Hello Ramadas
This is a report of my preliminary work on the idea. Its a good strategy but as mentioned earlier in my post about margin ... I realised the options arent available for EUR INR. So we need to give twice the margin to trade like this. The cost per 10lots of trade working out to around Rs.150 which is Rs.300 everytime.
This strategy can work in 2 cases.
1. You assesing the EUR USD trend and taking only one side of the trade ... so if you want to go long in EUR against USD .. BUY EUR INR or SELL USD INR. This might give the desired result with high correlation.
2. Trade medium to long term timeframe which will help you reduce cost and the result comes as close as possible to the original pair.
I tried it on my strategy ... from July 26 when EUR gave a buy (continues to) till date... the return with 20% margin in original EUR USD pair is 22% and in our EURINR buy and USD INR sell is 13%... All gross.
So in short this replication is expected to give you 60%-65% correlation.
While long EUR INR alone from 25th July would have given close to 23% which is the same as EURUSD pair. ...
Think through ... :thumb: thanks for the idea again
Hi,
I am new to the forum and this is my first post.
Your replies seems to be quite genuine so I've few queries:
- Kindly let me know the trading companies which are supporting a screen like forex.com (live forex trading). Is there any choice that you've made so far or the broker that you are using?
- My strategy is Long term, how much margin might be required to be invested (perhaps 10 lots for starting - 5 EURINR buy and 5 USDINR sale)?
- Any advice in particular for trading in forex.
Thanks in advance for helping me out.
Best Regards,
InfoSeeker