Aurix Exchange

[REQ] Advanced Statistical Arbitrage (Stat Arb)

Squall

Member
Official Website:

Several videos on that site explaining how the system works.

Check the thread on donna forex for discussion of the system. I searched indo investasi for a share but no results.

It uses arbitrage between two pairs not between two brokers.

This is not the type of arbitrage that brokers do not like. It's a complex system which requires some management to determine when you should run it but I believe it should be profitable.

The price tag is $312

EDIT:
You can use tools like this to see the correlation between two pairs.

This determines if the arb is good.
 

cwailam

New member
You can look at this link on more info on arbitrage.


Theory is sound. Testing in demo is perfect because of instantaneous executions. However implementation in real account is very difficult because of slippages and requotes.

Although it is an Impeccable Hedge ring which mean you can hold on to the trades indefinitely (and not suffer margin call) until the trade shows profit and you close the trade. However, i experience swap interest losses daily which makes it more difficult to close the trade in profit.

Ask the developers to show proof of real account testing before you purchase.
 

maximo

Member
I like the system, but the correlations that xxx.mataf.net shows is a little misleading as they are not averaged, but are the highest correlation taken from an average within a period. Typically the average of those periods is really only 50-65%.

Here's the correlation indicator so you can check for yourself on any period.
 

mishka

Member
I like the system, but the correlations that xxx.mataf.net shows is a little misleading as they are not averaged, but are the highest correlation taken from an average within a period. Typically the average of those periods is really only 50-65%.

Here's the correlation indicator so you can check for yourself on any period.

have you manual to ea. ore pictors with trades. i need to understand the work from this system.
 

maximo

Member
I don't have a manual for the system, but I can describe how correlation spread trading works. (Statistical Arbitrage, as they call it)

Correlation = Linked like a chain more or less, or like strands in a rope, see pic1

2 different currency pairs operating in close harmony as possible.

The author of Stat Arb system uses Standard Deviation bands as a statistical measure of divergence of one currency pair against another. It should have high probability for profit as they diverge and converge often. There is still risk with them not coming back together, so risk management must still be used.

On positively correlated (linked) pairs opposite trades are taken, Buy one pair, Sell the other. (see pic) The idea is to make a profit from the pairs converging again, from their slight decorrelation back to correlation again.

Pairs which are most closely linked are selected to trade this method. (see Table pic)

Hope that helps in understanding this trading technique.

I include a manual and indicator for explorations & info.
 

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Here is a free method on trading Correlation over at FF. Thanks goes to Dreamliner and SmJones (and the many others who tested, modified, and provided feedback) .....if i was you, i would read the first post then skip on over to page 100.

 

fxknight

Member
I don't have a manual for the system, but I can describe how correlation spread trading works. (Statistical Arbitrage, as they call it)

Correlation = Linked like a chain more or less, or like strands in a rope, see pic1

2 different currency pairs operating in close harmony as possible.

The author of Stat Arb system uses Standard Deviation bands as a statistical measure of divergence of one currency pair against another. It should have high probability for profit as they diverge and converge often. There is still risk with them not coming back together, so risk management must still be used.

On positively correlated (linked) pairs opposite trades are taken, Buy one pair, Sell the other. (see pic) The idea is to make a profit from the pairs converging again, from their slight decorrelation back to correlation again.

Pairs which are most closely linked are selected to trade this method. (see Table pic)

Hope that helps in understanding this trading technique.

I include a manual and indicator for explorations & info.

Hi Maximo,

Can you post the correlation indi you used on the MT4 chart screenshot you posted? Thanks
 

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