FPI - Fractional Product Inefficiency: The Impeccable Hedge

NeoTicker indicators

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michal.kreslik
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Re: Broker/data feed?

Postby michal.kreslik » Tue Dec 05, 2006 5:24 am

Muddyguy wrote:
michal.kreslik wrote:To get the aggregate interest of the Impeccable Hedge position, you don't have to bother yourself with the lot sizes. Provided the position is indeed the Impeccable Hedge, you simply sum up all the swaps of the respective positions in ring.

How can we have an Impeccable Hedge if we don't bother with lot sizes? I thought one must adjust lot sizes to create an Impeccable Hedge. What am I misunderstanding?


For aggregate interest calculation in percentage, we don't need any position size info neither prices. Just the swap values. This is true provided the ring is the Impeccable Hedge ring (a/b * b/c * c/a).

Michal

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Postby EvgeniX » Tue Dec 05, 2006 6:38 am

Hello Michal,

What is best way yo calculate FPI:

BBS

1/Ask*1/Ask*Bid

Ask*Ask*1/Bid

SSB

1/Bid*1/Bid*Ask

Bid*Bid*1/Ask


Which one you can recommend?

Thx

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Re: Proof FPI works

Postby Nicholishen » Wed Dec 06, 2006 4:45 pm

holyguy7 wrote:I have been demoing FPI this week based on a custom EA developed by a friend. Let me say that this does work but it requires an automated system and the correct rules.

I want to encourage everyone here to continue to develop this idea as it does work.

I wish I could share the development of this EA, but it is not exclusively my work.


It appears from your statement that you are going in with a hedge, but to profit you are exiting intermittently, thus speculating the direction of the remaining open pairs. Am I correct?

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Postby michal.kreslik » Wed Dec 06, 2006 10:10 pm

holyguy7 wrote:Accually, it is very simple. I have the EA set to 7 pips profit. So once the ring hits a profit of 7 pips (beyond the spread), it closes the ring.


If you let the trade to be exposed to the price direction risk, then it's not FPI.

FPI is not exposing the investor to any price-direction related risk.

This is not to say that generating profit with strict FPI is the only way to use this concept, but one should assess whether the FPI should be used in his trading system at all if one negates its biggest advantage - no price direction risk.

It's like entering a regular price-direction risk trade with a futile hedge and then closing one of the hedged positions. This way, one is charged with more trading costs, but it yields no advantage (maybe besides the psychological advantage for some).

Michal

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Postby TheEconomist » Mon Dec 11, 2006 4:55 pm

@holyguy7 & SetFreeByTruth

You did the same mistake as me... Implemented strict BSS and SBB rings without looking to see if every currency is bought once and sold once... (i just calculated the products and seemed correct, saw the mistakes some days after). As for the swap positive rings, there are no such rings...perhaps a few, generating something under regular bank interest , and I made scripts that check all the arrangements...

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Postby Nicholishen » Mon Dec 11, 2006 11:53 pm

Unfortunately, this thread has once again become counter productive with the whole ring SWAP issue, again. I think that it is abundantly clear that positive interest rings “may” exist. If in fact they do, the people out there who’ve done their homework who aren’t going to give this information away for free and it’s with good reason. Traders out there who would know where and how to implement a strategy such as this, know that these opportunities ARE limited, and considering the lengths one must go through facilitate this strategy and not get blacklisted, takes extreme creativity. If in fact this where even a viable strategy, the more people using this method = the faster a dealer will mitigate their loss. IE. YOU ARE BLACKLISTED. This is not beneficial trading to ANY broker AND you WILL get blacklisted. It’s not a question of if but when.

