Best Thread Correlation Trading - Basic Ideas and Strategies
Summary of last night from my side: exited overnight trade at 4:50, accepted the losses. EA made two trades after that with the unbelievable profit of 1.5 pips each. 
Reopened trade immediately again at 8:26 (CET), selling EURCHF. Again, looking at the chart, it looks like a silly trade. Interpreting the corrie, I should be long. Just from common sense I should be long, not short.
Beginning to sense a mistake in my system.
Reopened trade immediately again at 8:26 (CET), selling EURCHF. Again, looking at the chart, it looks like a silly trade. Interpreting the corrie, I should be long. Just from common sense I should be long, not short.
Beginning to sense a mistake in my system.
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NVP
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Hi all
I am enjoying the number of new viewers now on this humble thread...WELCOME !!!!
in answer to some of the pm's i'm getting the corrie and associated correlation ideas work on all timeframes and whatever ma's and settings you want to play with
its your tool to do so as you will ...experiment !!
heres my DIY guide to corrie success
1) pick your favourite currencies to trade (by removing the others on the indicator)
2) pick your favourite timeframe or timeframes (hey load 2 charts side by side !)
3) pick your favourite MA's or combo MA's (slower Ma on the Ma setting and faster ma on the Delta setting)......our default is always 1 on the delta as we mainly just utilise 1 main MA
and off you go !........trade crossovers of lines - or more importantly buy currencies diverging upwards and away from the zero and sell currencies diverging downwards away from the Zero......focus on these as convergences back towards the zero are less indicative of trend action
and if you are a o/b or o/s trader....trade the big divergence postions you see on the charts (but be careful as certain G8 currency dynamics can be more favourable than others to do this)
please post your experimentation here on the thread :smart:
N
oh yeah and then theres one of my favourites...the 1000/1 corrie with 4 currencies on it alongside Dj30 and Gold, waiting for correlation to fall into place......heres a 1hr call in action recently on the attachment (and remember this has happened already on the 5mins posted earlier on today)
its not this easy is it ?
I am enjoying the number of new viewers now on this humble thread...WELCOME !!!!
in answer to some of the pm's i'm getting the corrie and associated correlation ideas work on all timeframes and whatever ma's and settings you want to play with
its your tool to do so as you will ...experiment !!
heres my DIY guide to corrie success
1) pick your favourite currencies to trade (by removing the others on the indicator)
2) pick your favourite timeframe or timeframes (hey load 2 charts side by side !)
3) pick your favourite MA's or combo MA's (slower Ma on the Ma setting and faster ma on the Delta setting)......our default is always 1 on the delta as we mainly just utilise 1 main MA
and off you go !........trade crossovers of lines - or more importantly buy currencies diverging upwards and away from the zero and sell currencies diverging downwards away from the Zero......focus on these as convergences back towards the zero are less indicative of trend action
and if you are a o/b or o/s trader....trade the big divergence postions you see on the charts (but be careful as certain G8 currency dynamics can be more favourable than others to do this)
please post your experimentation here on the thread :smart:
N
oh yeah and then theres one of my favourites...the 1000/1 corrie with 4 currencies on it alongside Dj30 and Gold, waiting for correlation to fall into place......heres a 1hr call in action recently on the attachment (and remember this has happened already on the 5mins posted earlier on today)
its not this easy is it ?
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NVP
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Summary of last night from my side: exited overnight trade at 4:50, accepted the losses. EA made two trades after that with the unbelievable profit of 1.5 pips each.
Reopened trade immediately again at 8:26 (CET), selling EURCHF. Again, looking at the chart, it looks like a silly trade. Interpreting the corrie, I should be long. Just from common sense I should be long, not short.
Beginning to sense a mistake in my system.
Hey Till
this is the correlation i like......you'll see it in any ma or timeframe
USD diverges downwards from the zero......the Euro zone fires upwards (as expected) and the traditionally more volatile Euro leaves its swiss buddy at the traffic lights...
do you want jam on that bread being made here ?
look back through any timeframe on these 3 currencies.....notice how Chf always seems to be in the middle of the 3 ?.....theres a profitable trading system there believe me.....and no $2,000 price tag for finding it !
N
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What EA do you mean?Summary of last night from my side: exited overnight trade at 4:50, accepted the losses. EA made two trades after that with the unbelievable profit of 1.5 pips each.
Reopened trade immediately again at 8:26 (CET), selling EURCHF. Again, looking at the chart, it looks like a silly trade. Interpreting the corrie, I should be long. Just from common sense I should be long, not short.
Beginning to sense a mistake in my system.
NVP
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This is why I rate Lance so highly....
a total professional and is incredibly thorough in every aspect of his trading
N
http://www.yourtradingcoach.com/Art.../Effective-Trading-Session-Review-1-of-2.html
a total professional and is incredibly thorough in every aspect of his trading
N
http://www.yourtradingcoach.com/Art.../Effective-Trading-Session-Review-1-of-2.html
Retrospect is a wonderful thing, isn't it? The system I'm tinkering with had entries buying € & £ against $ & Yen at 7 o'clock this morning, while I was lying in bed wondering if it was worth getting up to check what was happening.
If I hadn't decided I needed another half hour followed by a leisurely breakfast, I'd be 200 pips up by now! Bugger!
So I'll be up fresh & early on Monday and inevitably get chopped sideways all day...
- Gavin
If I hadn't decided I needed another half hour followed by a leisurely breakfast, I'd be 200 pips up by now! Bugger!
