Best Thread Correlation Trading - Basic Ideas and Strategies

[GMP]

Hi Gavin,

Got my backside well and truly kicked all over the shop and was very lucky to scrape a few points overall out of this morning's session. Markets seemed to had about as much an idea where to go as gordon charlie brown's lot in general election! Good luck this afternoon.
Simon.

Hi Simon
You did better than my system did on €$ this morning - 17 pips down. Ideal testing ground I suppose, when it's flipping around like that. Not making alot more sense this afternoon unless it can break out of its range. Think I'll steer clear of any realworld positions!

 

[GMP]

back again.........crazy day for correlation again....as you all can see the Tag have had a domestic and parted ways......the logical correlation is all siding with the USD fall....so its Yen showing a lot of unnatural strength......you cant trade that.....

Looks like they're coming back into alignment now Neil's jetted off - they just like to spite him

 

[alan5616]

Looks like they're coming back into alignment now Neil's jetted off - they just like to spite him

You could be right there, Gavin.

Trading the EU, today, has been a nightmare. Of course, as so often happens, you get chopped to pieces on 3 trades and fail to take the one that would recoup your losses.

The Tag team has come decidedly untagged, which didn't help at all.

 

[alan5616]

Neil's jetting off to spend his hard earned cotton picking money and I'm going into hospital, tomorrow, for an operation. There's no justice in this world. Fortunately, I won't be out of action for more than a few days.

 

[tigloo]

Good luck, Alan. Will you get a room that has access to your trading terminal?

I must say that I've had a quite successful day so far, made 31 pips after an 80 pip drawdown yesterday. Still closely watching the new stops and how they pay off.

I am planning to put some more work into the indicator soon, will also try out a remote access service so I can follow my trades from the office. More updates tomorrow.

 

[alan5616]

Good luck, Alan. Will you get a room that has access to your trading terminal?

I must say that I've had a quite successful day so far, made 31 pips after an 80 pip drawdown yesterday. Still closely watching the new stops and how they pay off.

I am planning to put some more work into the indicator soon, will also try out a remote access service so I can follow my trades from the office. More updates tomorrow.

Thanks for your good wishes, Till. The only terminal I'll have access to will. probably, be the machine that is making sure I'm still breathing!!

Pleased to hear that you've had a successful day, after yesterday's misfortunes. Getting caught in Whipsaw City, on EU, today, I'm -12 so far.

 

[GMP]

Thanks for your good wishes, Till. The only terminal I'll have access to will. probably, be the machine that is making sure I'm still breathing!!

Pleased to hear that you've had a successful day, after yesterday's misfortunes. Getting caught in Whipsaw City, on EU, today, I'm -12 so far.

Good luck with the op, Alan. Hope it goes better than €$ today (I was 10 down when I threw the towel in).
My system got some ridiculously good results on sterling today. The report's here http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing-5.html#post1102832 but take it with a large pinch of salt as there's curve-fitting going on through tinkering with the exits.
Strikes me if it can perform this well, there'll be days when it performs equally badly, which is something I would not like to inflict on my real account!
- Gavin (glass half empty mode)

 

[alan5616]

Good luck with the op, Alan. Hope it goes better than €$ today (I was 10 down when I threw the towel in).
My system got some ridiculously good results on sterling today. The report's here http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing-5.html#post1102832 but take it with a large pinch of salt as there's curve-fitting going on through tinkering with the exits.
Strikes me if it can perform this well, there'll be days when it performs equally badly, which is something I would not like to inflict on my real account!
- Gavin (glass half empty mode)

Thanks for the good wishes Gavin. Seems like we both suffered at the hands of the €$ today.

 

[alan5616]

Before I depart to the world of anathaesia tomorrow, I thought that it might be an idea to share a little of my experience, of Corrie testing, over the months. This may be particularly useful for those who are new to the thread.

One of the key elements in using Corrie, successfully, is to find a setting that produces fairly accurate trading signals. I don't believe that there is an ultimate setting, for the simple reason that the forex market is constantly changing. We are in a period of fairly low volatility, compared to 18 months ago. In addition to this, preferred tf, individual risk appetite and time available to screen watch will vary from person to person.

