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DislikedIf we go long EUR/USD and short GBP/USD which direction are we trading EUR/GBP?
If we go short EUR/USD and long GBP/USD which direction are we trading EUR/GBP?
Thank you for helping me understand.Ignored
Dislikedtokyomaster, could you please explain the main concept of using CCI14 and CCI20. I can't get the idea of using that numbers.Ignored
DislikedIf you are Long EUR/USD Short GBP/USD => LONG EUR/GBP
If you are Short EUR/USD Long GBP/USD => SHORT EUR/GBPIgnored
DislikedOK, yes, I see now, that makes sense. How about if we go long EUR/JPY and short USD/JPY (or vice versa)? What are we trading then?Ignored
DislikedLong EUR/JPY and Short USD/JPY => LONG EUR/USD
Of course these are only close approximates for the equal position because if you are long 100000 EUR you will be short 13130000 JPY and if you are short 100000 USD you will be long 9920000 JPY leaving you out of balance slightly when compared to a straight LONG EUR/USD trade.
Hopefully this helps.Ignored
DislikedYou can easily build an EA for the GBPJPY/EURJPY hedge...
if CCI(GBPJPY,12) > CCI(EURJPY,20)
- SHORT GBPJPY
- LONG EURJPY
if CCI(GBPJPY,12) < CCI(EURJPY,20)
- LONG GBPJPY
- SHORT EURJPY
close on profit > x
if you want then i can build an EA to-do this in about 1 hour.Ignored
DislikedHere is a link to a thread started last year with the same or similar concept. There was a lot of work put into developing an EA and some indicators so take time to check it out if you are really interested in pursuing this. No need to reinvent the wheel.
http://www.forexfactory.com/showthre...light=zeusjoesIgnored
Dislikedweren't there a thread started by Spieler about a similar strategy involving eur/usd and usd/chf (both buy or sell of course) and things went awry ?
and that's involving the 2 pairs that have the tightest correlation (negative correlation in this case) so using eur/usd and gbp/usd should be much riskier ?
i'm certainly hoping Dreamliner or whoever can come up with a way to make this strategy work, maybe even with other pairs as long as it can work............no more headaches and heartbreaks then...........Ignored
DislikedThis method fails at some point with margin call because of de-correlation, divergence, spread, swap interest, ranging markets etc.Ignored
DislikedAfter hearing talk about a neutral hedge iundicator i came accross this indy..
http://preview.shareapic.net/preview5/015869039.jpg
Does anyone know what it does? Or better what does the returned number refer to..Ignored