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Nearly Naked (Simple Trades)

  • #3,461
  • Jun 13, 2010 4:32pm Jun 13, 2010 4:32pm
Quoting Saxon
Worst is when you are up like 15 on a scalp and right when you close your broker widens a 2 pip spread to 10. That happens more than I would like to admit. Like just now, all my orders were up net 27 when I entered close but when it finally closed I only net 13 Spread volatility
Oh crap! I haven't had that happen to me before. I can understand the frustration!
When this baby hits 88 miles per hour, you're gonna see some serious s***.
  • #3,462
  • Jun 13, 2010 4:32pm Jun 13, 2010 4:32pm
Quoting Saxon
Current spread on GU with FXCM 9
14 now
  • #3,463
  • Jun 13, 2010 4:32pm Jun 13, 2010 4:32pm
Quoting Saxon
Current spread on GU with FXCM 9
Hmm, mine is 4
When this baby hits 88 miles per hour, you're gonna see some serious s***.
  • #3,464
  • Jun 13, 2010 4:32pm Jun 13, 2010 4:32pm
Quoting Saxon
14 now
Robbery
  • #3,465
  • Jun 13, 2010 4:33pm Jun 13, 2010 4:33pm
Quoting Saxon
I hate opening spreads

you tried arbitage to beat the spreads?
  • #3,466
  • Jun 13, 2010 4:35pm Jun 13, 2010 4:35pm
Quoting Saxon
Robbery
Got out, not dealing with that sh*t. Turned on one of my other terminals, that has 2 other brokers. FXCM is not a scalp-friendly broker. Was up Net 37 at exit, closed out with roughly 20
  • #3,467
  • Jun 13, 2010 4:36pm Jun 13, 2010 4:36pm
Quoting swano
you tried arbitage to beat the spreads?
Talking about multiple broker feeds?
  • #3,468
  • Jun 13, 2010 4:41pm Jun 13, 2010 4:41pm
yeah

lagging price
only really good though for beating spreads

say the pice is 1.2 and you get a SUM OF 1.3 you kniow the price will go to 1.3 so you entre at 1.2

what you do is
GBP/JPY x USD/JPY = GBP/USD

times the currence prices and you get a lagging price by three pips or so
takes the edge off the spread a little
not enough to profit thou

sadly wish it was thou
  • #3,469
  • Jun 13, 2010 4:46pm Jun 13, 2010 4:46pm
Quoting swano
yeah

lagging price
only really good though for beating spreads

say the pice is 1.2 and you get a SUM OF 1.3 you kniow the price will go to 1.3 so you entre at 1.2

what you do is
GBP/JPY x USD/JPY = GBP/USD

times the currence prices and you get a lagging price by three pips or so
takes the edge off the spread a little
not enough to profit thou


sadly wish it was thou
I just compare spread across different feeds and pick the cheapest. Also, keeps you out of spikes. I thought you were going to say Triangular Arbitrage, not too possible anymore
  • #3,470
  • Jun 13, 2010 4:48pm Jun 13, 2010 4:48pm
yeah is true

can save three pips still

oh and its divide not times
  • #3,471
  • Jun 13, 2010 4:57pm Jun 13, 2010 4:57pm
the way i look at it is

why does it not work

lets say the banks know this knowlegde ok

at they use a far better coding system

this is just a thesis ok

so ok this triangle arbitage is like us having a amstrad vs a mac
still does the job but at a slower pace ?

we can get three pips

but made info too? i.e a direction or end of a direction if tested well and long enough

never know until you try ?
  • #3,472
  • Jun 13, 2010 5:05pm Jun 13, 2010 5:05pm
Quoting swano
the way i look at it is

why does it not work

lets say the banks know this knowlegde ok

at they use a far better coding system

this is just a thesis ok

so ok this triangle arbitage is like us having a amstrad vs a mac
still does the job but at a slower pace ?

we can get three pips

but made info too? i.e a direction or end of a direction if tested well and long enough

never know until you try ?
You're going to need to program an algorithm for that or you will fry your brain. Triangular Arbitrage get "Arbitraged" out too fast and the difference is so small, that you would need leverage that only a bank-relationship could provide. Also, you would need a supremely fast line to the feed to execute and close.

