Best Thread Correlation Trading - Basic Ideas and Strategies

[tigloo]

Cut my losses on the third trade. Did eat up most profits of the previous two trades, still in profit but barely. Will see where it's going now.

Will also only order EURCHF from now on to see if it is confirming what I wrote above.

 

[NVP]

who upset the CAD and GBP?....wasnt me i'm picking cotton....!

 

[NVP]

Cut my losses on the third trade. Did eat up most profits of the previous two trades, still in profit but barely. Will see where it's going now.

Will also only order EURCHF from now on to see if it is confirming what I wrote above.

whatever you say Till.....you lost me 3 posts ago

bad luck - you are now our official EUR/CHF corrie expert !

call them when you see them and dont be shy......i've posted many howlers here in my time...and look at JRP today.....i've sent him to bed for an early night

N

 

[GMP]

Attached are the trades that my EA took since I told it to look for divergence on EURUSD and USDCHF. They are drawn on a EURCHF chart to make interpretation easier. As you can see, it will pyramid into the trade until it finds an exit point. The first two trades were nice, although the very first one was probably a lucky shot.

The last one is still open and does not really go anywhere.

Either way, the switch to EURUSD/USDCHF got me thinking. What I am wondering right now is: what am I trading anyway? Is it correct to say that going long EURUSD long USDCHF is 2*long EURCHF? Since, what is it that really happens if EURUSD and USDCHF diverge?

My first idea was a) different quotations for the pairs or b) slips in feeds being supplied to us, minor glitches that caused the correlation to break up. But then again, the brokers have no reason to do that, it would cause the traders to drain their pockets. Massively. And, being retail feeds, they're probably well synchronized and smoothened to iron out these glitches. I suspect that for clients like us, it is safe to say that long EURUSD long USDCHF is 2*long EURCHF - minus the spread of course.

Mathematically, if you deconstruct the trades and find a divergence, what happens is that two of the currencies start to move into one direction while the third currency stays put or moves into the opposite direction. Taking a trade then is quite similar to what NVP suggested when I contacted him the first time.

This is why I charted the trades on EURCHF, first, to make it easy but second, to get confirmation whether the direction of EURCHF is really going where I think it is. The last buy signal leaves me a bit sceptical.

Either way, I'll try to mess with NVPs indicators and see where that goes.

Till

Thanks for the server feed suggestion, Till.
This EA looks interesting and is probably just the sort of thing that would benefit from watching the Correlator alongside it to clear up exactly what's going on. I'd wipe off everything except these 3 currencies and experiment with a low 20 or 40 setting, and see what occurs.

 

[jrplimited]

Hi again N,

Wonderful news! JF's (he of the CC system) new wizzo Delphi system is now available for instant download at the unbelievable price tag of $997 and not, as he puts it, at what you thought it would be - "my" normal $2k price tag....

I had a quick peek at the sales video and sure enough there is a replica corrie indy with the usual wiggly tentacles flopping around all other the shop (he has got the lot!) and a few "example" trades being highlighted. Just before I got really fed up with the blurb, on came the buy now pitch and a real cracker statement to cheer up your cotton pickin' day.

JF is offering a 45 day money back deal but in exchange for this all users have to show they at least tried Delphi on demo or live for 30 days, his reason? Quote... "I'm sick of being ripped off" ...unquote.

So $1k is his target price and I guess 1000 buyers is his target volume, which of course pales next to CC where it was a $2 million project, plus as per the norm there is absolutely no historical records to back up the claim of a 70%+ winning strike rate method.

I just hope prospective buyers are able to "see" through this latest stuff....
Simon.

 

[GMP]

Hi N and all else,

Decided to finish early today..... Errm, make that got booted out of markets early today!

GU; First trade sell stop at 51524 clipped by tail of 08:35 bar, price hovered for a few bars then moved down slightly then SL taken out during 09:00 bar for 21 point loss. Second trade sell stop at 51448 hit near end of 09:20 bar and next 09:25 bar reversed and took out SL for another 21 point loss. Two losses on the trot so thats me done and well stuffed on this pair and typically after that second loser, long trade flagged during next 09:30 bar that would have ended up eating into a chunk of those horrible losses.

EU; First trade sell stop at 33142 just filled by 08:15 bar, price moved down, stalled for four bars then 08:45 bar dropped like a stone, stalled again for four bars, moved down again to print 09:15 new local low and then retraced back up to take out TS during 09:35 wick bar for 13 point profit. By now my chart had got itself into a real mucking fuddle so no more trading on this pair.

