shortbleu
Registered: May 2009
Posts: 202 |
10-12-12 08:34 PM
I had a look at netdania but I dont think their charts overlay functionality can be used for pair trading (also called stat arb or spread trading or correlation trading) because the graph scale on the right hand side of the graph (eg. scale for EUR USD) is not the same as the scale used on the left hand side of the graph (eg. scale for GBP USD).
If the scales are different, the charts cannot be relied upon when placing trades according to divergence or convergence.
Example GBP USD is 1.6 and EUR USD is 1.3 and because the charts scales are not the same, GBP USD seems a lot more volatile than EUR USD (even when it is not) because 1.6 is greater than 1.3.
I need a graph overlay using the same scale for both instruments so that their relative moves can genuinely be compared.
Can someone help? I know a Bloomberg terminal can do it but I can't afford the price of the Bloomberg license. I am looking for something free or very cheap to buy as a one off, not with a monthly subscription (I only need end of day data, not a live feed or intraday).
 netdania.gif
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