Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Re: what a day !

Hi N,

Stopped trading at mid afternoon as chop monster was evident across the three plays of G, U and E, had to stop anyway as two losses in a row for me equals exit stage left! Was real tough and ate into my morning profits but hey-ho, still stayed ahead on the day. Saw your last G/U trade and yes, there was a distinct lack of momentum so hanging in there was risky but it did pay off for you a few bars later - well done there.

Looks like tomorrow (03-12-09) could be fairly low key as markets wait in trepidation of the infamous Friday NFP data release, so its half normal staking for me plus tight stops and low TP targets.

Hi Mate

I have a 17 year old niece, shes smart as a button and just bought her second car.......what are they like !

yep the 5m 1000/1 chart below shows how slim the pickins were yesterday pm:-

after the fantastic rises in the morning..about 1ish the GBP shut up shop completely and went flat

about 4ish the Tag offered a few pips moving up into the Europair after that
the E/U was non existent (and totally correlated up to midnight)

The corrie cetainly shows in hindsight when the market is virtually impossible to make money !

Everyone note JRP's other comments re money management as thats what seperates the men from the boys in this business

N

 

[NVP]

4h Corrie 3rd dec

Hi sports fans.....

look at the 4H below on the 1000/1 ....what do you see ?

I see a wall of resistance that the Yen is up to its neck in...
I see GBP the same (but in reverse direction)...
I see nothing in the USD camp really....dawdling along
euro (whatever there is to see) shows falling momentum from recent rises

so what do we think ?:smart:

C,mon dudes......softwares on post #503 and lets get some comments and questions on this thread !

N

 

[NVP]

corrie charts 3rd Dec 7.05am

morning.....

here they are ...you know the drill now so i am going to keep it short and sweet

ask me what you need to know on the thread - happy to help

from my prev thread 4h is a worry to me so whilst the elevators continue to say Sell Tag & buy Europair (nice move on E/U around 6ish this morning) i'm kinda becoming nervous of the resistance levels espec on Yen....

pays your money and takes your choice..as the morning progesses the 1000/1 will reveal the biases to play

N

 

[NVP]

joe Ross - Correlation in non forex Markets

this guy's in a different league re non forex correlation plays....the Law of Charts & traders trick info is also excellent reading for some classic price action patterns

perhaps one day we will have this same depth of information on Forex correlation



Welcome to this week's issue of the Joe Ross Spread Trading Newsletter. The Spread Scan weekly newsletter is designed to assist you in becoming a better, more complete trader by showing you, within the context of the markets, how to trade spreads. Follow this link to view this week's Spread Scan immediately, or read on.

http://www.spread-trading.com/newsletter/vol_275/

In this newsletter you will see applications of spreading in the futures and commodity markets. Spreads are applicable to all futures markets including currencies, commodities, financial instruments, and stock indexes. It is even possible to trade spreads in the all-electronic intraday market using day trading techniques.

Spreads are based on seasonality, correlation, backwardation, chart patterns, and simple observation. Spreads follow the Law of Charts(TM) and can be implemented using the Traders Trick(TM) entry.

 

[NVP]

9.10 calls..........

here we are.......

Tag gradually turning upwards now in my opinion and perhaps going to bounce off the 4h 1000/1 Resistance levels (corrie not shown) but mentioned by me in an earlier thread today...

the Tag have now also invaded the top half of the elevator 5m chart so on their way back ?

1m Tag breaching upwards as I post.....!!

N

 

[NVP]

I would have traded based on this...........

i am starting to lurve my index corrie more and more and have added a 1m as well now to the 5m

correlation patterns/congruency everywhere

this trade has just taken about 15 pips :clap:

N

 

[NVP]

i'm lurving it !!!!

to be honest looks like a Sell GBP buy Euro (or anything) is becoming attractive as well.....GBP looks like its in for a rough morning now.....

Euro is holding like a rock - going upwards with the Tag so far .....

remember that later if tag turns down as the Euro is turning into the strong currency in this mix today

N

 

[NVP]

GBP falling.........

this is like shooting fish in a barrel.....the Euro and Tag are combining in upwards action to bury the GBP !

N

 

[NVP]

go figure...............

the 2 corrie indexes lost their trading "rythmn"......so the GBP took the initiative !

you cant trade that stuff.......hope everyone had tight stops :-0

N

 

[NVP]

10.39..........

Yep Euro certainly staying strong......with tag also moving upwards slooooowly the GBP is the only sell play in the shop..........just wait for the right signals....

N

 

[NVP]

The perfect xmas gift......

Hey you....yeah you in the corner with those silly charts up !

Bored with big Brother ?
Exasperated by X factor ?
Gutted by Get me out of here i'm a Cebrity hasbeen ?

then why not get your own free copy of the FXcorrelator here ....

http://www.trade2win.com/boards/for...ing-basic-ideas-strategies-64.html#post993638

its fun for all the family and will be a real hit at that xmas party !

Gasp at GBP's antics
Cackle at the Cad
Snore to the rythmn of the Swissie

Get it now for xmas delivery and nothing to pay for 4 years.....

heres a typical customers comment :-

I am a genuine average bloke (gawdbless yer) and used to be poor, ugly, unattractive to women and wear the wrong clothes....thanks to the Corrie I am a new person......now i'm making £200,000 a day with just 5 minutes Screentime...then I go out for the rest of the day and play golf, laze in the sun and just generally live the high life..... women are now (mysteriously) attracted to me when I wave to them from my 200ft yacht moored in the caymans.....wow !...I know it sounds unbelievable but believe me...it really works.... .Thanks again !

(mr XYZ - Nowhereville)

Is it just me or are those marketing e-mails and letter drops getting even more desperate in their claims of guaranteed success recently ?

I had some stuff from Mr Stanzione recently that was as bad as above....Jees didnt realise Vince was still on this kinda gig still...bless him !

N

 

[NVP]

Hard work today isnt it !

another trade coming........

 

[NVP]

Aaaaaaaaaaaaaaaaaahhhhhhh

doing my brain in........

 

[NVP]

messy messy morning .....

Euro is nearing a peak again ?

that blue line goes back untouched till end Oct and then End Sept (following the 26th of November peak also shown here on the 1h)

hmmmmmmm Euro loves its end month rallies recently


N

 

[NVP]

Messy morning.........

JRP...you still alive ? :|

I called one sell GBP earlier for a few pips so not bad for a rookie....

N

 

[jrplimited]

Re: Messy morning.........

Hi N,

Yes, very much alive! Bit late posting this today as its been a toughy which does require constant screen time.... As per my thoughts last night, been using tight stops with half usual value per pip and sticking to M5 TFs as I thought it might be slowiish with NFP data due tomorrow..... Wrong again Simon! Its been another fairly fast early morning.

Managed to quietly slip into long trade on E/G at 08:50 on upside break of biggish 08:05 bar, suffered a small wobble for a few bars then rode the momentum through to just before 10:00 pullback for a hard earned 12 pipadoolies, back in again [long] at 10:35 and stopped out six bars later for about 9 pips loss, back in again (never say die!) at 12:05 and now just about to be taken out, unless momentum comes back, for about 4 pips profit.

Felt the E/U was a bit choppy for me first thing this morning so waited until 10:20 and went long and found it wasnt that choppy after a few nail biting bars, but actually dead! Pulled out around 11:30 for small loss.

Best pair for me today was the old chestbut of G/U. Entered at 08:55 short after opening session range broken and closed out at 10:00 for a nice 25 pip profit and went back in again short at 12:05 where I'm sitting now wondering where momentum has gone, so I think its definitely time to take the 9 or so pips profit and get out of Dodge city fast!

Looks like lunchtime sluggishness has taken over so its sit back and wait time to see if there are any more opportunities later on, otherwise its a case of switching off pcs, going outside in rain and getting more of my neighbour's tree leaves cleared up!

Trade well and regards,
Simon.

 

[NVP]

15 pips a day rules ?

Hi all

just had a funny E-mail from an "expert trader"....saying that 15 pips a day sucks and the XYZ system delivers 3 zillion pips a second blah blah.....

