Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

boris says fade the news releases..............hmmm

I am also not really convinced on his comment that markets dont move with technicals.....................what does he think the quants are doing ?

or as M said this week .....its Fuzzymentals (or a little bit of everything) that moves prices

N

 

[montmorencyt2w]

hey M

If you handed me 4 currencies to trade / follow using my approach it would be the Fantasic 4 as you advocate...........the 5th would be either the CHF or the AussieD with the NZD and CAD remaining firmly on the Bench

Pete Best & Stuart Sutcliffe eh? (Unfortunately that dates me).

Never had much luck with the CHF. Did great with the Aussie when it was trending reliably. Unfortunately, this convinced me that I was a genius (this was early days). I don't need to finish that little story.

Having a slightly better idea about the markets now, and now with the concept of currency strength and seeing how it can be measured, I reckon it should be very tradeable (or possible to know when it's tradeable and when not). Yes, happy to leave NZD and CAD on the bench.


Cheers,
Mike

 

[montmorencyt2w]

boris says fade the news releases..............hmmm

Thanks for the video link. I didn't know him. I think I see what he's getting at. Henry says something similar in a different way, i.e. one of his ways to trade the news being to look for the retracement after the immediate big move. On one of his free videos.

A pre-news idea he has is incredibly simple (perhaps deceptively so). I haven't really tried it properly, but FXCORRELATOR or similar should really help in doing it I think.

I am also not really convinced on his comment that markets dont move with technicals.....................what does he think the quants are doing ?

No, I'd agree, you can't ignore technicals, I don't think. I went too far in that direction last year I think, some of the time anyway. You could also regard FXCorrie as a technical indicator I suppose, although more useful than most!

Also, following a price chart is technical, anyway, and Boris does that.

 

[montmorencyt2w]

heres that 4 corrie all setup

I have to say that this version of the corrie indicator created a while back by djenky is a peach


http://www.trade2win.com/boards/for...g-basic-ideas-strategies-529.html#post1277658

I can view some basic ma's in the top left and also view price action on a 500/1 setting in the main chart

Neil, In the attached chart, what are the red and blue arrows towards the bottom telling us?

Thanks,
Mike

 

[montmorencyt2w]

hey all

anyone follow these guys ?............suddenly i'm receiving newsletters like a long lost pal......funny as they were very disinterested in me a few years back when they launched.............I guess the truckloads of money being made by the traders in those days (that prevented them talking to mere mortals like me) has rescinded into the murkey world of marketing and sales revenue :whistling

Buy the Euro since the start of 2011 ?........what an original idea - we all missed that........

3 grand is a lot of money for a keltner band system and a few bells and whistles.......and the settings were never that difficult to decode :whistling

and even stuff like this looks like a good place to start building your own customised trendsignal.....just get comfortable with using a decent MA for your exits (like perhaps the 7ma crossover on the real time bar)and a standard stoploss as backup.......

http://www.forexfactory.com/showthread.php?t=89714

Without even looking at a proper chart, I'd say their target of 1.3057 is a tad ambitious!
"Sniper"! Perhaps you should rename FXCorrie "High Velocity Target Bullseye" or something. (You can have that one, no charge......well perhaps a retiring collection at the end of the thread....)

 

[montmorencyt2w]

heres the Week...............pants thursday/Friday if you followed the strict rules

and by pants i didnt mean we lost money - I just meant we didnt trade much :smart:

And this game is not about making money.....its about NOT losing money
(subtle difference)

N

Yes, following rules can be very frustrating, but obviously, the hope is that it keeps you out of bad trades, and the cost of sometimes missing some good ones.

I've looked through quite a lot of the thread by now, but not all. Do you happen to know whereabouts in the thread you talk about how you came up with the Dow rule? Observation I guess. Did you ever try it with the S&P500?


I don't normally watch that kind of thing, but out of inertia I watched a programme last night on the long fraught saga of Fleetwood Mac. It occurs to me that perhaps another analogy to describe the Tag Team is of a rock group, a duo perhaps, who tour together endlessly, but after too long, they get fed up of each other, and split up. However, sooner or later, they realise that they are better together than apart and have a reunion and go back on tour.

Well, like with that fairly major divergence (or d.i.v.o.r.c.e.) on Friday, it seems to me that such events are heaven-sent opportunities to play the reconvergence or reconciliation. I think I might paper trade or demo this, even though I don't usually trade USD/JPY.

