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Inverse Pairs
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Hill

Member Since Mar 14, 2012  12 posts Hill Apr 11 2012 at 06:22
I am really looking forward to getting into this. It seems that everything that I do is wrong, just kidding. I do enough wrong to make myself think that way. Seems that if I traded the inverse of what I think I would be a real trader.

With the above being said, I would like to learn this mentality. I had the idea of inverse pairs about five years ago a could not get anywhere with it. I traded other ways and lost enough that I dropped out of trading.

I would like to ask this. As I dig deeper into this train of thought and I get ready to place a few trades----would it be OK if I posted my thought process in this thread. I will do this ahead of time maybe a day and get input on the trades----guidance if you want to call it that. Maybe you guys could tell me if I am going about this in the wrong thought pattern before I place the trade.

This thread has been so helpful. Thanks for sharing your knowledge.

Another question, Do you trade with EAs.

Thanks Dale

Hill

Member Since Mar 14, 2012  12 posts Hill Apr 11 2012 at 06:23
Been looking for the right correlation indicator. Does anyone have a good one in mind?

Hill

Member Since Mar 14, 2012  12 posts Hill Apr 11 2012 at 06:23
Think I found it.loleek

TheCyclist

Member Since Feb 07, 2011  617 posts PipGnostic (TheCyclist) Apr 11 2012 at 06:34 (edited Apr 11 2012 at 06:35 )
I use EA's but I prefer using a JAVA API. Lot quicker.

If you have questions ask, if I can answer it I will, don't mind helping out a bit.

Show me your pips!!
Hill

Member Since Mar 14, 2012  12 posts Hill Apr 11 2012 at 20:44
OK, things going pretty good here for a start. Could you point me in the direction of the JAVA API. and the EAs is that something that you developed, bought or are there free ones floating around.

Hill

Member Since Mar 14, 2012  12 posts Hill Apr 11 2012 at 20:45
Things that I forgot to ask.

Money management I am looking at .02 per trade which will be less with the proper stops. Any suggestions

Pitfalls on this type of trading----what to look out for?

What timeframe do you consider the best?

sherryp

Member Since Apr 11, 2012  28 posts zero (sherryp) Apr 11 2012 at 20:48

   Hill posted:
   Could anyone tell me if there are inverse pairs. Say one pair goes up the other goes down. Is there a list somewhere on the correlation of pairs? How one pair reacts to other pairs.

Thanks


For how long have you been investing using this approach? I am interested.

Midoru

Member Since Apr 22, 2010  15 posts Midoru Apr 11 2012 at 23:22


Money management I am looking at .02 per trade which will be less with the proper stops. Any suggestions



Stops are not a part of this technique, therefore lot size should not be more than .1:1

I posted a video called The Midas Formula. Maybe check that out for ideas and think on the part about dynamic hedging.

Also, best to choose pair combinations with net positive carry.

TheCyclist

Member Since Feb 07, 2011  617 posts PipGnostic (TheCyclist) Apr 12 2012 at 01:39 (edited Apr 12 2012 at 01:57 )
Show me your pips!!
TheCyclist

Member Since Feb 07, 2011  617 posts PipGnostic (TheCyclist) Apr 12 2012 at 01:43
It's a completely different way of thinking about fx. Think like an investor, not a trader.

The trade is not the end here. It's the tool you use to adjust your position.

Show me your pips!!
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