http://www.creative-silence.com Forex Price Isolation(FPI) Strategies Fri, 30 Jul 2010 01:31:39 +0000 http://wordpress.org/?v=abc en hourly 1 http://www.creative-silence.com/2009/05/05/is-there-a-group-of-people-who-can-trade-the-forex-markets-without-a-spread-or-at-least-much-less-than-i-pay/ http://www.creative-silence.com/2009/05/05/is-there-a-group-of-people-who-can-trade-the-forex-markets-without-a-spread-or-at-least-much-less-than-i-pay/#comments Tue, 05 May 2009 13:16:52 +0000 Silence http://www.creative-silence.com/2009/05/05/is-there-a-group-of-people-who-can-trade-the-forex-markets-without-a-spread-or-at-least-much-less-than-i-pay/ If trillions of dollars gets traded back and forth on a daily basis, it doesn’t make any sense that everyone has to pay a spread of 0.03%, because that is a lot of money that is disappearing from everyone’s pockets, a billion dollars a day, and even if they did all have to pay it, [...]]]> If trillions of dollars gets traded back and forth on a daily basis, it doesn’t make any sense that everyone has to pay a spread of 0.03%, because that is a lot of money that is disappearing from everyone’s pockets, a billion dollars a day, and even if they did all have to pay it, it has to be going to someone. Someone who is able to trade for free because he is the one who keeps the profits of the difference between bid and ask. Who is that someone?
I ask because I have created an adaptive trading method that only works with horribly low spread. Too low for me to use, but it must be horrifically valuable to SOMEone out there. And when I say it is adaptive, I mean that there is no a priori strategy, it looks at the last 63 days every 2 weeks and decides on the trading rules it will apply over the next two weeks from that alone, so it isn’t adapted to any future data; it’s not cheating. Operating on the USD/JPY from July 1, 2007 to Feb 13, 2009, these are its results from one run (since it contains random variables, if you ran it again on the exact same data you’d get different numbers, but the same SORTS of results):
Commission=0.02:
Total gain=1.9586666009107498e-001
Total commissions=4.3467080397738096e+000
Commission=0.01:
Total gain=1.4452129891615770e+000
Total commissions=2.5255991687861270e+000
Commission=0.0079:
Total gain=6.0134531854447415e+000
Total commissions=1.3535088531109761e+001
Commission=0.005:
Total gain=8.3681903017587498e+007
Total commissions=2.2229280168087495e+008
Commission=0.0029:
Total gain=5.3964686183550566e+012
Total commissions=6.6395560659541475e+012
Commission=0.0019:
Total gain=3.7134772078865466e+017
Total commissions=2.0657410633892125e+017
Commission=0:
Total gain=4.7437229016568531e+049
Total commissions=0
Note that 5.5e+026 is the computer’s way of expressing scientific notation, and that example would be 5.5 times 10 to the 26th power.
As you can see, it works astronomically well with as low a spread as possible, but nothing that is given realistically by any brokers to small fish like me.
——————–
The answer I will not accept:
“there would be no one willing to facilitate trades if they didn’t get to take a cut”
Obviously. I’m asking if there’s anyone who takes a smaller cut. Or maybe a cut that doesn’t go up with trade size – after all, buy stocks with a stock broker, and it’s usually 5 or 10 dollars per TRADE. But it doesn’t matter what the trade size is. But with a spread on the forex market, with double the trade size, it’s double the commission. And like I said, whoever IS pocketing the difference, surely HE must be able to trade without a spread since he’s the one who pockets the difference! Certainly this would be worth something to THAT person. It is fundamentally impossible for everyone to lose that money when they trade because it GOES somewhere, and it certainly doesn’t COST that much to keep the markets running. It doesn’t cost anyone anything for me to enter in an electronic order to trade 300 thousand dollars for 30 million yen and for it all to be carried out by computers but I lose about 100 dollars each round trip in the act of doing so. Maybe at the very least there’s some group of people who pay, say, a million dollars a year for however much trading they want, in lieu of spreads. This trading method would make a lot more than that million dollars.

