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Forex Math Rules

  • #61
  • Nov 3, 2017 7:01am Nov 3, 2017 7:01am
Quoting available
{quote} Is it somehow connected with arbitrage? I think efficient market won't leave such opportunities..
NO
no body mention arbitrage and will never be mentioned here

we speak about the holy rule of the market: prices
Forex Philosopher
  • #62
  • Nov 3, 2017 7:04am Nov 3, 2017 7:04am
the basic MOST holiest rule of the market is:

YYYXXX=YYYDDD/XXXDDD

Quoting Botan626
{quote} 1) GBPNZD = (1.3000+0.0130) / (0.7000+0.0070) = 1.85714 The rest is alike. Before GU and NU went up: GBPNZD = 1.3000 / 0.7000 = 1.85714, so the price for GBPNZD didn't change.
EXCELLENT
didn't change

WHY??

THE SMART TRADER SHOULD LOOK FOR THE EXTREME CASE () TO GET 299 PIPS IN ONE DAY WITH MINIMAL TIME.
Forex Philosopher
  • #63
  • Nov 6, 2017 6:02pm Nov 6, 2017 6:02pm
Quoting Master-Mind
the basic MOST holiest rule of the market is: YYYXXX=YYYDDD/XXXDDD {quote} EXCELLENT didn't change WHY?? THE SMART TRADER SHOULD LOOK FOR THE EXTREME CASE () TO GET 299 PIPS IN ONE DAY WITH MINIMAL TIME.
Multiplication Pairs like: GBPCHF = GBPUSD * USDCHF

Division Pairs like: GBPAUD = GBPUSD / AUDUSD

--
for Division pair:

assume you have 17.0/23.0 = ?? = 0.73913

what happen if you increased Nominator by 1.7 and you want to keep the same result 0.73913 (no change)

ans: simply add 2.3 to denominator

(17)/(23) = (17+1.7)/(23+2.3) = (18.7)/(25.3) = 0.73913

in other way, discarding complications, we multiply numerator by 10%, and do the same thing for denominator
Forex Philosopher
  • #64
  • Nov 6, 2017 6:03pm Nov 6, 2017 6:03pm
so 130 pips movement of GBPUSD = 70 pips of NZDUSD

non-dollaric GBPNZD is the barometer of both dollacic-pairs

u can roughly say also it is a pedometer,

Division Pairs are simple mathematically

but Multiplication Pairs are a little bit more difficulty
Forex Philosopher
  • #65
  • Nov 6, 2017 6:11pm Nov 6, 2017 6:11pm
Quoting Master-Mind
but Multiplication Pairs are a little bit more difficulty
what is the equation to keep GBPCHF constant if one of dollaric-pairs move by P1 pips??

So we need GBPCHF1=GBPCHF2 ??

YYYXXX = YYYDDD*DDDXXX
YYY=GBP
DDD=USD
XXX=CHF

so:
GBPCHF=GBPUSD*USDCHF
Forex Philosopher
  • #66
  • Nov 6, 2017 6:17pm Nov 6, 2017 6:17pm
GBPCHF1=GBPUSD1*USDCHF1
GBPCHF2=GBPUSD2*USDCHF2

GBPUSD2=GBPUSD1(1+P1)
USDCHF2=USDCHF1(1+P2)

So: for GBPCHF1=GBPCHF2 ??

GBPUSD1*USDCHF1=GBPUSD1(1+P1)USDCHF1(1+P2)

(1+P1)(1+P2)=1
P1+P2+P1P2+1=1
P1+P2+P1P2=0

if we know P1, then P2 should be:

P2(1+P1)=-P1

P2 = (-P1)/(1+P1)
Forex Philosopher
  • #67
  • Nov 6, 2017 6:24pm Nov 6, 2017 6:24pm
Quoting Master-Mind
{quote}
for Division pair: assume you have 17.0/23.0 = ?? = 0.73913
what happen if you increased Nominator by 1.7 and you want to keep the same result 0.73913 (no change)
ans: simply add 2.3 to denominator (17)/(23) = (17+1.7)/(23+2.3) = (18.7)/(25.3) = 0.73913
in other way, discarding complications,
we multiply numerator by 10%, and do the same thing for denominator
Proof:

GBPNZD1=GBPUSD1/NZDUSD1
GBPNZD2=GBPUSD2/NZDUSD2

GBPUSD2=GBPUSD1(1+P1)
NZDUSD2=NZDUSD1(1+P2)

So: for GBPNZD1=GBPNZD2 ??

GBPUSD1/NZDUSD1=GBPUSD1(1+P1)/NZDUSD1(1+P2)
1/1=(1+P1)/(1+P2)
P1=P2
e.u. the same percentage
convert to pips
Forex Philosopher
  • #68
  • Nov 6, 2017 6:28pm Nov 6, 2017 6:28pm
or you can calculate for pips directly,


GBPNZD1=GBPUSD1/NZDUSD1
GBPNZD2=GBPUSD2/NZDUSD2

GBPUSD2=GBPUSD1+P1
NZDUSD2=NZDUSD1+P2

So: for GBPNZD1=GBPNZD2 ??

GBPUSD1/NZDUSD1=(GBPUSD1+P1)/(NZDUSD1+P2)
GBPUSD1(NZDUSD1+P2)=(GBPUSD1+P1)NZDUSD1

GBPUSD1*NZDUSD1+P2*GBPUSD1 = GBPUSD1*NZDUSD1+P1*NZDUSD1


P2*GBPUSD1 = P1*NZDUSD1
P1/P2 = GBPUSD1/NZDUSD1 = GBPNZD1

P1 = P2 * GBPNZD

that mean: if NZDUSD GOES UP BY 1 pips, GBPUSD must goes up by pips equal to price of GBPNZD (now 1.9 pips)

so strength of 1 pip on NZDUSD = strength of 1.9 pip on GBPUSD

FINISH
Forex Philosopher
  • #69
  • Nov 7, 2017 2:19am Nov 7, 2017 2:19am
Quoting Master-Mind
or you can calculate for pips directly, GBPNZD1=GBPUSD1/NZDUSD1 GBPNZD2=GBPUSD2/NZDUSD2 GBPUSD2=GBPUSD1+P1 NZDUSD2=NZDUSD1+P2 So: for GBPNZD1=GBPNZD2 ?? GBPUSD1/NZDUSD1=(GBPUSD1+P1)/(NZDUSD1+P2) GBPUSD1(NZDUSD1+P2)=(GBPUSD1+P1)NZDUSD1 GBPUSD1*NZDUSD1+P2*GBPUSD1 = GBPUSD1*NZDUSD1+P1*NZDUSD1 P2*GBPUSD1 = P1*NZDUSD1 P1/P2 = GBPUSD1/NZDUSD1 = GBPNZD1 P1 = P2 * GBPNZD that mean: if NZDUSD GOES UP BY 1 pips, GBPUSD must goes up by pips equal to price of GBPNZD (now 1.9 pips) so strength of 1 pip on NZDUSD = strength of 1.9 pip on GBPUSD FINISH
Hello,

Really, itīs a MASTER !

  • #70
  • Nov 8, 2017 11:08am Nov 8, 2017 11:08am
Quoting LuizSchiavi
{quote} Hello, Really, itīs a MASTER !
Thx. that is true

I have an exclusive right on mastery
Forex Philosopher
  • #71
  • Feb 8, 2018 7:07pm Feb 8, 2018 7:07pm
any "no question" ?
Forex Philosopher
  • #72
  • Mar 13, 2018 8:09am Mar 13, 2018 8:09am
Hello Master-Mind,
Absolutely interesting topic ! Bravo
Any trick to build the pair "XAU/EUR or EUR/XAU" with only (MT4) EUR/USD and XAU/USD ?
Mpo
  • #73
  • Mar 20, 2018 10:52am Mar 20, 2018 10:52am
Quoting Master-Mind
any "no question" ?
question for what?? you've already answered all the questions possible in this universe with your account.
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  • #74
  • Mar 20, 2018 1:30pm Mar 20, 2018 1:30pm
Quoting keyo
{quote} question for what?? you've already answered all the questions possible in this universe with your account. {image} {image}
Also was answered, Do not hate RED. some people show them only RED as an expelling element.

Quote
Hello Master-Mind,
Absolutely interesting topic ! Bravo
Any trick to build the pair "XAU/EUR or EUR/XAU" with only (MT4) EUR/USD and XAU/USD ?
Mpo
Good Question.
Display_Click do the job, for any pair, any index, any share.
XAU: Denominator.
EUR: NUMERATOR.
you want to remove EUR ----XAUD in AUD----simply change EUR to AUD through relation EURAUD.

XAU/EUR = XAU/(1 EUR) = XAU/(EURAUD AUD) = . . . X/AUD*(AUD/AUD)*1/EUR = XAUD/EUR shit!!
Forex Philosopher
  • #75
  • Mar 23, 2018 12:03am Mar 23, 2018 12:03am
Quote
Good Question.
Display_Click do the job, for any pair, any index, any share.
XAU: Denominator.
EUR: NUMERATOR.
you want to remove EUR ----XAUD in AUD----simply change EUR to AUD through relation EURAUD.

XAU/EUR = XAU/(1 EUR) = XAU/(EURAUD AUD) = . . . X/AUD*(AUD/AUD)*1/EUR = XAUD/EUR shit!!
sorry brother, useless people confuse us!

it is very simple, your problem with EUR, you want USD.

Simply: 1 EUR = EURUSD USD
so:
XAU/EUR = (XAU/EURUSD)/USD
Forex Philosopher
  • #76
  • Last Post: Jun 9, 2018 8:42pm Jun 9, 2018 8:42pm
Quoting Master-Mind
GBPUSD on x-axis USDCHF on y-axis GBPCHF on z-axis {image}
Hi MasterMind:

What software did you use to plot this graph and produce the image?

Thanks in advance.
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