NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
the overnights (as I call them in uk) are generally steady tag sessions offering good returns on X pairs....I recommend people add the Nikkei to their correlation team as clearly more relevent for these sessions
N
jrplimited
Active member
- Messages
- 249
- Likes
- 1
Hi All,
Straight into it, with "it" being a brick wall for me...
GU; Had to stay out of market for first twenty minutes as chart was still in a tizzy after earlier price action. Waited until 08:25 for first valid setup, buy stop at 53968 filled during 08:45 bar and price went up, retraced slightly and recovered again then went into a fairly lengthy consolidation phase, 10:25 bar pushed price up to 10:40 new local high, then it retreated and tried again to match prior high but tail of 11:00 bar caught TS for 38 point profit. No other setups seen.
EU; First trade entered long on open 08:05 bar, price went down immediately and hit SL during 08:25 bar for 18 point loss. Second trade entered short on open 08:30 bar and price did opposite and drove up taking out SL during 09:10 bar for another 18 point loss - two on the bounce and its a painful adious for this pair.
EG; A complete dogs dinner chart wise so didnt attempt trading on this pair.
Another weirdo morning session with both G and E remaining in a sort of recovery mode from last month's blow outs and EU misbehaving itself so much that the chop monster came-a-calling - well, it certainly did for me! Again that GU "dizzy" height price is just amazing considering all thats going on in the UK right now, could be one to watch this afternoon for a decent short setup.
Trade well and regards,
Simon.
Straight into it, with "it" being a brick wall for me...
GU; Had to stay out of market for first twenty minutes as chart was still in a tizzy after earlier price action. Waited until 08:25 for first valid setup, buy stop at 53968 filled during 08:45 bar and price went up, retraced slightly and recovered again then went into a fairly lengthy consolidation phase, 10:25 bar pushed price up to 10:40 new local high, then it retreated and tried again to match prior high but tail of 11:00 bar caught TS for 38 point profit. No other setups seen.
EU; First trade entered long on open 08:05 bar, price went down immediately and hit SL during 08:25 bar for 18 point loss. Second trade entered short on open 08:30 bar and price did opposite and drove up taking out SL during 09:10 bar for another 18 point loss - two on the bounce and its a painful adious for this pair.
EG; A complete dogs dinner chart wise so didnt attempt trading on this pair.
Another weirdo morning session with both G and E remaining in a sort of recovery mode from last month's blow outs and EU misbehaving itself so much that the chop monster came-a-calling - well, it certainly did for me! Again that GU "dizzy" height price is just amazing considering all thats going on in the UK right now, could be one to watch this afternoon for a decent short setup.
Trade well and regards,
Simon.
Attachments
NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
hi Till
once I get this damn private thread up I think I can at least show people what I do.....but none of them are EA's of course....but you will be welcome to try to EA some of them !
could you remind me of the core strategy you are trying here ?....I cant remember if its a confidential/private one or not
(another thing I want the private thread doing if possible....the open sharing/testing/improving of confidential or more commercially sensitive systems between mutually committed people)
N
ok travelling again soon back to uk.....so will not post again till tomorrow
I am scalping on EURUSD/GBPUSD divergence. If the two pairs momentarily drop out of correlation, I will enter a position on each pair and speculate for a retracement. It is pretty similar to what you are doing with the corrie, but very specialized on the behavior of these pairs.
I have several versions of the same strategy, one that is generalized so that it can be used for all pairs that are correlated to each other (correlation >0.8, can be used on any timeframe).
I have another version, that is tailored to EURUSD/GBPUSD, because I have had limited success with the generalized version here. I found that the pairs can drop out of correlation for longer amounts of time and generally behave odd in various ways, so that my EA was profitable on some days and caused losses on other days.
My goal is to be profitable consistently and have minimal drawdown (isn't that what we all want), this is why I am now trying to implement various improvements. Correlation is wonderful here because you can think outside the box and not rely on the typical indicators.
I'll keep the fine details private, but will gladly discuss them in private with the contributors here.
Apart from the EA optimizations I want to enhance the corrie indicator so that it will give recommendations about which pairs to watch and/or to trade. Maybe this can then be combined with the general strategy part of the EA to perform automatic trades. Ideally the EA would then be able to trade any crosses, such as CADNZD, NZDCHF or AUDCHF.
Not sure if this will be a useful trading tool, but from eyeballing the charts I believe that it could be a profitable approach.
NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
Would do, but as Gavin pointed out, MT4 has it already built in. Navigate to "Fixed minimum" and "Fixed maximum" in the indicator properties, first tab. This will disable the scaling.
Probably the most elegant way.
hi Till
when Alans back we'll ask him.......he was concered in the early days of the thread that the constant rescaling of the corrie was not conducive to trading decisions.....
moi.......I'm not that fussed to be honest....
N
NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
mornin all.......
mixed bag overnight....bias on market falls so tag s/be rising although recently usd showing a remarkable resilience to this given hit on gold (closet bear indication from usd ?)
well well......gbp is having a good few days.....at the cost of everything actually not just Euro....
had some time to get my act together on the private thread flying back yesteday so more news later.....i've also been incorporated (ouch)
N
mixed bag overnight....bias on market falls so tag s/be rising although recently usd showing a remarkable resilience to this given hit on gold (closet bear indication from usd ?)
well well......gbp is having a good few days.....at the cost of everything actually not just Euro....
had some time to get my act together on the private thread flying back yesteday so more news later.....i've also been incorporated (ouch)
N
Attachments
NVP
Guest Author
- Messages
- 37,936
- Likes
- 2,142
heres some 1h TF observations.....
markets (on left) on positive bias drove tag down.....see right chart for usd falls
pick up the pips by trading any decent positive G6's .......GBP a screaming buy in last 2 days (see chart on the right).....
you could have played a yen sale into USD based on my premise that yens volatility usually kicks it past USD on the particular TAG bias being seen....(yen not shown)...since DJ30 was much more bullish than Gold (left charts) that was a real gimme signal for this particular play.....but watch the chops
no your not seeing things .....that sucker on the right is not available here on the public thread (sorry ) but I thought i'd drop it in as this is one of the customised dudes i'm watching 24/7.....and will be in my private forum alongside up to 20 other indicators (and thats before the VIP correlator crew start playing with them and customising )
yep I counted 20 last night in the airport lounge as I sketched out the first 10 posts that will have all the Hybrids I use for my own personal insights to the market
thats toooo many for newbies to digest and will take me 10 years before I have this good to go...... so I will strip it down further to accelerate the launch party....
cant wait for all of this to begin.....arty:
N
markets (on left) on positive bias drove tag down.....see right chart for usd falls
pick up the pips by trading any decent positive G6's .......GBP a screaming buy in last 2 days (see chart on the right).....
you could have played a yen sale into USD based on my premise that yens volatility usually kicks it past USD on the particular TAG bias being seen....(yen not shown)...since DJ30 was much more bullish than Gold (left charts) that was a real gimme signal for this particular play.....but watch the chops
no your not seeing things
.....that sucker on the right is not available here on the public thread (sorry ) but I thought i'd drop it in as this is one of the customised dudes i'm watching 24/7.....and will be in my private forum alongside up to 20 other indicators (and thats before the VIP correlator crew start playing with them and customising )yep I counted 20 last night in the airport lounge as I sketched out the first 10 posts that will have all the Hybrids I use for my own personal insights to the market
thats toooo many for newbies to digest and will take me 10 years before I have this good to go...... so I will strip it down further to accelerate the launch party....
cant wait for all of this to begin.....
arty:N
Attachments
Last edited:
