The correlated arb/hedge-system - MT4/MT5 resources
Hello everyone!
I'd love any help from anyone...
I'm trying to develop an arbitrage/hedging system (whatever you want to call it) of my own. At least I have an idea and I want to see if it works...
The idea is simple. I'm trying to exploit the correlation between EUR/USD and USD/CHF. These two currency pairs are known for their good correlation. So my idea is to take a position (buy or sell) when the correlation is bad. The pair will then start to catch up and become correlated again. When this happens, one of the currency pairs will move more than the other, which is what I want to take advantage of.
But I have a problem...a big problem. To implement my idea, I need a metric that can show the correlation between two pairs.
I've looked into EUR/USD and USD/CHF but I'm having trouble determining if it has a good correlation.
Any other pointers that can help me would also be appreciated.
I found some indicators that I simply couldn't understand. They come from a page called ForexForSmarties. But like I said, I don't understand how to use them at all.
Ok...hopefully someone can help me here and provide me with some indicators...and please include some short description on how to use/read the indicators.
Greetings/Jolly
I'd love any help from anyone...
I'm trying to develop an arbitrage/hedging system (whatever you want to call it) of my own. At least I have an idea and I want to see if it works...
The idea is simple. I'm trying to exploit the correlation between EUR/USD and USD/CHF. These two currency pairs are known for their good correlation. So my idea is to take a position (buy or sell) when the correlation is bad. The pair will then start to catch up and become correlated again. When this happens, one of the currency pairs will move more than the other, which is what I want to take advantage of.
But I have a problem...a big problem. To implement my idea, I need a metric that can show the correlation between two pairs.
I've looked into EUR/USD and USD/CHF but I'm having trouble determining if it has a good correlation.
Any other pointers that can help me would also be appreciated.
I found some indicators that I simply couldn't understand. They come from a page called ForexForSmarties. But like I said, I don't understand how to use them at all.
Ok...hopefully someone can help me here and provide me with some indicators...and please include some short description on how to use/read the indicators.
Greetings/Jolly
📦 Summary of post attachments (3)
Below are all the files (3) shared in the reply.
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •