Hedge Funds Strategies - Statistical Arbitrage/Pairs Trading/Spread Trading/Calendar Spread/Mean Reversion/Correlation/Cointegration

https://roadmap.strategyquant.com/tasks/sq4_5393

check this video out also please: https://www.youtube.com/watch?v=gHL9MI6yysw

It talks about 2 FX Combinations, Mentioned above at the main post there is a software called MegaTrader,
As you launch it, you can select few Instruments like up to 5 instruments for example

and then the software will not only use Genetic way of Machine Learning to calculate a Synthetic chart out of those 5 instruments (with different Beta Weightings),
So the software will combine those 5 pairs with each other with adjusted Beta Weightings,

for example: 1*EURUSD/2*EURJPY/4*GBPUSD/1*USDJPY/1*GBPJPY,
This historical combination of those 5 pairs with those adjusted Beta Weightings will make 1 Synthetic Chart,
Out of this Synthetic Chart you can then find unique strategies!,
because when you create a Synthetic chart via combining correlated instruments you are going Delta Neutral, thats what Hedge funds do..,

few benefits of doing so:

• Less Margin by the exchange (maybe by an OTC FX Broker also?),

• Less Volatility, Smooth overall movement of the Synthetic chart,

• More side way moves of the Synthetic chart, which will in result we will be able to find very unique and high probability and robust Mean Reverting strategies!,

From my research this is what Renaissance technologies, 2Sigma, Citadel, etc do.

This will be just an awesome feature!,

Please at-least change the Status of this Task to "Will be added in the Future" or so.., i know there is alot more to add and fix but this will just add more value!,

Please re consider and research about this subject, this feature will be very interesting with SQX.

Kevin Davey has mentioned on this subject here: https://youtu.be/TH07NTZMEf0

There's alot more Alpha to exploit by using Synthetic instruments rather then Out-right instruments,

The only down side are the commissions,
Otherwise the benefits are huge:

More Alpha (Ability to get more diversified by creating a synthetic instrument),

Lower Margin,

Lower Volatility.