Sergey Kamenshikov, Ph.D.
IFC Markets
Summary
There is a conventional division of classic trading systems into classes: mean reversion and trend-following. In current webinar we disclose using of synthetic instruments that initially possesses trend behavior with long term memory. In this case a trader controls volatility structure with the use of technical and statistical analysis. We consider currency cross rates and some mixed instruments to reach reverse spreads. A negative correlation between underlying currencies/assets means that a basic asset growth corresponds to a quoted asset drop and vice versa. Under certain conditions these instruments are distinguished by long-term trends and short-lived flat periods. A flat movement pattern becomes unstable. We consider the trading results of a simple moving average approach filtered by correlation analysis. It has been proven that reverse spread is a perfect instrument for trend following with higher winning rate than major currency pairsLatest Live Videos
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
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Gold price stalls rebound below $2,330 as US Dollar recovers
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Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
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The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.