In my opinion, the biggest obstacle to Corrie is MT4's auto scaling function. Before migrating to MT4, I used VT Trader which allowed the user to set the scale and move the chart vertically up or down, via use of a slider bar. Why does this matter?

I would think that many of us have Corrie in Indicator Window 1; all well and good so far. The anomaly occurs when you reduce or increase the amount of chart real estate that Corrie takes up.

If I set up to Corrie to cover 80-90% of the chart, I will have small candlesticks/bars that appear as a meaningless flat pattern and a vertical scale that might be 20-50 pip increments. I have found that the best format is for Corrie to take up 40% of the chart space which, doesn't throw MT4's autoscaling off too much. However, there will still be slight pattern differences between the 80-90% and the 40% Corries but, not enough to be crucial. I'm hoping that the new MT5 might include a proper scale fix and a slider bar.

My set up is based on 5 min tf+ with a 34/3 setting. I have G8 Corrie attached to all individual pairs (40% of chart space) and a separate page with Corrie occupying 80-90% of the chart, in order to get a magnified look at the action. If I had a larger account, I would be quite happy trading Corrie off the daily tf. No screen watching all day; just set TP and SL, at the end of the day, and off to play golf the next morning

 

[jrplimited]

Hi Alan,

By the time you read this you should, hopefully, be well on the road to a speedy recovery aided by a gaggle of great looking nurses and wonderful (?) hospital food.

Very interesting post you made today (13-04-10) regarding MT4's woeful lack of ability to scale the corrie indy properly and constantly, thats something I also found out when first downloading from NVP's relevant page last year. I personally use a M5 tf with a near "raw" setting of the corrie displaying only G, E and U to cut down on screen estate and pc resources.

What I've also been experimenting with is using the MS Excel data functionality within MT4 and pulling off those above crosses and then applying a bit of wizz bang formulae functions to express thier movements relative to each other. Downside of that is the fact of Excel's rather basic charting capabilities - it seems you just cant win!

NVP gave me a nudge before he left to get that kiss based H1 system posted but in between morning trading plus afternoon time with daughters (they are still on easter break) I've got a bit behind in doing this - my excuse anyway. Hopefully I should be able to finish this off then post the same as a document soon, and from this you (plus everyone else) will be able to see the kind of direction I'm going in as discussed with NVP over many weekends.

I've also got a very clever guy who does all my MT programming for me (its all greek to me!) looking at creating a candlestick format of the corrie indy, but at the moment things like the all important pc resources and "controlling" scaling via artificially introducing a meaningful factor into the corrie calculations etc are still being studied - hopefully there will be some good news about this on NVP's new forum when he creates it.

Get well soon and regards,
Simon.

 

[alan5616]

Hi Alan,

By the time you read this you should, hopefully, be well on the road to a speedy recovery aided by a gaggle of great looking nurses and wonderful (?) hospital food.

Very interesting post you made today (13-04-10) regarding MT4's woeful lack of ability to scale the corrie indy properly and constantly, thats something I also found out when first downloading from NVP's relevant page last year. I personally use a M5 tf with a near "raw" setting of the corrie displaying only G, E and U to cut down on screen estate and pc resources.

What I've also been experimenting with is using the MS Excel data functionality within MT4 and pulling off those above crosses and then applying a bit of wizz bang formulae functions to express thier movements relative to each other. Downside of that is the fact of Excel's rather basic charting capabilities - it seems you just cant win!

NVP gave me a nudge before he left to get that kiss based H1 system posted but in between morning trading plus afternoon time with daughters (they are still on easter break) I've got a bit behind in doing this - my excuse anyway. Hopefully I should be able to finish this off then post the same as a document soon, and from this you (plus everyone else) will be able to see the kind of direction I'm going in as discussed with NVP over many weekends.

