Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

the triple arrow signals are showing Yen chf and usd north supported by a dow sell on this mas (dow manually eyeballed)

so conditions now ripe for some G5 sells - looks like AUD and Euro are at the door

N

 

[NVP]

cmmon dow dump below the 11000 now..........

 

[NVP]

in truth I have every damn G5 currency except gbp screaming sell at me....

 

[NVP]

nzd is leading the pack south.....

 

[NVP]

this is nice eh......must be at least 10 pips in the bag so far generally on buying tag and selling G5(excluding gbp)

 

[NVP]

hi all

nice action on the commdolls here

N

 

[NVP]

hey all .....duty calls

will try to pop back later
N

 

[NVP]

the triple arrow signals are showing Yen chf and usd north supported by a dow sell on this mas (dow manually eyeballed)

so conditions now ripe for some G5 sells - looks like AUD and Euro are at the door

N

for once the market delivered ............

corrie rules

N

 

[NVP]

Hey all :smart:

I am a fan of Tom - although I do not subscribe to his software below......He got the strengthmeter bug in 2004 using Excel Macros.....thats way before I was able to get back in the trading saddle again due to business and family commitments through those long years......

is the FXcorrelator the same as the accustrength tool ? ..........well they are both strengthmeters and do similar things so I would say 99% similar in principle - but clearly for the money paid the accustrength has a lot more functionality (or bells and whistles.....) - I dont really buy that comment regarding Strengthmeter "toys" (I think that comment is squarely aimed at the FXcorrelator ! ) - as the corrie kicks a lot of butt for the free price tag and in the hands of an experienced person its as good as needed in my humble opinion....

the Accustrength contains alert mechanisms which you notice I have not offered here on the basic tools (i'm not the worlds biggest fan of alerts and bells to be honest.....more a distraction than help !)

I cannot claim any more knowledge than that as I do not use the system but wanted to flag its probably one of the better commercial strengthmeter out there in the cosmos

NVP


Forex trading is simple in theory:
A. Buy a strengthening currency using a weakening currency.
B. Sell a weakening currency using a strengthening currency.

Without a currency strength chart, how do you know what is strong or what is weak? Sure you can do calculations manually if you are measuring longer terms but holy cow, what a job keeping track of forty pairs. Measuring currency strength on an intraday scale requires the use of a software program.

The AccuStrength is a professional tool used every day by dozens of fund managers and hundreds of institutional traders. Don't waste your time with toys. They have limited ability and look at a small amount of pairs in the moment. Spend the money for a professional independent software program that measures currency strength trends correctly. In order to become a professional trader, get the best tools available to you. A currency strength meter can add hundreds of pips to your account every month. You owe it to yourself to invest in the AccuStrength.

Currencies Trend. Not pairs.

Currencies trend, not pairs! Professionals think in terms of the individual currencies and their unique characteristics. Each currency is an individual. It has its own strengths and weaknesses. You will hear professionals say they have bought the dollar, or bought cable, or sold the Swissy. Think like a banker. Think in terms of the individual currency.

Get used to thinking terms of the individual currency and you are on your way to making consistent profitable trades. You have to ask yourself how the currency you are using is doing against the others. Lets say we buy Euros and the value rises for a while...when is it time to get out? You get out when the euro is losing strength against all the others. Doesn't that make sense?

The AccuStrength SSt20 strength algorithm combined with self contained, bank level data makes it stand out as a leader in the industry of currency strength measurement.

Do yourself a favour. Check out AccuStrength.

http://accustrength.com

 

[Adamus]

Don't waste your time with toys. They have limited ability and look at a small amount of pairs in the moment. Spend the money for a professional independent software program that measures currency strength trends correctly.

So who gets to say what measures correctly and what doesn't? Hmm, let me guess - the system vendor?

But seriously, hot air aside, what's the difference in the way the correlation is calculated? Or is that a black box secret?

 

[NVP]

So who gets to say what measures correctly and what doesn't? Hmm, let me guess - the system vendor?

But seriously, hot air aside, what's the difference in the way the correlation is calculated? Or is that a black box secret?

your correct of course :smart:

but compared to most though i've seen a lot more chronic and unmerciful Marketeering........

N

 

[NVP]

I see GBP is having a nice afternoon.........

my extra daily beer allowance is back on track for xmas holidays :cheesy:

N

 

[NVP]

ok I am gone now...........

as I leave another possbl example of opportunities to buy a currency "cheaply"

see the chf ?........thats still a triple arrow corrie buy signal but look at the 5 min chart signalling plenty of upside room now available after a decent retrace.....

hmmmmmmmmmm :smart:

later
N

 

[Adamus]

So if you have three down arrows on the Canadian $ then I should sell it against three different currencies That's what my system's doing although it's not the one based on the fxcorrie. It's just a humble one-dimensional thing applied to every pair I can get a half-decent spread on. So I'm long EUR/CAD, AUD/CAD and GBP/CAD. No need to tell me the EUR/CAD and GBP/CAD are highly correlated! It was short USD/CAD earlier which was the wrong way but long CAD/JPY which made up for it, and some, but those trades ended earlier.

 

[NVP]

So if you have three down arrows on the Canadian $ then I should sell it against three different currencies That's what my system's doing although it's not the one based on the fxcorrie. It's just a humble one-dimensional thing applied to every pair I can get a half-decent spread on. So I'm long EUR/CAD, AUD/CAD and GBP/CAD. No need to tell me the EUR/CAD and GBP/CAD are highly correlated! It was short USD/CAD earlier which was the wrong way but long CAD/JPY which made up for it, and some, but those trades ended earlier.

hey A

let me come back to yuo on this ............. have an interesting trek now into work

professional traders who work from home must be laughng at us all today

N

 

[NVP]

nice scalps on selling tag at present..........ok see you all later

 

[NVP]

So if you have three down arrows on the Canadian $ then I should sell it against three different currencies That's what my system's doing although it's not the one based on the fxcorrie. It's just a humble one-dimensional thing applied to every pair I can get a half-decent spread on. So I'm long EUR/CAD, AUD/CAD and GBP/CAD. No need to tell me the EUR/CAD and GBP/CAD are highly correlated! It was short USD/CAD earlier which was the wrong way but long CAD/JPY which made up for it, and some, but those trades ended earlier.

hey A

i'm a 3000% correlation trader now...........i use corrie charts exclusively (apart from final fine tuning on entry/exit) so to me a pairs chart relationship is meaningless

its what the indiviual currencies are doing that is important

if cad is a triple arrow buy or sell on my core indicator then we have a good trend there on CAD.....nothing more nothing less...and could fold in an instant

I then decide if a trade is possible on cad and what to pair it with......if cad were the only big move one way and I had signals on the tag opposing it i would deffinately look to go for potential trades (im not a big fan of trading non-tag related pairs)

loads of smaller details and considerations though before i press the trigger as i tend to occasionally drivel / mention here .....

N

 

[NVP]

following on..........


all you have to do is find one currency trending up and one trending down on the basic correlator chart set on 500ma delta 1

the money/pips flows based on that premise continuing

N

 

[NVP]

nice morning action so far......

scalp selling tag / buy the Euro and gbp has been very effective.........

aud keeps bubbling under for a buy as well

N

 

[NVP]

interesting stuff at the moment


i see the tag team still falling and the G5 (excl tag and chf) recycling constantly and all prodding north in turn like a rugby maul driving towards the try line

N