Well my friend - if you can deliver 15 (net) pips a day for 200 trading days a year by risking just 2% (compounded) of your capital per trade (say you always trade with a 10 pips Stop loss = your 2% per trade) then here are the sums :-

Lets also say you set a limit of £100 a pip trading level and ignore any compounding in your actual trading .....

Starting Capital base £5,000

day 1 trade = £5,000 X 2% = £100 for 10 pip s/l = £10 a pip = £150 net return day 1

after 50 days = £21k bank ...trading just over £50 a pip and making around £600 a day

after 100 days = £81k bank ...trading at £100** a pip and making around £1,500 a day
(you maxed your £100 a pip trading at day 78)

after 200 days (about a year)
£231k bank ...still trading at £100 a pip and making around £1,500 a day

$231,000 bank from £5,000 in just a year !!!!!

then of course staying conservative you are happy to take the annual (£1,500 X 200) £300,000 a year............(weelll - ive had worse years !)

these numbers are unreal but mathmatically correct on just 15 pips a day net...

my marketing friend .....leave me alone....i'll take my chances trying to get 15 pips a day

N

 

[NVP]

Re: Messy morning.........

Hi N,

Yes, very much alive! Bit late posting this today as its been a toughy which does require constant screen time.... As per my thoughts last night, been using tight stops with half usual value per pip and sticking to M5 TFs as I thought it might be slowiish with NFP data due tomorrow..... Wrong again Simon! Its been another fairly fast early morning.

Managed to quietly slip into long trade on E/G at 08:50 on upside break of biggish 08:05 bar, suffered a small wobble for a few bars then rode the momentum through to just before 10:00 pullback for a hard earned 12 pipadoolies, back in again [long] at 10:35 and stopped out six bars later for about 9 pips loss, back in again (never say die!) at 12:05 and now just about to be taken out, unless momentum comes back, for about 4 pips profit.

Felt the E/U was a bit choppy for me first thing this morning so waited until 10:20 and went long and found it wasnt that choppy after a few nail biting bars, but actually dead! Pulled out around 11:30 for small loss.

Best pair for me today was the old chestbut of G/U. Entered at 08:55 short after opening session range broken and closed out at 10:00 for a nice 25 pip profit and went back in again short at 12:05 where I'm sitting now wondering where momentum has gone, so I think its definitely time to take the 9 or so pips profit and get out of Dodge city fast!

Looks like lunchtime sluggishness has taken over so its sit back and wait time to see if there are any more opportunities later on, otherwise its a case of switching off pcs, going outside in rain and getting more of my neighbour's tree leaves cleared up!

Trade well and regards,
Simon.

solid stuff Simon........hope afternoon treats you well

(havnt known him long....but JRP already looks to me like an easy 15 pip a day man )

N

 

[NVP]

Tag divorce............?

hmmm

Yen getting killed today but USD holding...........very strange !

someones Selling yen and buying dollars.....:innocent:

N

 

[NVP]

Oh nooooo.......my box is filling up again...ive added my comments in bold

Dear Trader,

I think you'll be shocked by what you're about to read (I doubt it)

But, if you think you're good enough to trade the Forex markets, then read on
no i'm not good enough yet so go away

First, one of the most well-respected educators released a new video detailing a simple way to day trade foreign currencies. In and of itself, that's no big deal - we see those almost every day, don't we? ....yes indeed we do my friend like this pitch

Second -- after hearing his research on the "Trader's MIND Map" - I admit, I was completely blown away... (I wish you would be)

He reveals WHY so many traders are frustrated and can't achieve the results they want (it's a simple concept, but it's so refreshing to see it laid out for us)......What is it - they dont turn their screen on ?

Then, he explains the tools you need to end the frustration and start succeeding. And in the process, he gives you a simple strategy you can begin using IMMEDIATELY to turn your trading around (and it almost doesn't matter what you trade)......wow really...any market at all !

I If you're serious about learning how to FIX what's wrong with your trading, watch this video right now:[/I].......I will I will ...where do I sign ?

oh hum another day another 2,400 marketing e-mails.....

That reminds me - I must do a corrie Video.......well if you cant beat em !...

N