Best Thread Correlation Trading - Basic Ideas and Strategies

[Adamus]

In fact. this is an attractive spread. Many brokers and Spread Betting companies will quote a spread of 2+ pips. I used to have an account with IB, trading Dow futures, and have to say that their spreads are just about the tightest around. Shame about the poor customer support and US based accounts department.

Sorry, I phrased that badly, those numbers I gave weren't the bid / ask, they were just an example of fills that I got - i.e. IB trades were executed at those prices.

So you are saying that these are 'sub-pip' numbers?

I guess forex trades in the 'olden days' were all at the pip level, right? And isn't that the same as the futures currencies today?

What broker(s) are you guys using? I'm with IB and I get these sub-pip fills, although I never tried entering an order with a sub-pip limit or stop. Not even 0.00005 - it hadn't occurred to me.

 

[alan5616]

Sorry, I phrased that badly, those numbers I gave weren't the bid / ask, they were just an example of fills that I got - i.e. IB trades were executed at those prices.

So you are saying that these are 'sub-pip' numbers?

I guess forex trades in the 'olden days' were all at the pip level, right? And isn't that the same as the futures currencies today?

What broker(s) are you guys using? I'm with IB and I get these sub-pip fills, although I never tried entering an order with a sub-pip limit or stop. Not even 0.00005 - it hadn't occurred to me.

Yes, they are sub-pip numbers, which several brokers use now. There are still many brokers and SB companies that use 4 digits.

You must have entered an order, with IB, using 5 digits (albeit by accident), otherwise your order would have been rejected.

 

[NVP]

sorry all

been trying to load a simple video here......but will it ?

will it *****$$$£££%%%%****££££!!!!

N

 

[NVP]

hey all .....more Tag scalping fun

also look below in the signature line....does this help ? :smart:

N

 

[NVP]

Thanks for the additional details NVP. I appreciate your help. I like to trade the GBPJPY so I'm trying to figure out how your Corrie could help me trade this pair.

=)

GBPJPY......riding the 2 most volatile opposing currencies in the G8.......are you sure jicssbr ?

i'd always look to ride G/U if G sets up nicely.......but if the Yen sets up then i'd have to make the opposing G6 currency a little less volatile to smooth the Chop....perhaps use Euro or CHF if eurotribe look a good bet......and i'd look to use the quieter AUD if the comdolls look better in opposing the Yen

of course if you're scalping the spreads become a big big issue here re pair selection as well

N

http://www.youtube.com/watch?v=Rrba-glpXhA&feature=related

 

[NVP]

Now can anyone tell me how to load a damn video on here (its not on youtube or linked)


I have a corrie1.avi file in my folders and its under the size limit for loading up that the T2W file spec says ........so :?:

N

 

[NVP]

Hi all.....

heres a classic scalper signal to sell E/U

the U was looking good to rise 2 minutes earlier so I would have personally entered on that E/U breach of LL (1960 ish) and gained a few extra pippies........but thats practice practice practice ....you do it anyway you want !

gotta go now - cotton calls

N

 

[NVP]

sell U/J below 91.30....looking for 5 quick pips to the 25 resistance line

 

[NVP]

us30 is dumping so i am waiting for this to rocket Yen up past Usd on 1 mins

 

[NVP]

it will come like a train in a minute....

 

[NVP]

step down.....the 1 min us30 (Dj30) is rising again now which means I generally look for tag to then fall a little so bets are off - until the next time !

later
N

 

[NVP]

my god.....

Someone actually using some index charts to predict price action on individual currencies
(albeit weekly charts)

http://www.moneyweek.com/investment...r&utm_medium=email&utm_campaign=Money+Morning

the corrie on a 1000/1 setting does EXACTLY the same thing...use price action analysis on it the same way as the charts in above....and we can do it down to 1 min timeframes :smart:

see example below for 1hr charts - trouble is the new ODL feeds have no real history yet so I cannot reach back and get decent 4H , Dailys or weekys yet on higher (1000/1) settings .....DOH !!!!

whats that? - you dont like the lines and would prefer candlesticks to do proper price acion analysis....

well lines are good enough to show the key support resistance levels so that'll just have to do for now......(and for free)

a Candlestick corrie would be impossible to create...it would need a genius .....its preposterous, its outrageous

hmmmmm.........not only does the corrie team have a stigmaister , we have a metatrader4programmemaister as well on board......watch this space

N

 

[jrplimited]

Hi N and everyone else,

Not a clever morning this morning....

GU; Long entered at 44664 on open 08:15 bar, price got a kick up the proverbial and went up then retraced itself to just above entry level, tried to rise again then went back down and took out adjusted SL for 5 point loss. Second trade short entered at 44490 on open 09:05 bar, price rose then slowly went back down reluctantly printing new 09:35 local low then turned sharply and took out TS for 6 point profit. Third trade buy stop at 44904 filled by tall wick of 10:20 bar, price immediately rolled over and took out SL during 10:30 bar for 21 point loss.

