Here's a fantastic pair to hedge and profit over a couple of hours
(disclaimer not foolproo)
EUR/CAN
GBP/JPY
a terrific set of hedge pairs awarded EUR srength and GBP weakness .... These rock. .
That this willl shift as days and economic launch comes out ... but for now its a fantastic tradeing hedge setup.
Though I gotta say ... hang on to your jacket . . These 2 pairs can shout ...
Rocket,
Do you mind stating more about why you use both of these pairs to market? They do not yell.
GBPJPY/EURCAD 5 day significance: 02
GBPJPY/EURCAD 20 afternoon significance: 44-
GBPJPY/EURCAD 100 afternoon significance: 37-
(strong correlation/reverse significance is 80 /80- or higher)
- see http://www.mataf.net/en/analysis-correlation.htm
I am an absolute beginner at hedging, plus quite a beginner at trading, but I always thought that one chooses pairs to hedge which closely correlate.
Is there something I am overlooking? (more than potential =-RRB-)
J
Yes, I see what you mean with your 100 day value ... what I referred to was intra day corrrelation even hourly ... not easy to quantify except by monitoring. Seeing I was in both pairs together I followed them working together such as rubber bands .... Both within my accounts and where very volatile balanced against each other amazingly over several hours.
And with the news releases over the past week they're reacting at opposites, ranging, while being explosive at opposites. .
Cant say it was technological whatsoever ..., but was observable...
I was having a terrific time using these pairs and usually commerce GBY/JPY intra day with good success.
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