So I'll be up fresh & early on Monday and inevitably get chopped sideways all day...
- Gavin
My own EA, opens trades based on divergence in correlated pairs. Been working on refining it over the past weeks and months.
NVP
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Till's a graduate of a famous thread called basket101 trading on another big forex forum/site
very happy to have him onboard here....
N
alan5616
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Hi Gavin,
I can relate to how you feel. There was a very long c/stick on the 7 am 5 min, due to the favourable response to the German trade balance figure. Once I missed the bus, I didn't take the retrace that followed about 30 mins later.
I'm very wary of trading between 07.30-08.30 as, I've been caught so many times by the infamous London turnaround. It's no exaggeration to say that I've lost more money trading forex, in this hour, than all the other times of day & night added together, particularly on GU.
Hi Alan
Nice to know I'm not the only one!
Ditto breakfast entries. I'm very wary of ruining my whole day by attempting to trade early - lots of false dawns, but these occasional home runs always make it tempting. Yen crosses seem a little safer that time of day, unless that's my imagination, but I'm usually better off munching my porridge in peace!
Well, let's say I read it, found it interesting and thought it was similar to what you guys are doing here. Unfortunately his further developments on the system are only for sale and before I start replicating his Excel work, I'm going to beat the statistics out of my own system first.
That being said, I need to continue working on my backtester. I hate it that MT4 does not support multiple currencies.
jrplimited
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Hi N and everyone else - lots of everyone elses!,
Name of the game today for me was not to give yet more money to the markets; they dont need it but I do need it after yesterday's mauling - I wonder if my broker would be willing to accept a bit of Greek "paper" instead of the usual pound of flesh? Here is the bun fight....
GU; First trade entered long at 53109 on open 08:05 bar, price went down (of course, what else?) for a few points then bounced back up, tracked sideways for six bars then momentum caught hold and of it went on the northbound freeway doing a few higher high and higher low prints en route, found a new local high at 09:45 with a strong up bar, retreated away from this and triggered TS during 10:05 bar for 58 point profit. Nothing else taken on this pair after that.
EU; First trade opened long at 33934 on open 08:05 bar, price stalled then started to do a trouser changing move down for two bars before reversing (and saving pc screens from a severe beating!) and climbing slowly up the hill, 09:10 bar printed new local high then price retreated away from this without any real force, tried to rally upwards again but failed and then TS taken out during 10:20 bar for 6 point profit - all that time for this amount, no other setups seen on this pair for remainder of morning.
EG; Sell stop at 87416 filled during 08:10 bar, price drifted for six bars then pushed downwards, paused again for seven bars, gapped and dropped down again to make 09:50 new local low, then started to recover and close of 10:05 up bar taken as an exit hint for 14 point profit. Second trade sell stop at 87108 filled during 10:55 bar, price immediately started to retrace and took out SL at top of 11:15 bar for 15 point loss - smacked wrist for bottom fishing there, no other setups found after that.
Unbelievable just how far GU has recovered lately, if someone had said last month that it would be up in the 1.53 level I certainly would have laughed. Yet again EU had fairly narrow range bars and looks highly suspect to me, might be worth follwing this afternoon to see if it gives off a decent short signal.
As its Friday I've got the usual planned escape from Betty Ford clinic coming up in a few hours, ahhh I can nearly taste that wonderful giggling juice right now... Ooops, beginning to drool all over keyboard so adious, trade well and regards,
Simon.
Name of the game today for me was not to give yet more money to the markets; they dont need it but I do need it after yesterday's mauling - I wonder if my broker would be willing to accept a bit of Greek "paper" instead of the usual pound of flesh? Here is the bun fight....
GU; First trade entered long at 53109 on open 08:05 bar, price went down (of course, what else?) for a few points then bounced back up, tracked sideways for six bars then momentum caught hold and of it went on the northbound freeway doing a few higher high and higher low prints en route, found a new local high at 09:45 with a strong up bar, retreated away from this and triggered TS during 10:05 bar for 58 point profit. Nothing else taken on this pair after that.
EU; First trade opened long at 33934 on open 08:05 bar, price stalled then started to do a trouser changing move down for two bars before reversing (and saving pc screens from a severe beating!) and climbing slowly up the hill, 09:10 bar printed new local high then price retreated away from this without any real force, tried to rally upwards again but failed and then TS taken out during 10:20 bar for 6 point profit - all that time for this amount, no other setups seen on this pair for remainder of morning.
EG; Sell stop at 87416 filled during 08:10 bar, price drifted for six bars then pushed downwards, paused again for seven bars, gapped and dropped down again to make 09:50 new local low, then started to recover and close of 10:05 up bar taken as an exit hint for 14 point profit. Second trade sell stop at 87108 filled during 10:55 bar, price immediately started to retrace and took out SL at top of 11:15 bar for 15 point loss - smacked wrist for bottom fishing there, no other setups found after that.
Unbelievable just how far GU has recovered lately, if someone had said last month that it would be up in the 1.53 level I certainly would have laughed. Yet again EU had fairly narrow range bars and looks highly suspect to me, might be worth follwing this afternoon to see if it gives off a decent short signal.
As its Friday I've got the usual planned escape from Betty Ford clinic coming up in a few hours, ahhh I can nearly taste that wonderful giggling juice right now... Ooops, beginning to drool all over keyboard so adious, trade well and regards,
Simon.
