Best Thread Correlation Trading - Basic Ideas and Strategies

[jrplimited]

Hi N & G and all those hidden viewers,

Probably penultimate morning session for me today then its off to the Betty Ford Clinic, traders ward, for a rehab session over the easter break - I've already got withdrawl symtoms just writing that!

GU; First trade buy stop at 50482 triggered by 08:25 bar, price flopped around for six bars doing virtually nothing apart from making me mutter very unsweet words to screens, then it rose up to 09:05 new local high, stalled for two bars and reversed to take out TS during 09:25 bar for 6 pip profit. Second trade buy stop at 50724 hit by wick of 10:00 bar, price did a weirdo candle with very long tail and then 10:10 bar collapsed in a heap taking out SL for 18 pip loss. Third trade repeated buy stop at 50724 (never say die!) and wick of 10:20 bar hit this then price dropped down a few pips, made a shallow retrace threatening SL then 10:50 bar jumped up and price retreated again with higher lows, then moved up to form 11:20 new local high, stalled around this area then dropped with some force to hit BE during 11:45 bar for a very frustrating nothing.

EU; At session start sell stop placed at 35124 with trigger finger firmly on cancel script with buy order script ready, but price moved down enough to trigger sell stop right at end of 08:10 bar then rose up slowly (oh-oh!), corrected itself and hovered just below entry point for five bars then 09:00 bar did me a big favour by jumping into life and popping downwards. Price stalled after this then moved lower creating 09:35 new local low and finally retraced to take out SL during 09:55 bar for 28 pips profit. Second trade sell stop at 34684 hit during 10:35 bar, price made new local low on next bar then bounced up for three bars, dropped slightly then rose again so in frustration trade exited on close of 10:10 bar for 14 pip loss.

EG; First trade sell stop at 89812 taken out by wick of weak 08:30 bar, price drifted sideways for five bars then dropped down sharply at 09:00, paused for a few bars then printed new local low, tried to recover without much conviction and sloooowly rolled over again downwards to form 10:50 new local low, recovered from this and started to rise without any real momentuum and I decided to exit on close of fairly strong 11:45 up bar for 34 pips profit.

I used slightly tighter SLs on fab 3 this morning after yesterday's dreadful gyrations but still got caught out a few times by the hungry chop monster, only EG really saved my bacon just for a change.

Trade well and regards,
Simon.

 

[NVP]

Hi N & G and all those hidden viewers,

GU; First trade buy stop at 50482 triggered by 08:25 bar, to take out TS during 09:25 bar for 6 pip profit. Second trade buy stop at 50724 hit by wick of 10:00 bar, 10:10 bar collapsed in a heap taking out SL for 18 pip loss. Third trade repeated buy stop at 50724 to hit BE during 11:45 bar for a very frustrating nothing.

EU; At session start sell stop placed at 35124 with trigger finger firmly on cancel script with buy order script ready, but price moved down enough to trigger sell stop right at end of 08:10 bar to take out SL during 09:55 bar for 28 pips profit. Second trade sell stop at 34684 hit during 10:35 bar, trade exited on close of 10:10 bar for 14 pip loss.

EG; First trade sell stop at 89812 taken out by wick of weak 08:30 bar, and I decided to exit on close of fairly strong 11:45 up bar for 34 pips profit.

I used slightly tighter SLs on fab 3 this morning after yesterday's dreadful gyrations but still got caught out a few times by the hungry chop monster, only EG really saved my bacon just for a change.

Trade well and regards,
Simon.

what a bun fight..............still the mixed pair Trading approach did the job

apologies all - I am absolutely stuffed today re work so no posts till later (if/till) I get a chance

N

 

[NVP]

Hi all !

I will get some time to post later.......looks like much more fun was possible this afternoon......Jees did I have a lovely U/J signal early afternoon !!!!

 

[jrplimited]

Hi all !

I will get some time to post later.......looks like much more fun was possible this afternoon......Jees did I have a lovely U/J signal early afternoon !!!!

Hi N,

Obviously you busy at de slave driver desk.... EU was the best play this afternoon as it collapsed in a heap without looking back - those jitters over Portugual are beginning to shape the euro rouble into a great britich peso type of pattern; go up, go down, then up again and then down even further.
Simon.

 

[NVP]

Hi N,

Obviously you busy at de slave driver desk.... EU was the best play this afternoon as it collapsed in a heap without looking back - those jitters over Portugual are beginning to shape the euro rouble into a great britich peso type of pattern; go up, go down, then up again and then down even further.
Simon.

yep - saw that one as well on the dials........watch out looks like it all just turned and TaG getting bearish...........any G6 buy looks good except gbp (in doldrums)......if the move extends out wait wait wait for gbp as it inevitably will arrive at the party albeit a little late...

bugger.....cotton still to be picked though for the big boss man....cummin boss......yessum boss .......

