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Jan 31

FX Algo Trader Statistical Arbitrage Software Overview (www.fxalgotrader.com)

The FX AlgoTrader Generic Statistical Arbitrage Engine Version 2 provides a fully automated algorithmic trading package specifically orientated for arbing highly correlated FX pairs. For more information check www.fxalgotrader.com




8 comments

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  1. afalde

    I posted a 1 hr webinar on using statistics in options trading specific example in use of weekly butterfly. back tested results of 35% per year.

  2. zeena923

    decent video. i dont know if this would be the right video to ask.. has anyone tried the forex autogalactus? you can search it. my brother says its the ultimate forex thing out there because they are making huge amounts of cash with it.. i am contemplating buying it.

  3. mrmaytung

    insightful video. i am not sure if this should be the right video to ask.. has anyone tried the forex autogalactus? you can google it. my friend says its the ultimate forex thing out there cuz they are making loads cash with it.. i am very tempted into buying it.

  4. FXAlgoTrader

    @clearsunnysky Depends on the strength of the trend in the synthetic pair (created by the arb) if the spread is moving up strongly and you entered at -2 why not ride it out to +2. If the spread is stationary it’s probably better to exit at the mean. There is a scenario called stochastic resonance where the spread will oscillate around the mean in a tight band when reversion takes place. So on that basis exit at mean reversion makes sense on a general basis.

  5. FXAlgoTrader

    @JCB7890 It’s less risky because you’re effective leverage is reduced. If your 1 lot long EURUSD and 1 lot short GBPUSD your effective aggregated position is roughly 0.5 lots long EURGBP.

  6. JCB7890

    If you buy eur/usd and sell gbp/usd, then your position is simply long eur/gbp. Volatility in eur/gbp can sometimes exceed that of gbp/usd … how is taking an outright position in eur/gbp somehow less risky than taking an outright position in gbp/usd?

  7. FXAlgoTrader

    Hi, the current arbitrage engine exits under the following conditions:-
    1) If overall arb position is profitable and spread mean reversion is complete ie spread has recoupled with it’s 20 day MA.
    2) Position has reached maximum allowable loss described as a % of equity

    You could extend your profits by letting the spread move further over the spread MA – it’s called ‘resonance’ – typically the spread will oscillate around the mean once it returns thereby allowing you to push more profit

  8. clearsunnysky

    Hi there, I’m trying stat arb with a manual calculation on excell currently and wanted to know when you typically exit your trades – if you get in at -2 e.g. would you exit at the mean or continue until SD hits +1 or +2?

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