FPI - Fractional Product Inefficiency: The Impeccable Hedge

NeoTicker indicators

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michal.kreslik
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Re: Swap questions

Postby michal.kreslik » Tue Dec 05, 2006 1:19 am

dof wrote:Do you want to say (sum up) something like:

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


Precisely, you sum up all the positive and negative swap values to come up with the aggregate interest.

Michal

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Re: Broker/data feed?

Postby Muddyguy » Tue Dec 05, 2006 4:29 am

Hi Michal - good to have you jump in again!

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?

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

Very true - it also varies from broker to broker.

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

Can you suggest some brokers, or at least the kind of brokers to look for? And, perhaps the appropriate software and datafeed to automate this system? Unfortunately, I am relatively new to Forex and am only familiar with MT4 brokers.

Thanks for everything,
Bill
:?

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Re: Metatrader FPI Indicator

Postby Muddyguy » Tue Dec 05, 2006 5:18 am

Qtip wrote: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.

Hi - I took a look at this indicator. It is almost the same as the one in my post a couple days ago. It uses a yellow line rather than green histogram. (I like green better, and I can see a histogram from across the room. I can't see yellow lines from that far).

It has the same problem with repainting the past that mine did. I've attached a couple screen shots from a few seconds apart where I changed time frames, then changed them back. Check it out. See the problem?

And... it is still MT4 and as Michal points out, MT4 brokers will not likely contribute to our success with this system.

Take care,
Bill
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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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Proof FPI works

Postby holyguy7 » Wed Dec 06, 2006 10:58 am

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.
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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 holyguy7 » Wed Dec 06, 2006 6:38 pm

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.

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Postby FX5 » Wed Dec 06, 2006 8:26 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.


How did you test your system. Back test is not reliable at all, especially with this method. I found that the close prices (in Metatrader) for varius pairs are not corrctly synchronised or alligned. So you will get incorrect values for FPI if depended on those values.

On the hand, if you calculate FPI on live prices you will find that the quotes for various pair are balanced and there is no way you can get advantage of it, Except of course during volatile market conditions where you can't enter the market reliably at your prefered prices.

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Re: Metatrader FPI Indicator

Postby FX5 » Wed Dec 06, 2006 9:04 pm

Muddyguy wrote:
Qtip wrote: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.

Hi - I took a look at this indicator. It is almost the same as the one in my post a couple days ago. It uses a yellow line rather than green histogram. (I like green better, and I can see a histogram from across the room. I can't see yellow lines from that far).

It has the same problem with repainting the past that mine did. I've attached a couple screen shots from a few seconds apart where I changed time frames, then changed them back. Check it out. See the problem?

And... it is still MT4 and as Michal points out, MT4 brokers will not likely contribute to our success with this system.

Take care,
Bill


There is something you have to know about Coderzguru expert. It calculates FPI with the chart data whcih represents the Bid prices. So the calculations done with this expert are not correct.

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