Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

heres where i'm coming from on the 1mins

I was looking for a little more here but AUD looking like its shy and I cannot realistically ask for more from the USD fall....or can I ?

N

thanks USD....see how its still falling although AUD is relatively neutral....pips keep chasing up because of the usd weakness

So I'm still pipping because I got 1 call right (Sell USD) and 1 call relatively wrong (AUD to rise)

We only need to get 1 currency call correct to not lose money......:smart:
N

 

[NVP]

but see on the 1 hour version of above how any form of trading would be
a very stupid idea as both going north !

obviously on the 1 hour charts theres much more lucrative trades going on by
selling currencies against these 2 fellers :smart:

N

 

[jrplimited]

Hi N and all else out there,

Cautious morning this morning as a lot of over night and early AM activity. Now, cautious of course means....

GU; Entered short at 51975 on open 09:10 bar, price went into narrow sideway range for five bars, dropped down again then seemed to run out of steam with small bars, printed 10:35 new local low and bounced up to hit TS with wick of 10:50 bar for 20 point profit. Had another short flag at 11:30 but felt not enough time to run this trade - thank who ever is up there!

EU; First trade entered long on open 08:15 bar, price went up a few points then rolled over and took out SL at end 08:35 bar for 18 point loss. Second trade entered short at 31649 on open 09:10 bar, price turned up then rolled over and went back down printing 09:45 new local low, consolidated for three bars then 10:05 bar popped up taking out TS for 3 point profit. Third trade entered long at 31909 on open 10:55 bar, price went down slightly then moved up again but couldnt get any momentum behind it and trade exited (time up for me) on close 11:55 bar for 5 point profit.

EG; First trade sell stop filled during 08:50 bar, price stalled for five bars, rose up to threaten SL then came back down again but couldnt hold new local low print then 10:00 bar shot up taking out SL for 15 point loss. Second trade long entered at 86819 on open 10:10 bar, price flopped around for four bars then started to stagger slowly upwards, 11:35 printed new local high and price fell over from there and trade exited on close 11:55 bar (time up!) for 6 point profit.

That bun fight was a real struggle this morning and perhaps all those short trades were actually bottom fishing? This afternoon will tell the story on that - trade well and regards,
Simon.

 

[NVP]

Hi N and all else out there,

GU; Entered short at 51975 on open 09:10 bar, hit 10:50 bar for 20 point profit.

EU; First trade entered long on open 08:15 bar, took out SL at end 08:35 bar for 18 point loss. Second trade entered short at 31649 on open 09:10 bar 10:05 bar popped up taking out TS for 3 point profit. Third trade entered long at 31909 on open 10:55 bar, trade exited (time up for me) on close 11:55 bar for 5 point profit.

EG; First trade sell stop filled during 08:50 bar, then 10:00 bar shot up taking out SL for 15 point loss. Second trade long entered at 86819 on open 10:10 bar, trade exited on close 11:55 bar (time up!) for 6 point profit.

That bun fight was a real struggle this morning and perhaps all those short trades were actually bottom fishing? This afternoon will tell the story on that - trade well and regards,
Simon.

Hi mate

jees what a turkey shoot......G/U trade in hindsight wasnt bad through the morning
(see below) and you 100% picked off the second phase of it.....

N

 

[NVP]

Hi Cheetahcal,

got your pm's and I have responded .....

ref earlier post - this is a little of what is slowing the process down !

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-378.html#post1114104

N

 

[tigloo]

1) I will provide a core set of corrie templates (20 and counting) and new Hybrid indicators (umm 10+) by initial e-mail to customers who want the systems

2) I will have a private forum where they are all explained to the members and can be dynamically updated by me (and members) as we develop the approaches...the forum will also be developed in various directions including our more experienced members being encouraged to post signals and market observations (same as here if we had some more experienced members !)....

Hi Neil,

that sounds fine as long as this thread doesn't die. I think it is important to have the general correlation-related chat open and free for all, the specifics can then go somewhere else.

Till

 

[NVP]

sigh.....

Heres why you should trade what you see and not what
you think is gonna happen :smart:

sell euro this morning ....right ?

N

 

[NVP]

Hi Neil,

that sounds fine as long as this thread doesn't die. I think it is important to have the general correlation-related chat open and free for all, the specifics can then go somewhere else.

Till

Hey mate

This thread is the lifeblood of the corrie so no let up from me.....I am hoping that as we train and share the more detailed ideas with joiners the more experienced players will eventually provide input here and share the load with us - helping out with the more general observations and basic corrie systems :smart:

N

 

[NVP]

jees

that A/U buy is still crackling along a treat

sure a few hiccups (it is the 1min chart for gods sake) but seems back in business

N

 

[NVP]

riddle me this folks...............:jester:

on the very popular Euro,USD,and GBP pair combos a lot of you trade

how often do you think they all move in the same direction ?

(Clue - dont hold your breath)

heres the current 1h sample :smart:
N

 

[NVP]

think that might justify a trading system to profit from this 95%+ non-correlation ?

N

 

[NVP]

me to .............let me know if you have one

hahahahahahahahahah

(sorry - couldnt resist)
N

 

[NVP]

seriously folks....

the way I create a lot of my ideas for testing is pretty simple

I look for any directional Biases/relationships between currencies and currency groups (groups can also be called baskets or clusters on some correlation forums/threads)

I then also look for the normal predicted volatility levels of the currencies under certain situations

(eg I ramble on about the Tag whereby usually if they are moving in the same direction (BIAS) the Yens normal higher volatility (VOLATILITY) should accelerate it past the USD)

and so on....thats all i do....testing testing testing
N

 

[NVP]

boy is usd picking back up....

 

[NVP]

Buy usd into CAD ?......doesnt look right does it !

 

[NVP]

son of a bi.....

usd is flying up but cad wont fall.....

 

[NVP]

back to the 5 min TF's

yes yes yes yes yes ....
N

 

[NVP]

thats enough...usd looks tired

 

[NVP]

I use the lowest timeframes 95% of the time because quite simply it teaches me about currency dynamics much faster than any other timeframe !

I dont have much time for viewing historic patterns as a lot of my work is with
multiple timeframes and i'd be sitting there forever trying to match up the same
times and dates for entry / exit points

trading dynamic real time charts is also what you have to be doing as a Day Trader so beautiful patterns in hindsight dont pay the bills....

everytihng I like though should work in higher timeframes - and if you believe the general consensus on higher TF's they should work even better....

N

 

[NVP]

eurotribe down, tag tribe up ,commdolls up

(about half an hour late but i was tied up elsewhere)

N