Search found 4 matches
- Thu Oct 19, 2006 6:10 am
- Forum: NeoTicker indicators
- Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
- Replies: 768
- Views: 2236954
- Gender:

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...
- Sat Oct 14, 2006 12:20 pm
- Forum: NeoTicker indicators
- Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
- Replies: 768
- Views: 2236954
- Gender:

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...
- Fri Oct 13, 2006 5:30 pm
- Forum: NeoTicker indicators
- Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
- Replies: 768
- Views: 2236954
- Gender:

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,...
- Fri Oct 13, 2006 5:27 pm
- Forum: NeoTicker indicators
- Topic: FPI - Fractional Product Inefficiency: The Impeccable Hedge
- Replies: 768
- Views: 2236954
- Gender:

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...