DislikedHello
I have read 65 pages of main thread and i'm amazed with this system. I'm studding econometrics and statistics and I've been trying to spot some corelations and volatility at the market. Baskets created by trader101 are great. Currencies inside them sometimes are uncorrelated or even oposite corelated and still this setup of 7+7 works! This is the adventage of experience rather that simple calculations.
After reading half of the thread i've been able to predict the curent long movement much faster than the ProfitCalc. It proved me that i finnaly I understood heart of this system.
Since today i'll be trying (as my university research) to build perfectly -1 corelated baskets. I'll test currencies with MGARCH process and prove it's existence. After that, pure APT strategy will be able to use. If above setup exists it would be true brakethrough in forex trading especially for hedge funds and big companies. It'll take probably few months but if'll success, the outcome can is unbelievable.
I'll try to post regulary from now at this thread and cooperate with you guys and also share my results. It's possible that i'll have to build huge baskets (maybe 15+15) to elliminate variation and changes in standard deviation to receive 95% p-value, and that's scary amount of calculations..
Anyway thanks for huge work trader101. It's what i was looking for a long time. It fully meets my expectations about any kind of market traiding.
B. Dudek vel MisiacykIgnored
Wow, what can i say...such a brilliant mind to take time and look to such an insignificant forex procedure and strategy whose only aim is to make some grocery money and gas for his suv. It was indeed very flattering that scholars and academician like yourself to shower me with such praises however, it makes my day. Any help you need you are most welcom shoud you need history data just say so. Again thanks for looking at this procedure.
On another note you mentioned about expanding the basket to 15 x 15, i dont really know what you are trying to achieve by this experiment but making a 15 currency of unhedge relationship might not work. If selected pairs are unhedge with experiments making 15 buy and 15 sell of the same currrncies is where most people made a mistake. Making this indication create a perfect equilibrium that profit summation become stagnant. As per my study, you must create a certain unbalance (hence the volume unbalance for perfect hedge) this unbalance will be your small sample of study. This small sample will be allowed to swing in a controlled situation and this is where i base my study or this is the heart of the system. If you are going make this equilibrium then it will defeat the purpose of making a weekly IA. It is like a pendulum that doesnt swing. I hope i have explain it well if you have question please PM as i do not want to bore the reader of the this stuff. Again thanks.
Cheers
Julius
