Best Thread Correlation Trading - Basic Ideas and Strategies

NVP said:
i'm in a lot of meetings today so minimal posts

N
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Do you not trade full time?

Absolute quality post here Neil!! I've got so much to read and understand! Thanks for all this I'm looking forward to trading tomorrow, it's like a fresh start!!!!! :clap:

D
 
@Stealth: read NVP's public bio from his profile, if you have not already done so.


@NVP or anyone: regarding the Dow, or not: Like NVP, I'm not a backtesting type, and I sometimes regret it. I decided not to even think about it when I stopped being an essentially technical trader, some time a bit over a year or so ago.

Having got back (in a very roundabout way) to the idea of strength & correlation trading, including strength-meters, you could well argue that this is a technical form of trading, and I wouldn't disagree, or not much. But while I would say I no longer trade on pure fundamentals/"fuzzymentals" (too much prediction involved), neither would I ever trade on blind technicals either (even strength/correlation-based). I'd prefer to think in terms of trading (Forex) using strength and correlation as a very powerful tool, but in the background of as much fundamental knowledge as I can sensibly collate, given the time available, in the timescales I choose to trade (so sometimes, not much time....).


Neil's thread has received many views, but not as much active participation as it deserved, which is a pity. NVP has been ploughing a fairly lonely furrow, with a lot of drive and persistence. I hope that one day, people will look back and see him as a kind of trailblazer, at least within the UK. Perhaps some day, everyone will be trading Forex (and maybe other things) like this. Get your edge here while there still is one! :)


Going back to the Dow (I forgot the point I was trying to make....concentration needed Monty!), I believe there have been periods when the Dow negatively correlated with the USD and other periods when it didn't. Casual googling seems to bear this out. A more systematic analysis (of the back-testing variety) should give more evidence, either way. I certainly would not try to discourage anyone from following the standard method that NVP teaches here. But what I would say generally is to be aware that market conditions can change over time. I mean in a general, macro sense, not just hour to hour, and day to day. Eyeball the longer-term charts once in a while to get a general sense of things.

(But if any stats experts care to post with precise Dow/Stock Market-versus-USD correlation numbers over extended periods of time, then I for one will be interested!)
 
mornin all

probably tied up again today so will try to get some ideas in now.....

some early sells on the tag team after midnight but in truth dow was not supporting the move if you applied strict strict rules

later
N
 

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1 hours show some nice euro and chf trades

N
 

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hey all

I ama big fan of captain currency (Andy Perry)............heres his 2 higher timeframe signals replicated on a corrie chart (4h 60ma and 1hr 60ma)

I have talked about his system at length here in the past and the corries ability to show the signals in a simple way.............(y)

if you want some simple grab and go directionals for trading your short term signals this isnt bad

240ma top chart and 60ma bottom chart on a 1hr corrie

at the moment it would support buy signals on CAD , GBP and CHF re the usd

This system does not use the Zero lines for relative strength......just whether a currency is above/below other currencies

your money your choice :smart:
N
 

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montmorencyt2w said:
@Stealth: read NVP's public bio from his profile, if you have not already done so.

Neil's thread has received many views, but not as much active participation as it deserved, which is a pity. NVP has been ploughing a fairly lonely furrow, with a lot of drive and persistence. I hope that one day, people will look back and see him as a kind of trailblazer, at least within the UK. Perhaps some day, everyone will be trading Forex (and maybe other things) like this. Get your edge here while there still is one! :)
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thanks M - the cheques in the post !

seriously folks..............I started agressively persuing the strengthmeter approach probably over 3 years ago now day in day out and decided i liked what saw

there was almost zero information then and in truth theres still minimum content out there in internet land re this subject and even less daring to combine it with market correlations......a shame as the possibilities are endless here and I can only impart a small percentage of what I do here due to time and energy :smart:

I am not a full time trader as whilst my systems are robust , I certainly am not having huge holes in my personality re being a rounded and sucessful consistent trader (at the moment.......)

nothing that cant be fixed but time is needed

having a formula 1 racing car outside the front door does not guarantee you will get to your destination earlier or indeed even in 1 piece..............you ned practice and experience :p

(and I havnt got a manual as I am writing it as I go along..........)

N
 
nice push on at the moment selling the tag on the 5 mins.....Euro and chf are the buys so far
 
Jees.....Gbp is THE sell if the tag drops the ball and ranges or starts going north.....
 
thats lunch.........still busy busy

sorry :smart:
N
 

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tag is real nice on the sells at present and supported by dow rises.......and just look at that Cad go north on the 5 mins........

anyway later all - must dash
N
 
the commdolls are real weak on the 5 mins....if the tag team drop that sell ball and consolidate or start piling north get into Commdoll sells

N
 
but as you are all seeing the tag are still bearish and we are on the hunt for European buy pips !

N
 
tag keeps driving south supported by the rising dow on 5mins.....nice !
 
StealthTrading said:
I've been trading this today and it's not as easy as it sounds. Hopefully tomorrow will be better.

Thanks
D
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let us know the exact approach you are using here onthe thread and I may be able to help............:smart:

N
 
Damn but theres some nice dynamics at the moment ..........pity i'm still grounded with workload

until tomorrow
N
 
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