I've also got a very clever guy who does all my MT programming for me (its all greek to me!) looking at creating a candlestick format of the corrie indy, but at the moment things like the all important pc resources and "controlling" scaling via artificially introducing a meaningful factor into the corrie calculations etc are still being studied - hopefully there will be some good news about this on NVP's new forum when he creates it.

Get well soon and regards,
Simon.

Hi Simon,

You don't get rid of me quite yet. I'm just tidying up a few things before the morning.

It's reassuring that you found similar difficulties with MT4's auto scaling. I thought, perhaps, initially, that I had overlooked something in my use of the software. Unfortunately, the shorter the tf that you use to trade from, the more the auto scaling will affect your charts. This is more apparent on a pair with a substantial daily range, such as GU.

I should only be out of action for a 3-5 days so, it's nothing too serious (hopefully).

Thanks for your best wishes.

 

[NVP]

Neil's jetting off to spend his hard earned cotton picking money and I'm going into hospital, tomorrow, for an operation. There's no justice in this world. Fortunately, I won't be out of action for more than a few days.

hope all goes well mate......and switzerland is 7 pounds a pint......
N

 

[NVP]

Before I depart to the world of anathaesia tomorrow, I thought that it might be an idea to share a little of my experience, of Corrie testing, over the months. This may be particularly useful for those who are new to the thread.

One of the key elements in using Corrie, successfully, is to find a setting that produces fairly accurate trading signals. I don't believe that there is an ultimate setting, for the simple reason that the forex market is constantly changing. We are in a period of fairly low volatility, compared to 18 months ago. In addition to this, preferred tf, individual risk appetite and time available to screen watch will vary from person to person.

In my opinion, the biggest obstacle to Corrie is MT4's auto scaling function. Before migrating to MT4, I used VT Trader which allowed the user to set the scale and move the chart vertically up or down, via use of a slider bar. Why does this matter?

I would think that many of us have Corrie in Indicator Window 1; all well and good so far. The anomaly occurs when you reduce or increase the amount of chart real estate that Corrie takes up.

If I set up to Corrie to cover 80-90% of the chart, I will have small candlesticks/bars that appear as a meaningless flat pattern and a vertical scale that might be 20-50 pip increments. I have found that the best format is for Corrie to take up 40% of the chart space which, doesn't throw MT4's autoscaling off too much. However, there will still be slight pattern differences between the 80-90% and the 40% Corries but, not enough to be crucial. I'm hoping that the new MT5 might include a proper scale fix and a slider bar.

My set up is based on 5 min tf+ with a 34/3 setting. I have G8 Corrie attached to all individual pairs (40% of chart space) and a separate page with Corrie occupying 80-90% of the chart, in order to get a magnified look at the action. If I had a larger account, I would be quite happy trading Corrie off the daily tf. No screen watching all day; just set TP and SL, at the end of the day, and off to play golf the next morning

wait till you see my private stuff.....sure a bit of scaling issues but never been a problem for me ......that (holy grail ?) candlestick version will take us to the next generation of the FXcorrelator and its trading signal potential ......

 

[NVP]

ok off to my meetings......will pop in later......can someone throw up a 1000/1 5min for the days action so far for the newbies viewing please ?

N

 

[tigloo]

The scaling issue in MT can easily be overcome by adding a min/max value to the indicator. It's just two lines of code.

 

[GMP]

The scaling issue in MT can easily be overcome by adding a min/max value to the indicator. It's just two lines of code.

or just set it on the indicator's Properties.

 

[GMP]

"Out of clutter, find simplicity" ~ Albert Einstein

that's trading by correlation/comparison for sure!

 

[GMP]

ok off to my meetings......will pop in later......can someone throw up a 1000/1 5min for the days action so far for the newbies viewing please ?

N

I would, but my colours are different so it'd just confuse everyone

 

[tigloo]

26 pips up on the Asian session this night. Asian session is always nice to trade.

Still having problems with logmein.com, my company seems to kill the connection after 10-15 seconds. Cannot post chart either. :/

 

[tigloo]

Btw, if anybody is following: watch the news impact on USD at 14:30 CET. It is interesting to see how different pairs race against each other when the USD news are out.