[hatetheslippage] Demo Trading Journal Before going live

Jun 1, 2015
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Based on H4 Chart
I saw that USDCAD form a Hns Pattern
usdcad-h4-tickmill-ltd-3.png
Sell 0.02 USDCAD @1.31859
Stop loss @ 1.3250
Risk : $9.73
with TP level @ 1.3050
Reward : $20.63



H1 EURUSD W pattern

Buy 0.01 EURUSD @ 1.12628
SL 30 pips TP 60 pips
Buy 0.01 EURUSD @ 1.12610
SL 30 pips TP 60 pips
Risk total 30pips x 2 = $6
Total potential Reward =$12(60 pips)
Total Potential Risk : $15
Total potential Reward =$35
 
Jun 1, 2015
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Update : EU Stilll Running
USDCAD Hit SL

Open another USDCAD Trade
Based on m15 chart
Sell 0.04 UCAD @ 1.32222
SL @ 1.32472
TP @ 1.3050

Reason : Bull Bear Bear candle
usdcad-m15-tickmill-ltd-2.png
 
Jun 1, 2015
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Find nice Setup to sell AUDNZD

with SL @ 1.12638

TP 1 @ 1.07764

TP 2 @ 1.065

TP 3 @ 1.05177

Tp 4 @ 1.04172
 

Attachments

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Jun 1, 2015
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i wanna do some research about Triangular Arbitrage

Triangular Arbitrage is one of the forex trading strategies utilizing the imbalance value of the three currencies,
Example : GBP / USD, EUR / GBP, and the EUR USD,

the formula = GBP / USD x EUR / GBP = EUR / USD,
if the conditions are GBP / USD x EUR / GBP # EUR / USD,
then the triangular arbitrage opportunities arise.
This strategy practiced manually is difficult, because of the scarcity of opportunities that arise, and need the speed and timing to execute the order, because it is usually run by using softaware.


Here is my basic concept
Triangular Arbitrage

Currency formula (CF):
GBP / USD (GU) x EUR / GBP (EG) = EUR / USD (EU
Description :
GU price multiplied by EG must be equal to the EU

The Triangular Arbitrage Formula(TAF):
GU x EG # EU
Description :
Triangular Arbitrage arises if:
GU price multiplied by the price of EG is not the same as the price of the EU at the time

Entry Rule:
1. If the EU CF> EU TAF by a margin of at least 12 pips then we open trades: EU buy, sell EG, & sell GU
2. If the EU CF <EU RTA by a margin of at least 12 pips then we open trades: EU sell, buy EG & buy GU
3. We will not open trades if the difference is less than 12 pips

Lot used in TAF for each currency:
1. EU = 1 x lot (mini, standard)
Examples 0.10 or 1.0
2. EG = appropriate price at the time GU x lot (mini, standard)
Sample price GU 1.6381 then we open 0:16 or 1.63
3. GU = appropriate price at the time EG x lot (mini, standard)
Examples EG 0.7210 price then we open 0.72 or 7:21

Exit Rule there are 2 options:
1. Take Profit with the following calculation: the difference in pips (ex: 12) - total third spread currency (ex: fx version 8 open) = profit (4) x lot (1) = $ 40
2. Exit when price is in conformity with the CF

Sample case Using tickmill brokers
Prices on the chart, namely: GU 1.6381, EG 0.7210 and 1.1823 EU,
with spreads are 1.3 for EURUSD, 1.7 for GBPUSD , and 2 for EURGBP

and then triangular arbitrage opportunity appeared, because GU x EG # EU.
Value EU CF is supposed to 1.1811 due to the smaller than EU TAF by 12 pips,
then we open trades sell EU, buy EG and buy GU
With the lot size EU 1,
EG 1.63 (according to the price GU)
and GU 0.72 (according to the price EG that time )
We will take profit formula pips difference minus the total spread, ie 12-5 = 7 x 1 lot = $ 70

But i will do it with a twist
Instead i am wait the triangular opportunity
i will enter trades blindly, no analyzing anything

and only with this lotsize formula
XXX/USD = 1
YYY/USD = Lot size depend of XXX/YYY Price
XXX/YYY = Lot Size depend of YYY/USD price

For Example GBPNZD Trade below
nzdusd-h1-tickmill-ltd.png
 
Last edited:
Jun 1, 2015
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Closed My GBPNZD triangular in my Tickmill demo account for my triangular research
+40
not bad
 

Attachments

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Enivid

Administrator
Staff member
Nov 30, 2008
18,535
1,355
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Odesa
www.earnforex.com
Your cumulative position of GBP/NZD, GBP/USD, and NZD/USD is not neutral. You are short 4,000.00 GBP and long 9,367.38 NZD and 241.78 USD. You have profited because the market have moved in your favor. However, it could have moved against you all the same. That is not a correct way to do triangular arbitrage. Thanks for sharing your calculations anyway.
 
Jun 1, 2015
23
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Your cumulative position of GBP/NZD, GBP/USD, and NZD/USD is not neutral. You are short 4,000.00 GBP and long 9,367.38 NZD and 241.78 USD. You have profited because the market have moved in your favor. However, it could have moved against you all the same. That is not a correct way to do triangular arbitrage. Thanks for sharing your calculations anyway.

thx for your answer
so i am curios and decide open another demo account to compare it


gbpusd-h4-tickmill-ltd.png

gbpusd-h4-tickmill-ltd-2.png


let us see what happen