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Tags: 2007, About, After, Again, amp, Answer, Anyone, Anything, Apply, Back, Because, Between, Bill, Billion, Broker, Brokers, Buy, Cause, Certain, com, Commissions, Computer, Cost, Create, Daily, Data, day, Days, difference, Does, Doesn't, Doing, Dollar, Dollars, EAs, Even, Ever, Every, Example, Fore, Forex, Free, from, Fund, Future, Gain, Give, Given, Goes, Going, Group, Have, Here, Isn't, July, Keep, King, Last, Least, Less, Like, List, Look, Looks, Lose, Make, Mark, Market, Markets, Matter, Mean, Million, Money, More, Much, Next, Number, Numbers, Only, Order, Over, People, Possible, Power, Profit, Rate, Rating, Read, Real, Rent, Ring, Rules, Running, Said, Same, Since, Size, Small, Some, Someone, Somewhere, Spread, Spreads, Stock, Stocks, Strategy, Take, Than, That, There, These, They, This, time, Times, Total, Trade, Traded, Trading, Usd, Usd/Jpy, Usd/Jpy, Usually, Very, Want, way, week, Weeks, Well, What, When, Where, Will, With, Without, Work, Works, Worth, Would, year

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]]> http://www.creative-silence.com/2009/05/05/is-there-a-group-of-people-who-can-trade-the-forex-markets-without-a-spread-or-at-least-much-less-than-i-pay/feed/ 0 http://www.creative-silence.com/2009/05/04/i-have-a-question-about-the-meaning-of-the-signal-in-forex-auto-money/ http://www.creative-silence.com/2009/05/04/i-have-a-question-about-the-meaning-of-the-signal-in-forex-auto-money/#comments Tue, 05 May 2009 00:53:31 +0000 Silence http://www.creative-silence.com/2009/05/04/i-have-a-question-about-the-meaning-of-the-signal-in-forex-auto-money/ I don’t understand the meaning of the signal and tried of waiting for the stuffs to answer me for I have to wait one day to get the EACH answer. So I wanna ask people who have experience in Forex auto money that: USD/CHF SELL +107 pips -39 pips 1:1.22 Which currency(USD [...]]]> I don’t understand the meaning of the signal and tried of waiting for the stuffs to answer me for I have to wait one day to get the EACH answer. So I wanna ask people who have experience in Forex auto money that:
USD/CHF SELL +107 pips -39 pips 1:1.22
Which currency(USD or CHF) that I suppose to sell here?
USD/JPY BUY -114 pips +43 pips 1:1.18
And the same question here but buy.
I have a platform which they don’t have BUY/SELL button but instead let me choose “currency to buy” and “currency to sell” so yeah Im quite new to FOREX, so Im a bit confused here…
Appreciate it!

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Tags: About, Answer, Appreciate, Auto, Buy, Confused, Currency, day, Fore, Forex, Have, Here, Instead, Mean, Meaning, Money, New, People, pip, Pips, Platform, question, Same, sell, Sign, Signal, stand, Stuff, That, They, Under, Understand, Usd, Usd/Chf, Usd/Jpy, Usd/Jpy, Used, Wait, Which

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]]> http://www.creative-silence.com/2009/05/04/i-have-a-question-about-the-meaning-of-the-signal-in-forex-auto-money/feed/ 0 http://www.creative-silence.com/2009/05/04/confused-about-leverage-in-forex-brokers/ http://www.creative-silence.com/2009/05/04/confused-about-leverage-in-forex-brokers/#comments Mon, 04 May 2009 18:26:08 +0000 Silence http://www.creative-silence.com/2009/05/04/confused-about-leverage-in-forex-brokers/ let’s say you put in 1000 usd and the leverage is 100:1. you trade let’s say for instance USD/JPY at a rate of 1 USD for every 100 Yen for example. you buy USD and you run out of money in your account. my question is, is the leverage ALREADY given to [...]]]> let’s say you put in 1000 usd and the leverage is 100:1. you trade let’s say for instance USD/JPY at a rate of 1 USD for every 100 Yen for example. you buy USD and you run out of money in your account. my question is, is the leverage ALREADY given to the trader or the trader is trading without leverage meaning that the trader’s 1000 USD can become 100,000 dollars? i’m confused because i heard that you can only buy or sell in the amount of 100,000.

