AUDUSD NZDUSD 5M - Correlation Arbitrage
Correlation 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.
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.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.