FX:CADJPY   Canadian Dollar/Japanese Yen
283 11 1
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umardar
5 years ago
This would give you the same weighted distribution as something like lets say VIX(volatility index) vs S&P. Can't win in long term and for a short term gain perspective, taking unnecessary risk.
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Algokid PRO
5 years ago
The correlation in this pair is over 90 % , positive that is, meaning they move in the same direction most of the time. The the ratio is at a certain standard deviation from the mean, you enter a pair trade with the expectation that the ratio will go back to the mean . SP and VIX are inversely correlated ,so not the same thing at all.
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Algokid PRO
5 years ago
the only risk here is IF the spread between the two pairs becomes wider. But with a correlation of over 90% i doubt this will happen. We shall see in a few days anyways
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timwest PRO
5 years ago
You can graph this for a year using FXC and FXB perhaps and see what the correlation looks like. Very short term correlation is great for very short term trading. You will see that they do correlate very closely.
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Algokid PRO
5 years ago
Looking to close this trade sometime Monday, currently profitable on both legs
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Algokid PRO
4 years ago
UPDATE : Wanted to close the trade this morning as planned, but ratio is still above its 1 standard deviation.... perhaps in the next few hours or days .
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charttrader PRO Algokid
4 years ago
What is the total profit of this trade?
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Algokid PRO charttrader
4 years ago
oops ...deleted by accident here we go. So I entered the short CAD/JPY @ 76.21 and the long GBP/JPY at 121.443
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timwest PRO
4 years ago
Nice work.
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Algokid PRO
4 years ago
Closing this pair with a profit on both legs.
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charttrader PRO Algokid
4 years ago
grats
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