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Tags: About, Account, Amount, amp, Because, Become, Broker, Brokers, Buy, Cause, com, Come, Confused, Count, Dollar, Dollars, Ever, Every, Example, Fore, Forex, Give, Given, Heard, Leverage, Mean, Meaning, Money, Only, question, Rate, Read, sell, That, Trade, Trader, Trading, Usd, Usd/Jpy, Usd/Jpy, Used, Very, With, Without, Your

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]]> http://www.creative-silence.com/2009/05/04/confused-about-leverage-in-forex-brokers/feed/ 5 http://www.creative-silence.com/2009/05/04/about-wwwforexcom/ http://www.creative-silence.com/2009/05/04/about-wwwforexcom/#comments Mon, 04 May 2009 12:22:14 +0000 Silence http://www.creative-silence.com/2009/05/04/about-wwwforexcom/ Just one question, I read this on their web page: If you want to purchase $100,000 of USD/JPY at 100:1 leverage, the money required is 1%, or $1000. The other $99,000 is collateralized with your remaining account balance. You pay no interest. What does that mean? That in that case I would owe them $99000? Thank You.

ArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArray Tags: About, [...]]]> Just one question, I read this on their web page:
If you want to purchase $100,000 of USD/JPY at 100:1 leverage, the money required is 1%, or $1000. The other $99,000 is collateralized with your remaining account balance. You pay no interest.
What does that mean? That in that case I would owe them $99000?
Thank You.

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Tags: About, Usd/Jpy, Www.forex.com

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]]> http://www.creative-silence.com/2009/05/04/about-wwwforexcom/feed/ 6 http://www.creative-silence.com/2009/05/04/how-do-forex-orders-work-as-far-as-their-size/ http://www.creative-silence.com/2009/05/04/how-do-forex-orders-work-as-far-as-their-size/#comments Mon, 04 May 2009 06:21:43 +0000 Silence http://www.creative-silence.com/2009/05/04/how-do-forex-orders-work-as-far-as-their-size/ When selling a stock at market order, if you sell enough shares, price will drop alot depending on liquidity of the stock. How does it work with forex? I mean, you never see how many orders there are when say buying USD/JPY You just click a button and get filled instantly. [...]]]> When selling a stock at market order, if you sell enough shares, price will drop alot depending on liquidity of the stock. How does it work with forex? I mean, you never see how many orders there are when say buying USD/JPY You just click a button and get filled instantly. How big of a size would you have to do before you didnt get filled instantly? Millions? Billions? It seems unreasonable to think that someone would come in to buy say 1000 lots (100 million dollars) of USD/JPY at 104.109 and get filled at EXACTLY that price for the whole order. Right?

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Tags: Forex, Orders, Size, Their, Usd/Jpy, Work

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]]> http://www.creative-silence.com/2009/05/04/how-do-forex-orders-work-as-far-as-their-size/feed/ 2 http://www.creative-silence.com/2009/05/03/question-about-trading-currencies/ http://www.creative-silence.com/2009/05/03/question-about-trading-currencies/#comments Mon, 04 May 2009 00:21:36 +0000 Silence http://www.creative-silence.com/2009/05/03/question-about-trading-currencies/ I am thinking of trading currencies (such as USD/JPY) to make profit. I have question about it. 1. I am under 18. Is there a problem? I know that trading stock is illegal for under 18 because it’s like “Owning a company” but since currency trading is just owning money, i do not think it is illegal. [...]]]> I am thinking of trading currencies (such as USD/JPY) to make profit.
I have question about it.
1. I am under 18. Is there a problem? I know that trading stock is illegal for under 18 because it’s like “Owning a company” but since currency trading is just owning money, i do not think it is illegal. IS IT ???

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Tags: About, Currencies, question, Trading, Usd/Jpy

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]]> http://www.creative-silence.com/2009/05/03/question-about-trading-currencies/feed/ 4 http://www.creative-silence.com/2009/05/03/forex-when-the-market-on-the-fx-is-going-sideways-not-bullish-or-bearish-what-is-a-good-technique-that/ http://www.creative-silence.com/2009/05/03/forex-when-the-market-on-the-fx-is-going-sideways-not-bullish-or-bearish-what-is-a-good-technique-that/#comments Sun, 03 May 2009 18:23:19 +0000 Silence http://www.creative-silence.com/2009/05/03/forex-when-the-market-on-the-fx-is-going-sideways-not-bullish-or-bearish-what-is-a-good-technique-that/ you use to trade it??? For example, the charts on the 30 min., USD/JPY have been “meandeing” or have not rallied in any one direcetion for the past 24 hrs.. Which technocal indicators do you use on your chart to identify a good trading opportunity?

ArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArray Tags: Bearish, Bullish, Forex, Going, Good, Market, Sideways, Technique, [...]]]> you use to trade it???
For example, the charts on the 30 min., USD/JPY have been “meandeing” or have not rallied in any one direcetion for the past 24 hrs.. Which technocal indicators do you use on your chart to identify a good trading opportunity?

