To be a successful trader, you must:
– Understand dealer counterparty risk and trade it.
– Identify/create correlated/synthetic instruments and arbitrage the divergence.
So, I spent today researching on correlated asset classes specifically for the euro.
I have been looking at LIBOR spreads, swaps, OIS etc…and I think I finally found something that could be an edge for me when trading EURUSD, especially for spotting potential daily reversals.
It’s an asset class traded on the Moscow Exchange.
See pictures below.