Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

i'm in the hotel office again as the remote internet feeds are sloooooooooooooow

the swiss trading crew have evacuated to some offices they have rented for a week so I will pop in .............their trading comes first and nothing else gets in the way like sleeping or relaxing in a decent hotel !

i'm on vacation though so banned from joining them (yet ?)

Maggie has raised a very understandable question about the corrie that continously haunts me as the starter of this thread...........how to each it ?

sure I can offer some simple rules but as people (like K) know its like trying to teach someone how to paint a masterpiece or become a chess master in a week

its learning slowly chunk by chunk and practicing ill r eyes are on stalks ..........I have truly never seen anything as hypnotic as the FXcorrelator eve with just a few lines up......your brains are instantly testing patterns and ideas exponentialy as your eyes cover the movements of the mesmeric currencies.................then you will see a pattern......yes there it is again dammit and all those pips !!!!

wait a minute ......it didnt work here or here.....but worked there...........why ????

and then your brain explodes........I recommend sleep and a nice bacardi and coke sometime to lubricate the braincells (hahhahahaha)

and I have minimal time and this humble thead........so thats it at the moment friends......I maydo something one day and have many ideas but its all about time and energy

and unlocking the secrets of the corrie............

N

 

[NVP]

sorry ALL

this is a joke..........perhaps more tomorow .....N

meanwhile I thought I had a word training document on the thread I loaded

so will look
N

 

[NVP]

hey all

found this in the attic..........any good ?

jees ive forgotten the elevator stuff

N

 

[NVP]

have good weekends......shower and bar callin me

N

 

[banawa]

Here is something I've learned today. It's not good to trade when the market is moving sideways. I've had a bad morning, nothing to weep about but sad. Everything I touched reversed with one or two exceptions. I couldn't figure out why everything was reversing so quickly and then I realized, perhaps instead of just looking at my lines, I need to look at the whole picture. Once I did that, I realized the market is moving sideways. So...I still have a couple of trades going, one I think will be okay, the other I'll bail out on.

So gotta watch it and not just concentrate on one part of this wonderful indicator. There are many variables to take into consideration, my bad.

yes same for me all went wrong cannot understand why first time i lost grrrrrrrrrrrrrrrrrrr

 

[NVP]

You cant win every time. !

 

[maggieo]

Hey Banawa,
I didn't have a good day last Friday either. But here we are......a new day, a new week. Now through reading steadily through the posts I've come across another template.....


Who is going to explain to me about the triple arrow stuff ? I humbly bow down to all of you and beg, please enlighten me.

 

[maggieo]

Oh NVP, if you get online again....you are so absolutely right....it is incredibly mesmerizing. I never get bored of it. And yes, I watch and watch for interesting patterns, try this try that, lose some gain some.

for me it's a matter of money sure....but not so much that. I came across this thread about six months ago. I kept coming back and watching you all very quietly. I hadn't even signed up yet. I just lurked.

But what kept me coming back here was the power of all of you together banding up like a musical band and the leader telling everyone else what key we're going to play in on this brand new song that he learned last night. I know, I'm a professional musician/composer.

So in a sense, it was a lyrical and beautiful song I saw in here. A brand new band, with a brand new song and everyone asking, "what key are we in?" If you don't know the key, you will all be playing a different tune and ouch....that's discordance.

So behind those zig zagging lines, is a band and you're all in key. You haven't learned the song yet to where it's second nature to you and you don't have to ask "what key are we in", but......at least you know to ask!!!

And that's what I'm in here for. "What key are we in?" LOL.

So what am I saying? Nothing. Just gibberish. Or---I'm proud of you all. The fact that you are so willing to share, ideas and thoughts, yourselves. I'm glad I found you.

Bye.

 

[NVP]

hey all

given up at the hotel as the wifi is a joke

local cafe and a cold beer (with wifi access) later for me hopefuly

am reading some great great books.........one is called the Quants a tradig bestseller
boy theres some dudes in that.... ..

but some masterful comments...........one is a throwaway line about a team making money trading global correlations re prices and patterns made by oil, gold ,currencies,bonds and equities using supercomputers and super smart programmers

jees I better tell the FXCorrelator to take its vitamins for when I get back !!

N

 

[NVP]

hey all

if my damn book ever gets written.....

one thing i will be talking about is the 3 p's of trading - any trading

Power (of the recent movement being made by the instrument)

Position (of the instrument to other instruments) - or in other words Correlation

Perspective (where is the instrument in terms of overbought/oversold/neutral ?)

you need to be constantly aware of all 3 and have them optimally aligned to trade
anthing from currencies to pork futures

N

 

[Petar_Serbia]

hey all

if my damn book ever gets written.....

one thing i will be talking about is the 3 p's of trading - any trading

Power (of the recent movement being made by the instrument)

Position (of the instrument to other instruments) - or in other words Correlation

Perspective (where is the instrument in terms of overbought/oversold/neutral ?)

you need to be constantly aware of all 3 and have them optimally aligned to trade
anthing from currencies to pork futures

N

Hello there,

Absolutly agree,

And again will repeat if someone has bad weeks or days,that is absolutly normal,dont change your strategy if you see some bad period,bad period is integral part in forex trading.Most important thing is to earn at end of year,my advice for new guys trade strick 2-3 % risk per position,create rules when you trade and also on wich sesion.

