Best Thread Correlation Trading - Basic Ideas and Strategies

[tigloo]

I didn't realise the € was quite so closely tied to the Dow though. Thought the received wisdom was to trade £¥ off the Dow.

It's not the Euro but the USD that's correlated, but you need another currency to trade with... In my case that was the Euro. Don't know if it makes more sense to trade UJ instead, haven't familiarized myself with that pair yet.

 

[NVP]

It's not the Euro but the USD that's correlated, but you need another currency to trade with... In my case that was the Euro. Don't know if it makes more sense to trade UJ instead, haven't familiarized myself with that pair yet.

the u/j has its moments I am gradually realising

N

 

[NVP]

uurrrrr..........long day bailing cotton

will try to pop in tomorrow early doors !

later all....
N

 

[NVP]

Well, this is system-testing over & above risk exposure. The entries & exits are pair-specific rather than strategic, so I'm not bothered if a Yen trade fires at the same time as a $ trade. As well as giving me more results, it'll show me whether the system is better off trading high volume crosses such as €$, or lower volume crosses like £¥.

yep - tear it apart and put it back together...we all have our individual paths to walk

respect
N

 

[NVP]

mornin all.....

mixed bag overnght........lets see it shakedown more before some calls

since about 6am (gmt) most of my sigals indicaing buy tag and sell G6.....eurozone initially looking weaker but now commdolls wekening as well

later....
N

 

[NVP]

Not to bad so far today......nice signal on one of my more customised charts (see below) at 8am .........shame I was in my car going to work

thats the E,G and U on a corrie with variable dynamic resistance levels added to help me......euro did not rise but G did into the falling U.....

E/G sell would have worked as well eh !.....but thats another story and requires some different criteria to support it.....(in my opinion)

I'm just finalising all the documentation and software on these very simple and practical approaches to using my FXcorrelator so contact me for more info at home page here

oh well - back to the cotton mill.....
N

 

[NVP]

beautiful correlation today so far on markets and Tag.......GBP is strongest of G6 bay far since 8am when commdolls faded lead by Cad which was doing ok to that point.

biggish divergence on G vs CHF and Euro so we could see a convergence play especially if tag retraces a ltttle.....

if you really embrace the corrie approach and ditch some of the more conventional pairs thinking - it really does become easier to see the market plays.....then all you have to do is decide how complicated you want to make your trading rules

For me thats the challenge....as I can comfortably load about 4 levels of filter onto a simple signal (like in the post above this one) where one currency is going up and one is going down !


N

 

[NVP]

oh - that was nice...i thought tag would turn to create the convergence but obviously not needed

N

 

[NVP]

thats 10 pips if I had wanted it......

the Corrie (well perhaps a little customised here and there ) will show you all the forex G8 dynamics and signals if you know where to look....

find the signals then step in and pick up the easy pips - scalping or even longer timeframe trading

one more to come for all you longer TF fans
N

 

[NVP]

heres a 4h corrie hybrid - dynamic resistance levels and just the same 3 dudes (E,G.U) on chart

so waddya think...is usd finally getting a little tired from its recent bull phase ?

really gotta go now ....later :smart:
N

 

[NVP]

wow gbp is hot......

when the markets move perfectly with the Tag (like now) everything falls into place and you can be very confident in your trading signals

N

 

[jrplimited]

Hi N and all,

GU; Entered long at 53497 with some slippage on open 08:10 bar, price rose a bit then reversed to a few points below entry, moved up again and got itself onto the northbound freeway with some rather erratic driving en route. TS hit during 11:50 bar for 56 point profit.

EU; First trade entered long on open 08:10 bar, price reversed immediately taking out SL during 08:20 bar for 18 point loss. Second trade buy stop at 34804 filled by wick of 08:50 bar, price went up then retraced back, recovered again and did another weak retrace with weird 10:00 bar, printed 10:30 new local high and exhaustion crept in driving price down again so exited on close 10:50 bar for 23 point profit. Price was drifting after this so no other setups seen.

EG; Entered short at 87809 on open 08:10 bar, price went down then curved back up to just below entry, repeated this see-saw pattern again but hit TS during 10:00 bar for 7 point profit. Left this pair alone for remainder of morning due to small bar range sizes.

Better morning this morning with price action showing some nice trends, apart from that disasterous first EU trade! EG was a bit shakey and struggled to give out a small profit but at least it was "on" the charts this morning, unlike the past few sessions - trade well and regards,
Simon.

 

[NVP]

wow ....was it just me or did we all lose connection to T2w for about the last hour ???

 

[NVP]

Hi N and all,

GU; Entered long at 53497 with some slippage on open 08:10 bar TS hit during 11:50 bar for 56 point profit.

EU; First trade entered long on open 08:10 bar, price for 18 point loss. Second trade buy stop at 34804 filled by wick of 08:50 bar, exited on close 10:50 bar for 23 point profit. Price was drifting after this so no other setups seen.

EG; Entered short at 87809 on open 08:10 bar, hit TS during 10:00 bar for 7 point profit. Left this pair alone for remainder of morning due to small bar range sizes.

Better morning this morning with price action showing some nice trends, apart from that disasterous first EU trade! EG was a bit shakey and struggled to give out a small profit but at least it was "on" the charts this morning, unlike the past few sessions - trade well and regards,
Simon.

nice...the G/U was a peach....perfect entry time JRP! - Snap below

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-339.html#post1107418

I will post my own morning charts in a minute.....internet permitting

N

 

[tigloo]

Yes, T2W was down for a while. I am now finally able to follow the MT screen at work, in a limited way but at least I can have a look every once in a while.

Put on the indicator on H1 and M15 timeframes with 1000/1 setting each. Will see where that goes. If I enter any trades, I will call them out here at the same time. No clear system with the indicator yet, just testing some ideas.

 

[NVP]

hey all

heres a quick summary of what i saw.............I dont mention any correlation here as its up to you if you apply my rules and observations on that stuff....

just following the trends worked today for E,G.U.....well ignoring chop here and there if you get unlucky
see the third phase we are moving into slowly now ?....(Tag fall)....

if the Tag is down, Eurozone to....who ya gonna call ?
(hey - particularly cad whos looking real hot !)

going to see my bank manager this afternoon to open up my FXcorrelator Limited bank account

he said he wanted me to bring a business plan..........hahahahahaha

later if I can ....I may be in jail
N

 

[NVP]

ummm....you could buy U/J as well ?.................why does everyone hate the U/J ?

N

 

[NVP]

i'm not a commdoll kinda guy.....but I could be persuaded !

its never on a plate usually like this though...today is flowing well with correlation Karma

i'm assuming a news release happened ?

N

 

[NVP]

off now...may pop in later

Neil

 

[GMP]

i'm not a commdoll kinda guy.....but I could be persuaded !

its never on a plate usually like this though...today is flowing well with correlation Karma

i'm assuming a news release happened ?

N

Canadian central bank hinting at a change in policy... and upsetting intermarket indicators in the process!