FPI - Fractional Product Inefficiency

[michal_kk]

Hello,

I've just finished my work on FPI - Fractional Product Inefficiency. It takes advantage of tiny inefficiencies of the FX symbols' fractional product.

It comes complete with a C# source code for free:

http://kreslik.com/forums/viewtopic.php?t=307


Have a great day!

Michal Kreslik


image: FPI matrix for 23 Forex symbols

[Trevman]

i've looked into something similar such as

BUY GBP/JPY
SELL GBP/USD
SELL USD/JPY

BUY GBP/JPY
SELL GBP/NZD
SELL NZD/JPY

but my line of thought was to open those positions to EXACTLY offset each other, this is because the rollover interest on these would be positive. it may be possible but would require a program such as yours and a broker feed (niether of which i know how to aquire )

[michal_kk]

Originally Posted by Trevman

i've looked into something similar such as

BUY GBP/JPY
SELL GBP/USD
SELL USD/JPY

BUY GBP/JPY
SELL GBP/NZD
SELL NZD/JPY

but my line of thought was to open those positions to EXACTLY offset each other, this is because the rollover interest on these would be positive. it may be possible but would require a program such as yours and a broker feed (niether of which i know how to aquire )

Trevman,

your two examples are actually two valid FPI rings.

It's possible to uncover all rings within a given set of FX symbols with my program.

You can acquire my C# program easily by just downlading it

A razor-sharp broker might be a bigger problem, though. But I guess Oanda or EFX could do the trick.

Michal

[Trevman]

ive tried both rings manually but found i was left exposed on the JPY both times. i'm not quite sure how my plan of collecting interest relates to your FPI theory, even though i know it does, think I'm too tired to think properly lol. does your program have a feed into oanda for orders?

[michal_kk]

Originally Posted by Trevman

ive tried both rings manually but found i was left exposed on the JPY both times. i'm not quite sure how my plan of collecting interest relates to your FPI theory, even though i know it does, think I'm too tired to think properly lol. does your program have a feed into oanda for orders?

My program only connects to NeoTicker. NeoTicker features either EFX group broker or FXCM broker.

A proprietary Oanda order interface can be programmed for NeoTicker, though. Oanda offers their SDK for about $600.

Would you please drop a line concerning your interest rate differentials experiences into the original FPI thread on my web?

http://kreslik.com/forums/viewtopic.php?t=307

There's a wild discussion going on already

Thanks and have a great day,
Michal