N

 

[NVP]

look to Buy U/J over next 15 mins or so ......Yen looking weak to USD at present if dow stays more bullish than Gold

lightening scalps possible 92.83 - 92 88

N

 

[NVP]

damn dow30 fell below gold....sorry no trade

 

[NVP]

markets doing there own thing overnight - I need 150% more correlation than this to really trade my standard systems........the markets are not talking to TAG (??)

later.....
n

 

[NVP]

are the bs boys really saying Japan will cut rates (???).....those yield curves on USD/Yen are not surprising really though

N

 

[jrplimited]

Hi N and anyone else,

Ate my first easter egg last night, it was my youngest daughter's egg actually but had to be eaten because I tripped over it and squashed it - de boss waz none toooo happy about that.... Onto today's bun fight:-

GU; Entered long at 50744 on open 08:35 bar, price went up then kind of flattened out for eight bars then 09:35 bar burst into life and pushed price northwards, it stalled again for four bars then another whoosh bar printed 10:00 new local high then everything ran out of steam and TS taken out by 10:20 bar for 79 pip profit - that was me done of this pair for today.

EU; Entered long at 34282 on open 08:05 bar, price retreated down nearly 13 pips to challenge SL then 08:35 bar recovered and started the jerky trip northbound with usual new local highs and higher lows, 10:00 bar went up with a bang followed two bars later by new local high then price slipped down and went into a long consolidation phase and I decided to exit on close of 11:25 down bar for 28 pip profit.

EG; Had to wait for sell stop at 88936 to be filled by tail of 08:40 bar for first trade, price retreated away from entry point and rose up then started to drop slowly down again, 09:35 bar broke through initial entry point with a bang and price carried on down to 10:00 new local low, then retraced for five bars with 10:25 bar taking out TS for a 4 pip profit - couldnt believe only 4 pips there after that big move! No other setups found this morning.

So at last a mini blow out on both GU and EU this morning after all the past fews days indecisions, it will be interesting to see if both these pairs can hold onto their gains during the afternoon session - trade well and regards,
Simon.

 

[NVP]

Hi N and anyone else,

GU; Entered long at 50744 on open 08:35 bar, and TS taken out by 10:20 bar for 79 pip profit -

EU; Entered long at 34282 on open 08:05 bar, and I decided to exit on close of 11:25 down bar for 28 pip profit.

EG; Had to wait for sell stop at 88936 to be filled by tail of 08:40 bar for first trade, 10:25 bar taking out TS for a 4 pip profit - couldnt believe only 4 pips there after that big move! No other setups found this morning.

Simon.

nice ..........havnt got to charts as yet (cotton pickin for boss) but looks like that early volatility on the markets I was seeing at 7ish finally translated into a decent move by USD.....it was sure shifting bricks as I left for work

no EGGscuse for not buying the daughter more sweets then :whistling

N

 

[NVP]

hi all

i'm tied up today as well - sorry ......

its interesting - having spent the last few days up to my eyeballs in work and trying to sort out a house sale I have been much more objective and impartial when watching my correlation indicators.........and in truth have found some points I do need to challenge again if I am fooling myself on future trading involvement and long term profitablity

sure markets have thrown a few treasured beliefs of mine up in he air over last few weeks but should be able to see past that.....and I will try to over the weekend

will try to throw some charts up later.....but hey you corrie fans know what to do anyway

game on then for some pre easter action
N

 

[NVP]

heres a freebee I got sent.....

trading economic news.............. :whistling

N

(jees what do you expect for free ?)

 

[NVP]

Hi all

my premise discussed earlier is that in my own little research world I have gone disasterously overboard in complicating things.....:whistling

so do me a favour and watch this today

1) Take a corrie
2) remove all the currencies except USD , EUR and GBP
3) make the setting 20ma / 1 delta
4) set any TF but for arguments sake use the 5m

and watch the activity.........this is my version of stripped down Naked trading at its best , forget gold , forget the dow30 forget pork belly futures ....forget commdolls just raw one on one (well 3 on 3) action

if 1 currency is shows a bias on one side of the Zero and the other 2 are on the other side of zero trade them..........(virtual accounts only please !)

game on :smart:
N

 

[NVP]

heres the morning action............

Damn....based on the results this morning my $2,000 system fee (to include a 10 DVD set , 400 page booklet and $9,000 bonus indicator pack) would now have customers sending me bucketloads of testimonials

wheres that idiots guide to selling on e-bay book gone ?
N

 

[NVP]

and before everyone asks....NO this is not anyting to do with JRP's system..... I just happened to put these 3 currencies on the chart ......theres loads of just as effective combos you can use

N

 

[NVP]

Gasp..............wheres my checkbook ?

 

[NVP]

more Gasps......get me some oxygen...the 1 hour is even better !

sorry just delivered on a major deadline at work so had a silly half hour....back to normal business next week.....

and no I havnt buggeringwell exchanged yet on my house - if that happens later i will release even more simple
carefree indicators uncluttered by correlation chaos..........

do you like this 20ma triple play ?.....(the 3 duck tribe dont !)

how can we make it better ?.....c'mon tell me - lets refine it further with more rules !

N

 

[NVP]

commdolls verses eurozone bypassing the Greenback ?......hmmm

whatever next ?
N

 

[jrplimited]

Hi N and all else,

Just when everyone thought it was safe.... He is back! Yes, JF of the Correlation Code "fame" has returned looking for more business at an inbox near you.

Take a quick peek at the video link - recognise the bottom indicator?

<<< "If you would like to see exactly how I do this every morning, go watch this VERY short video where I show the "Power of Deplhi" and how fast straight forward it is to pull what I call "easy pips" out of the market... Before most people have even left their house for the office...

www.delphiscalper.com/scalping-lifestyle

I think you're going to love this as much as I do!

Good Trading, Jason Fielder" >>>

Watch out! Enjoy the easter break, regards,
Simon.