Risk comes from not knowing what you are doing and not having the ability to control the situation when things get out of hand.
definately a spread trading strategy, to minimise risk. i wonder do they take positional trades.
the key to this strategy, if i'm not wrong, is to identify similar pattern within the currencies pair and trade amongst them.if i'm you, i won't put the money there, you win small but there is a chance of getting wipe out down the road, unless they employ other strategy to increase their profit potential like directional trades.
ok padent me, they do take directional trade, and hedge it if trade goes against them (i think), then try and recover the original trade by spread trading.
now the next question is, do they position trade or simply day trading? ofcos it also depends on equity size to determine.
lets hope your next trade summary is this,+-+-+pairpairpairpair-instead of + pair pairpairpair-once again. :)
Yes, from what I see with the same set of pair trading over the past few days, it's definitely some spread strategy.They are simply day trading, closing off the position by end of the day.Limit the losses to 7% per day.So far did not detect any outright directional trading.
Post a Comment