I posted this on Friday but on the wrong thread, the coming week is still a coin toss as the market continues to zig zag
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Remembering those who made July 4th possible
God bless everyone
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@TradingMagnet, @TravisN, there is a couple of factors that will give you slightly differing results from Dennis’s data.
As @Student05 has pointed out in a previous post… You are trading Forex through your Broker in an OTC Market… There is no globally set price for the EURUSD…USDJPY etc. etc. Its value is set by your Broker or Liquidity Provider and is usually as close as possible to the Interbank levels.
You will be able to visualise this if you open a second account (demo) via a separate Broker or even by using the TradingView site (great site) to compare price feeds.
The other factor that will change your (all of us) percentage values from Dennis’s is the difference in the various time zones that we all reside in…
These two factors have a minor bearing on everyone’s CSW formulation results. Hope this is of help.
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@Trendswithbenefits…does it affect the ranking too because if you look at my middle table currencies, NZD, CHF, and GBP rank differently than Dennis? I double-checked my numbers for daily closing candles and H4/MA and they are correct per Oanda’s data?
Is it possible then to arbitrage between brokers when deviations on price occur, betting on their eventual or convergence? Do they cover at least spreads?
Hi @TradingMagnet, Shouldn’t, unless they are all really (really close) in percentage values…
The other variable can be the time of day you extract your data… Dennis’s formulation is made at the close of the New York session each day, which say in my (UTC+10) TZ is 8.00am.
It’s possible that using data from a different time of the day may alter the results.
A few of Dennis’s YouTube vids from 5-6 years ago… Enjoy. Cheers
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Hi @Ontario, the arbitrage gap is usually very small, 1 or 2 pips at best. You could always trial it and see how it performs… even if it gives you an idea of market direction.
I have seen a few situations like the plunge in Oil futures last year where XTIUSD varied by $4 or $5 per barrel across the 3 Brokers I was using…
Not sure arbitrage is truly possible. The way I understand it is that a commodity is a different price on different markets and you buy on one and sell on the other simultaneously to get the profit. You’re never actually trading a real asset in forex, so you can’t buy it on one broker and sell on another to get that profit.
@chesterjohn, It’s very possible, you can trade latency arbitrage… Say Broker A has high latency from their server to your platform, and say Broker B or TradingView data you are studying is closer to real time (Interbank) pricing…
You can front run the price using the least latent price feed… Say EURUSD is 1.84651 on TradingView… And on you’re Platform its only 1.84622 and 10 seconds later your platform is also displaying 1.84651…
If this is displayed on a consistent basis you now have a latency arbitrage opportunity.
Most of the time this is covered off by the spread as the discrepancy is so small, but it does happen from time to time especially during high volatility…
Use to be very common once upon a time when the internet and computer technology wasn’t as efficient as it is today. If your Broker got wind that you were playing their game and latency trading against them, they’d shut your account in a heartbeat…
Edit: Because of the volatility of some of the CFD Crypto’s, there is still opportunities using this method.
What are the best sources to learn trading?
I heard babypips.com was pretty good
I know the irony was strong with that one, but realistically, if you haven’t completed the course here, you shouldn’t really even be asking that question.
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US markets closed today and with not much happening I pulled these numbers an hour earlier than normal
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Note
I pull my numbers from Trading View .com and Trading View gets their data from OANDA
I normally pull my numbers during the last 30 min of trading before the NY close, If it is a really slow day like today I may pull numbers earlier but I will tell you when that happens.
I have looked at other platforms and see little difference in prices and unless there is a news event price should move very little during the last 30 min of trading before the daily close
Finally a handful of pips or a few percentage points should not be controlling your trading. Today we have EUR and AUD just 4% apart for #8, with USD #1. both EURUSD and AUDUSD could be good trades if they meet your trade plan requirements
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Hello Dennis,
I was going through some of your videos and i wanted to ask, the 8 mv you use in the daily chart as a proxy for 200 sma on 1 hr chart, is it ema or sma as well? what about 34 mv in the daily chart as a proxy for 200 sma on 4 hr chart, is it ema or sma?
This is what I wanted to add as well. I pull my data from TradingView and also use OAND but my data is still different. I’ve tried different things, different MA’s etc., but nada.
As long as you’re doing the same thing consistently each day then a few points don’t matter that much.
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A high latency from their server to my platform would mean slippage? But I get the jist. I actually wrote out that you could do that, but I’d be amazed if it was profitable when the spread is taken into account.
One day, when I have enough time, I’ll write some software to try and analyse the opportunity. But doubt I have the internet connection or time to do that for a while
@chesterjohn, there is a lot more to it than what I have posted here including sliding funds around between accounts in a particular way to avoid detection from your Broker… I only offer up very limited IP these days… So, I’ll leave it there.
A documented case where arbitragers were caught, FXCM sued after cancelling trades netted $460,000
I have coded an algorithm that can switch micro profit Buys to Sells and vice versa in milliseconds… although it has limited success.
I only use simple moving average
After yesterdays wild moves we had a much calmer day, Top Trade AUDUSD* moved lower
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finally, the Yen takes the top spot for the first time since last November
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