Circle

Everyone is looking for a system which would help him predict market movements. Most of traders wish to know how the chart will look like in the near future, or what price particular pair will reach after publication.. But does anyone wondered if there is a system that works without looking on the chart, without checking calendar?

How about buying and selling a currency at the same time? Lets imagine a Circle
GBP/USD long - buy gbp - sell usd
EUR/GBP long - buy eur - sell gbp
EUR/USD short - buy usd - sell eur

Open a demo account and find out what will happen. You can't make a loss! And you didn't pay attention to anything. You simply pressed BUY twice and SELL once.

Now you must thinking ' how would I make a profit with it? '

Do you have any ideas?

This would be like a multi-hedge, isn´t?

what about taking swap and spread into account? if you put all the trades in at one time, you will automatically be down 2 pips on ERUSD, 3 on GBPUSD, and 2 on ERUGBP which really is like 4 because of double pip cost. you are essentially negative 9 pips right off the bat. and you wont be able to make that up. also take into account swap. negative swap always outways positive swap. usually by 1.5 to 2 times. this little tri-hedge of yours would either give you a large negative roll, or very small positive roll depending on broker/time of day. a guy i worked with studied triangle arbitrages for about 6 months. he even tried expanding to 4 and 5 pairs with the idea that if you can succesively cancel out all the pairs involved and choose pairs and directions that will generate positive roll or swap, you can make money. but you dont. it doesnt work. swap fluctuates too much and with the differences between interest rates and pip cost, the pairs actually start to move apart, leaving you un-hedged. this could net a profit, but usually becomes negative. you would have to constantly calculate and re-enter trades or adjust amounts for EVERY TICK in order to stay perfectly hedged. which is impossible to do without a computer. it also racks up a massive amount of spread which is considered losing.

so no, it doesnt work and you cant make a profit from it.

I expected such reply. I assure you Im aware of everything you have mentioned.

One more clue.

Now imagine that you enter 3 positions instantly and you put number of pending orders with the same distance from each other, applied to each pair, and of the same direction as the instant ones.

why enter the first trades at all then? why not just have an imaginary hedge point, and only place the pending orders. the whole arbitrage thing is irrelevant if you are just going to place pending orders in the hope that one of the three pairs will trigger one.

I dont want to put here a few rules of this basic idea and simply let you trade. I dont want to be a famous forum member also. Someone said 'if trading is simple, everyone would be doing it'. Trading is simple. I just dont want everyone doing it. I want you to make some effort, before knowing everything about it.

Answer to your question, blacksun1 is simple. But rather just telling you what it is, Im giving you a clue: Bill Lipschutz.

first off, im NOT interested in your "system," i'm interested in making sure you dont bullshit some guy into losing his account because of absolutely ridiculous claims of success.

triangle arbitrages DO NOT WORK EVER!!!!!!!! you have to constantly update and arrange positions and pairs, which eats up any profit you make by throwing a metric ton of pip spread at it.

stop trying to be a cryptic mystic guru and either spill the beans on your take of something thats been around since ghengis khan was playing with a rattle, or just drop it.

How it may work? In my opinion it can't work. All positions would cancel eash other leaving 'zero' profit.