Curiosity has brought me to looking at currency etf spreads of spreads. For example BZF/ICN - (FXC/FXA). The result is to be long 2 currencies and short 2 currencies but trade/invest as a single position. The chart of the spread1/spread2 ratio is like any other price chart and could be traded like anything else. The only value is see to this is to observe that a complex spread has ranged for years between X and Y and is now reversing from X or Y. So, swing or longer term trades would seem more suited to this. The macro fundamentals behind complex spreads are beyond me. Much of the chart levels may be random. Who knows. By the way, cross products in ratios that reduce to single pairs are eliminated. Double long/short one currency vs long/short two currencies is allowed. You still end with a few hundred of these complex spreads using daily or weekly Data for fxa,fxb,fxc,fxe,fxy,bzf,icn,uup. I suppose one could put on a trade in spot forex, futures or etfs. Probably many traders/investors are long one pair and short another at the same time. Sort of like long aapl and short nflx simultaneously wanting both legs to work producing trend in the pair when viewed as one position. This is the same thing. Just a method of viewing it as a single position. Anyone actually do this interested in this or have any thoughts on this ? Key: Aus, GB, Canada, Euro, japan, brazil, india, us
I tried Automated trading from January to March 2014, it decimated my account. My advise is to trade manually just do it longer term. For example as of May 2014 I started swing trading, I fully developed a swing trading system as of end of July 2014. I trade anywhere from 30 minutes to 2 hours per day Sunday through Thursday. I make one decision per day per pair. I trade 9 pairs (I trade forex by the way).
I trade spot forex. It is traded in pairs. Example if you are long USD/JPY, this means you think that the dollar will strengthen against the Yen and therefore you are essentially shorting the Yen by going long USD/JPY. Spot forex seems to me to be a simpler way to trade currencies, I use FXCM. The trade commissions are much higher than trading ETF's though, but the forex market seems more liquid. I came to that conclusion by trying to chart some of the ETF's you mentioned above. For me as a TA trader, they are scarcely traded, which would pose a problem trying to get out of positions at times. Anyway, hope I understood your question, and hope that helps.
Of course they exist but they are well-capitalized and after some tries to trade themselves change to the investors' side to diversify risk (according to the law of money accumulation - the more investment amount the less is expected percent of return). I personally know some guys who tied up their money in stocks and buying shares in US indices, in institutional Fx traders like Hotforex Titans and similar. Taking the whole blast of risk on your ass may be a bit irrational and even insane
well forex wont be this popular in less than a decade if they did not! the internet world is small compared to the number of traders taht do not post in forums, thats something that makes me think!
I am still alive here, so of course full time forex trader do exist. I have attached for more than 10 years, and believe me 1 quotes. Full time forex trader do exist, but neither 3 days nor 3 months to become a full time forex trader. You need a lot of hard work, a lot of studies, creative enough to create your own rule of thumb and of course with you self-discipline.