"The process of converting one currency to another, converting it again to a third currency and, finally, converting it back to the original currency within a short time span. This opportunity for riskless profit arises when the currency's exchange rates do not exactly match up. Triangular arbitrage opportunities do not happen very often and when they do, they only last for a matter of seconds. Traders that take advantage of this type of arbitrage opportunity usually have advanced computer equipment and/or programs to automate the process."

EX
As an example, suppose you have $1 million and you are provided with the following exchange rates: EUR/USD = 0.8631, EUR/GBP = 1.4600 and USD/GBP = 1.6939.

With these exchange rates there is an arbitrage opportunity:

Sell dollars for euros: $1 million x 0.8631 = 863,100 euros
Sell euros for pounds: 863,100/1.4600 = 591,164.40 pounds
Sell pounds for dollars: 591,164.40 x 1.6939 = $1,001,373 dollars

$1,001,373 - $1,000,000 = $1,373

From these transactions, you would receive an arbitrage profit of $1,373 (assuming no transaction costs or taxes).

INVESTOPEDIA
  • #3,473
  • Jun 13, 2010 7:48pm Jun 13, 2010 7:48pm
short e/g, stops 5 pips above recent high
Annoying Precision
  • #3,474
  • Jun 13, 2010 7:55pm Jun 13, 2010 7:55pm
Favorable RR
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Annoying Precision
  • #3,475
  • Jun 13, 2010 8:41pm Jun 13, 2010 8:41pm
A/U. Coming up on that Feb low of 8577. Anyone think it will breach?
Attached Image (click to enlarge)
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When this baby hits 88 miles per hour, you're gonna see some serious s***.
  • #3,476
  • Jun 13, 2010 8:46pm Jun 13, 2010 8:46pm
Hold your fire!
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Annoying Precision
  • #3,477
  • Jun 13, 2010 8:55pm Jun 13, 2010 8:55pm
Any recommendations for a professional level trading setup to include trading large lot sizes (under 100 lots) and or literature?

Thanks
Annoying Precision
  • #3,478
  • Jun 13, 2010 8:56pm Jun 13, 2010 8:56pm
Quoting MarcVUM
A/U. Coming up on that Feb low of 8577. Anyone think it will breach?
I'm tempted. It could, but if it goes before, I would wait for the MACD cross which would also be a nice divergence. If if goes up, weekly piv confluence with "00" seems like a nice place. PA is on 38 fib right now
  • #3,479
  • Jun 13, 2010 9:20pm Jun 13, 2010 9:20pm
Quoting erikte279
Any recommendations for a professional level trading setup to include trading large lot sizes (under 100 lots) and or literature?

Thanks
It's really dependent. Will you be trading personal funds, or client funds, because this can dictate your required RRR and Pool Risk Profile? I think the trading setups in here, Amy's, Shahab/Geppy's threads are pretty good. Each thread has it's own style I guess. If you are trading 50-100 lots, you might want to diversify operational risk by having multiple brokers. Also, with large positions, you can probably get MM status with your FCM and get some tighter spreads or a fixed system. I don't really know of any really good trading system books out there since everyone has their own trading style. If you read any of those books, you will probably find stuff in them that you don't agree with and it will ruin the system for you since it would be counter intuitive to follow it. I trade 6-9 pairs with 20-150 pips stops depending. It depends on a lot of things too. what kind of trading you looking to do, Money Manager or Personal? Is it long-term, short-term, micro-term or scalping that you will be doing most. What is your risk profile, RRR? Can you stomach a 75 pip swing into a SL before becoming profitable. Maybe book a smaller position to allow a wider stop. Give me some more background and I'll see if I can help
  • #3,480
  • Jun 13, 2010 9:22pm Jun 13, 2010 9:22pm
Quoting Saxon
I'm tempted. It could, but if it goes before, I would wait for the MACD cross which would also be a nice divergence. If if goes up, weekly piv confluence with "00" seems like a nice place. PA is on 38 fib right now
I took a 5 pip from up here but here's what I've got... on the H4 there is a 50% Fib from the high on May 10th that I've got but I wouldn't be surprised if it rallies up to the orange 200sma because on the H1 the 150/200 crossover was not too long ago and it needs time to run its course. However, with that said the 150 has been above the 200 on M15 for many days now and therefore I wouldn't be surprised if we have a miniature break below the 200sma on M15 for a day or two. I will just continue playing my 5 - 10 pip trades as I normally do on M15 using the H4 and H1 as my guide.
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When this baby hits 88 miles per hour, you're gonna see some serious s***.
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