Search found 4 matches

by silverpike
Thu Oct 19, 2006 6:10 am
Forum: NeoTicker indicators
Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
Replies: 768
Views: 2236954
Gender: Male

Re: Triangular Arbitrage

Buy: 0.7143 lot EUR/JPY (broker does the math and Banks do the rest) There was a major error in your calculations. I want to point this out, and also address some other posts made about Metatrader. The error is that in order to form a "perfect" hedge, it requires a non-"lot"-siz...
by silverpike
Sat Oct 14, 2006 12:20 pm
Forum: NeoTicker indicators
Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
Replies: 768
Views: 2236954
Gender: Male

Re: Taking Advantage of FPI

It results that the following trades combination: 1. Buy EURJPY, Sell, EURUSD, Sell USDJPY and 2. Sell EURJPY, Buy, EURUSD, Buy, USDJPY produced profit when entering the market with FPI <0 and exiting with FPI >0 but not in equal amount. Double check your math. I believe they should both come out t...
by silverpike
Fri Oct 13, 2006 5:30 pm
Forum: NeoTicker indicators
Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
Replies: 768
Views: 2236954
Gender: Male

Re: Calculation of Impecable Hedge

If you sell short 100,000 EUR/JPY and buy 100,000 EUR/USD you have sold and bought the same ammount of EUR. If you buy 100,000 EUR/USD and buy 100,000 USD/JPY you have sold 126,485 USD and bought 100,000 USD. There are 26,485 USD not hedged shouldn't you buy 126,485 USD/JPY instead of 100,000? Yes,...
by silverpike
Fri Oct 13, 2006 5:27 pm
Forum: NeoTicker indicators
Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
Replies: 768
Views: 2236954
Gender: Male

Michal, thanks for sharing this. I saw a link to this article from another site, and I registered here just to make some comments. In your FPI chart, the FPI will range from below 1 to above 1. I totally understand the theory, I have looked at this type of thing in the past. My question is : is ther...

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