http://www.zerohedge.com/news/ecbs-balance-sheet-hits-new-record-highs-fair-eurusd-value-900-pips-lower
As you can see there is a very interesting correlation Fed/ECB and EUR/USD.
The author says make your bets.
I was thinking if it is possible to do something else. I will write more on that later. For the moment I am making some assumptions.
The idea is that there is a relationship between a fundamental situation and EA. The best example was the EUR/CHF system by vgc.
Here on this correlation there may lie another relationship between a fundamental situation and EA.
We see that there is a big disbalance between a fundamental relationship and the current market situation.
We could hypothetize that we have a disbalance between a fundamentals and the market.
So whenever the market goes back to balance, it will make it in a movement that would be related with volatility. And even more we can hypothetize that we could have a particular market state that has at least short term predictability.
If you follow me, the idea is that whenever we see a special break - out we can turn our EAs on and they will deal with the situation. As the movement would have at least short term predictability and high volatility we can use EA systems that do work in those kind of situations:
-Spinal implant
-Brain Trend
-Asctrend EA
They would work very good in those market conditions when the market goes with a strong movement towards its fundamental balance.
So to summarize:
1.Fundamental disbalance
2. Looking for a shift of the market towards the balance
3. We swith on the impulse following EAs hypothetizing that the movement would be more or less predictable.
4. We swith of the EA when the market gets into balance again (or at least lower the market exposure).
it's the same as setting pending orders ahead of important news releases. but the slippage is so high and spreads widen that there are really very hard to make money on these increases of volatility
ОтговорИзтриванеYes Sergey I see your point but it is not quite the same thing. Trading the news releases was a very good strategy some time ago. Now it is not, so easy because the brokers counter - reacted.
ОтговорИзтриванеHowever, and this is another point I was following remotely one thread where it was explained how to trade box options to profit from the news releases.
However I mean here something different, it was about expected volatility that was going to last a little bit more, not just the burst of volatility that we have during news releases.
Sometimes I even amaze myself LOL
ОтговорИзтриване