Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
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be-positive
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nice neil on GBP just curious have you just entered another scalp here at 38 area ?
be-positive
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buying strength coming in on GBP??? time to sit on hands
NVP
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yes massive retrace on cable and indeed GBP index ........earliest i would resell is around 2940 .....but work in progress
NVP
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as usual today i trade my own strategy..........which is pretty simple
Trade the most volatile / trending pairs ....
Cable is top 3 today as usual so far london ......there are others but cable works just fine for me to focus on
as a result i have 5 from 5 scalps this morning ...no losers .........sure im only around 30 net pips up but thats just fine for me ...i rarely go more than 5 pips on a stop and 2% per trade ...........so thats approx 12% of capital base so far this morning ....
i get worse days ....but a decent day like this should crack at least 10% of cap base as long as i behave and dont do anything Dumb ............(and i am human so i do dumb things)
N
Trade the most volatile / trending pairs ....
Cable is top 3 today as usual so far london ......there are others but cable works just fine for me to focus on
as a result i have 5 from 5 scalps this morning ...no losers .........sure im only around 30 net pips up but thats just fine for me ...i rarely go more than 5 pips on a stop and 2% per trade ...........so thats approx 12% of capital base so far this morning ....
i get worse days ....but a decent day like this should crack at least 10% of cap base as long as i behave and dont do anything Dumb ............(and i am human so i do dumb things)
N
NVP
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scratch trade on last Cable sell......had already staked a b/e position fortunately ....
I think momentum on GBP and indeed Cable is done now ......for the moment ....since i am already well above daily target im taking a break back later
Ucad sell running so i will just trail that out .........67 to 62 so far
N
I think momentum on GBP and indeed Cable is done now ......for the moment ....since i am already well above daily target im taking a break back later
Ucad sell running so i will just trail that out .........67 to 62 so far
N
NVP
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Hey NVP I hope that you are doing good. What do you think about potential spread trading?
I was thinking that maybe it won't be bad to look for wide spreads between two currencies but instead of watching to buy stronger currencies, I am watching that spread will eventually back into normal between two currencies, which mean spread will decrease. Of course, I will like to currencies to start decreasing the spread before the eventual entry and of course price action must go with it
hi peter - hope you are well my friend
so - are you are talking about finding the 2 most divergent currencies and trading the convergence ? ......yes thats a pretty standard approach that i have talked about a lot over the years on my trade2win forum .........2-3 years or more back
in truth i rarely trade that strategy as i mainly chase trends....but it can be very effective if combined with the usual other o/b o/s indicators on the pair chart identified as alpha divergent in the g8 ..........like BBs and RSIs etc ..........you could easily combine price action patterns and perhaps some S/R levels to complete the strategy
you will normally find that CAD , Yen and GBP will dominate this strategy in pairs .....because they are the most volatile normally ........interestingly if yuo found an alpha divergence with currencies that are not on this trio that indeed would probably be worth looking at for a retrace trade
look at below ....5 min london morning on a 20ma FXCorrelator
see how the Yellow yen , red gbp and brown cad are ALWAYS either max or min value currency ?
sure some of them do reverse ..but the skew of the MA will always look better than it normally is
happy to talk more on this my friend ...........
had a great morning selling Cable today
N
I was thinking that maybe it won't be bad to look for wide spreads between two currencies but instead of watching to buy stronger currencies, I am watching that spread will eventually back into normal between two currencies, which mean spread will decrease. Of course, I will like to currencies to start decreasing the spread before the eventual entry and of course price action must go with it
hi peter - hope you are well my friend
so - are you are talking about finding the 2 most divergent currencies and trading the convergence ? ......yes thats a pretty standard approach that i have talked about a lot over the years on my trade2win forum .........2-3 years or more back
in truth i rarely trade that strategy as i mainly chase trends....but it can be very effective if combined with the usual other o/b o/s indicators on the pair chart identified as alpha divergent in the g8 ..........like BBs and RSIs etc ..........you could easily combine price action patterns and perhaps some S/R levels to complete the strategy
you will normally find that CAD , Yen and GBP will dominate this strategy in pairs .....because they are the most volatile normally ........interestingly if yuo found an alpha divergence with currencies that are not on this trio that indeed would probably be worth looking at for a retrace trade
look at below ....5 min london morning on a 20ma FXCorrelator
see how the Yellow yen , red gbp and brown cad are ALWAYS either max or min value currency ?
sure some of them do reverse ..but the skew of the MA will always look better than it normally is
happy to talk more on this my friend ...........
had a great morning selling Cable today
N
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NVP
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Hey NVP I hope that you are doing good. What do you think about potential spread trading?
