Mechanical FX Systems

Discussions about trading the Forex markets.
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Josh M.
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Mechanical FX Systems

Post by Josh M. » Fri Aug 15, 2003 3:20 pm

Does anyone have any insight into what type of mechanical systems have potential in fx?

Also, does anyone have any experience shorting options in the fx market?

Ghostrider
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short options

Post by Ghostrider » Fri Dec 12, 2003 2:29 pm

Have you backtested a short options thory? If so, would you post your results?

GR

Josh M.
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Post by Josh M. » Fri Dec 12, 2003 2:43 pm

Greetings, I'm only trading options on equity futures at this time but have modified the model to work statistically in all other markets. I have yet to get hard evidence of option writing in fx but look forward to that research eventually.

Ghostrider
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cool

Post by Ghostrider » Fri Dec 12, 2003 2:54 pm

What kind of historical results does your option machanical system show?
Also, when you back test your theory, do you keep any option perameters fixed? ie. you always sell 1 month options, a set number of contracts perhaps, do you assume liquidity is never an issue.
Thanks,
GR

Josh M.
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Post by Josh M. » Fri Dec 12, 2003 9:42 pm

The options system does very well and completely dynamic adjusting to the market. Good trading.
Last edited by Josh M. on Sun Dec 21, 2003 1:24 am, edited 1 time in total.

Ghostrider
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Post by Ghostrider » Sun Dec 14, 2003 10:04 pm

Hmmm....
Interesting response.
You created this forum subject, and when I ask a question, you deny me (all of us) an answer.
I'm sure you have your reasons and I respect them.
Maybe I asked the wrong question....
Would you be willing to discuss anything concerning your short options system?

GR

Josh M.
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Post by Josh M. » Sun Dec 21, 2003 1:31 am

Ghostrider wrote:Hmmm....
Interesting response.
You created this forum subject, and when I ask a question, you deny me (all of us) an answer.
I'm sure you have your reasons and I respect them.
Maybe I asked the wrong question....
Would you be willing to discuss anything concerning your short options system?

GR
GR, I created this forum subject to discuss fx mechanical systems as I was performing mechanical analysis of some of the currency pairs. I may be able to answer some of your options questions in the options threads if you have more. Good trading.

Ghostrider
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Re: Mechanical FX Systems

Post by Ghostrider » Mon Dec 22, 2003 7:30 pm

Josh M. wrote: Also, does anyone have any experience shorting options in the fx market?
Okay.
I must have misunderstood your question.
Thanks,

GR

SMKJ
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Mechanical System and Options

Post by SMKJ » Thu Jun 10, 2004 5:04 pm

I use a purely mechanical systems that generates all my signals..and yes.. they work for the forex market.

However, you should still backtest the data yourself to gain more confidence in your system.

As for option, I also do trade Forex options, mostly straddles in anticipation of big price moves. (For example, jobless claim announcements)

Ghostrider
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Great!

Post by Ghostrider » Wed Sep 08, 2004 6:51 pm

This is a great string. Very, very informative from deep knowledge based traders.

:P

zacharyoxman
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Post by zacharyoxman » Fri Oct 22, 2004 8:41 am

Josh,

We have been testing a few models that we use to trade on the currencies, and they have been tracking fairly well on the pairs also. I believe Shane posted on the system earlier, but I can refresh if anyone needs:


viewtopic.php?t=1756

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