FPI - Fractional Product Inefficiency: The Impeccable Hedge

NeoTicker indicators

Moderator: moderators

User avatar
Mr. H
rank: <50 posts
rank: <50 posts
Posts: 5
Joined: Fri Jul 06, 2007 5:05 pm
Reputation: 0
Gender: None specified

Postby Mr. H » Sun Jul 22, 2007 10:35 pm

michal.kreslik wrote:
xstek wrote:Michal, the liquidity is only as deep as the hub you are in.


Definitely. the "making Currenex one of the deepest liquidity pools in Forex" part of the sentence is their sales pitch.

Michal


Hi Michal and All,

Here is a link to a centrally-cleared OTC foreign exchange (FX) trading
platform to Institutional Forex Dealers:
FXMarketSpace

PS: I am not affiliated with the above link as it is posted for information only.
Keep It Simple,

Mr. H

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

FAB4X
rank: <50 posts
rank: <50 posts
Posts: 8
Joined: Tue Aug 14, 2007 4:17 pm
Reputation: 0
Gender: Male

The Best Trio ?

Postby FAB4X » Tue Aug 14, 2007 4:44 pm

Has someone determined which 3 pairs or more are the best overall to hedge. I have a MT4 indicator that I could run to see the profit line overtime.

User avatar
michal.kreslik
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Sat May 13, 2006 2:40 am
Reputation: 0
Location: Monte Carlo, Monaco
Real name: Michal Kreslik
Gender: Male
Contact:

Re: The Best Trio ?

Postby michal.kreslik » Tue Aug 14, 2007 4:52 pm

FAB4X wrote:Has someone determined which 3 pairs or more are the best overall to hedge. I have a MT4 indicator that I could run to see the profit line overtime.


The answer is clear: those with the smallest average compound spread on your platform(s).

Michal

FAB4X
rank: <50 posts
rank: <50 posts
Posts: 8
Joined: Tue Aug 14, 2007 4:17 pm
Reputation: 0
Gender: Male

Re: The Best Trio ?

Postby FAB4X » Wed Aug 15, 2007 1:18 am

michal.kreslik wrote:
FAB4X wrote:Has someone determined which 3 pairs or more are the best overall to hedge. I have a MT4 indicator that I could run to see the profit line overtime.


The answer is clear: those with the smallest average compound spread on your platform(s).

Michal


Do you have a list already. I am using InterbankFX MT4 platform

User avatar
TheEconomist
rank: <50 posts
rank: <50 posts
Posts: 22
Joined: Thu Nov 02, 2006 7:13 pm
Reputation: 0
Gender: None specified

Postby TheEconomist » Thu Aug 16, 2007 7:32 am

Visit my forex arbitrage blog to see my rebranded version of FPI

Michal, hope you won't get upset ;) I modified 50% of the FPI...TheEconomist's Forex Arbitrage Blog

... Stay tuned, more arbitrage strategies to come!

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
michal.kreslik
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Sat May 13, 2006 2:40 am
Reputation: 0
Location: Monte Carlo, Monaco
Real name: Michal Kreslik
Gender: Male
Contact:

Postby michal.kreslik » Fri Aug 24, 2007 8:28 am

TheEconomist wrote:Visit my forex arbitrage blog to see my rebranded version of FPI

Michal, hope you won't get upset ;) I modified 50% of the FPI...TheEconomist's Forex Arbitrage Blog

... Stay tuned, more arbitrage strategies to come!


Hello, TheEconomist,

I have just come home from a vacation in Ireland, that's why I'm only replying now.

A brief look at your link makes me think that you apply the arbitrage only on MetaTrader4-contracted brokers. I would seriously doubt the arbitrage like FPI would work with MT4 as the brokers are put under a contract with MT4 to deliver extra commissions to MT4.

Imagine a standard broker being forced to not only collect fees for themselves but for some third party as well. As I see it, this wipes out all potential profit and then some since FPI arbitrage only makes a very small profit each time it "trades".

Michal

User avatar
TheEconomist
rank: <50 posts
rank: <50 posts
Posts: 22
Joined: Thu Nov 02, 2006 7:13 pm
Reputation: 0
Gender: None specified

Postby TheEconomist » Fri Aug 24, 2007 10:37 am

michal.kreslik wrote:
TheEconomist wrote:Visit my forex arbitrage blog to see my rebranded version of FPI

Michal, hope you won't get upset ;) I modified 50% of the FPI...TheEconomist's Forex Arbitrage Blog

... Stay tuned, more arbitrage strategies to come!


