Good (early for me Tuesday) morning all!!!
kaalilaatikko:
Nice work although you MAY want to check this out:
I TOO had an 'issue' with the CSI and the ???/ZAR pairs UNTIL I 'modified my thinking' a little bit.
What I believe you need to do with forex pairs is this:
You need to 'level the playing field' for the ATR FIRST and only THEN perform the rest of the calculation. After doing that you'll find that the ???/ZAR pairs are NOT ALWAYS 'top of the pops'.
In other words:
I did like this:
For any pair quoted with four decimals you multiply the ATR by 10 000 and for any pair quoted with two decimals you multiply the ATR by 100 and so on and so forth (this has NOTHING to do with a 'PIPFACTOR' or 'Quote Price Factor' by the way). Ignore all decimal places after doing this. The idea is to get the ATR's to 'jive' (Craig???) with each other. Once this has been done you then perform the rest of the CSI calculation as per 'the book' and you'll see the difference. The 'skewing' of the CSI calculation is because of the ATR and has nothing to do with the spread or anything else. As a matter of fact: it is BECAUSE of the spread and therefore the amount payable in commission that GBP/ZAR should NOT always be 'top of the pops'. Try it out and let me (us) know what you think. It works for me. The only reason I don't use it on a daily basis is because it's a REAL pain to have to update the margin requirement every day (remember that the margin requirement in USD changes on a daily, actually on a 'per second' basis, because of currency rate fluctuations at Delta. At a broker like GCI where the margin requirement is 'fixed' and cannot vary this is of course not so much of a problem but then of course the value per pip movement also changes on a daily or 'per second' basis. How MUCH of a problem this is with forex pairs I'm not sure i.e. these fluctuations may be negligable at best given the number of decimals places being used and there may be a sort of 'one size fits all golden figure' that can be used).
Stock note (I'm going to start including 'Stock notes' now and then if it's OK with everyone because as many of you are aware I'm shifting my focus to stocks or at very least 'diversifying my portfolio' as it were):
A nice little 'tidbit' for this morning:
Bloomberg.com: Worldwide:
Now what's interesting to note here is the fact that even although the fnancial stocks are taking another 'pounding' there are some large names that are INCREASING their stakes in some of these companies and NOT DECREASING their stakes!!!
What's more:
ONCE AGAIN money mangement is 'key'!!! This may NOT be the 'bottom' for financial stocks BUT then again it COULD be!!! The point is that most of the financial stocks have lost most of their value to date since last year so with sound money management it's possible to 'buy and hold' (many of the financial stocks are actually 'undervalued' i.e. the share price does not reflect 'fair value' and for the most part these stocks have been sold off because of 'sentiment' which translates to 'fear' 'in my book')!!!
Also:
Did you know??? If you're long a stock and the company declares a dividend you 'receive' the dividend (at Delta anyway).
Back to forex:
Why should any of the above be of interest to you as a forex trader??? Well for ONE thing: if the Dow Jones Industrial Average is 'brought to its knees' then so is the USD.