Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey gang ....

i said i would be offline for a while ......still finishing my house off and 90% of trading office in storage at moment

I see that this week is moderate in volatility so far ......CAD is the hot bull and GBP now getting sold off harder

we are midweek and the next 24 hours are always interesting re the markets intentions into last 2 days

im not really in market at moment ....shame as some nice trading today on those currencies above

talk soon.......always happy to answer questions here on at my website gang

N

 

[NVP]

hey gang

im still finishing my house ......but clearly gbp is getting hammered at momnet so i did do some private trading a few days last week

heres the tale of the G8 since june 16 .......GBP saw worse lows back in OCT 16 ....but lots of noise at moment that its struggling in 2019

usd and euro doing ok in 2019 so GBP is looking real bad vs them .....

I have no idea what GBP is going to do in the wake of Tersa may now stepping down and the circus beginning on the new leader roadshow....bloody circus as the vultures all queue up

so just trade what you see .......i always do .......if GBP continues to fall sell it ....if it rallies buy it .....

have a good week guys
N

 

[FxPipser]

you really believe that correllations working? any real results ?
i tried to code 5 different robots based on different correlation ideas ... similar to your indicator...not profitable at totol auto, correlation work some period then fundamental killing this in 5-10 minutes

 

[NVP]

Hi There FXP

sure I have used correlation as part of my trading strategies for 20 years now ....

however they will be at best average in raw forms if used alone ......

all of my linked free systems and indicators available here and in other places (that I am not allowed to mention in breach of prospecting rules as applied by moderators at T2win) offer a lot of information on how to incorporate Strengthmeters into trading systems and i have worked with hundereds of traders and programmers over the years to develop their own bespoke sucessful systems

so in answer to your question...........

I have been successful in my trading for many years now, by incorporating Strengthmeter based strategies and indicators

however i also incorporate other indicators, price action strategies and other techniques to augment the core Strengthmeter platform......its a portfolio of elements

Cheers
N

 

[NVP]

also i note

you really believe that correllations working? any real results ?
i tried to code 5 different robots based on different correlation ideas ... similar to your indicator...not profitable at totol auto, correlation work some period then fundamental killing this in 5-10 minutes

as in any system above - nothing is 100% sucessful ........but that period of where things work is what a trader has to find and capitalise on in any system .....thats the edge we all need to become profitable ...........i do the same in incorporating strengthmeters .....find the sweet spot and ignore the others.....as much as possible

thats trading 101....cant become successful without it

N

 

[NVP]

think of using strengthmeters like pairs selection

remember there are 28 pairs in the G8 .....all tradable

so why trade 1 pair and not another ?

what rules would a trader incorporate to do this ?

how can they differentiate ?

remember many pairs demonstrate similar signals at the same time (thats part of the correlation pattern)

this is my edge .......and where in truth i utilise my FXcorrelator most sucessfully

I get on the right pair at the right time in the right place

N

 

[FxPipser]

in correllation systems you cannot detect retracement after trend. ony 2 systems types possible 1) trend or 2) flat
what type is yours ?

 

[NVP]

i can use both trend continuation and mean reversion strategies in my work ....depends what market is telling me

N

 

[NVP]

hey gang

jees ....my house is taking longer than i wanted to finish ...trading time has been light and mainly private with no chances to post much or commentate .....

i am nearly there and the trading room back in business next week hopefully ...got to get kit back from storage as well

N

 

[NVP]

morning all ...

trading a little this morning ..........but not yet fully up to speed on trading room yet

ok USD is bear so far today ....yen following ........so risk on plays prominent

im following cable buys (naturally)....euro bull has promise so far ........nothing really dominating bulls at moment

EJ last scalp was from around 121 44/45 to 121.58 so far
GU last scalp was from 2672/3 to 2685 so far ...
GU last scalp was from 1253/4 to 1272 so far ...

twitchy though gang so be careful ...

N

 

[NVP]

yen bear accelerating now into hyperdrive ......EJ at 121.69......nice

 

[NVP]

GBP had a horrendous May .......lost round 500 pips as an index ........hopefully we get a better june

N

 

[NVP]

euro is best currency index so far in June putting on about 50 pips net so far .....thats why im happy to have it lead a lot of the scalping action at moment and on the opposite side of the fence USD some 70 pips down in June so far

thats what i do .......play the alphas and dont fight the trend guys ....

