Zeusjoes Market-Neutral Hedge Strategy

Quoting mrkam

Disliked

Well, that is exactly the question we all have been working from post #1 !!

You are welcome to contribute and help as well.

The original ZeusJoe "indicator" was a demo account. Yep. He bought one, sold the other, and watched his net profit in the demo platform. Nothing fancy. If you look at the math, all that is showing us is pip by pip the net movement of the two strategies, from a given "ZeroPoint", or time. So Josef, nothing happend to the original method... it is what we are talking about and pursuing!! We are just addressing the math and methodology, that's all.

But that brought many questions. When do you take your demo positions? When do you enter? When do you exit...??

Is there an indicator that we can put on our trading platform to "see" this movement??... and that has given rise to a lot of contribution by SwingMan, Magic Trader, Guess and others... (heck, I even tossed in perhaps the simplest indicator of all, pure price difference between the currencies!!)

So we are getting there. It takes time to develop a system, especially when such "radically" new indicators are required... ultimately, it is hoped a workable EA can result, but the first step is to develop a quantitative way to represent the "two positions of ZuesJoe", define repeatable entry/exit rules for all market types, and code the effort.

Please stick around and help us!!

Ignored

Quoting magictrader

Disliked

Hello Eagle_eye,

everything will be easy if we will always picks tops and bottoms. In this strategie is the same. There is no guarantee that we will have some profit looking only which pair is overperformer and which is underperformer because it doesn't have to change. There could be all days that one pair will be overperform and second underperform and if your entry was too early (which you don't know at the beginning) then you will loosing. Now we know that our gains depends of cross pairs movements in maybe 90%. So point is, how do know which pair overperforming is ended and which underperforming is ended. In summary we are trying to predict where will cross pair go looking at connetions between two pairs.

Ignored

Quoting guess121

Disliked

Anyone know why my overlay is looking out of sync?

I am using the very first indicator that came out on this thread, with time and date.

Thanks,
Vip

Ignored

Quoting aleks760

Disliked

Hello,

fewhills

Thank you for your indicator.
I have a question, how can we change the green ad that appears as they are with you, lower right corner.

Ignored

Quoting Pippopotamus

Disliked

fewhills, I like your indicator. As I write, E/J is nearly +3 standard deviations above median line on hrly chart with 5 day look back on Linear Regression Channel. G/Y is between -1 standard deviation and the median line on same time frame with same look back period. Linear Regression Channell will clearly identify the overperformer/underperformer of the pairs. The E/J upward spike is the cause of current de-correlation. To arbitrate these pairs E/J should be sold and G/J should be bought, but only if current de-correlation is statistically significant. Can you program current LRC values of the pairs into your indicator? This will identify which of the pairs is to be bought, and which is to be sold. In short, what to trade. As to stastical significance of de-correlation...can you program LRC over your Price Divergence bars? With this addition we will better be able to determine stastically significant de-correlations. In short, when to trade. Pippo

Ignored

Quoting fewhills

Disliked

Set the date further in time, like end of July, but it also, as it seems, depends on TF.

Ignored

Quoting Pippopotamus

Disliked

I use Quotetracker for charting. Getting messege when I try upload...invalid file type. May I e-mail you the examples?

Ignored