Statistical Arb/Pairs trading strategy!

[Kelton]

Thats right put it on the one 1min chart zoomed out to the max. if you know how to use vitrite, keep one mt4 normal and
the other push ctrl-shift-5. here is one of two jpy currencie chart. they are very correlated in nature and the chart proves it.

[Kelton]

this one might be easier to see. pink one is Aud/Jpy and blue one is Nzd/Jpy. if you were to make every trade
in the 22 hours this chart shows thats over 20 pips appart and opening a new position every 20. its about 220 pips.

for exaple: the charts reach 20 pips appart. I would open a buy and sell order. then if an hour later they were 40 pips
appart I would open another buy and sell. if they then touched i would close all positions and profit 60 pips. - spread

if you look at the chart below I would be in an open order with a sell for the AUD/JPY and a buy for the NZD/JPY.
My position would still be open untill these two charts touch again.

[evad150]

hi kelton
In another demo account of mine on FXCM micro account i have found out that it is possible to directly overlay charts with their 'price overlay function'. I cant get them to both display in candlesticks but as a single line for each pair. or candlestick for 1 pair & a line for the other pair.
hope this is of use
dave

[Kelton]

I only like mt4 and all the indicators I've used end up messing me up but ill definitely check it out. Thank u

[TalonD]

thanks for the vitrite, the overlay indicator is annoying.

[TalonD]

Are you using any kind of a stop loss with this?

When I've traded this in the past I usually watched it on a 15M chart with an overlay indicator. This vitrite gives a much better view!

[Kelton]

Hey talonD. I am not using a stop loss. And believe me I know proper money
and risk management. But I have been not using one just because I am in a market neutral position
And since I do not use support or resistance or fib to place trades it would be difficult to make a stop loss

[PIP CHASER]

thanks for the vitrite, the overlay indicator is annoying.

Can you please explain how you set this up to be used on MT4? Thanks PC

[TalonD]

how to set up the vitrite you mean? install the vitrite program and it will allow you to adjust the transparency of the active window. So I open two metatraters. On one I pull up a GU chart and pull up a EU chart on the other. make sure the time frame is the same and make sure the zoom level is the same and then just make one of them partly transparent.
I like to make the charts priceline instead of candles.

[Kelton]

Can you please explain how you set this up to be used on MT4? Thanks PC

Make sure that the zoom level is all the way out. its the best way. Any other zoom level makes it very difficult