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Postby Bruce » Tue Dec 12, 2006 3:00 am

Nicholishen wrote: If in fact they do, the people out there who’ve done their homework who aren’t going to give this information away for free and it’s with good reason. Traders out there who would know where and how to implement a strategy such as this, know that these opportunities ARE limited, and considering the lengths one must go through facilitate this strategy and not get blacklisted, takes extreme creativity. If in fact this where even a viable strategy, the more people using this method = the faster a dealer will mitigate their loss. IE. YOU ARE BLACKLISTED. This is not beneficial trading to ANY broker AND you WILL get blacklisted. It’s not a question of if but when.


Nicholishen,

I am not quite sure what you are concerned about. I understand the Forex market deals in trillions of dollars, so the market liquidity is there. And the brokers want their clients to transact many trades so that they can collect their part in the spread.

Why would they blacklist someone trading the FPI? You are entering three currency pairs and later you are exiting the positions... The broker gets his spread, you get your FPI profit... So I don't get the great concern that you have. Can you explain it more clearly?

Also I thought that the idea of Forex forums was for traders to help traders be more profitable....

Successful trading,

Bruce

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Postby Nicholishen » Tue Dec 12, 2006 4:57 pm

Bruce wrote:
Nicholishen wrote: If in fact they do, the people out there who’ve done their homework who aren’t going to give this information away for free and it’s with good reason. Traders out there who would know where and how to implement a strategy such as this, know that these opportunities ARE limited, and considering the lengths one must go through facilitate this strategy and not get blacklisted, takes extreme creativity. If in fact this where even a viable strategy, the more people using this method = the faster a dealer will mitigate their loss. IE. YOU ARE BLACKLISTED. This is not beneficial trading to ANY broker AND you WILL get blacklisted. It’s not a question of if but when.


Nicholishen,

I am not quite sure what you are concerned about. I understand the Forex market deals in trillions of dollars, so the market liquidity is there. And the brokers want their clients to transact many trades so that they can collect their part in the spread.

Why would they blacklist someone trading the FPI? You are entering three currency pairs and later you are exiting the positions... The broker gets his spread, you get your FPI profit... So I don't get the great concern that you have. Can you explain it more clearly?

Also I thought that the idea of Forex forums was for traders to help traders be more profitable....

Successful trading,

Bruce


@Bruce

There is no concern. First, if you've been following this thread you'll notice the cyclical patern of posts about the positive interest. I was stating that it's not going anywhere. I'm sure you've heard the expression "time is money"... I am trying to save your time by informing you that this strategy (maintaining a hedge and profiting from Swap) is not welcome at any broker. I never said fpi couldn't be traded. Trade it if you want...
Last edited by Nicholishen on Tue Dec 12, 2006 5:25 pm, edited 1 time in total.

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Postby Nicholishen » Tue Dec 12, 2006 5:20 pm

trader-fx wrote:Nicholishen its guy who only take from forums and never pay back. :!:

He only try to show that he is too good to pay back, and show results from demo tests.

But I'm sure some day he will pay back. Depend how? :?:

Nicholishen wrote:Unfortunately, this thread has once again become counter productive with the whole ring SWAP issue, again. I think that it is abundantly clear that positive interest rings “may” exist. If in fact they do, the people out there who’ve done their homework who aren’t going to give this information away for free and it’s with good reason. Traders out there who would know where and how to implement a strategy such as this, know that these opportunities ARE limited, and considering the lengths one must go through facilitate this strategy and not get blacklisted, takes extreme creativity. If in fact this where even a viable strategy, the more people using this method = the faster a dealer will mitigate their loss. IE. YOU ARE BLACKLISTED. This is not beneficial trading to ANY broker AND you WILL get blacklisted. It’s not a question of if but when.


Your post is the definition of irony. If you think you have ANYTHING to contribute, why don't PM me and see what's going on behind the curtain. My guess is that YOU are a leech and probably have had some limited success of drawing out info or EAs (from the people actually putting in the time) with your little cry-baby posts.

SO, what do you have???

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Postby Bruce » Tue Dec 12, 2006 5:28 pm

Nicholishen,

Right. Trading for SWAPS is another thing.

Thanks for making that clearer about the FPI.

Successful trading,

Bruce

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