Koala Capital Markets - FX Pair Trading

4 hari lalu

Pair Trading Indicator with 2 Pairs including correlation and Z-Score

4 hari lalu

Nota Keluaran

Koala Capital Markets – FX Pair Trading Indicator 🦘📈

🔹 Overview:
The Koala Capital Markets – FX Pair Trading Indicator is a mean reversion tool designed for Forex traders who utilize spread trading strategies. This indicator helps identify trading opportunities by analyzing the spread, correlation, and Z-Score between two currency pairs.

🔹 Key Features:
✅ Customizable Currency Pairs – Select any two FX pairs for analysis
✅ Spread Calculation – Tracks the relative price movement of both pairs
✅ Z-Score Analysis – Identifies overbought/oversold conditions for mean reversion
✅ Correlation Tracking – Ensures high statistical relationship before trading
✅ Bollinger Bands for the Spread – Highlights key deviation levels (+1.9 / -1.9 SD)
✅ Buy & Sell Signals – Generates trade alerts when extreme deviations occur
✅ Alerts & Visual Signals – Get notified when a trading setup emerges

4 hari lalu

Nota Keluaran

🔹 Overview:
The Koala Capital Markets – FX Pair Trading Indicator is a mean reversion tool designed for Forex traders who utilize spread trading strategies. This indicator helps identify trading opportunities by analyzing the spread, correlation, and Z-Score between two currency pairs.

🔹 Key Features:
✅ Customizable Currency Pairs – Select any two FX pairs for analysis
✅ Spread Calculation – Tracks the relative price movement of both pairs
✅ Z-Score Analysis – Identifies overbought/oversold conditions for mean reversion
✅ Correlation Tracking – Ensures high statistical relationship before trading
✅ Bollinger Bands for the Spread – Highlights key deviation levels (+1.9 / -1.9 SD)
✅ Buy & Sell Signals – Generates trade alerts when extreme deviations occur
✅ Alerts & Visual Signals – Get notified when a trading setup emerges

🔹 How It Works:
1️⃣ The indicator calculates the spread between the selected currency pairs.
2️⃣ It computes the Z-Score, which measures how far the spread has deviated from its mean.
3️⃣ A trade signal is generated when:
• The correlation drops below 0.85 (reducing co-movement risk).
• The Z-Score exceeds +1.9 (short trade) or drops below -1.9 (long trade).
4️⃣ The spread reverts to its mean, allowing traders to capture profits from mispricings.

🔹 Ideal For:
📌 Forex Pair Traders looking for mean reversion setups
📌 Statistical Arbitrage Traders analyzing correlated FX pairs
📌 Advanced Traders who understand spread trading