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Tags: Bearish, Bullish, Forex, Going, Good, Market, Sideways, Technique, Usd/Jpy, What, When

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]]> http://www.creative-silence.com/2009/05/03/forex-when-the-market-on-the-fx-is-going-sideways-not-bullish-or-bearish-what-is-a-good-technique-that/feed/ 2 http://www.creative-silence.com/2009/05/03/what-forex-markets-open-sunday-night/ http://www.creative-silence.com/2009/05/03/what-forex-markets-open-sunday-night/#comments Sun, 03 May 2009 12:21:17 +0000 Silence http://www.creative-silence.com/2009/05/03/what-forex-markets-open-sunday-night/ I know that some forex markets open on Sunday evening ( before USA monday morning). does the USD/jpy open on Sunday eveings at 5pm?

ArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArray Tags: Forex, Markets, night, Open, Sunday, Usd/Jpy, What Related posts Your Open Questionshow Me Another » What Is Consolidation In Currency Jargon? (0) Why Isn’t There A Forex Currency Index? (0) ]]> I know that some forex markets open on Sunday evening ( before USA monday morning). does the USD/jpy open on Sunday eveings at 5pm?

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Tags: Forex, Markets, night, Open, Sunday, Usd/Jpy, What

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]]> http://www.creative-silence.com/2009/05/03/what-forex-markets-open-sunday-night/feed/ 4 http://www.creative-silence.com/2009/05/03/if-you-want-to-hold-foreign-currency-is-it-best-go-to-money-exchange-shop-or-forex/ http://www.creative-silence.com/2009/05/03/if-you-want-to-hold-foreign-currency-is-it-best-go-to-money-exchange-shop-or-forex/#comments Sun, 03 May 2009 06:22:28 +0000 Silence http://www.creative-silence.com/2009/05/03/if-you-want-to-hold-foreign-currency-is-it-best-go-to-money-exchange-shop-or-forex/ Say I’m Japanese, and I think US Dollar would be a good investment, and I want to hold the currency for 3 years, so should I go to local money exhanges booth, i.e. buy $10,000 or buy USD/JPY $10,000 in Forex? 10 pts. for good or detailed answer.

ArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArray Tags: Best, Buy, Change, Currency, Dollar, Exchange, Fore, Foreign, [...]]]> Say I’m Japanese, and I think US Dollar would be a good investment, and I want to hold the currency for 3 years, so should I go to local money exhanges booth, i.e. buy $10,000 or buy USD/JPY $10,000 in Forex?
10 pts. for good or detailed answer.

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Tags: Best, Buy, Change, Currency, Dollar, Exchange, Fore, Foreign, Forex, Good, Hold, i.e., Invest, Investment, Japan, Japanes, Japanese, Local, Money, Shop, Should, Think, US Dollar, Usd, Usd/Jpy, Usd/Jpy, Want, Would, year, Years

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]]> http://www.creative-silence.com/2009/05/03/if-you-want-to-hold-foreign-currency-is-it-best-go-to-money-exchange-shop-or-forex/feed/ 3 http://www.creative-silence.com/2009/05/02/what-is-the-relationship-between-m1-cpi-and-the-exchange-rate/ http://www.creative-silence.com/2009/05/02/what-is-the-relationship-between-m1-cpi-and-the-exchange-rate/#comments Sat, 02 May 2009 18:21:37 +0000 Silence http://www.creative-silence.com/2009/05/02/what-is-the-relationship-between-m1-cpi-and-the-exchange-rate/ how would you describe the relationship between these three variables? is it cause/effect? also if you were analyzing these, what exchange rate would you use? USD-JPY, or USD-CAD? thanks to Jurij-EU who answered my other question. if you see this one I would appreciate your insight as well.

ArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArrayArray Tags: Also, Appreciate, Between, Change, [...]]]> how would you describe the relationship between these three variables? is it cause/effect? also if you were analyzing these, what exchange rate would you use? USD-JPY, or USD-CAD?
thanks to Jurij-EU who answered my other question. if you see this one I would appreciate your insight as well.

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Tags: Also, Appreciate, Between, Change, Effect, Exchange, Other, question, Rate, Relation, Relationship, Than, These, This, Usd, Usd/Jpy, Well, Were, What, Would, Your

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