Dear Spieler,
A few questions:
1) Why is it more important to hedge out $ exposure in the trade (1 lot EURUSD vs. 1.6 lots USDCHF) than to hedge out the difference in volatilities between EURUSD andUSDCHF?
2) What is the MM after 3 lots? ---You mentionedd the MM changes.
3) What do you think about what Pippopotamus wrote on p. 39, post #571?
I quote it:
"Using a regression channel with graduated standard deviation levels makes it clear when to establish/add to positions. I am using .75,1.5,2.25, and 3 SDs as points to establish/increase position sizes. Channel length is about 10 days on hourly chart. Entering at 1x,2x,4x,and 8x standard position size, respectively..."
4) Why is it important to keep track of the % decorrelation when youcan keepexact track of it in pips? (It ranges from day to day between 35-40 pips)
Thanks very much,
Lenoxer
A few questions:
1) Why is it more important to hedge out $ exposure in the trade (1 lot EURUSD vs. 1.6 lots USDCHF) than to hedge out the difference in volatilities between EURUSD andUSDCHF?
2) What is the MM after 3 lots? ---You mentionedd the MM changes.
3) What do you think about what Pippopotamus wrote on p. 39, post #571?
I quote it:
"Using a regression channel with graduated standard deviation levels makes it clear when to establish/add to positions. I am using .75,1.5,2.25, and 3 SDs as points to establish/increase position sizes. Channel length is about 10 days on hourly chart. Entering at 1x,2x,4x,and 8x standard position size, respectively..."
4) Why is it important to keep track of the % decorrelation when youcan keepexact track of it in pips? (It ranges from day to day between 35-40 pips)
Thanks very much,
Lenoxer