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Arbitrage

#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.
VLong
by megatrade101
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.
OANDA:XAUUSD
by AlexandreNygal
1
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.
by kniedoborski
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.
by IvanLabrie
4