I was thinking that maybe it won't be bad to look for wide spreads between two currencies but instead of watching to buy stronger currencies, I am watching that spread will eventually back into normal between two currencies, which mean spread will decrease. Of course, I will like to currencies to start decreasing the spread before the eventual entry and of course price action must go with it
hi peter - hope you are well my friend
so - are you are talking about finding the 2 most divergent currencies and trading the convergence ? ......yes thats a pretty standard approach that i have talked about a lot over the years on my trade2win forum .........2-3 years or more back
in truth i rarely trade that strategy as i mainly chase trends....but it can be very effective if combined with the usual other o/b o/s indicators on the pair chart identified as alpha divergent in the g8 ..........like BBs and RSIs etc ..........you could easily combine price action patterns and perhaps some S/R levels to complete the strategy
you will normally find that CAD , Yen and GBP will dominate this strategy in pairs .....because they are the most volatile normally ........interestingly if yuo found an alpha divergence with currencies that are not on this trio that indeed would probably be worth looking at for a retrace trade
look at below ....5 min london morning on a 20ma FXCorrelator
see how the Yellow yen , red gbp and brown cad are ALWAYS either max or min value currency ?
sure some of them do reverse ..but the skew of the MA will always look better than it normally is
happy to talk more on this my friend ...........
had a great morning selling Cable today
N
heres a 1hour chart
20 ma FXCorrelator
20 ma BB on 2 standard devs
so i look for retrace trades when red GBP and yellow Yen are max and min currencies vs zero line
is it a strategy ......sure its not too bad ......just sprinkle in some additional price action confirmation .....perhaps some S/R confluence ......
ive discussed this at length in many many posts a few years back and its not too bad
I scalp and trade on much higher probability signals than these ...but then again perhaps i am missign something
N
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NVP
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really interesting ....a trader who found me online has shown me a course he paid for on forex strengthmeters
unbelievable how basic and simple it was ......jees the trader is now very unhappy when i directed him to some of my links below and he saw it all for free...........
this is rediculous ........I have been meaning to summarise all my free work and put it on udemy or somewhere else published as an e-book.....just havnt had the time
i need to pull my finger out and do it ...........
N
unbelievable how basic and simple it was ......jees the trader is now very unhappy when i directed him to some of my links below and he saw it all for free...........
this is rediculous ........I have been meaning to summarise all my free work and put it on udemy or somewhere else published as an e-book.....just havnt had the time
i need to pull my finger out and do it ...........
N
NVP
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and finally ............
i have been selling GBP (as cable) all day (as from posts all day above)...........in that time ive scalped cable down from around 2970 to its low now of 2892............80 pips of trading area to scalp and rescalp over around 12 scalps .....
why ? ...........because GBP has been the Alpha bear currency (weakest) all the time from london 6am opens.........its never wavered !!!
so as always ........i follow a simple simple rule
sell the weakest currencies and buy the strongest ones .............
look at this 15m TF chart below on a simple 20ma setting and the red line (GBP).........it never goes above zero all day
sell sell sell sell sell sell .....GBP !!!!!
sure theres a few rules and and lessons i add to that ....all based on nearly 40 years experience in trading and of that 20 years experience in trading strengthmeters .....
I also think most traders would be surprised how i pick and time my entries .......its certainly not on the basic circus of stuff you see out there ...........but i know of a few traders who also use it with lethal effect .........and they helped me develop it to where i am happy today ......some of those mentors appeared here over the years ......on this thread and i am indebted to them .....
hey - nothings perfect ..........but I do like to tell people that successful and profitable trading is possible ...........but sadly most people look in the wrong places and give up far to easy ..............usually when their money runs out ........thats the pattern ...
shame .....
have a good weekend gang
N
i have been selling GBP (as cable) all day (as from posts all day above)...........in that time ive scalped cable down from around 2970 to its low now of 2892............80 pips of trading area to scalp and rescalp over around 12 scalps .....
why ? ...........because GBP has been the Alpha bear currency (weakest) all the time from london 6am opens.........its never wavered !!!
so as always ........i follow a simple simple rule
sell the weakest currencies and buy the strongest ones .............
look at this 15m TF chart below on a simple 20ma setting and the red line (GBP).........it never goes above zero all day
sell sell sell sell sell sell .....GBP !!!!!
sure theres a few rules and and lessons i add to that ....all based on nearly 40 years experience in trading and of that 20 years experience in trading strengthmeters .....
I also think most traders would be surprised how i pick and time my entries .......its certainly not on the basic circus of stuff you see out there ...........but i know of a few traders who also use it with lethal effect .........and they helped me develop it to where i am happy today ......some of those mentors appeared here over the years ......on this thread and i am indebted to them .....
hey - nothings perfect ..........but I do like to tell people that successful and profitable trading is possible ...........but sadly most people look in the wrong places and give up far to easy ..............usually when their money runs out ........thats the pattern ...
shame .....
have a good weekend gang
N
