Statistical Arb/Pairs trading strategy!

WTF JUST HAPPENED!!!
I had my trade still open from yesterday, I went to minus 100 last night, this morning I was around minus 40,
Just a min ago, -20. -10. 0 …+ 130 + 200 + 250 …closed trade!
French connection UK me, don’t you love forex when it works for you!

Oh yes i too that the way we do.

Another EU GU trade hit the 20 Pip TP with the medisoft lock centre screen technique. It took 20 hours to close.

Chances are that when you closed your positions, the correlation was nearly opposite from when you entered. If you had closed, then reversed position, you would have been able to profit on the other side as well.
Nice :slight_smile:

Great isn’t it? I still have 10 open baskets waiting for the 100 pip target I’m testing. With a 400 pip stop loss, the 100 pip target is 1/4, so I need only 4 winners to recover 1 loser, and the stop is big enough to avoid most of the stop losses.

according to me…
25 pip divergence on A/U N/U
Just helping out! i’m in!

i am in too
20 pip divergence on A/U N/U

TP Hit. AU / NU

Another EU GU trade entered on 40 pip divergence, it hit the 20 Pip TP with the medisoft lock centre screen technique. It took 25 hours to close.

medisoft what do you do if your trade doesn’t hit TP by the weekend close?

Nothing, I wait until it is closed. Almost no difference, the gap of the weekend affects both currencies so there is no problem with it.

Medisoft, how did your original 100 trade testing go? I think you had around 70 odd trades last time I asked.

I reduced to 50 because I was forced to wait too long. With 50 it worked better, 400 sl, 50 tp.

almost all my baskets closed, with 50 pip each one. From 12, only 4 are waiting, and 3 of them are about 30 or more pips in profit.

all my baskets are closed for profit! that makes me a 4.5 % profit for the week :slight_smile:

Nice one!
I have had a funny week!
first trade on Monday, I got $15. Eu/Gu
then opened Au/Nu 2hrs later with 15pip divergence on the 1min chart, As A/N are very correlated I only wait for 15 pips spread,
and 20k units each way.(Double what I would put on E/G)
anyhow woke next morning to see $30 profit! all good…
Before closing the position I had a look at the charts, only to notice that on the daily chart there was a 100 pip divergence.
So I thought to myself, NFP on Friday so I wont open any more trades so I’ll hang on to this for a little longer…
Anyhow, Closed it this morning for $120!
May open another position if I have the opportunity to, but sitting on the side till after NFP

So for the week 2.99% … Oh for the want of 0.1% lol

Hey guys , shout out from Singapore . Been really interested with this method of trading… But I’m quite limited by my broker platform . So right now I’m having trouble with overlaying the 2 charts and setting correlation indicators , cos my trading platform doesn’t allow customisation. So wondering whether u guys could suggest an alternative solution to it . Plus wanna ask about chart overlaying , how u determine how to match the 2charts ?

Hey guys , shout out from Singapore. I need help guys , my trading platform doesn’t allow customisation … Like I can’t overlay 2 charts and can’t set a correlation indicator . So could u guys suggestion alternatives to this problem ? Plus , wanna ask how to match the 2 charts while overlaying so that the charts can give an accurate signal ? Thanks

Does your broker have MT4?

Nope , they use a their own programme