EU; First trade long entered at 19621 on open 08:15 bar, price moved up nicely then stalled at 08:20 new local high and marched back down the hill again with 08:55 bar closing trade for a null point. Second trade sell stop at 19462 filled by 09:25 bar, price didnt seem to know what to do and just flopped around entry level for nine bars then 10:10 bar put the trade out of misery by taking out SL for 10 point loss. Third trade buy stop at 19672 filled by 10:55 bar, price hovered for three bars then moved up printing new 11:30 local high, went into a fairly nasty four bar chop mode and hit TS during 11:55 bar for 4 point profit.

EG; Chart showing a very narrow range mess of chop suey bars this morning, no entry flags given.

This morning's session reminded me of trying to trade during the "silly" summer holiday period with the features of sudden directional changes and limp looking bars that didnt really follow through for both GU and EU - nightmare on FX street for me. Trade well and regards,
Simon.

 

[NVP]

Hi N and everyone else,

GU; Long entered at 44664 on open 08:15 bar (T1) , took out adjusted SL for 5 point loss. Second trade short entered at 44490 on open 09:05 bar (T2), and took out TS for 6 point profit. Third trade buy stop at 44904 filled by tall wick of 10:20 bar (T3) , price immediately rolled over and took out SL during 10:30 bar for 21 point loss.

EU; First trade long entered at 19621 on open 08:15 bar, with 08:55 bar closing trade for a null point. Second trade sell stop at 19462 filled by 09:25 bar, 10:10 bar put the trade out of misery by taking out SL for 10 point loss. Third trade buy stop at 19672 filled by 10:55 bar, price hit TS during 11:55 bar for 4 point profit.

This morning's session reminded me of trying to trade during the "silly" summer holiday period with the features of sudden directional changes and limp looking bars that didnt really follow through for both GU and EU - nightmare on FX street for me. Trade well and regards,
Simon.

Hi mate .......jees it was tough today on G/U's as thats been the main mover shaker to be on today....I put those (T1 to T3) G/U trades on my chart below......thats the beauty of hindsight and my Armchair trading style (sigh) :whistling

Note to all - can you see how just following simple price action movements on these 1000/1 setting Hybrids gives more of a clue where price is going ? :smart:

N

 

[Adamus]

also look below in the signature line....does this help ? :smart:

That's great. Thanks v much.

 

[GMP]

Hi N and everyone else,

Not a clever morning this morning....

GU; Long entered at 44664 on open 08:15 bar, price got a kick up the proverbial and went up then retraced itself to just above entry level, tried to rise again then went back down and took out adjusted SL for 5 point loss. Second trade short entered at 44490 on open 09:05 bar, price rose then slowly went back down reluctantly printing new 09:35 local low then turned sharply and took out TS for 6 point profit. Third trade buy stop at 44904 filled by tall wick of 10:20 bar, price immediately rolled over and took out SL during 10:30 bar for 21 point loss.

EU; First trade long entered at 19621 on open 08:15 bar, price moved up nicely then stalled at 08:20 new local high and marched back down the hill again with 08:55 bar closing trade for a null point. Second trade sell stop at 19462 filled by 09:25 bar, price didnt seem to know what to do and just flopped around entry level for nine bars then 10:10 bar put the trade out of misery by taking out SL for 10 point loss. Third trade buy stop at 19672 filled by 10:55 bar, price hovered for three bars then moved up printing new 11:30 local high, went into a fairly nasty four bar chop mode and hit TS during 11:55 bar for 4 point profit.

EG; Chart showing a very narrow range mess of chop suey bars this morning, no entry flags given.

This morning's session reminded me of trying to trade during the "silly" summer holiday period with the features of sudden directional changes and limp looking bars that didnt really follow through for both GU and EU - nightmare on FX street for me. Trade well and regards,
Simon.

Hi Simon
I had a similar experience this morning trying to trade €¥. All I got for my troubles was a headache! Think I'll go back to my day job if this keeps up.
- Gavin

 

[NVP]

heres some black swan wisdom........:?:

let the markets decide ......:smart:

N

 

[alan5616]

These forex markets have a nasty habit of drawing us in and doing the unpredictable. How many times does our SL get taken out by a few pips, only to see it turn around and move in the direction we wanted in the first place? (Rhetorical question)

For me, the hardest part is getting stopped out a couple of times and then missing the next set up. Of course, it's, always, the one you don't take that goes on to make masses of pips without you on board. Frustrating business!!

 

[NVP]

These forex markets have a nasty habit of drawing us in and doing the unpredictable. How many times does our SL get taken out by a few pips, only to see it turn around and move in the direction we wanted in the first place? (Rhetorical question)

For me, the hardest part is getting stopped out a couple of times and then missing the next set up. Of course, it's, always, the one you don't take that goes on to make masses of pips without you on board. Frustrating business!!

I wouldnt know.....I am an Armchair trader and professional cotton picker

N

 

[alan5616]

I wouldnt know.....I am an Armchair trader and professional cotton picker

N

Try reversing the roles sometime!!!