Trivia note: I was dead pleased with myself as I've realised I can do the Yen symbol: ¥.
This is using a nice little free utility called "allchars", and in that case, you get it with CTRL Y Y. Euro is CTRL E = or CTRL 55. It does loads of other stuff too, such as anglo-saxon runes, but I guess there's not much call for that in trading.

 

[NVP]

Without even looking at a proper chart, I'd say their target of 1.3057 is a tad ambitious!
"Sniper"! Perhaps you should rename FXCorrie "High Velocity Target Bullseye" or something. (You can have that one, no charge......well perhaps a retiring collection at the end of the thread....)

perhaps i'll get Jim to do a video for us ?

 

[NVP]

Neil, In the attached chart, what are the red and blue arrows towards the bottom telling us?

Thanks,
Mike

I cant see arrows at the bottom ?

 

[NVP]

Yes, following rules can be very frustrating, but obviously, the hope is that it keeps you out of bad trades, and the cost of sometimes missing some good ones.

I've looked through quite a lot of the thread by now, but not all. Do you happen to know whereabouts in the thread you talk about how you came up with the Dow rule? Observation I guess. Did you ever try it with the S&P500?

hey M

painful hours of observation over the last few years and I have read it in my travels...........its tenuous at times but NO ONE else in the rest of the G8 comes close re such a tight correlation

try it ..........pick an MA setting and a TF and count the % time those guys spend on the same side...............(which is a much better % correlation measure than those tedious percentage charts you see........)

here you go......the picture below is the ole 20ma on a daily chart back to my pc's back bar limit...............thats 90%+ correlation

if the S&P correlates closely to the Dow then you have your answer

you can also take it even further and follow any live equity market instead of the Dow Futures..........so Nikkei in Asian session is ok as well

dont get me started on Global Equity Indices correlations......love them

N

 

[NVP]

we got 80ma as well..............sure theres more gaps but thats on a tougher 80ma setting.........try that coupling with ANY other combination


Closest will be CHF and Euro who still main walk the same line (but not as much as when
the Swiss Bank was pegging to it )

some nice divergence/convergence plays are possible as long as the same Swiss bank keeps its nose out of the market :whistling

of course the CHF can also go to risk play scenarios and bed in with the tag team at times .........what a slut !!!

I it when I get the CHF Yen and USD aligned because that is great correlation :smart:

the NZD and the AUD are lovers mainly....NZD has wicked volatility at times
though and AUD is a steady Eddie

EURO and GBP.........hmmm not bad but GBP's volatillty is frightening at times

some nice convergence plays if Euro gets away and aead of the GBP on a correlated move following
the Dows direction

CAD is a maverick...............will follow the comdolls but dont bet your shirt on it........


oh no..........I said Maverick......

Enjoy the music and watch the Yen and the USD fly formation on that 80ma picture below...............Maverick and iceman ?.............hmmmmm a better name than the TAG TEAM ?

later
N

 

[NVP]

morning all............


maverick(usd) and iceman(yen) were in top gun form overnight patrolling the southern zero hemisphere .........Dow was solid north

easy easy money on a variety of trades :smart:

N

 

[NVP]

gbp going ballistic.............:smart:

Euro is flying just behind as wingman

 

[NVP]

and i like the dynamics

nice breaches of resistance for the E and G

I like the tag faling with the CHF..

plenty of airspace for touchdown runs


N

 

[NVP]

falling commdolls.....

the usd is now a little reluctant to fall more..............yens is fine

nice E/J buys recently as well.....

 

[NVP]

damn...c'mon usd play the game............

gbp and euro are blazing north but usd is now following them.......bugger !

 

[NVP]

really frustrating.............

but if you were watching just the standard paircharts you would have NO IDEA why Im upset with the usd .............:innocent:

we have a 360 degree view of the market using the Corrie

paircharts are like watching TV in black and white !!!

Bring on the 3D corrie !!!!

N

 

[NVP]

has the GBP been watching the suprbowl ?

on the 25.............go baby go.....:clap:

N

 

[NVP]

hes on the 10...........

chf is nearly touchdown in the south.....

 

[NVP]

hope you all got out for some pips ......fun over for a while

later
N

 

[NVP]

oooooooooooooooo..................gbp missed the line

all change ....Cad was a very fast sell scalp but on a retracing dow that is still well extended north above the 20,50 and 80 sma's so that wasnt a pure signal and a contrarian play in truth (although the tag were north in 80 and 20mas)

we await some tag falls again at present to signal trades as dow is north

N