Hello, TheEconomist,

I have just come home from a vacation in Ireland, that's why I'm only replying now.

A brief look at your link makes me think that you apply the arbitrage only on MetaTrader4-contracted brokers. I would seriously doubt the arbitrage like FPI would work with MT4 as the brokers are put under a contract with MT4 to deliver extra commissions to MT4.

Imagine a standard broker being forced to not only collect fees for themselves but for some third party as well. As I see it, this wipes out all potential profit and then some since FPI arbitrage only makes a very small profit each time it "trades".

Michal


Hi Michal,

You're right. I presented the Intercross more because I worked a lot in making the FPI more understandable and it was a pity to throw it away just because it wasn't working well on MT4 brokers. The theoretical ground is good, but with these brokers you can expect everything. In September I am restarting my trading with cash-to-futures arbitrage or oil arbitrage (I will present these too on my blog). I decided to make my choice and throw away the fund safety of NFA-regulated brokers for the strategical safety of non-NFA regulated brokers which allow me to deploy also non-forex arbitrage strategies (that can't be destroyed just by slapping the fingers, like it happens to FPI on MT4). Actually having access to multiple , arbitrageable commodities contracts or currency futures (i'm opening a parenthesis here, FPI or Intercross applied on currency futures instead of forex might work), for instance, tells a lot about what's happening on retail forex. These online forex casinos are changing the rules of the game, allowing to pass some of their gains from newbie and generally directional traders to smart, poor arbitrageurs that don't earn too much. Some thousand dollars won could mean a lot for me, and I won't mind if after that the broker would tell me to *censored - swear word* off... I would have plenty of cash to put my strategies with trusted brokers on Strategy Runner, for example... So I don't necessarily consider MT4 the pinnacle of trading platforms, but rather, a beginning...

User avatar
michal.kreslik
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Sat May 13, 2006 2:40 am
Reputation: 0
Location: Monte Carlo, Monaco
Real name: Michal Kreslik
Gender: Male
Contact:

Postby michal.kreslik » Fri Aug 24, 2007 11:06 am

TheEconomist,

the FPI should work on the futures markets as well. In fact, that's one of the reasons I'm researching the Interactive Brokers right now as IB gives access to a wide range of markets and I can connect to IB from NeoTicker.

Actually, the basic principle of the FPI arbitrage is applicable to any set of FPI-ring enclosed two-way quotes. It does not really matter whether the quote is EUR/USD or 1 kg of potates/1 barrel of oil :)

Michal

User avatar
TheEconomist
rank: <50 posts
rank: <50 posts
Posts: 22
Joined: Thu Nov 02, 2006 7:13 pm
Reputation: 0
Gender: None specified

Postby TheEconomist » Fri Aug 24, 2007 11:20 am

Can you trade something that doesn't exist?

Like these rings: CL/$, WTI/$, CL/WTI ; or CL/$, KE/$, CL/KE

Those crosses (oil among themselves, oil to wheat...do they exist)? If no, how do you close the ring?

User avatar
dbw451
rank: 50+ posts
rank: 50+ posts
Posts: 50
Joined: Sun Jul 22, 2007 9:45 pm
Reputation: 0
Gender: Male

Postby dbw451 » Fri Aug 24, 2007 12:43 pm

Hi Michal,

I'm a long time IB user. I'm not overly familiar with your FPI strategy and whether or not it is dependant on accurate real-time quotes. IB does not broadcast accurate tick data, but rather their quotes are timed snapshots. The snapshots leave out a lot of ticks. This leads to some interesting situations like my orders often are filled a second or so before my quote/chart displays a touch on my order price. The advantage of their quote update strategy is that they keep up well with fast moving markets (unlike Tradestation which sometimes falls several seconds behind). The obvious disadvantage is that you don't get every tick which could make arbitrage difficult.

Also, if you need historical data for backtesting or backfilling charts, be aware that the lowest pratical timeframe IB provides is in 1 minute bars.

IB is a good broker but if you need accurate real-time or historical tick data, you'll need to supplement with another source like eSignal.

Regards,

David

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “NeoTicker indicators”