Digital currency foreign exchange quantitative hedging arbitrage
Publish: 2021-05-11 22:06:40
1. Theoretically, it is a risk-free arbitrage model, which is actually applied in the information interconnection and automated trading of technology programs in the whole world. Even if there is arbitrage space in the market and you also have EA, when your EA calculates that there is arbitrage space and you want to enter the market, the arbitrage space has been modified by smart arbitragers who have automated trading programs like you, It depends on whose trading environment, proceres and equipment are better and arbitrage efficiency is faster. Moreover, when arbitrage space appears, the market liquidity is limited, and the price will be quoted repeatedly when placing an order. Pro test, almost all of the formal platform are not set profit, can only be achieved in the simulation environment and without repeated quotation.
2. There is no doubt that bitcoin is the best target, and some platform currencies have investment value, such as okb. Don't forget to adopt it
3. If the price is lower and lower, the total fixed investment cost will be smaller
move bricks arbitrage, because there will be some differences in the price of currencies in major exchanges. Move bricks arbitrage is to earn the difference. Now the income of indivial move brick arbitrage is not very ideal, and the operation is more
if someone comes to you and says that they can help you carry bricks for arbitrage, try not to believe it, and try to keep your money in the place you can control
if you want additional income, you can choose the financial management of major platforms. There's a push in the exchange or in the wallet.
move bricks arbitrage, because there will be some differences in the price of currencies in major exchanges. Move bricks arbitrage is to earn the difference. Now the income of indivial move brick arbitrage is not very ideal, and the operation is more
if someone comes to you and says that they can help you carry bricks for arbitrage, try not to believe it, and try to keep your money in the place you can control
if you want additional income, you can choose the financial management of major platforms. There's a push in the exchange or in the wallet.
4. The market has graally improved, arbitrage is not as easy as before. For this kind of arbitrage software, it is either very expensive or deceptive
because of the rapid development of virtual money market, arbitrage is very difficult.
because of the rapid development of virtual money market, arbitrage is very difficult.
5. There are two ways to hedge foreign exchange transactions
1. Spot contract: spot contract is the most common type of transaction for retail foreign exchange traders. Because the delivery date of spot contract is very short (two days), it is not the most effective currency hedging tool. Conventional spot contracts are usually the reason why hedging is needed, but they are not used for hedging
2. Foreign exchange option: foreign exchange option is one of the most popular methods of foreign exchange hedging. Like other types of securities options, foreign exchange option gives the buyer the right rather than the obligation to buy and sell currency pairs at a specified exchange rate in the future. Common option strategies, such as top / bottom straddle portfolio, wide straddle portfolio, bear / bull option spread, can be used to rece the potential loss of a specific transaction
operational strategies for hedging foreign exchange transactions
1. Risk analysis: traders must be able to identify the risks of current or planned positions, and they must also be aware of what will happen if this risk is not hedged, and determine the level of current foreign exchange market risks
2. Determine risk tolerance: the trader decides how much position risk to hedge according to his own risk tolerance level. Every transaction has its own risks. Traders should decide how much risk they can bear and how much they are willing to pay to avoid excess risks
3. Choose hedging strategy: if foreign exchange options are used to hedge trading risks, then traders have to decide which strategy is the most practical
4. Implementation and regulatory strategy: This is to ensure that the hedging strategy can be carried out effectively and the risk can be minimized.
1. Spot contract: spot contract is the most common type of transaction for retail foreign exchange traders. Because the delivery date of spot contract is very short (two days), it is not the most effective currency hedging tool. Conventional spot contracts are usually the reason why hedging is needed, but they are not used for hedging
2. Foreign exchange option: foreign exchange option is one of the most popular methods of foreign exchange hedging. Like other types of securities options, foreign exchange option gives the buyer the right rather than the obligation to buy and sell currency pairs at a specified exchange rate in the future. Common option strategies, such as top / bottom straddle portfolio, wide straddle portfolio, bear / bull option spread, can be used to rece the potential loss of a specific transaction
operational strategies for hedging foreign exchange transactions
1. Risk analysis: traders must be able to identify the risks of current or planned positions, and they must also be aware of what will happen if this risk is not hedged, and determine the level of current foreign exchange market risks
2. Determine risk tolerance: the trader decides how much position risk to hedge according to his own risk tolerance level. Every transaction has its own risks. Traders should decide how much risk they can bear and how much they are willing to pay to avoid excess risks
3. Choose hedging strategy: if foreign exchange options are used to hedge trading risks, then traders have to decide which strategy is the most practical
4. Implementation and regulatory strategy: This is to ensure that the hedging strategy can be carried out effectively and the risk can be minimized.
