I did a while ago for a few market makers that were looking for more creative ways to pass on risks. Essentially these methods allow them to hold a larger book without any increased counter party risks. However, if the traders start using the same tools...you can level the playing field. Or in the case of the carry trade, slowly drain the market makers bank accounts...
Added ver_2
Its based on some work I did a while ago for a few market makers that were looking for more creative ways to pass on risks. Essentially these methods allow them to hold a larger book without any increased counter party risks. However, if the traders start using the same tools...you can level the playing field. Or in the case of the carry trade, slowly drain the market makers bank accounts...
Added ver_2
Attached File(s)
Triangular Scalper v_01.ex4
17 KB
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1,915 downloads
Kurka - Arbitrage Dashboard v_02.ex4
20 KB
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1,717 downloads
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Uploaded Sep 7, 2010 9:31pm
Keep it simple stoopid....