Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

JRPlimited and kind responses

Hi Everyone,

JRP...where do you want the money sent to ?

Guys - dont be fooled by the "rookie" symbol against Simons ID...hes been around the block as a F/T trader for many many years - enjoying the mega highs and lows on the way that are all needed to make you a real trader (which I am absolutely not)

I am indeed lucky to have him helping me in this journey (as with the others onboard) And I need more-more-more helpers......especially newbies who can help us build and test and develop the systems & methodologies to come....

I dont want to disapoint newbies here but successful trading does not come from reading 2 books, watching a DVD course and and going to a couple of webinars

Try it (perhaps you have)......just google "Forex systems" pick any one and open your wallet ....and your financial Trading success is guaranteed .....NOT

(scary stuff NVP...calm down and take a tablet )

Join us on this odessey and I can 100% guarantee you one thing already ...you will learn a lot about how the G8 currencies interact together and the Forex market dynamics....surely thats good experience wherever your trading path leads ?

contact me here, at my T2W private page or by beaming the batsignal into the sky....(sorry I watched "batman begins" on thursday and got carried away there !)

anyway got to go as we are all on wife duty this weekend it seems !

N

 

[NVP]

Re: : Correlation Trading - Basic Ideas and Strategies

Hi glynnt,

Just popped online before the missus catches me for yet more honey-do stuff - urgh!

If you havent already got a copy of corrie then get one from NVP (use his PM) and set the indy up as per his criteria, read through this forum from start to end as there are lots of great examples and then have a go yourself with a demo account - try it as its free, unlike all that rubbish out there on the wibbly wobbly web, as its very comparable to the CC system which was recently sold for $2k....

Enjoy the weekend.
Simon.

just "very comparable ?"..... simon we havnt even touched the surface on what this baby can do and the derivatives coming....if an idiot like me can use it to call a few decent trades over the last few weeks then the potential is endless !

you've just got to get me to put it all onto paper

N

 

[NVP]

Re: : Correlation Trading - Basic Ideas and Strategies

Hi glynnt,

Just popped online before the missus catches me for yet more honey-do stuff - urgh!

I'm sure NVP will respond to you separately over your question, but in the interim I'm actually using the corrie indy on a real time basis and trying out a few theories for NVP. I've got the corrie indy on my second pc and, with a demo account, have been watching this on and off for the past two weeks (this last week was short due to US bird day holidays) and can very safely say that there is a tremendous potential to be had out of corrie "plays" by jumping in on a trade in lower time frames, grabbing a few pips then getting out of Dodge City mucho pronto!

Enjoy the weekend.
Simon.

Yep - I generally just use the corrie on this thread in scalping scenarios on 1m 5m and 30m TF's to give the examples.....its real time stuff not "look at last year and this happened so i'm great" etc etc.......anyone can do that (and painfully do in the 2 trillion DVD Trading systems available out there)

Remember the corrie is a G8 indicator....but scalping limits you mainly to just USD plays due to the spreads/liquidity.....BUT when we expand out to higher TF's there are no restrictions to utilising the dynamics of all 8 currencies which increases the probability of success considerably (bringing the Yen and Swissie to the table is fantastic - believe me)

but this is all another story ...firsly to test test test we need more than just Me (mr idiot trader), a few good Traders who are crazy enough to give me a chance and a cat called Mr jingles (and he prefers trading options anyway)

until monday dudes...I have a feeling the forex markets are going to really rock next week with the Vix increasing again !

N

 

[jrplimited]

Re: : Correlation Trading - Basic Ideas and Strategies

Hi N,

Yeah, all hell will let loose next week as financial markets start unearthing the full scale of problems to the Dubai lot - anyone for a Christmas break in the land of sand money? Dubai is shaping up to be the "Benidorm" in the desert - oooh.... naughty, naughty there Simon!

We also have got a very significant tussle going on with the Euro rouble versus Uncle Sam and, staggering around like me after a Saturday night on the Tesco laughing juice, is our very own Great British peso and I'm thinking here that volatility will play a major part for any cross with GBP in it, which will be great news for scalping some pipadoolies.

Anyone reading this thread do what NVP suggests and grab a copy of his corrie indy; it doesnt cost $2k, or even $200, or even $2.... Its free so get on board and join in on the daily bun fight.

Back to hurling abuse at the X Factor for me now, plus trying to glug some more vino collapso down my neck without the wife boss seeing!

Enjoy the weekend everyone - regards,
Simon.

 

[NVP]

even more bad news to come......

Just when things were starting to look up.....

STOP PRESS

I found an old Microphone at the weekend (from a speak french DVD I bought 200 years ago) and downloaded some free Video recording software onto my PC......

Yes .....after a phone call from Steven Speilberg (a big corrie fan by the way) I have been persuaded to make a Youtube video featuring the FXcorrelator

its a low budget feature to warm up....Brad said he'd do the voiceover but Angelina butted in saying he wasnt ready for comedy just yet.... :cheesy:

Watch this space next week........you have been warned

c,mon corrie dont be shy.......you'll be great....lets try some method acting.....show me anger sweety, now show me fear lovvy......perfect !