6. It's Hedging and then arbitrage
7. The difficulties of foreign exchange hedging trading strategy are as follows: 1. We must first determine which currency pair is the fastest, which is different from day to day, and then determine the support or resistance strength at the opening point of this currency pair, so as to confirm the position setting of position opening and stop loss. 2. It is necessary to judge when the market of a day will finish - start to move in the opposite direction< (1) difficulties:
how to determine the strength of the support level or resistance level? If you buy strictly when you reach the support level or break through the resistance level, you will easily miss the good opportunity. If you buy in advance, the price is often on the high side, which makes the income risk ratio imbalance, Stop loss is hard to set
(2) coping skills
therefore, first of all, we must judge the strength of the support level. If it is high, we can enter in advance. Anyway, we are hedging operation. If we can effectively break through the confirmation, we will close the position of the wrong party; If the strength of the support level is moderate, enter the shock area ahead of time, set strict stop loss in both directions, or open the position when the price rebounds from the support level; If the support level is weak, 1 / 2 ratio will be used to build the warehouse, that is, the most likely direction and the less likely direction will be built according to different proportions
3. Position building skills when the price rises above the important resistance level
first of all, the strength of the resistance level and the probability of breaking should be studied; If the probability is high, it can be considered to enter in advance, 1 / 2 of the proportion of warehouse; In the process of rising exchange rate, stop loss should be set to open positions, and profit positions should be increased by multiple according to pyramid principle. If the probability of rising or breaking is low, you can choose 1 / 1 of the funds to build the position at the same time, wait for the breakthrough and then dismantle the position, at the same time, do not chase up and kill down, and the profit position will close when it is good< Fourth, when the price rises to an important resistance level, we must determine whether it is a general trend or a range shock. As the profit can not be maximized by closing the position too early, we should stick to hedging operation and open the position or stop loss automatically when it is close to the important resistance level
(2) coping skills
if the resistance is weak, the breakthrough probability is relatively large, and the market is in the trend market, take 1 / 2 position to build the position before approaching the resistance level, and open the position or set the automatic stop loss when breaking through the resistance level. In the direction of breakthrough, the profitable positions will be closed according to the multiple of breakthrough and purchase point. For example, if the resistance level is strong and the market is in a range shock market, when it is close to the resistance level, it will hedge and build a position by 1 / 2 in the opposite direction. The direction of buying down is 2, and the direction of buying up is 1. When it reaches the resistance level, it will open the position - it has made a profit. At the same time, set a strict stop loss for another order by a certain range below the resistance level, and then run in the opposite direction to automatically stop loss. If the price does not reach the stop loss level, the position will wait or close when it returns below the buying level. Keep the fruits of victory< 5. When the price is running to an important time point, the skill of opening positions is very important. The Chinese are very lucky, because when we go to work, Japan has just opened, we can build a warehouse and play for one hour, while the hottest time in the international market is in the morning of European and North American periods, and we are just at home after work. As the big market or retrenchment often occurs in the afternoon of North America, we just do a round trip in the evening. For this feature, we must seize the fact that the main operation area of the big market is in the European period or the global period, and it is often wave after wave. At this time, we should be patient, and do not open the position easily when the market is not finished - we can leave to watch TV. If we really can't see where the end of the market is, we must stick to it until 1.30 in the middle of the night. Generally speaking, in this period of time, any market will come back, and there will be a shock of about 20 points, which is the last time to open a position< Sixth, stop loss setting skills of hedging
it is necessary to determine the market characteristics, whether it is a general trend or a range shock, and a good stop loss price is based on a good opening price. When the upward or downward trend is obvious, the operation should follow the trend, and the stop loss can be moderately relaxed. For example, the stop loss range can be appropriately relaxed for the positions with large rising probability; Stop loss range can also be relaxed for obvious range fluctuation market; However, in the process of falling, the range of stop loss should not be too wide. This is the principle!
