Hi Scooby thanks for your valuable input. I thnk it's important to make a distinction here. Pairs trading does work, this implementation might be flawed for longer term trading. But I think now most of the close followers of the thread understand how it is trying to work, that is the most important part. The way I see it, just a matter of getting the EA coded properly, to "hedge the hedge" .. to limit drawdowns.
Other approaches could be temporary directional trading at certain times as I've shown.
Other approaches could be temporary directional trading at certain times as I've shown.
DislikedIt doesnt work mid to long term. The reason it may work now is down to what is happening in the market and allot of luck.
Wait and see what happens when the carry trade unwinds. Your accounts will be empty in a short period of time.
You need to work out what is the carry trade in a given period. Yes, the big boys do it but they have the benefit in knowing what carry trade to use based on interest rate differentials between say USD, JPY etc etc.
A strategy in which an investor[i][b]...Ignored
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