 

[NVP]

being patient ............gbp dropped thopugh the floor now ....

im waiting to get back into euro bull rebuys on EJ and EU

ucad looks interesting when reselling commences

usd needs to start falling though ..its really pushing bull at moment

 

[NVP]

messy session

USD has wandered back north from decent sells earlier
Yen held bear ......but my euro has fallen towards it rendering a scrappy EJ morning

UJ (buys) was actually a decent play last few hours but i dont like that pair at all as they tend to move together and you are only playing off the volatility of the Yen compared to the slower USD

GBP rallied back but what to sell into it on scalping spreads ? ....nada

so all in all a relatively slowish session for me ......but thats trading

N

 

[NVP]

hey all

slooow friday ..........

gbp has been most bullish so far of G8 ....but hardly impressive
Chf swissie most bearish .......again unimpressive - even for CHF
nothing else really moving - including the flat USD

been on cable from 2700 to 2720s so far ....ZZZZZ
UCHF offered from 9920-9940s so far ....ZZZZZ

obviously GBPCHF the best trending pair this morning - 1.2600 up to 2650s so far
but thats a rare one for me to trade and especially not scalping

N

 

[NVP]

HEY GANG

sorry its been a pain at home here .....been a delay getting all my trading hardware back from storage so been on a couple of laptops with minimal kit ......real old school trading between finishing my house !

so no time to post or add content to my social media and website areas .......pain !

anyway perhaps a nother week and we will be there

meanwhile heres june so far on the fixed start FXCorrelator (set to 1st June open as zero)

CAD is killing market ...200 pips up from end may
Yen and USD been getting pain .....both down near -150 pips at times
euro solid bull
GBP very lightweight ....we need some drama in the conservative leadership election to get it moving again

good trading gang - happy to answer questions at moment ...as stated - i am just not very active on my posting etc

N

 

[NVP]

hey gang .....

pretty quiet so far this week.......heres a 1 hour TF on standard 20ma default FXCorrelator (bottom chart) and my fixesd start chart (top)

euro and yen had strong openings this week............gbp is bear play .....

for todays scalping sessions i am going to sit on hands and wait for a gbp resell into us session ......if i were being a perfectionist (and markets hate perfection) .......i would like to see that gbp hit the resistance level on top chart and then sell off again .....

if i'm swinging instead of looking for scalp profits i would happily take GJ or EG or GU based on dynamics of the secondary currency at the moment of trade

later
N

 

[NVP]

based on that last post i'm still sitting on hands theoretically for longer plays .....gbp still winding bull at moment ......so unless i'm scalping its wait for gbp to resell..........

euro is real nice bear play so far london..... so EG is pulling back as best prospect for a rebuy on those 3 pairs mentioned earlier

heres it on 1 hour .....that earlier bar was huge across all pairs ......euro really dropped some pips

 

[NVP]

ok back to scalping ......

the market was slow from 6am and the real moves only came on 9am bar .....

then a bear euro really drove rest of G8 north tipping the trend

play continuation trends on the bear Euro pairs......also cad and Swissie moderately bearish as well .....so decent plays on them into usd as best prospect

EJ probaly most volatile and interesting reseller to come.....although with NZD and AUD really looking Bull at moment the EA will be a decent prospect to resell as well when offered ...slooooooow though that pair

heres a pretty simple look at how to get into trades and where I may have been looking to follow this decent pair (remember ive identified EJ as a top moving pair from the strengthmeter charts & london session)

On Trading

LOOK !

once you have got a few pairs in the firing line to trade - dont beat yourself up about getting the indicators and settings 1000% correct ........

I cant believe the Cr8p talked on a lot of the forums and discord trading clubs and groups i am in ............

people arguing about indicators that all pretty much do the same thing
THEY ALL DO THE SIMILAR THINGS !!!!

people arguing about settings that are so close its a joke:-
"i use a 20 on a 4 , no i use a 15 on a 7 its much better" .....seriously guys ????!!!!!"

when talking trend continuations an old mentor gave me some great advice ......

"Neil , when the trend rolls it rolls .....whatever indicator and stuff you have on the chart ...it will generally tell you to trade at similar time - so dont sweat the small stuff"



so on belows chart ive shown some simple rules to get me looking

1) identify the best moving pairs in session - using strengthmerers (EJ was one of them)

2) put something simple on chart to monitor good conditions for those pairs ( for EJ its a simple default 20 ma showing currencies where Eur above / yen below Zero)

3) wait for half decent pull back ...again nothing too serious ...a few green bars or big single/double green bar ......then a decent red bar continuation



good trading gang
N