ARBITRAGE SELL CITIGROUP BUY WELLS FARGOIN 12 MONTH HORIZONT THE BIGGEST PERCENTAGE GAP BETWEEN BIGGEST US BANKS.
ASSUMING BIG DOWN MOVE IN BANKING SECTOR ON DISAPPOINTING RESULTS AND FADING TRUMP TRADE MAY LEAD TO SELL OFF WITHIN BANKS WHICH SHOULD LEAD TO NARROWING THE GAP.
TIME HORIZONT OF THE BET 4-6 MONTHS
Arbitrage
S and P Vs Cac and Dax Top Arbitrage for SummerS and P 500 Vs Dax and Cac. Both Europeans have made major breakouts today and have over 400 points upside in them over the Summer with great charts. They're going to continue to outperform the S and P now with the French election is a foregone conclusion. Don't stand on the sidelines. Follow it before it's too late!
#TSOT -Alternative Strats #SP500 Index #VIXA long call option in the VIX has been over-crowded for sometime, instead taking a queue with the VIM2017 for June futures was more logical as it has also been over-due for a correction before June'17 expires by the end of the 2nd quarter trading. The motivation has been identified to be a technical Island formation and the fact that a third price swing above 18.00 would be an attempt in line spread over a defined period of time.
An alternative Plan B and an arbitrage Hedge is likewise in the making to ensure gains made over the carry-over period from last 4th quarter of 2016 would be protected in the event that such declines would continue to do so unexpectedly. Since we have called the price @2200-2500 for the SP500 Index, which is @2269 to this writing. In the event of a turn around, timing a relatively increase in market volatility will justify this strategic move. This would reflect only a price reversal not necessarily a trend reversal as prices are still well within a major decline.
Gold VS Silver : Pick the right one either for long or short !The US election is taking place as I am writing these lines... As a protection, a lot of investors and traders are willing to add some gold (or silver) to their portfolio, which sounds like a great idea because of the uncertaincy of this very particular event.
But on that strategy, you should be careful to the one you are picking, weither you go for long or short (depending on your own scenario of the vote outcome). Before the beginning of November, gold and silver were quite correlated. But since the 31st October, this correlation has changed : silver tends to get stronger than gold .
Whatever the reason of that could be, here is the conclusion you should take for your precious metals' investments :
- Better use Silver for long positions
- Better use Gold for short positions
Moreover, if you guys strongly believe that this situation will remain for the next few trading sessions, you can also try to initiate an arbitrage position : buying silver AND selling gold, so that you could take profits from the difference.
AUDUSD NZDUSD 5M - Correlation ArbitrageCorrelation arbitrage - Published 04.08.2016
Please change timeframe to 5 minutes.
I'm not recommending an arbitrage play at this time. I'm only trying to open up the eyes of traders to these 'arb' plays. AUD and NZD are high correlated due to their interlocking economiesand both trade at a fair spread to the USD. So when you see these pairs go their separat ways there is usually a way to profit.
First you have to look at a fairly low timeframe 5M does it for me, also when you look at the divergence always look at a long time graph (Tradingview isn't displaying enough data) minimum of 2 months of data.
See attach photo.
If you trade small enough you can afford to keep the position even it moves rather hard against you and you don't have to close a floating loss untill the pairs are correlated again.
EUR vs GBP: Pair trade setupSimple trade, trends are pretty clear here I believe.
EURGBP is a strong downtrend and will resume its direction this week I believe.
GBPUSD is an interesting long setup, with 11 weeks at one price and sitting above the mode currently.
You can market buy now, but it'll be 100% confirmed once it reaches my entry level on chart (1.57084).
Targets are for both time and price, you can trade all 3 as single pair trades, or use ADR to measure position size on each side and only trade eurusd and gbpusd on opposite directions.
ADR values are:
GBPUSD: 105.6 pips/day
EURUSD: 98.6 pips/day
So if risking 2% with a 10k capital, you will use 0.19 standard lots for GBPUSD and adjust the EURUSD position size by volatility to match the GBPUSD one as follows:
105.6/98.6 = 1,070993914807302 (ratio to adjust EURUSD position size with)
Thus, EURUSD lot size should be: 0.22 std. lots
If trading single pairs, it's simple, cost per pip as everyone knows.
Good luck,
Ivan.
Trading AUDUSD vs XAUUSD stat arb style. StatArb is one of the most profitable trading strategies employed by trading professionals, Hedge Funds and Proprietary Trading firms. Now the same signals are available for everyone.
Green circle is "Buy Spread" when you buy the higher pair and sell the lower pair, red circle is the opposite. "+" and "-" are suggested stop loss and take profit levels. The grey area chart represents normalized spread between two pairs
HSBC vs FTSE which will perform better? 130days forecast #spreadIndex Arbitrage Forecast: FTSE100 will outperform HSBC
Supporting Strategies: Cointegration, Correlation and Technical
Analysis Pattern : Elliott Wave 5
The trade should be opposite to the "gap". HSBC has performed better than FTSE100, in order to close the gap FTSE will now perform better in the next 131 days.
Targets and notes on charts