N

 

[jaspertrademaster]

Is that NVP or Mvp?

 

[NVP]

Hi Jaspertrademaster

ummm....NVP

is this a knock knock joke coming ?


N

 

[NVP]

Introducing a new corrie Strategy !

Hi guys

excited from my current plans I thought I would toss a new Strategy in that is a little more straightforward than the Price action / pattern approaches that you have seen so far......its not going anywhere though as its the purist corrie of all... but time to move forward here and give anyone who wants to join us more to play with !

The FX Corrie tripleplay is not proven or medically tested , but follows simple MA based trend following rules so if the currency pairs you chose are trending then it will make you money....

The system can operate on any MA/Delta setting of your choice ...but to launch this to you all I thought i would open it based on a legendary setting made famous by Captain Currency.

If you hav'nt ever read the 3 duck system from CC then stop right now and go read it........hes deservedly on most Forex forums , has websites and probably TV shows now......and just the 109,000+ views alongside me here in this Area of T2W. (I am not worthy oh CC)

the thing about the 3 ducks is its simplicity**.....no reversal itchycoky macd's on a bollinger Stochastic SAR......just 3 confirming MA's !! (and no $1997 fee either)


(** yes the irony is not wasted on me my friends...but the corrie becomes simpler the more screentime you spend - trust me !)

I have PM'd CC and hope for an appearence and help /advice on it so fingers crossed

so in the next few threads we proudly unveil the Corrie Tripleplay !

(god - I hope my wife doesnt demand I go and sit with her now and spend some
"Quality time"......I'll lock the study door )

N

 

[NVP]

The fx corrie tripleplay

Here she is !!!!

what do you think ?.....impressed eh !

N

 

[NVP]

What do you want for free ?

ok then enough teasing......explanations and instructions coming....

and of course you know where to come to get the Software files if you want to play

N

 

[NVP]

Corrie Tripleplay...rules

Ok all .......now pay attention men


Drop a corrie on the GBPUSD chart pair......then hide the chart pair so that we can focus on the full size corrie chart (usual stuff then so far) !

leave all 8 Currencies on it , set the MA as 60 and the Delta as 1

3 TF's .........5m 1h and 4H

oh and set the Green (usd) to a bolder line using the Indicator setting (4)

Then the clever bit....to simplify the wiggly mess you see on each chart we are going to reduce the width of each chart to an absolute minimum .....and with a bit of playing around I want to see just 1 barline on each Chart (2-3 bars is ok if you cant do it but 1 is best)

in this system we do not need to see the history on each chart just where each currency is and what currencies are above and below based on this 60ma setting

soooooo when a currency is :-

above another currency ON ALL 3 CHARTS - buy it in that pair
below another currency ON ALL CHARTS - sell it on that Pair

ummm thats it..........I said it was simple !

so below taking the same example, I have added 2 more familiar 1000MA setting corries on the right (5m and 1h) to help explain what you see and compare to what I am saying below :-

on this tripleplay lets look at the USD to understand what is happening so heres the USD (Green) verses each currency :-

first comment = the 5m tripleplay chart, 2nd comment = middle 1h tripleplaychart, 3rd comment = end 4H tripleplaychart (ignore the 2 bigger charts on the right hand side)

GBP (red)
5m GBP above and charging up, 1H GBP below but charging up, 4h GBPis below USD.......so translated that means we have the IH and 4H saying sell GBP Buy USD, but we need the 5m GBP to cross below the USD to enter a sell GBP trade = NO Trade at present

Yen (Yellow)
The Yen is above the USD on all 3 TF's so we would already be in a Trade for this (buy yen Sell USD)....see later for exit strategies

Euro (Blue)
The Euro is above USD on the 5m and the 4H but below the USD on the 1H (jees how often do you seem to always be getting this on MA based systems !) = NO TRADE

ok you get the drift ..I am focussing on the USD because its got better spreads and can give you more chance of making money and getting to B/E before the trade goes sour....(like scalping)

OTHER TRADE ONS !!!

the Yen is above EVERYTHING on the 1h and 4h (as we know from last weeks action)
so to be honest its pointing down on the 5m but really with only the EURO (Blue) and the GBP that its crossed going downwards so far everything else is still a buy trade

The Swissie (Gray) is above the CAD (Brown) and the AUD (Gold) so there both trades currently on ...and so on and so on.......

look everyone - get the Corrie by contacting me via my home members page here at T2W and play yourself....the Jpegs dont do this stuff justice !

(actually I'd forgotten how simple this corrie tripleplay system is) - Horrah !

Re Exit strategies etc etc......well I'm not a current live trader (as you are all aware) so I am going to pass on this .........Exit is more important that entry and you need to read and research methodologies yourself on
this and other forums.....Scalpwise is simple with just (low) targeted pips.....longer TF's - well the debate is long and unending on how far you risk your trade before exiting.....very subjective subject !

