Best Thread Correlation Trading - Basic Ideas and Strategies
Ok, I will read the entire thread before I post any questions that possibly don't make any sense.
True, hindsight trading is easy. I had a clear entry signal yesterday afternoon but it was definitely a bad trade. Seeing this over and over, I have now reconfigured the EA to work with EURUSD/USDCHF. Trade opportunities are not as many, but they seem to be more reliable if they arise.
I will try to write a multi-currency backtester for this specific case, too bad that MT4 is lacking this feature. If I get any results, I will post them here.
Till
NVP
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Till - I will post some observations on the EUR/CHF relationship (with/without the USD dimension) here when I get some time......we had a dude a while back who was trading this as well on the thread and Ivan (ingot54) was discussing this very early on with me......
and understandably....as they are pretty tight normally and extreme Divergence can prompt the assumption of some (overdue) convergence
my main advice would be let the CHF lead into a USD pair trend direction (CHF diverging from Euro) and use the Euro as the catchup currency to trade any potential convergence play......(use Euro's higher volatility)
most people will also say just trade o/b or o/s positions on the CHF/EUR, but as we both know the other currency strengths can be a major factor in assisting in the timing of these decsions - especially in my opinion the TAG team which "anchor" all G8 plays for me (like a midfield general in a football team)
I try to play the Tag direction against the Commdolls and the eurotribe............3 tribes that do generally move in independent directions (but all still relate as the G8 is a zero sum game)......sure GBP and CAD are the bad boys in their respective tribes and Yen and USD seem to argue more than they used to....but thats trading and recognising these dynamic relationships can add more edge to your trading calls..... knowledge is power
happy to receive anything here that you can publish with comments
regards
Neil
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NVP
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its the forex Factory Gavin......if they continue to make US politicians speak at 4 am in the morning perhaps we need to find another calender !
I do filter out "lesser" news releases .....but as we all know the market can suddenly decide that a normally less important indice or speech is crucial to market moves.....(see that freebee stuff on news releases i posted a few days ago)
N
NVP
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Hi all
with my work committments it will be irresponsible to try to dictate how my indicators are working real time.....plus I am not "in the zone" as it were flitting in and out.....if I see anything major i will call it (as usual) and will commit to get something together as a package for those who are now pm'ing me as soon as I can......
to keep the Thread on track if you are interested in my work (and the others that appear here) e-mail me at my t2w homepage address and i'll let you know whats happening
ok..........back to totting cotton for the bossman....
N
with my work committments it will be irresponsible to try to dictate how my indicators are working real time.....plus I am not "in the zone" as it were flitting in and out.....if I see anything major i will call it (as usual) and will commit to get something together as a package for those who are now pm'ing me as soon as I can......
to keep the Thread on track if you are interested in my work (and the others that appear here) e-mail me at my t2w homepage address and i'll let you know whats happening
ok..........back to totting cotton for the bossman....
N
its the forex Factory Gavin......if they continue to make US politicians speak at 4 am in the morning perhaps we need to find another calender !
I do filter out "lesser" news releases .....but as we all know the market can suddenly decide that a normally less important indice or speech is crucial to market moves.....(see that freebee stuff on news releases i posted a few days ago)
N
This is the one I use http://www.dailyfx.com/calendar/index.html?week=2010/0404&sort=dateDesc&timezone=GMT%2B1¤cy=|&importance=|
but it's gone wonky since BST began - it reverts to GMT when I visit, which is why I said (wrongly) that the Euro GDP figures were out at 9 instead of 10!
You can reset your time-zone at the top, but I don't know why it's suddenly misinterpreting my computer's setting.
Wish they'd just leave the bloody clocks alone!
NVP
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This is the one I use http://www.dailyfx.com/calendar/index.html?week=2010/0404&sort=dateDesc&timezone=GMT%2B1¤cy=|&importance=|
but it's gone wonky since BST began - it reverts to GMT when I visit, which is why I said (wrongly) that the Euro GDP figures were out at 9 instead of 10!
You can reset your time-zone at the top, but I don't know why it's suddenly misinterpreting my computer's setting.
Wish they'd just leave the bloody clocks alone!
and why are you posting this at 3am in the morning ?
(sorry couldnt resist)
N
As for news releases, Forex Factory and DailyFX have different calendars with individual interpretation of the news events. Some events may be listed on FF but not on DailyFX and vice versa, also the importance is not rated the same.
It makes sense to merge both calendars and, if you want to be careful, work with the highest rating given for a particular news item.
It makes sense to merge both calendars and, if you want to be careful, work with the highest rating given for a particular news item.
NVP
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i'm betting that JRP will have picked up that nice G/U sale that was flashing to me at 10.20am onwards ....40 pips odd there if you ran it....euro for me was a non starter as it was moving up still in chug mode....
(sure a E/G buy was there as well.....but I dont like the E/G !!!!)
N
(sure a E/G buy was there as well.....but I dont like the E/G !!!!)
N
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