how to determine the strength of the support level or resistance level? If you buy strictly when you reach the support level or break through the resistance level, you will easily miss the good opportunity. If you buy in advance, the price is often on the high side, which makes the income risk ratio imbalance, Stop loss is hard to set
(2) coping skills
therefore, first of all, we must judge the strength of the support level. If it is high, we can enter in advance. Anyway, we are hedging operation. If we can effectively break through the confirmation, we will close the position of the wrong party; If the strength of the support level is moderate, enter the shock area ahead of time, set strict stop loss in both directions, or open the position when the price rebounds from the support level; If the support level is weak, 1 / 2 ratio will be used to build the warehouse, that is, the most likely direction and the less likely direction will be built according to different proportions
3. Position building skills when the price rises above the important resistance level
first of all, the strength of the resistance level and the probability of breaking should be studied; If the probability is high, it can be considered to enter in advance, 1 / 2 of the proportion of warehouse; In the process of rising exchange rate, stop loss should be set to open positions, and profit positions should be increased by multiple according to pyramid principle. If the probability of rising or breaking is low, you can choose 1 / 1 of the funds to build the position at the same time, wait for the breakthrough and then dismantle the position, at the same time, do not chase up and kill down, and the profit position will close when it is good< Fourth, when the price rises to an important resistance level, we must determine whether it is a general trend or a range shock. As the profit can not be maximized by closing the position too early, we should stick to hedging operation and open the position or stop loss automatically when it is close to the important resistance level
(2) coping skills
if the resistance is weak, the breakthrough probability is relatively large, and the market is in the trend market, take 1 / 2 position to build the position before approaching the resistance level, and open the position or set the automatic stop loss when breaking through the resistance level. In the direction of breakthrough, the profitable positions will be closed according to the multiple of breakthrough and purchase point. For example, if the resistance level is strong and the market is in a range shock market, when it is close to the resistance level, it will hedge and build a position by 1 / 2 in the opposite direction. The direction of buying down is 2, and the direction of buying up is 1. When it reaches the resistance level, it will open the position - it has made a profit. At the same time, set a strict stop loss for another order by a certain range below the resistance level, and then run in the opposite direction to automatically stop loss. If the price does not reach the stop loss level, the position will wait or close when it returns below the buying level. Keep the fruits of victory< 5. When the price is running to an important time point, the skill of opening positions is very important. The Chinese are very lucky, because when we go to work, Japan has just opened, we can build a warehouse and play for one hour, while the hottest time in the international market is in the morning of European and North American periods, and we are just at home after work. As the big market or retrenchment often occurs in the afternoon of North America, we just do a round trip in the evening. For this feature, we must seize the fact that the main operation area of the big market is in the European period or the global period, and it is often wave after wave. At this time, we should be patient, and do not open the position easily when the market is not finished - we can leave to watch TV. If we really can't see where the end of the market is, we must stick to it until 1.30 in the middle of the night. Generally speaking, in this period of time, any market will come back, and there will be a shock of about 20 points, which is the last time to open a position< Sixth, stop loss setting skills of hedging
it is necessary to determine the market characteristics, whether it is a general trend or a range shock, and a good stop loss price is based on a good opening price. When the upward or downward trend is obvious, the operation should follow the trend, and the stop loss can be moderately relaxed. For example, the stop loss range can be appropriately relaxed for the positions with large rising probability; Stop loss range can also be relaxed for obvious range fluctuation market; However, in the process of falling, the range of stop loss should not be too wide. This is the principle!
8. There are many indicators for foreign exchange, such as MACD, Ma, KDJ, CCI, brin line, K line, etc. It mainly depends on personal application and understanding. Because there are few indicators that resonate at the same time, it is necessary to have a set of trading mode that is suitable for one's own sustained stability. Is there a solution that is suitable for novices, with a high success rate and low risk. Yes, but very few. As far as I know, I know this one, and I have verified it.
9. 1. It's hard to stop the loss. It's really hard to recover the loss. Although we have planned the stop loss point, we are always reluctant to stop the loss. If we want to do one more transaction, we may be able to recover the loss. Trading for a long time may turn loss into profit, but it turns out that the past is contrary to our wishes., Good foreign exchange traders also hate losses. They want to end up trading with profits every day. However, they are well aware that once they have made continuous losses and reached the stop loss point, they are determined not to trade, even once! Because they know very well that no one can keep making profits every day. Even if they seem to be quiet on the surface when they are losing money, their mentality will be hit. They know their brain very well and know that if they continue to trade, the probability of losing money is far higher than that of making money. Because of this understanding, they can always resolutely stop the loss
2. It's difficult to trade systematically. Many foreign exchange traders know that they need to systematize the trading and make good trading plans. However, when they are faced with a firm offer, they forget these plans. They can't keep up with the changes without exclamation! So how do professional traders do it?, Excellent foreign exchange traders also know that it is very difficult to trade completely according to the plan. They have to try their best to overcome all kinds of voices in their mind. However, they know better that if they do not trade continuously according to the plan, every transaction is tantamount to gambling and they are giving money to the market. Even if we make profits in a short time, we will lose money in the long run. They know this very well, so reason allows them to overcome all kinds of ideas in their minds, just because they don't want to lose money
