FPI - Fractional Product Inefficiency: The Impeccable Hedge

NeoTicker indicators

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Nicholishen
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Postby Nicholishen » Thu Nov 30, 2006 10:21 pm

FPI does work in MetaTrader... when you have it connected to an institutional feed. The minimum account to trade with this prime broker is $100,000USD. Those who truly understand this concept will appreciate this chart from synced tick data. This is a 5 minute chart. How many opportunities can you spot? :D


Last edited by Nicholishen on Thu Nov 30, 2006 10:30 pm, edited 2 times in total.

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Postby Nicholishen » Thu Nov 30, 2006 10:26 pm

Delete.........

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Postby Nicholishen » Fri Dec 01, 2006 9:22 pm

Here are some examples of successful fpi trades. Many profitable moves happen in mere seconds.
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Postby EvgeniX » Fri Dec 01, 2006 9:27 pm

Nicholishen wrote:Here are some examples of successful fpi trades. Many profitable moves happen in mere seconds.


Hi Nicholishen,

What broker did you use for this Statement, also how did you connect it to MT4?

Thx

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Broker/data feed?

Postby Muddyguy » Sat Dec 02, 2006 9:25 pm

Nicholishen wrote:Here are some examples of successful fpi trades. Many profitable moves happen in mere seconds.


Yes - let us know the details of that broker if you can. Hopefully they offer a small spread and are fair.

I wrote an EA and three indicators to autotrade this concept and have several observations:

1. When the lots are correctly sized (thanks, Michal) it sits steady as rock.

2. I can find NO interest positive ring with correctly sized lots.

3. Big rings kill the trade with spread costs. Three-pair rings are usually best.

4. When the fraction is at a lower bound, trade buy/buy/sell. Do the reverse at an upper bound. (There was some confusion on this earlier in this thread). This is demonstrated in the attached graphic. Don't get too excited about those ranges though - my indicator is repainting the past and displaying a MUCH more favorable picture than what really happened. I don't understand why it is doing that and probably don't understand the repainting code well enough.

5. I placed a trade at a neutral time and let it run for almost a week to see how it would range. My EA recorded the high/low values of that trade through a couple of news announcements during the week. The total range was $200+/-. As Michal also pointed out, this trade requires a broker who is not a crook. As mine IS a crook, the spread cost was about $200 to enter the trade. So, there is almost zero potential for gain without a really good broker.

Which... brings us back to the question... is there a fair, low-spread MT4 broker out there with whom we can trade this?

Take care,
Bill

By the way, I am told we are expected to post something in Latin in this thread, so here it is: Domino vobiscum!

Please be gentle - my Latin classes were 30+ years ago, I've never practiced since then, and I didn't get a very good grade in the class in the first place. The translation? "The pizza guy's here."

:lol:
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Green is the fraction equation, Red is the actual dollars.
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Postby Nicholishen » Sat Dec 02, 2006 10:24 pm

I don't think that my connections would like me to reveal the sources that comprise the multibank feed, but for serious traders with significant capital, I will make the introduction.

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Metatrader FPI Indicator

Postby Qtip » Mon Dec 04, 2006 5:05 pm

Nicholishen wrote:I don't think that my connections would like me to reveal the sources that comprise the multibank feed, but for serious traders with significant capital, I will make the introduction.



I currently have Metatrader with an Institutional feed. My EUR/USD spread is usually 1 during regular hours if not less. Would your Metatrader indicator work with this type of setup.

Thanks.

p.s. been trading for years, but discretionary, however learning more about developing indicators and systems.

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Re: Metatrader FPI Indicator

Postby Qtip » Mon Dec 04, 2006 5:11 pm

Qtip wrote:
Nicholishen wrote:I don't think that my connections would like me to reveal the sources that comprise the multibank feed, but for serious traders with significant capital, I will make the introduction.



I currently have Metatrader with an Institutional feed. My EUR/USD spread is usually 1 during regular hours if not less. Would your Metatrader indicator work with this type of setup.

Thanks.

p.s. been trading for years, but discretionary, however learning more about developing indicators and systems.



BTW, I found this FPI Indicator on the Internet. I wasn't able to get it to work on Metatrader 4. Any help would be greatly appreciated.
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Re: Broker/data feed?

Postby michal.kreslik » Mon Dec 04, 2006 10:40 pm

Muddyguy wrote:2. I can find NO interest positive ring with correctly sized lots.

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.

It's quite interesting the aggregate interest rate varies a lot among the different rings and setups.


Muddyguy wrote:Which... brings us back to the question... is there a fair, low-spread MT4 broker out there with whom we can trade this?

I doubt it since the MT4 users pay for the platform in the form of artificially increased spreads.

Michal

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Swap questions

Postby dof » Tue Dec 05, 2006 1:00 am

Michal,

Can you be more clear please regarding swaps? (post some examples)

In order to keep the ring stable you have to size it correctly and there are NO interest positive rings with correctly sized lots as Muddyguy already said some posts back and I agree with him.

On the other hand I don't understand what you want to say by "sum up all the swaps". You will get the swap for long positions and you'll pay for the short one or the opposite. This mean, for instance, that you sum up all the swaps for long and subtract for short.
Right now I have this positions opened and the swaps are:


Pair Type Swap
EURCHF SELL - 4.16
EURUSD BUY - 4.92
USDCHF BUY + 7.08

So, as you can see I'm paying swap (instead of getting it) in this case.
Do you want to say (sum up) something like:

total_swap = (-4.16) + (-4.92) + (7.08)

Any more explanations will be very helpful,
Thanks
Last edited by dof on Tue Dec 05, 2006 3:44 am, edited 1 time in total.

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