**Hello everybody,**

Today I want to waste your time with my idea of codding EA for mt4 based on my strategy. It is kind of statistical arbitrage but based on my previous research, study, trading and so on. I am using some kind of this strategy for trading stock pairs (so fair profitable) and now I want to code an EA for automatic trading on forex (MT4 or MT). So here is the idea:

**Standard deviation on high correlated pairs**

To start, I want to trade two high correlated pairs against each other. I am thinking about AUD/USD vs. NZD/USD (also wti crude vs. Brent crude is possible). The whole idea is based on selling one pair and buying another one.

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Maybe someone of you remember sfdisparity are somewhere here on the forum. I dont know how it works, but my EA should be little different. It will be not trading gaps we see on the screen when we put two graphs together. It should sell one and buy another one when the ratio of AUD/USD price and NZD/USD price is higher or lower than 1.5 x their standard deviation.

For better understanding look at this example.

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This example is based only on one month daily prices of AUD/USD and NZD/USD. As we can see, I want to enter when ratio reached 1.5 x standard deviation above the median ration. Then I want to sell Aud/Usd and buy Nzd/Usd. Exit is based, when ratio reach median value. Also another stiuation is, when ratio reached 1.5 x standard deviation under median ratio value. Then I would like to buy Aud/Usd and sell Nzd/Usd. Also I will not buy same value of each trade. In first trade AudUsd price is 0.74700 and NzdUsd price is 0.69970, so I will sell for example 10 lots of AudUsd and buy 10.68 lots of NzdUsd.

It is just a simple example, to show the idea. And now I want to ask you all of the experienced traders, some important points:

- What do you think? Is it possible to trade this way?

- Isnt it just trading Aud/Nzd?

- Is the calculation of ratio based on AudUsd /NzdUsd right?

- Is the idea of different value of trades right?

Fell free to ask anything you want. My native language is not English, so if you find some misunderstanding or mistakes excuse me.

Thanks Ondrej