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  #31 (permalink)  
Old 04-11-2007, 06:43 PM
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This method sounds promising and is in fact practicable. The problem it that you need a broker that supports fractioal lots to create a perfectly "flat" order. The only one I know that supports this is OANDA, that doesn't support Metatrader. Another reason why this method doesn't work here is that most Brokers have fairly high spreads in order to pay for the Metatrader-license :-) Oanda offers very tight spreads that are needed for this strategy to work because profits are small - but risk-free!

-> If you're willing to trade this method manually and spend some time with it then trading those Rings can be profitable.
Last edited by rainx; 04-12-2007 at 02:02 AM.
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  #32 (permalink)  
Old 04-16-2007, 02:50 PM
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Hi All,

I just posted an FPI ea at Nicholishen thread about FPI - Price Predictive at
(FPI) predictive price
But I think I can post it here too.
Have fun

Cheers,
Attached Files
File Type: mq4 FPI_wibitiens.mq4 (4.0 KB, 105 views)
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  #33 (permalink)  
Old 10-01-2007, 06:45 PM
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Fractional Product Inefficiency
kreslik.com - Traders Community :: View topic - FPI - Fractional Product Inefficiency: The Impeccable Hedge

I'm wonder if anyone is able to apply this on forex brokers...with consistency. Some ppl have done it only to be banned from the broker.

So, would applying FPI on MBTrading or Interactive Brokers be more viable? I hear the commissions eat up your profits from the triangular arbitrage.

Why forex is much more attractive than futures is the extremely high leverage one can use to magnify the small pip gains from FPI. Also, your position is hedge automatically, there is no risk of losing money here.


So the hard part of all this is finding the right broker(aka victim).
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  #34 (permalink)  
Old 10-01-2007, 07:01 PM
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Quote:
Originally Posted by jjk2 View Post
kreslik.com - Traders Community :: View topic - FPI - Fractional Product Inefficiency: The Impeccable Hedge

I'm wonder if anyone is able to apply this on forex brokers...with consistency. Some ppl have done it only to be banned from the broker.

So, would applying FPI on MBTrading or Interactive Brokers be more viable? I hear the commissions eat up your profits from the triangular arbitrage.

Why forex is much more attractive than futures is the extremely high leverage one can use to magnify the small pip gains from FPI. Also, your position is hedge automatically, there is no risk of losing money here.


So the hard part of all this is finding the right broker(aka victim).
It's not feasable with your typical MT broker, nor are the 'in-efficiencies' in price your typical MT broker would show reliable, as these prices are buffered, not true market prices, and some allegedly run smoothing algorithms which would filter true in-efficiencies even more...

Kreslik is the 'cutting-edge' on this as far as I'm aware - he's was working on s/w to implement this for some hedge fund.
Last edited by omelette; 10-01-2007 at 07:04 PM.
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  #35 (permalink)  
Old 10-01-2007, 07:13 PM
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Quote:
Originally Posted by omelette View Post
It's not feasable with your typical MT broker, nor are the 'in-efficiencies' in price your typical MT broker would show reliable, as these prices are buffered, not true market prices, and some allegedly run smoothing algorithms which would filter true in-efficiencies even more...

Kreslik is the 'cutting-edge' on this as far as I'm aware - he's was working on s/w to implement this for some hedge fund.
yes i suspected that as well. i use MT4 mostly for just testing out ideas, NEVER for going live.

So my question is, are there any other non-mt4 brokers out there that allows me to exploit FPI ? Oanda? MBT ? IB ? which ones work?
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  #36 (permalink)  
Old 10-01-2007, 07:27 PM
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Quote:
Originally Posted by jjk2 View Post
yes i suspected that as well. i use MT4 mostly for just testing out ideas, NEVER for going live.

So my question is, are there any other non-mt4 brokers out there that allows me to exploit FPI ? Oanda? MBT ? IB ? which ones work?
Can't comment on the others but InteractiveBrokers have no restriction on this type of trading that I am aware of, neither is 'size' a problem - their commisions pricing lists billions in currency traded per day! Much less leverage available though.

To implement something like this would cost serious money I would expect. IB's TWS has no 'user-friendly' MT programming features - everything must be coded from scratch. If you have read up on Kresliks exploits, you will know that this is non-trivial to do at best and I'd rate that guy a genius!

btw Smartquant is about the best IB compatible s/w for this kind of 'blackbox' construction. Might be worth looking into.
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  #37 (permalink)  
Old 10-02-2007, 08:10 AM
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Quote:
Originally Posted by jjk2 View Post
kreslik.com - Traders Community :: View topic - FPI - Fractional Product Inefficiency: The Impeccable Hedge

I'm wonder if anyone is able to apply this on forex brokers...with consistency. Some ppl have done it only to be banned from the broker.

So, would applying FPI on MBTrading or Interactive Brokers be more viable? I hear the commissions eat up your profits from the triangular arbitrage.

Why forex is much more attractive than futures is the extremely high leverage one can use to magnify the small pip gains from FPI. Also, your position is hedge automatically, there is no risk of losing money here.


So the hard part of all this is finding the right broker(aka victim).
Hi jjk2,

I just merged your thread with this one (with 6 days redirection) because this subject was discussed already on this thread with same link to kreslik forum.

Besides we are having the following related threads:

- Codersguru thread with indicator is here.

- (FPI) predictive price by Nicholishen: good thread with new indicators to predict the price movement.
Last edited by newdigital; 01-03-2008 at 09:09 AM.
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  #38 (permalink)  
Old 01-03-2008, 08:47 AM
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Triangular Arbitrage
If I long 5 lot of eur/usd, long 5 lots of usd/jpy &
short 5 lot of eur/jpy, the net P/L DOES NOT
revert to some mean value ...instead it widens to
either more positive or negative.

i.e it is Not zero exposure even though the mulitplication
looks like.

Is there a table somewhere that shows the ratios to create an exact equivalent hedge between majors and crosses?

e.g. eur/usd x usd/chf = ? eur/chf

gbp/usd x usd/jpy = ? gbp/jpy

eur/usd / gbp/usd = ? eur/gbp

...etc
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  #39 (permalink)  
Old 01-14-2008, 03:11 AM
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What indicator is that?
Quote:
Originally Posted by apfx View Post
You can find more explanations : kreslik.com - Traders Community :: View topic - FPI - Fractional Product Inefficiency: The Impeccable Hedge
in my case, Kreslik was the guy who brought this topic in my attention.
but basically:
triangle arbitrage is possible when for example:
EURJPY<> EURUSD*USDJPY (which 99% of the time is true)
now if you will build and indicator showing the difference:
EURJPY - EURUSD*USDJPY
You will see that oscillates around value 0. theoretically every time this difference is <> 0 you have an arbitrage opportunity:
if indicator >0 according to triangle arb. theory means that EUR is overvalued against JPY and you need to sell EURJPY (buy JPY with EUR)
if indicator<0 the opposite is true and you need to buy EUR with JPY.

practically that is what it looks like:
Included in calc. spread of EURUSD,USDJPY, EURJPY = 2pip.

(sorry it seems impossible to upload pics quickly , need to resize)

Could you tell me what indicator are you using to display tha graph? Is it for MT4? Could you post it

Thanks
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  #40 (permalink)  
Old 01-14-2008, 08:43 PM
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safe arbitrage on interest rates
Hi,

If you guys are really interested in making safe, fully hedged arbitrage investments you should check out Safe FX We make our money off of the interest rate gap not from trading and everything is fully hedged so you don't get killed when the carry trade collapses. We can make about 5% a month this way with interest rates where they are and it's safe.
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