Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

thought i'd pull up a 4h 1000/1 corrie

GBP has really been doing quite well since end of feb.....lets see what election fever does to the proceedings

Euro - well its kinda formed a range hasnt it ?......like the guys get their act together a little re all the debt fuss etc etc and climb up the strength slope ....then the ropes break and it all tumbles down again......and so on .......looks to me like their quite high up on that slope again ?

Tag team (which are the anchor of my plays) have been frustrating recently.....some games they play like the 2 midfield generals I want them to be....and other games they will scrap iike schoolboys and no one knows what to do or how to react in response.......sure they do move together mostly....but sometimes they've been swopping volatlity like cigarette cards prompting me to consider some more frequent U/J plays

commdollswise....well pretty good all round really and if the USD had been more submissive recently then they would have been even more domaneering.......

time will tell.......I have some more specialised indicators - and set to 4h they are screaming at me that the eurotribe are overbought......hmmmm....what tribe is in best shape to take those gains back off them ?

will pop in when I can....off to the cotton picking and camptown races convention in Europe this week
(you mean its not on the news ?)

N

 

[NVP]

hi all

steady fall on euro now.....usd looking a solid buy as well.....especially if gold falls below $1164.....

watch the 00 though

 

[NVP]

ok....retrace over (?)....now comes the motherload push.....yen weakening though unfortunately

 

[NVP]

E/U deffinate pair to be on.......just need falling gold and Dj30 to confirm

 

[NVP]

pullin teeth eh !

 

[NVP]

this is dissapointing ....markets saying tag buy.....although cant complain as this E/U sell started a lotta pips ago and boat may have now sailed

 

[NVP]

dont write it off yet......patience patience

 

[NVP]

i would be looking for a fast 10 pips scalp on E/U sell if gold falls below .....1164 !

 

[NVP]

CHF and AUD are stepping into the sell mode as well..........

 

[NVP]

this is the problems we face as correlation traders .....I have to call at leat 1 currency the right direction.......that will miminise any losses on the trade

my job is to minimise losses not necessarily optimise profits each time
N

 

[NVP]

and now GBP is looking bullish again..... but my anchor trade is always the Tag direction.....thay are my midfield generals

 

[NVP]

I have nothing to confirm the GBP signal up ....all i could do is assume USD will stay flat or fall and take a scalp on GBP's violatility and slight positive bias/breach

 

[NVP]

see whats happened ?........markets fall so tag should rise.....forget the GBP signal

 

[NVP]

E/U 10 pip scalp into 00 ?

 

[NVP]

sorry gotta go.........fascinating though eh !

 

[NVP]

as I leave the tag is starting to turn downwards regardless of the markets efforts to lift it .....hmmmm

 

[tigloo]

Thanks for the kind words Neil!

Morning update from me:

Watching the markets open yesterday night I saw CADJPY retracing on the corrie, so I was afraid that it was going to go another spike upwards and take my stop out. I set T/P to entry price and it was filled overnight, leaving 0 profit but also 0 loss. Looking at it this morning, CADJPY is still moving sideways with resistance at ~92.94. I'm unsure how to interpret this, but I am out anyway.

My cross trade on EURCAD/EURNZD betting on CADNZD is pretty much at 0, swinging between profit and loss. Looking at the corrie it should be deep in the profitable zone by now, so I think that I got my position size wrong again. Didn't have time to recalc before leaving for work.

My EA had a busy night at scalping EURUSD/GBPUSD, making some nice profits. Two trades were taken out too early and closed at a loss, shortly before turning around, but that is life. Shortly before leaving for work, the new money management kicked in and due to buggy code donated some money to my broker. Luckily I caught it, so fixed it and restarted. Will analyze tonight whether it was the right point in time.

Just like others have mentioned, the morning time around London open is a dangerous zone and most likely should be avoided.

 

[NVP]

Fascinating........markets throw everything at making Tag rise and it does'nt.....then naturally as markets retrace and turnaround the Tag keeps falling

N

 

[NVP]

and then again markets fall and tag rise....back to the original scenario !

I never said it was easy
N

 

[NVP]

there may be some U/J divergence coming