SUMMARY

I've now outlined 2 systems on this thread to identify high probability trading Scenarios in the G8 Forex market ....The FXcorrelator on the high MA's - (1000/1 using Price action/patterns) and now its tripleplay pal on a (testing phase) 60/1 setting and simply looking for a currencies "Triple" domination over another one (thanks Captain currency !)

please ask questions and please request the corrie from me .......also go to the 3 ducks Thread and read the advice and information from everyone re trading this system on the Pairs they select........

Remember the Tripeplay corrie on a 60/1 setting is the 3 ducks system .....but across all combinations of the G8 Currency pairs.

so actually I think thats the 27 Duck system !!!.......(or is it 81 ducks ?...who cares NVP !!!)

ok partytime from tomorrow with examples.......

N

 

[NVP]

Is that NVP or Mvp?

Hey Jaspertrademaster.....are you trying to set a record for most threads visited ?

not complaining though........can get lonely here sometimes

N

 

[NVP]

X factor time !!!!!!

come on Jedward !!

(you see the problem with some MA based (ie lagging) systems !

N

 

[jrplimited]

Re: X factor time !!!!!!

Big Lol!!!

So N, you are using a seven day lagged MA to watch X Factor and those Jedward boys? Adjust it to six and get ready to short the youngster with blond hair....

Great visual on the 3 ducks type of corrie, just shows how versatile the corrie indy can be.

Enjoy the results and boo me-me-me Cowell - real pantomine stuff!
Simon.

 

[NVP]

disaster strikes...Media career in jeopady !

my microphone will not plug into my PC.......

bugger !
N

 

[NVP]

Monday monday........

ok peeps......welcome to monday !

the piccies get a little more crowded now as the 3 Duck inspired Tripleplay corries (60ma 1 Delta setting) will be in Situ on the left hand side until further notice...I will use them to support my standard 1000/1 corries on the right from now on....the 1000/1's will only have the big 5 on them (Euro, USD,GBP,Yen, AUD)...c'mon you know the colours now !

I might drop some off of the Tripleplay...but we will see as we go

Oh and a little FX Index correlator there in the middle !

monday so far.........

WOW.....early indications are that the Dubai hangover is hitting the markets still.....
look at the Index corrie (14/3 on TF 30m) the Tag are reaching upwards again so looks like a buy tag morning session

Yen is doing well particularly....classic Carry unwinds perhaps as safety plays return to the fold........


look at the yen on the tripleplay charts on the left....total domination (so Captain currencies the 3 duck indicator would be screaming buy Yen against every currency)


Overall ?

I want to see a little more action yet before making some calls........the market needs a couple more cups of the strong stuff yet !


N

 

[NVP]

the FXcorrie Tripleplay indicators - abbreviated name time

sorry this is a Bl**dy mouthful already tp say......and its only 7.25am !

ok I name the Tripleplay and all future variations

Corrie T60/1 (think about it...i nearly did)


aaaaaaaa coffee kicking in....Cummon !!!

N

 

[NVP]

Corrie T60/1 - early thoughts

confession .......I have been playing with this idea for along time ! :smart:

the "elevator style" compressed charts are simpler than their full size big brothers and perfect for that snapshot of "whats hot and whats not" for any TF's.......no brain numbing follow the lines across the full chart.....

But to counter this I personally still prefer the purer 1000/1 corries, as they allow price action analysis/opportunites and are more aligned to my Style of trading

but the Corrie caters for both.........and believe me they can work very well together

N

 

[NVP]

T60/1 early thoughts

once I get some of you using this signal you will be amazed how fast the lines move .......even on the H4 Chart !

Thats because of the 1 Delta setting that is VERY sensitive aligned to the lower MA settings like the 3 duck inspired 60 MA we are launching it on

More thoughts on the Tripleplay system

you will also see that even on just allowing 1 barline of data on the charts it is very very indicative of direction in the market....

the lines not only crossover but they have clear directional bias as well - giving you the clue where they are going

so below look at the following (I know its difficult to see all the lines colours...but if you load the corrie and have your own Tripleplay running ....guess what ! )


in this example look at say the USD (Green)...all 3 charts are showing DOWNWARD bias as a further Clue to where the currencies actually are vs other Currencies

the Tripleplay system is a total system in itself and with a little practice be very very useful as a trading system (remember no system is perfect and this is a trend following system that is only sucessful in a (Duh) trending environment)

whether you use an MA of 10, 20 , 50 , 60 , 200 or 4 and a half.....the principles are the same...you are just tweaking your sensitivities and I will talk more about the effects of this in later posts.........

c'mon - first one in wins a duck !

N

(am i really allowed to ask people to tweak their sensitivities ? )

 

[NVP]

8am update......

back to now.......

GBP is a sick bunny so far re our G5 main group.....on the T60 it is languishing at the bottom of the stacks on the 5m and the 4H with only the USD below it in the middle 1H chart.....

If I were trading I would start to look for breaks below its recent lows on the 1000/1 Corries on the right with assumption that FTSE is gonna Dump in early trading

Dax has opened and risen to the Friday high above 5700.......its all bravado in my humble opinion and Gold is already going south of its 20ma on the index corrie (not shown)

N