EG; Had to wait until 09:20 bar for first trade, entered long at 87755 and price immediately reversed to take out SL during 09:30 bar for 15 point loss. Second trade entered short at 87436 on close of 09:35 bar, price dropped a litlle further then ran back up the hill threatening SL within a few points, then rolled over again and slowly came back down, printed 11:00 new local low and then stalled near entry point until 11:40 bar popped up and I took this as a cue to get out of dodge fast on its close for a 9 point loss.

The chop monster ate me up and spat me out in little bits on GU this morning, probably due to my bottom fishing after the early hours sell off, EU was all over the place chart wise after the first 90 minutes or so and EG just struggled to find any real sustained direction, so all in all it was definitely a case of calling roadsde recovery to tow me out of a very nasty car wreck - going to be expensive to repair today's damage.

Trade wel (unlike me; ouch!) and regards,
Simon.

Bad luck Simon - I took one look at the economic data being released today and shuddered. Seemed to be every bloody hour this morning, so I decided I wouldn't trade at all.
Then I sold EURJPY. Then I lost my feed. Then I got angry for getting in at all... but finally got out of it okay and went and sat in the sun to cool down (as it were).

 

[NVP]

interesting....in the last 24 hours the volatility of the USD has been elipsing its normally more volatile tag team partner......the reversal in roles is very unsettling !

 

[tigloo]

I don't know what we are doing here if it is so easy to make a million? I mean, I'd do it once or twice and retire.

Honestly, do so many people buy those indicators?

 

[NVP]

Hi again N,

Wonderful news! JF's (he of the CC system) new wizzo Delphi system is now available for instant download at the unbelievable price tag of $997 and not, as he puts it, at what you thought it would be - "my" normal $2k price tag....

I had a quick peek at the sales video and sure enough there is a replica corrie indy with the usual wiggly tentacles flopping around all other the shop (he has got the lot!) and a few "example" trades being highlighted. Just before I got really fed up with the blurb, on came the buy now pitch and a real cracker statement to cheer up your cotton pickin' day.

JF is offering a 45 day money back deal but in exchange for this all users have to show they at least tried Delphi on demo or live for 30 days, his reason? Quote... "I'm sick of being ripped off" ...unquote.

So $1k is his target price and I guess 1000 buyers is his target volume, which of course pales next to CC where it was a $2 million project, plus as per the norm there is absolutely no historical records to back up the claim of a 70%+ winning strike rate method.

I just hope prospective buyers are able to "see" through this latest stuff....
Simon.

thats cheap....!!!

where do I sign.....:clap:

N

 

[jrplimited]

Bad luck Simon - I took one look at the economic data being released today and shuddered. Seemed to be every bloody hour this morning, so I decided I wouldn't trade at all.
Then I sold EURJPY. Then I lost my feed. Then I got angry for getting in at all... but finally got out of it okay and went and sat in the sun to cool down (as it were).

Hi Gavin,

Well done for keeping the wallet closed this morning, I would have been quicker flushing my cash down the toilet - less pain as well!

Dont forget to verify with any broker you select that they fully allow scalping, that will narrow your search dramatically. Also consider utilising a DMA service as with these you trade inside the spread, place stops etc anywhere around or at the spread, unlike the bucket shop brigade who stipulate X pips away from price.
Simon.

 

[jrplimited]

thats cheap....!!!

where do I sign.....:clap:

N

Instead of signing to that s**t, go to your page 64 (I think?) and download the corrie indy then wait for a few days whilst I tidy up that kiss H1 correlation system and post here.
Simon.

PS. Might be worth repeating to everyone viewing what page your corrie indy sits on.

 

[GMP]

Hi again N,

Wonderful news! JF's (he of the CC system) new wizzo Delphi system is now available for instant download at the unbelievable price tag of $997 and not, as he puts it, at what you thought it would be - "my" normal $2k price tag....

I had a quick peek at the sales video and sure enough there is a replica corrie indy with the usual wiggly tentacles flopping around all other the shop (he has got the lot!) and a few "example" trades being highlighted. Just before I got really fed up with the blurb, on came the buy now pitch and a real cracker statement to cheer up your cotton pickin' day.

JF is offering a 45 day money back deal but in exchange for this all users have to show they at least tried Delphi on demo or live for 30 days, his reason? Quote... "I'm sick of being ripped off" ...unquote.

So $1k is his target price and I guess 1000 buyers is his target volume, which of course pales next to CC where it was a $2 million project, plus as per the norm there is absolutely no historical records to back up the claim of a 70%+ winning strike rate method.

I just hope prospective buyers are able to "see" through this latest stuff....
Simon.

So many of these scams about, it must be the best way to make money from the markets. I just don't understand why people don't say to themselves, "Hang on, if his system's so good, why does he need to be selling it?" It's self-evident ********!