3. It's difficult to control risk. I think it's too little to earn. It's hard to control positions and trade completely within the scope of risk control, because it seems that I earn less and always want to earn more. Therefore, when I enlarge my risk control, I often get bigger losses instead of bigger profits. Excellent foreign exchange traders are also deeply aware of the difficulty of risk control and feel that their trading speed is too slow to make money. From time to time, they may have the idea of amplifying risk control. However, they are more aware that although amplifying risk control makes more profits, it will also lose more when it loses money. If they do not trade within a reasonable range of risk control, it may bring huge losses, Although good luck can quickly increase the position, bad luck will lose most of the position. They are very clear that if they lose 50% of the position, they must make a profit of 100% in order to restore the original position. Therefore, when every loss trading comes, they will always be glad that they have done well in risk control and have not lost too much
4. It's hard to stop loss. It's really hard for many traders to stop profit. Every time they reach the stop profit point, they want to earn more. They feel that the market is just right and they are not willing to let it go easily. I always want to trade more for a while and earn more positions, but I always lose the profits back to the market soon. How can I stop the profits? Many excellent foreign exchange traders don't stop making profits at the beginning. They feel that as long as they are still making profits, they should take advantage of the victory to pursue and let the profits run. However, after trading again and again, they graally find that as long as the profit reaches a certain level, they are quite easy to face losses. Because they wanted to recover some profits, they kept opening positions in the market and finally lost all their profits to the market. Then they realized the importance of stopping profits. Later, when trading, they can recognize that they may make more money after stopping interest. However, as long as they lose money, they will want to recover their previous profits. If they don't stop interest well, they will never be able to make profits
5. It's difficult to trade, but it can't overcome human nature. In a word, it's really difficult to trade. It's always difficult to overcome human nature. It's clear that people understand the truth, but nothing can be done. They are often dragged by the market and emotions. What should we do? The excellent foreign exchange traders along the way also know this well. The reason why they can strive to overcome human nature and make continuous profits is that they know that most people can't overcome it and are eliminated by the market, so they have the opportunity to make money. They are not afraid to tell the secret of trading to other traders, because even if most people know it, they can't do it. Very few people have the same words and deeds, so even if the market people come and go, they will always make money.
2. It's difficult to trade systematically. Many foreign exchange traders know that they need to systematize the trading and make good trading plans. However, when they are faced with a firm offer, they forget these plans. They can't keep up with the changes without exclamation! So how do professional traders do it?, Excellent foreign exchange traders also know that it is very difficult to trade completely according to the plan. They have to try their best to overcome all kinds of voices in their mind. However, they know better that if they do not trade continuously according to the plan, every transaction is tantamount to gambling and they are giving money to the market. Even if we make profits in a short time, we will lose money in the long run. They know this very well, so reason allows them to overcome all kinds of ideas in their minds, just because they don't want to lose money
3. It's difficult to control risk. I think it's too little to earn. It's hard to control positions and trade completely within the scope of risk control, because it seems that I earn less and always want to earn more. Therefore, when I enlarge my risk control, I often get bigger losses instead of bigger profits. Excellent foreign exchange traders are also deeply aware of the difficulty of risk control and feel that their trading speed is too slow to make money. From time to time, they may have the idea of amplifying risk control. However, they are more aware that although amplifying risk control makes more profits, it will also lose more when it loses money. If they do not trade within a reasonable range of risk control, it may bring huge losses, Although good luck can quickly increase the position, bad luck will lose most of the position. They are very clear that if they lose 50% of the position, they must make a profit of 100% in order to restore the original position. Therefore, when every loss trading comes, they will always be glad that they have done well in risk control and have not lost too much
4. It's hard to stop loss. It's really hard for many traders to stop profit. Every time they reach the stop profit point, they want to earn more. They feel that the market is just right and they are not willing to let it go easily. I always want to trade more for a while and earn more positions, but I always lose the profits back to the market soon. How can I stop the profits? Many excellent foreign exchange traders don't stop making profits at the beginning. They feel that as long as they are still making profits, they should take advantage of the victory to pursue and let the profits run. However, after trading again and again, they graally find that as long as the profit reaches a certain level, they are quite easy to face losses. Because they wanted to recover some profits, they kept opening positions in the market and finally lost all their profits to the market. Then they realized the importance of stopping profits. Later, when trading, they can recognize that they may make more money after stopping interest. However, as long as they lose money, they will want to recover their previous profits. If they don't stop interest well, they will never be able to make profits
5. It's difficult to trade, but it can't overcome human nature. In a word, it's really difficult to trade. It's always difficult to overcome human nature. It's clear that people understand the truth, but nothing can be done. They are often dragged by the market and emotions. What should we do? The excellent foreign exchange traders along the way also know this well. The reason why they can strive to overcome human nature and make continuous profits is that they know that most people can't overcome it and are eliminated by the market, so they have the opportunity to make money. They are not afraid to tell the secret of trading to other traders, because even if most people know it, they can't do it. Very few people have the same words and deeds, so even if the market people come and go, they will always make money.
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