Best Thread Correlation Trading - Basic Ideas and Strategies

Tee hee


someone has pm'd me asking to :-

publish more information re my own personal correlator hybrids

and to

clarify whats in my head when I make these calls ......


Answer 1
nooooo - sorry !


Answer 2
.................... :eek:


enjoy lunch !
N
 
who upset sterling ?

c'mon was it you euro ?.....have you been pulling his hair again ?

and dont blame the swissie....hes not even in your gang anymore !

N
 
by the way...........

if you follow this post you probably get this anyway but based on the current G8 Dynamics the following currencies are very tightly correlated and therefore in effect represent duplicate trades

2 trades with anyone of the 3 - USD, Yen or CHF (now) in them
2 trades with AUD and NZD in both

I now see only Euro, GBP and CAD as the truly loose cannons and even then - believe me the GBP has an elastic band relationship with Euro sometimes (GBP can snap back towards EUR direction) so they have a quasi relationship as well........

and of course CAD is deemed a commdoll so it should look to AUD & NZD for bias !!!

so for example if you are trading AUDUSD and YENNZD simultaneously you are very highly correlatred re outcome

or for example Even GBPYEN and GBPCHF is carrying the same family in the pairs so both will lose or win on similar dynamics

just be careful on multiple entries on same timeframe

N
 
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Hi all

back again ............well well the dow30 answered with a drive upwards :rolleyes:

see how this fires trade signals off in the 15m 20ma FXcorrelator below ?

the Euro picked up on this dow30 retrace from early hours this morning and is still revelling in the slipstream its causing....Euro continues to be the buy of the day for me.....

my personal feeling is that the 100+ point retrace today by the dow30 has not really put that much of a dent (so far) in the TAGCHF express ride north...so if it does retrace I see great opportunities to buy TagCHF and sell whoever is suffering most....

since the Euro has been a revelation going north (so far) that leave the feeble 4 of the commdolls + GBP to chose from as victims - your dollar, your call :p

me ?

if dow retraces down and TAGCHF flies north I would actually take a long look at selling a Euro retrace (sell Euro)........subject to it signalling that of course....its been a long day in the field for the big blue and you cant bat for that long without letting a few balls finally though

time will tell :smart:
N
 

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hmmm...

Euro is retracing a little regardless of the dow direction:smart:

N
 

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dows starting to continue its rise.........(Sell Tag)

CHF is unstoppable ....its a closet Tag Team member today and actually has not stopped rising......

I cant bear to trade it agains the tag team though as its to dangerous in my books

if tag folds buy back into Euro...and GBP has to start coming back soon....?

N
 
mornin all.......:sleep:

as we fell into September heres what happened (see chart)

A - final try for Dow30 to fall and sub 10,000 was achieved
TAGCHF held upward phase with Euro the biggest victim (30-40 pips E/U sells)

B - Dow30 piled back overnight (clearing above its 200 sma in the process on 15mTF)
and TAGCHF fell (predictably) with nice buys elsewhere (100 pips on AUDUSD)

What now ?

on the 15m TF's I would expect a little dow consolidation back towards the 10,000 and then we see what Global equities wants to do.....is there another drive upwards or will the 4H TF signals confirm indicate the continuation of a bear fall ?

the TAGCHF are actually falling very agressively now off of no dow rises so I can really see some some decent sell TAGCHF into everythig else if dow pushes up wards....I think AUD is now over-extended so perhaps a little Euro action up coming with GBP to rocket up behind it

I Dow now starts to tank I would go for TAGCHF buys (USD look weaker than the others though) and sell whatever reacts the worse to this move.......AUD looks exposed as discussed and GBP technically on paper is the weakest currency presently on the 15m TF

me ....I'd take a little E/U action but you may get it cheapr than current price as USD will retrace a little soon
after it does....

T1 .2740
T2 .2760

with a Northerly dow to help if possible

game on :smart:
N
 

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I must say that NZD is looking a possible buy now....but I want some dow30 upward action to support that call

N
 
mornin all.......:sleep:

What now ?

on the 15m TF's I would expect a little dow consolidation back towards the 10,000 and then we see what Global equities wants to do.....is there another drive upwards or will the 4H TF signals confirm indicate the continuation of a bear fall ?

the TAGCHF are actually falling very agressively now off of no dow rises so I can really see some some decent sell TAGCHF into everythig else if dow pushes up wards....I think AUD is now over-extended so perhaps a little Euro action up coming with GBP to rocket up behind it

I Dow now starts to tank I would go for TAGCHF buys (USD look weaker than the others though) and sell whatever reacts the worse to this move.......AUD looks exposed as discussed and GBP technically on paper is the weakest currency presently on the 15m TF

me ....I'd take a little E/U action but you may get it cheapr than current price as USD will retrace a little soon
after it does....

T1 .2740
T2 .2760

with a Northerly dow to help if possible


game on :smart:
N


well..the dow wind blew north and the Euro went up...1.2740 (T1)got recently hit and T2 1.2760 may already have arrived now

and you could have got in as cheap as 1.27.......:smart:

nice (y)
N
 

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I must say that NZD is looking a possible buy now....but I want some dow30 upward action to support that call
N

NZD is disapointlingly sluggish so far...Euro is hogging the buys

N
 
my E/U buy was not following the rules of the 20ma scalper (Yen was not below the Zero on the 15m TF) you can get here free

but then it was probably aligned on the 5m :p

at this moment we need to see what the dow is going to do between those range prices

hmmmmmmm - also I see a biggus divergencenus on the E/G........see the 15m 20ma corrie chart below

is that a possible convergence play in your pockets or are you just all pleased to see me ? :p

N
 

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1.2766 now on E/U .....jees this cannot last......Euro will take a breather soon - even though USD may keep falling

N
 
and NZDUSD is finally in play....

unless you are in already perhaps wait for a small retrace here to get it cheaper

then

T1 .7080
T2 .7100

bon chance
N
 
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wow....dow30 is holding north and usd is still falling ahead of its Yen and CHF chums

E/U continues to flourish and the NZD and AUD are enjoying buys into USD as well

(I just called the NZDUSd as I saw a little NZDAUD convergence vs a straight AUDUSD call)

I still like by E/G convergence play ..sell E/G below 0.83 for a good 20 pips punt when it arrives

N
 
you know....I may have picked the runt of the NZD AUD litter vs USd - we will see !
 
mornin all.......:sleep:

What now ?

me ....I'd take a little E/U action but you may get it cheapr than current price as USD will retrace a little soon
after it does....

T1 .2740
T2 .2760

with a Northerly dow to help if possible

game on :smart:
N

wow ........its nearly the ton on E/U............(y)

N
 
and NZDUSD is finally in play....

unless you are in already perhaps wait for a small retrace here to get it cheaper

then

T1 .7080
T2 .7100

bon chance

N

we are at .7070 now so tighten up S/L's and dont lose money on this puppy

N
 
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