Correlations revisited ... - page 6

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mntiwana:
Hi Seniors,

usually in correlation indicators (pair} price line is calculated in conjunction with that particular pair (because 7 pairs with 7 lines} for example in EURUSD price is calculated how EUR is declining or increasing against USD,if EUR is increasing here against USD,at the same time EUR might be decreasing its value against some other currency,for example GPB or AUS,not because of that EUR is increasing/decreasing its value,might be EUR is still at same price in real but because of other currencies (USD/GPB} might be going up or down,so my question is......which one indicator give us a currency original price,real price with out any conjunction with any currency and from where it will be get data for latest rate and how it will be refresh data at every tick,is there any central exchange where prices are decided or every currency get data from its own country central bank.....thanks

regards

None

You can calculate correlation of symbols - there is no currency value, but only exchange rate values for currency pairs, and that exchange rate is the currency to currency correlation

 
on my own:

None

You can calculate correlation of symbols - there is no currency value, but only exchange rate values for currency pairs, and that exchange rate is the currency to currency correlation

on my own,

thank you for taking time,i played with correlation some time ago,used a lot of CCFP and such kind indies,these kind indi gave some idea but not any perfect for any decision,most of the time when a particular currency price line is declining against the other belonging currency but the price at chart doing nothing,so all in all we can assume that the line of this particular currency was declining for some other reason,because of some other currencies,the problem is we can not calculate and figure out how to trade with one pair when with conjunctioning all 8 major pairs along with so many other pairs.

regards

 
mntiwana:

on my own,

thank you for taking time,i played with correlation some time ago,used a lot of CCFP and such kind indies,these kind indi gave some idea but not any perfect for any decision,most of the time when a particular currency price line is declining against the other belonging currency but the price at chart doing nothing,so all in all we can assume that the line of this particular currency was declining for some other reason,because of some other currencies,the problem is we can not calculate and figure out how to trade with one pair when with conjunctioning all 8 major pairs along with so many other pairs.

regards

mntiwana

I don't think that CCFP is showing correlations. It is based on experience instead on math and when value is calculated one way and the other differently, that can not be called a correlation

 
on my own:

mntiwana

I don't think that CCFP is showing correlations. It is based on experience instead on math and when value is calculated one way and the other differently, that can not be called a correlation

on my own,

thanks for your concerns,i just give you example of ccfp and such kind all other indies too,and my question is still there ... so in your opinion,not any indicator that give us only one single currency real value from a reliable source and update it frequently.

regards

 

Dearest MLADEN.

can you please give a try to make smooth or some other alteration by calculation value to price line magenta color, with slope colors when crossing yellow line up and down......one other question,it is moving up down min-max in between 70 to 100 most of the time in all TFs ,why it is not getting back down to 50 or 0 .....

thanks

regards

us-dollar-index 1_02.mq4

Files:
eurusdm1.png  39 kb
1_2.png  29 kb
us-dollar-index_1_02.mq4  8 kb
 
Boxter:
Statistical Arbitrage

Hi mladen,

very good thread ! Do you have a recommendation what correl type should be taken as filter for statistical arbitrage trading ? As far as I know the Pearson type is typically taken there.

By the way, a statistical arbitrage EA executing pair trades based on spread MA and using standard dev bands for hedge order opening and closing would be a good thread as well ...

Some related reading - Statistical Arbitrage in High Frequency Trading Based on Limit Order Book Dynamics : the book

 
on my own:
Not even in mt5?

http://www.dataminingblog.com/standardization-vs-normalization/

can we have standardizing rather than normalizing perhaps

thanks for your kindest consideration

 
yourthebest:

http://www.dataminingblog.com/standardization-vs-normalization/

can we have standardizing rather than normalizing perhaps

thanks for your kindest consideration

The "standardization" as it is described there, will allow values outside the bounds - hardly anything will change in that case

 
yourthebest:

http://www.dataminingblog.com/standardization-vs-normalization/

can we have standardizing rather than normalizing perhaps

thanks for your kindest consideration

Why not using simple stochastic for each symbol?

 
on my own:
Why not using simple stochastic for each symbol?

why not? i'm not a coder, Try it! http://math.stackexchange.com/questions/367743/standardizing-a-random-variable-that-is-normally-distributed just an interesting article... i find it fascinating that if you had normally distributed or normalized data AB INIITIO what one could do..

more accuracy in all the indicators and opens up a whole new world.... but how best to standardize/normalize? i'm just thinking out of the box out loud. don't take it too seriously here. I'm the furthest thing from and expert.

Thanks so much

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