 

[NVP]

I don't know what we are doing here if it is so easy to make a million? I mean, I'd do it once or twice and retire.

Honestly, do so many people buy those indicators?

Till......you mean you're not a millionaire ?

this thread is for millionaires only....i made my money way back from this system that sold over 3 million copies

http://www.trade2win.com/boards/for...256-dont-buy-correlation-code.html#post964262

jees..........

N

Seriously all - action now taken (below)....anyone with cred on other forums please link it up....we all know the Corrie tool is proven daily (despite the idiot me using it) and as robust as anything out there sold commercially if in the right trained hands.....its beautiful and multifunctional !

http://www.trade2win.com/boards/forex-strategies-systems/91408-jason-fielder-new-indicator-free.html

 

[GMP]

Hi Gavin,

Well done for keeping the wallet closed this morning, I would have been quicker flushing my cash down the toilet - less pain as well!

Dont forget to verify with any broker you select that they fully allow scalping, that will narrow your search dramatically. Also consider utilising a DMA service as with these you trade inside the spread, place stops etc anywhere around or at the spread, unlike the bucket shop brigade who stipulate X pips away from price.
Simon.

Thanks Simon, DMA is for when my system is finalised and I've developed enough discipline to stick to it! Until then (or until someone furnishes a Keep It Simple Simon system) I'm just dabbling with spreadbetting. For now I just want a reliable MT demo feed, so will try the suggestions.
Yes, money down the toilet - I know the feeling. I've often thought trading is the fastest way of losing money man has yet developed.

 

[tigloo]

Thanks for the server feed suggestion, Till.
This EA looks interesting and is probably just the sort of thing that would benefit from watching the Correlator alongside it to clear up exactly what's going on. I'd wipe off everything except these 3 currencies and experiment with a low 20 or 40 setting, and see what occurs.

Tried to do that, didn't give me any hints so far though. Will also still need to read up on the thread, only made my way through the first ~30 pages. Don't fully understand how to use it yet.

 

[NVP]

Thanks Simon, DMA is for when my system is finalised and I've developed enough discipline to stick to it! Until then (or until someone furnishes a Keep It Simple Simon system) I'm just dabbling with spreadbetting. For now I just want a reliable MT demo feed, so will try the suggestions.
Yes, money down the toilet - I know the feeling. I've often thought trading is the fastest way of losing money man has yet developed.

lose money eh !

buy a sports car everyone ......My wife bought one 2 years ago and we are now selling it on saturday as she found it to much to handle (and i'm a habitual points buster from my youth so I am banned from the big bhp munchers these days)

ive lost 17 Grand in 13,000 miles

would have been cheaper to buy a skoda humberto and drop 50 quid out the window at
every Red traffic light....

(JRP........more reasons why my pm's are like a bear with a sore head)

sigh.....
N

 

[alan5616]

Hi Gavin,

Well done for keeping the wallet closed this morning, I would have been quicker flushing my cash down the toilet - less pain as well!

Dont forget to verify with any broker you select that they fully allow scalping, that will narrow your search dramatically. Also consider utilising a DMA service as with these you trade inside the spread, place stops etc anywhere around or at the spread, unlike the bucket shop brigade who stipulate X pips away from price.
Simon.

Hi Simon,

Trading with a DMA broker is a good idea. However, to the best of my knowledge, in order to be able to trade on very tight or, within the spreads, the account deposit requirement is a minimum of $20,000.

Not all SB companies are bucket shops. I've been with GFT for a year, been requoted once and had most of my orders filled without slippage.. At times, their spread, on GU, will be 2 pips (usually 3), which I believe, is very comparable to a DMA broker.

There are some rip-off SB companies out there. Unfortunately, some of the biggest names are the worst culprits.

 

[GMP]

Buy €$ here, or wait for the figures at half-past? (wondering out loud)

 

[jrplimited]

lose money eh !

buy a sports car everyone ......My wife bought one 2 years ago and we are now selling it on saturday as she found it to much to handle (and i'm a habitual points buster from my youth so I am banned from the big bhp munchers these days)

ive lost 17 Grand in 13,000 miles

(Jrp........more reasons why my pm's are like a bear with a sore head)

sigh.....
N

No, No NVP, Dont buy a sports car. Buy something from JF - lose piles of cash making lots of trades using a pile of rubbish. I bet losing £17k in 130 trades will be faster than your 13,000 miles - plus faster than the sports car can go!
Simon.

 

[GMP]

Tried to do that, didn't give me any hints so far though. Will also still need to read up on the thread, only made my way through the first ~30 pages. Don't fully understand how to use it yet.

Yeah, it's a big meal so requires some time to digest!