If you’d like to improve your control on returns distribution, then you need to start using scatter plots for FX trades. Our CYBMIND software with integrated Spotfire® can create them automatically for you, saving you time while also improving the analysis of your pip.
What Are Scatter Plots?
Scatter plots are a type of diagram, chart, or graph, that allow you to plot two separate variables along two axes. Their main aim is to show any pattern that there may be between these variables.
Meanwhile, additional information can be applied by using colours to the markers, or by using size so markers are proportional to another parameter, such as the price range in percentage or the trade size.
When it comes to reading a scatter plot, things get even easier: the closer the markers are to being in a straight line, the stronger the relation between the two variables is.
Yet a scatter plot also allows you to play around with numbers, helping you to explore how a change in one variable affects the other.
Scatter Plots for FX Trades: How do they Work?
When it comes to FX trading, scatter plots are perfect to monitor the price change in pip when you’re exchanging currencies as an investment. Why? Because although the pip range is what’s largely used in FX, the range in pips is equivalent to a different price range in percentage and each pip will have a different value in each currency pair.
Scatter plots, therefore, can help you explore this information easily by, for example, displaying the trade return in your portfolio currency on the Y-axis, and the price range in pip on the X-axis. They can also be used to combine the information for all your currency exchanges into one chart.
This chart will then visually give you much insight about your trades, including about how your trade returns are distributed in terms of price/pip range, profit and loss, and sizes.
Improve Your Real-Time Monitoring Through CYBMIND with Integrated Spotfire®
The best part is that our investment strategy automation software, CYBMIND, which comes with integrated Spotfire®, can create these scatter plots for you... automatically and in real-time! It simply collects all the information it needs, both from internal and external sources, and plots them to your specifications.
This doesn’t just save you time and headaches, but also makes these scatter plots for FX trading extremely accurate and helpful. So, what are you waiting for?
Get in touch with us to discover how you too can tap into CYBMIND’s power.