Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

mornin all.........

the tragic global events are generating predictable Correlation movements with good profits...........Financial Markets are brutal and unforgiving

law of the jungle always rules

NVP

 

[NVP]

predictable touchdowns happening north..........Aussie D surprises me a little as I thought the GBP and Euro might be taking more pain this session

N

 

[NVP]

i'm not going to physically trade for a while...............the morality of how i would be making money is heavy on me during this tragic time and I am fortunate enough to have other income streams that do not need me in the markets

(Nothing personal re anyone Trading - its just the way i am wired)

I will still commentate and observe here at T2W but thats it for a while

I would urge all traders to contribute a % of profits to relief funds during this period as it is a noble and needed cause - and your profits being generated are like shooting fish in a barrel .....

c'mon its true....see my next post

I used to get involved in Alpine search and rescue missions in Australia and New Zealand (long story) some of which were a little messy......I just cannot imagine the scenes going on in Japan

N

 

[NVP]

Shooting fish in a barrel................:|


there will also be convergence opportunities at some stage but things need to settle more today

N

 

[NVP]

hey all

for those trading it was a phenomenal day of profits........

so please donate some money to the Japan appeal if you can through the many channels available

thanks
N

 

[mark4x]

i'm not going to physically trade for a while...............the morality of how i would be making money is heavy on me during this tragic time and I am fortunate enough to have other income streams that do not need me in the markets

Well said. My thoughts are to trade smart and donate profits to those who desperately need our help. Most Japanese won't ask for help, so we need to freely give all the help we can. The devastation is beyond what most of us can even comprehend.

Pray and then trade for those in need.

Mark

I'm a newbie here BTW. Just learning the fantastic FXCorrelator.

 

[NVP]

Well said. My thoughts are to trade smart and donate profits to those who desperately need our help. Most Japanese won't ask for help, so we need to freely give all the help we can. The devastation is beyond what most of us can even comprehend.

Pray and then trade for those in need.

Mark

I'm a newbie here BTW. Just learning the fantastic FXCorrelator.

welcome mark

N

 

[NVP]

hi all...............jees what a night

markets are still offering easy money - the global tragedy is delivering pips easier than shooting Fish in a barrel :|

please donate a % of profits to any of the major and reputable charity relief funds
NVP

 

[NVP]

the current yen volatility is bringing back a very old and solid U/J strategy

sell U/J when the dow falls and buy U/J when the market rises

the charts are moving in same direction again due to yens volatility

N

 

[NVP]

see how recent U/J correlation to dow has kicked in dramatically higher verses historic 4hr chart so take while its there

N

 

[NVP]

gbp ballistic......selling tag

 

[mark4x]

welcome mark

N

Thanks Neil. I'm glad I found this forum and your thread. I've barely scratched the surface of what you've put together here. It's a bit overwhelming when you look at the number of posts!

I've attempted to read over the important info and spend as much time as I have available to just playing and watching your indicator. I really like the idea of breaking the individual currencies down and being able to watch the interaction. It seems to put a whole new level of understanding of the various pairs.

As I said, I'm super new to watching the various forms of the FXCorrelator, but in my early use it seems like I'm finding it most useful for identifying currencies that are overextending their recent "spread" and are ripe for converging back.

I look forward to working with the indicator more. Thanks for all the work you and others have put into this.

Mark

 

[NVP]

Thanks Neil. I'm glad I found this forum and your thread. I've barely scratched the surface of what you've put together here. It's a bit overwhelming when you look at the number of posts!

I've attempted to read over the important info and spend as much time as I have available to just playing and watching your indicator. I really like the idea of breaking the individual currencies down and being able to watch the interaction. It seems to put a whole new level of understanding of the various pairs.

As I said, I'm super new to watching the various forms of the FXCorrelator, but in my early use it seems like I'm finding it most useful for identifying currencies that are overextending their recent "spread" and are ripe for converging back.

I look forward to working with the indicator more. Thanks for all the work you and others have put into this.

Mark

Hi M

just play with the indicator.........and have some fun watching action and reactions to markets and each other

the key to my trading is identifying what currencies are moving north and what are moving south.....

I have to be honest and say that probably 25% of what I do is published here for free and available .....the rest is next generation/automated correlation stuff that has been developed with very very good programmers and currently locked in informal confidentiality agreements

sorry I cant publish any more...........perhaps I will publish a deffinitive book at some point as there are some great strategies in this little corrie critter :smart:

N

 

[NVP]

Heres some Fan mail that I appreciate and am humbled by..... but guys guys guys - please note
the following :-


THE MARKETS ARE EASY EASY MONEY AT THE MOMENT !!!

so dont get complacent in your trading..........its not always like this :whistling

you will all soon be deluged with every junk mail system in the market that will use this wave of pippage to tell you that their system REALLY works

fire up your junk filters as I expect a few familiar names to appear on the circuit to make money selling very average systems at inflated prices


HI What can i say i am a new baby forex spend so much money onrobot,indicator,guru what ever?????all crap????then i stumble in yourcorrelator so simple so accurate then guess what? since a week i neverever been so happy with my trading i still on demo account but if iwas on a live account would make already thousands of dollarsincredible how can be all free from you the others charge so much thennothing happen you deserved a gold medalthanks againgod blesssincerely (anon)

 

[NVP]

nice G/U buy recently .....Euro is noticably absent in bullish activity so beware

CHF is glued to Yen making the calls much more profitable as thats at least 2 currencies (25% of G8)
driving volatity and moves on the rest

N

 

[NVP]

just like shooting fish in a barrel...............its to easy

Divergence wise that U/J is testy at 2.5 bands (3 is much better bet if it can make it )

AUD vs NZD is nearly 2 bands so I would expect some safish convergence action overnight if it gets into the 2+ region first (although the spreads are awful)

you could punt the big 6 band divergences on offer but you will need some dow positivity to make it happen and remember the hyper-divergence in last day or so that would still kill you re drawdowns at this point.....so wait until dow slows and then perhaps await a little P/A confirmation on those currencies involved

please please contribute a tiny percentage of the easy $$$'s being generated to the devastating and tragic event that caused it :|

thks
NVP

 

[NVP]

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-809.html#post1469618

as i said at 7am today ....U/J is seriously tradable at present on direct correlations to Dow ......enjoy it while it lasts

N

 

[Kruspe_Svk]

Hi N,

how is it going ?.. yen, chf are so strong now and cad, aud weak.. just wait to some convergence indications.. and not enter to soon (I have to sit on my hands )..

btw Niel, I need your view on correlation between currencies .. it´s always talk about correlations between pairs.. does exist some spreadsheet or whatever with correlation between currencies ? It seems that jpy/chf walk together on some TF etc.. could you somehow answer me ?

thx a lot

K

 

[Kruspe_Svk]

jeees, what a racee! :-0

 

[mark4x]

Hi N,

...

btw Niel, I need your view on correlation between currencies .. it´s always talk about correlations between pairs.. does exist some spreadsheet or whatever with correlation between currencies ? It seems that jpy/chf walk together on some TF etc.. could you somehow answer me ?

thx a lot

K

I was wondering the same thing. There are websites and MT4 indicators that calculate correlations between pairs, but how about individual currencies? I know Neil has explained the general correlations between the top 6 currencies, but is there such a thing as an indicator or site that allows you to play with correlations in different time frames and number of candles so we can easily identify those that are currently correlated? This seems important to have a specific number or value between 2 currencies just like you can do between 2 pairs of currencies.

This is just just a thought I had while playing with Neils great tool.

Unfortunately I'm not a great programmer or I'd attempt to dig into it a little more and see what's possible.