Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

flat overnights until recently......then yen fell which is a totally uncorrelated move

selling A/U was a screamer but clearly the 80/20 system requires U/J to be correlated all the time

and yes......its only 1 band divergence on u/j but I suspect they may converge later

N

 

[NVP]

heres the week


scrappy in earlier days but boyoboyoboy......look at that G/U sell yesterday :clap:

( E/U as well but G/U was the catch)

on any TF - the 80ma/20ma system rocks :smart:

N

 

[NVP]

its been a real low volatility week actually

NO touchdowns recorded yet

gbp was real close yesterday .....................but noooo cigar :whistling

N

 

[NVP]

oh Dear.......thats not good at all in Japan

a tragedy :|

N

 

[NVP]

yen back in the game............40 pips on the bounce ?

 

[NVP]

hope you are all enjoying the Tag buys and european sells ?

 

[NVP]

thats more like it guys -

TOUCHDOWNS !!! :cheers:arty::clap:

(and a 5 band divergence on the G/J that may come back later on ?)

later
N

 

[NVP]

and as a result of last posts action heres an apprearence by one of my new Indicators called the G8Vix

work in progress but sell all the currencies above the zero on last post and buy all below*** ...............as they WILL converge today

(***a kinda basket trade):smart:

to Keep it simple

Sell JPY and USD
Buy Euro and GBP

(Aussie Twins are asleep and Neutral and CAD/CHF are neutralish)

N

 

[NVP]

hmmmm

tag sell time methinks :smart:

 

[NVP]

and as a result of last posts action heres an apprearence by one of my new Indicators called the G8Vix

work in progress but sell all the currencies above the zero on last post and buy all below*** ...............as they WILL converge today

(***a kinda basket trade):smart:

to Keep it simple

Sell JPY and USD
Buy Euro and GBP

(Aussie Twins are asleep and Neutral and CAD/CHF are neutralish)

N

you s/be making money now on those pairs called above at 11.20ish............and you could be in for a lot more pippage to come if dow climbs

 

[NVP]

Damn...I wanted Dow above 11950 to start selling tag seriously ...its faded at the moment .....

 

[NVP]

yen looks very very strong against the recently rising Dow...........if dow falls now then Yen looks a good bet as a buy for a while

 

[NVP]

jees its a tricky market............

 

[NVP]

my gut feel is the dow will go north and the tag wil get stuffed south.......

but hope is not a strategy one should follow

N

 

[NVP]

my gut feel is the dow will go north and the tag wil get stuffed south.......

but hope is not a strategy one should follow

N

oh yeah baby .....c'mon !!!

N

 

[NVP]

last comment today as still busy and want to get home tonight at some point

really really tough day today - the yens gone long again and actually theres now a 2+ band width (almost 3) between the yen and usd - thats pretty diverged (see left chart green vs yellow line)

and you cant trade a diverged Tag team as they are not working together (same as any team situation)

call it a day all..........
N

 

[NVP]

I spoke to soon - market is thumping

.....and the 80ma 20ma FXCorrelator system on 5min TF is delivering !

later
N

 

[NVP]

Friday was a good day for trading overall but overshadowed by the horrendous tradgedy in Japan :|

I was not in New york during the terrible events there, but was based in manhattan shortly after the events.

Talking to the New Yorkers you realise how devastating any localised tragedy is and the extreme impact it makes on the community for many many years to come

N

 

[NVP]

heres the weekly summary

Thursday was the big trading day :smart:

Convergence / Divergence wise - Euro and NZD slowly converged towards back towards zero during the week

N

 

[Kruspe_Svk]

heres the weekly summary

Thursday was the big trading day :smart:

Convergence / Divergence wise - Euro and NZD slowly converged towards back towards zero during the week

N

That´s right mate, EUR/NZD made nice sell this week(I took almost +100 pips).. it could be more, but I have to optimise my entry/exit points

Yes, let´s call this mighty power of convergences