Just as I predicted, I copped a tirade from slamdunk, and also banishment from both of his threads (here and here). Episodes like this make me feel thoroughly vindicated in leaving forums like this one behind.
I posted a ‘Pair Strength Analyzer’ indicator that I originally wrote specifically for a client (hence, sorry, it’s not available in the public domain), which I use as part of one of my trading edges.
I posted the screenshot of values yesterday (here). Just for fun, let’s look at how many pips one would currently be ahead, simply by taking a position at today’s open, by trading in the direction of the top 6 pairs suggested by the indicator:
USDJPY +45 pips
EURJPY +81 pips
AUDUSD +48 pips
EURAUD +88 pips
GBPUSD +66 pips
GBPJPY + 1 pip
These results are based purely on trading in the DIRECTION of the strongest trending pairs. They could potentially be further improved by applying some TA to more accurately TIME the entries.
I’ve no idea why slamdunk is so intensely focused in trying to make his three calculated values sum to zero in triangular based pairs. I can’t see how there’s an edge, let alone possible arbitrage, in values that the market takes no cognizance of. It’s my view that the best edges come from abstracts like macroeconomics, money flows, levels of supply and demand, orderflow, breakouts during times of high liquidity, tracking central bank/heavyweight activity, self-fulfilling prophecy, news trading, fading extreme overboughtness/oversoldness, trapped trader behavior, key OHLC levels (hint: see Seneca_pilot's "Ramblings of a FX junkie" thread), session/time-of-day idiosyncrasies........ and no doubt many others that I'm unaware of.
We can learn from slamdunk. By fading EURAUD (selling against the uptrend), he is swimming against the tide of probabilities that are ultimately rooted in two different nations' macroeconomics. On this occasion his trades are down, collectively, several hundred pips (here).
And finally, as I further pointed out in my post, (1) trading without a loss exit strategy leaves one open to potentially unlimited loss, and (2) adding indiscriminately to losing trades — regardless of whatever methodology is being used — exacerbates this even further. It’s the antithesis of prudent risk management.
Just my 2c — take it or leave it.
I posted a ‘Pair Strength Analyzer’ indicator that I originally wrote specifically for a client (hence, sorry, it’s not available in the public domain), which I use as part of one of my trading edges.
I posted the screenshot of values yesterday (here). Just for fun, let’s look at how many pips one would currently be ahead, simply by taking a position at today’s open, by trading in the direction of the top 6 pairs suggested by the indicator:
USDJPY +45 pips
EURJPY +81 pips
AUDUSD +48 pips
EURAUD +88 pips
GBPUSD +66 pips
GBPJPY + 1 pip
These results are based purely on trading in the DIRECTION of the strongest trending pairs. They could potentially be further improved by applying some TA to more accurately TIME the entries.
I’ve no idea why slamdunk is so intensely focused in trying to make his three calculated values sum to zero in triangular based pairs. I can’t see how there’s an edge, let alone possible arbitrage, in values that the market takes no cognizance of. It’s my view that the best edges come from abstracts like macroeconomics, money flows, levels of supply and demand, orderflow, breakouts during times of high liquidity, tracking central bank/heavyweight activity, self-fulfilling prophecy, news trading, fading extreme overboughtness/oversoldness, trapped trader behavior, key OHLC levels (hint: see Seneca_pilot's "Ramblings of a FX junkie" thread), session/time-of-day idiosyncrasies........ and no doubt many others that I'm unaware of.
We can learn from slamdunk. By fading EURAUD (selling against the uptrend), he is swimming against the tide of probabilities that are ultimately rooted in two different nations' macroeconomics. On this occasion his trades are down, collectively, several hundred pips (here).
And finally, as I further pointed out in my post, (1) trading without a loss exit strategy leaves one open to potentially unlimited loss, and (2) adding indiscriminately to losing trades — regardless of whatever methodology is being used — exacerbates this even further. It’s the antithesis of prudent risk management.
Just my 2c — take it or leave it.