Hi folks!
I would like some help from anyone…
I trying to develop an arbitrage/hedge system (called whatevery you like) of my own. At least i have an idea i would like to see if it works…
The idea is quite simple. I trying to take advantage of the correlation between EUR/USD and USD/CHF. These two pairs is well known for it’s good correlation. So my idea is to take a position (buy or sell) when the correlation is NOT good. Then the pair will start catching up to be correlated again. When that happens one of the currency pair will move more then the other and that is what I want to take advantage of.
But i have a problem… a BIG problem. In order to make my idea come true i need indicators that shows me the correlation between two pairs.
I have looked in to EUR/USD and USD/CHF but i having i hard time seeing if it is good correlated or not.
Any other indicators that would help me out would be appriciated too.
I have found some indicators that i can’t understand at all. They are from a page called ForexForSmarties. But as i said i don’t understand how to use them at all.
Ok… hope someone can help me out here and provide me with some indicators… and please include some short description of how to use/read the indicator.
Regards / JoLi
I would like some help from anyone…
I trying to develop an arbitrage/hedge system (called whatevery you like) of my own. At least i have an idea i would like to see if it works…
The idea is quite simple. I trying to take advantage of the correlation between EUR/USD and USD/CHF. These two pairs is well known for it’s good correlation. So my idea is to take a position (buy or sell) when the correlation is NOT good. Then the pair will start catching up to be correlated again. When that happens one of the currency pair will move more then the other and that is what I want to take advantage of.
But i have a problem… a BIG problem. In order to make my idea come true i need indicators that shows me the correlation between two pairs.
I have looked in to EUR/USD and USD/CHF but i having i hard time seeing if it is good correlated or not.
Any other indicators that would help me out would be appriciated too.
I have found some indicators that i can’t understand at all. They are from a page called ForexForSmarties. But as i said i don’t understand how to use them at all.
Ok… hope someone can help me out here and provide me with some indicators… and please include some short description of how to use/read the indicator.
Regards / JoLi