[B]
carry trade vs stock market.[/B]
An FX pair such as AUDJPY or EURJPY vs the SNP or the Nikkei.
[B]Bonds vs stock market also.[/B]
Correlations may remain for sometime but then because of outside factors, they stop working for a period of time.
now, do you have one of his examples?
That is not an arbitrage.
What is an arbitrage trade and what is an arbitrage transaction ?
What is the difference?
it is - traders have been doing correlation arbitrage for ages.
…you still haven;t given me that example…
like the no loss robot that does not employ a stop-loss.Huge drawdowns ofcourse i’d be afriad of the dreaded margin call
Then it is clear you have no idea what an arbitrage is. An arbitrage is NOT a co-relation trade as you have mentioned. It does not involve co-related assets. It involves the same asset in different markets. As it is the same asset, it is not possible to have a market risk as the price is the same as it can only be. The price of gold will be the price of gold…it cannot be any other price. But the price of gold can be different in different markets. That difference is called the latency. These days with electronic pricing models, the latency is almost non existent and as such, it is no longer possible to arbitrage on markets unless it is done synthetically.
His approach is to arbitrage it with a synthetic derivative.
Anything further to that you would have to ask him. This is what I have got from him in our long conversation earlier.
Is that Nylon then?
An arbitrage is any advantage that can be gaines from pricing. It can be correlated assets, it can be 2 different stocks in a takeover bid, etc. etc.
the same asset in different markets is also an arbitrage but much more highly correlated. For example you might long the SPY but short the futures. However, any arbitrage like that will be taken advantage of by compouters quicker than your trader might.
Long spot oil, short futures is another playing the contangos.
Anyway, good luck with it…it is still exposed to some risk, just arbitrage is traditionally less risk than an outright position. You still have counterparty risk and other such things.
Please check what a Synthetic position is on wikipedia or you might not look too professional as a trader
Do you really know what you are talking about…let’s be really honest.
yes.
Why are you on here again? What exactly is it that you are trying to justify?
I have nothing to justify…you came to this thread
That some online trader is going to make him a millionaire in a few years. Just you watch! :rolleyes:
maybe it’s on wikipedia.
Wikipedia gives a definition of what an arbitrage is. My trader gives the same definition and he trades the synthetic.
You come on to this thread and you say that is not an arbitrage.
Who is right?
It is not about if I make a million or not. I am a risk taker as I am sure you are. I may lose all the money I put with him. I am ok with that, it is the risk I have calculated to take.
It is about what is and is not an arbitrage.
according to the earlier posts, you know what is so you should go with your definition or do some research on other sites.
There are various types of arbitrage.
post 1 is about win rates isn’t it?
Yes it is about win rates. Now that I know he is using synthetics and arbitrage, I am certain he [B]can[/B] get a 100% win rate.
In any rate he can pull out a win everyday at least for the next 18 days
Hmm…then you wouldn’t mind if the mods removed the links you’ve posted to his site and stop all the
[B]FREE ADVERTISING[/B]
you’ve been giving him throughout this entire thread…right? If anything you would [B]welcome[/B] it, since you are already actively attempting to talk him out of accepting any new clients?
Even better, you should go back and edit the links out yourself, since the
[B]FREE ADVERTISING[/B]
to your new money manager that isn’t what this thread is about…right?
:rolleyes:
Not at all.
Remove all the links…btw…what links??