Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

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yep - cant believe i was scalping EG today at times ! ....N

 

[Dentalfloss]

 

[Dentalfloss]

 

[Dentalfloss]

messy

 

[Dentalfloss]

Dollar,,..Overbought and in rez

 

[Dentalfloss]

sellers in with a chance

 

[Aphaynes]

Hi Everyone....An ambitious title indeed !

I want to consolidate as much information as possible on the subject within this
thread....the works !

Over the next few posts I will try to share my own humble thoughts/Ideas on Forex Correlation and would appreciate as much feedback and input as possible to help my studies.

I am not going to try to dictate where this thread leads, but I am hopefully that it will deliver some great Ideas, references and "Gems" for all of us to incorporate into our Trading.

To get things started In next post I am going to discuss The Major 8 currencies and how I have found they tend to interact with one another and if there are any simple rules we can learn from this to assist our trading.....

I will also attach an indicator I use to assess how the 8 Currencies are performing which I would love to develop further and expand with everybodies help

Please start adding comments / requests and of course any references or threads that would be beneficial to have linked in this one

apologies if anything has gone wrong in this first post...I hav'nt posted much before and this is my first attempt at a thread !

more tomorrow - time and work permitting !
Neil

 

[Aphaynes]

There is no such thing as Currency correlation, At least not in the sense that you can profit from it. Sure some currencies do trend together, for example Gold and Yen when the dollar is weak sometimes correlate, but there are also many times they dont. Also when one moves and you jump on another, why not just get on the first one? they will always move at the same time. Anyone I know who has tried to make a strategy for correlations has failed.

 

[NVP]

There is no such thing as Currency correlation, At least not in the sense that you can profit from it. Sure some currencies do trend together, for example Gold and Yen when the dollar is weak sometimes correlate, but there are also many times they dont. Also when one moves and you jump on another, why not just get on the first one? they will always move at the same time. Anyone I know who has tried to make a strategy for correlations has failed.

Hi there

I agree with you ....up till about 10 year ago i was still fooling with the concept of profiting from intermarket correlation and analysis as pushed by traders like John Murphy...

but despite the hype and the undesputable correlation that does exist at times ....I moved this thread on long ago and just went for the jugular in pairs correlation ...

this thread does try to make it work in its early years ... ...so the title is actually a little misleading

all relative strength analysis now from me and its merits in maximising opportunities for Traders

N

 

[NVP]

There is no such thing as Currency correlation, At least not in the sense that you can profit from it. Sure some currencies do trend together, for example Gold and Yen when the dollar is weak sometimes correlate, but there are also many times they dont. Also when one moves and you jump on another, why not just get on the first one? they will always move at the same time. Anyone I know who has tried to make a strategy for correlations has failed.

Gold priced against a net basket of currencies or priced in USD ?...theres a big difference ?

 

[NVP]

Trading is easy - believe the hype

Here's an interesting question - what's easier ? Becoming a successful and consistently profitable trader OR Becoming a Doctor The answer in my opinion is it's pretty close ..

www.linkedin.com

 

[NVP]

1) Take a FXCorrelator indicator (available for free here)
2) Find the alpha Bull or Bear Currency (or both)
3) Trade it as a pair in the direction indicated
4) Repeat
5) keep repeating
6) did I say repeat ?

today ...alpha bear is red sterling..........and i like Cable .......

Eat - Sleep - Trade - Repeat

 

[NVP]

1) Take a FXCorrelator indicator (available for free here)
2) Find the alpha Bull or Bear Currency (or both)
3) Trade it as a pair in the direction indicated
4) Repeat
5) keep repeating
6) did I say repeat ?

today ...alpha bear is red sterling..........and i like Cable .......

Eat - Sleep - Trade - Repeat

i will need low 3040s to get into cable resells again

 

[Pat494]

Eur/Gbp is worth a look imho

 

[NVP]

are you ready to resell Cable ? ......watching the 3044.....counting down

sell 3042 !!!

 

[NVP]

Eur/Gbp is worth a look imho

yep - nice divergence on them again so far .....cable is my main feeder though ...EG can be slooooooooooooooow

 

[NVP]

if Cable breaks up above 42 come out and we will go in again later .....

 

[NVP]

if Cable breaks up above 42 come out and we will go in again later .....

9:31 - out at moment just cost me the spread ....thats how i like my losses

 

[NVP]

9:31 - out at moment just cost me the spread ....thats how i like my losses

2 failed scalps now today ...cost me around 4 pips in total .....and i hate losing

 

[NVP]

eu perfect at 45 rebuy