Thats it,at end of year if you have discipline you can expext some earning that can be 100 %,200 >% or more from balance,that depend market...:smart:

Cheers
Petar

 

[NVP]

Petar and I agree totally

and look a last week on the 1hrs below.........the system was not terrible .....it just did not fire off many signals (if any if you were purist and Dow follower as well)

as traders we have one thing in our favour .....we can chose when to trade...so always make it count my friends and leave overtrading to the amateurs

NVP :smart:

 

[Petar_Serbia]

Petar and I agree totally

and look a last week on the 1hrs below.........the system was not terrible .....it just did not fire off many signals (if any if you were purist and Dow follower as well)

as traders we have one thing in our favour .....we can chose when to trade...so always make it count my friends and leave overtrading to the amateurs

NVP :smart:

As i sait last week,

JPY down also AUD,same projection,will post later charts.. Also cable is in same projection for more down...:smart:

Cheers
Petar

 

[maggieo]

Such wise pieces of advice for this poor amateur, BUT A LITTLE TOO LATE.......LOL. Bad morning. It started out with a bang and I should have quit. Sigh. You're both absolutely right. Stick to the program, expect bad days. In the long run, if you stick to the program and your own personal rules, you will profit. I know this...........................unfortuantely...................not today. Got caught up in writing a composition for someone and just was totally unfocused. So I've learned a hard lesson.

I can't wait for NVP to write all this stuff down in a book or have a video teaching session. You could try it on just us!!! We'll give you feedback! Now that would be fun.

 

[Kruspe_Svk]

Hi Neil,

how are you ?.. I´dont want to spam your thread.. but I´d like to also discuss about a little bit differnt approach (inspired by Petar) how to trade a currency strength.. so I hope do you mind.


I draw TL (channels) severally for each currency (TF 1H), so Petar and Neil check this out and tell me your opinion

I made some trades last week based on breakouts or rebounds, they all hit profit targets.


see you later guys,


K

 

[NVP]

Such wise pieces of advice for this poor amateur, BUT A LITTLE TOO LATE.......LOL. Bad morning. It started out with a bang and I should have quit. Sigh. You're both absolutely right. Stick to the program, expect bad days. In the long run, if you stick to the program and your own personal rules, you will profit. I know this...........................unfortuantely...................not today. Got caught up in writing a composition for someone and just was totally unfocused. So I've learned a hard lesson.

I can't wait for NVP to write all this stuff down in a book or have a video teaching session. You could try it on just us!!! We'll give you feedback! Now that would be fun.

hey M

and see my next post for the real kicker on your bad day :whistling...........ths is how the markets work ...they take you to a place of frustration you will never experience elsewhere if you are passionate about trading

so lick the wounds and tomorrow is another day :smart:
N



yo know

 

[NVP]

hey all

today was perfect .....just perfect for corrie action

and i'm sitting in smoky bar with some drunk germans who like my colourfull charts

check out every chart and note what perfection is

power (from yen and Euro mainly)
position (usd and yen moved in same direction on the 1h and 5 mins all day)
perspective (they started from neutral zone on the 5min chart and got better and better)

see it learn it
N

and just as a kicker that E/J will converge on a retracing Dow.....watch

 

[NVP]

Hi Neil,

how are you ?.. I´dont want to spam your thread.. but I´d like to also discuss about a little bit differnt approach (inspired by Petar) how to trade a currency strength.. so I hope do you mind.


I draw TL (channels) severally for each currency (TF 1H), so Petar and Neil check this out and tell me your opinion

I made some trades last week based on breakouts or rebounds, they all hit profit targets.


see you later guys,


K

hey K

this is not spam....its the finest cuts of meat for us all to enjoy

we are here to share..........the FXCorrelator and related ideas is a cosmos of opportunity to experiment and share

my offerings here only scrape the surface of its power.......something I am now 100% convinced is used by all the big Hedge funds but with advanced programming and trading power that we can only marvel at......this is Quants territory here we are embarking on

so we start today one step at a time together
N

 

[NVP]

Hi Neil,

how are you ?.. I´dont want to spam your thread.. but I´d like to also discuss about a little bit differnt approach (inspired by Petar) how to trade a currency strength.. so I hope do you mind.


I draw TL (channels) severally for each currency (TF 1H), so Petar and Neil check this out and tell me your opinion

I made some trades last week based on breakouts or rebounds, they all hit profit targets.


see you later guys,


K

interesting


........what about these ?

these will all be available soon hopefully as part of a book and training course I am trying to create subject to some copyrights re certain indicators

yep on a 5min TF those are actual price lines for those individual
currencies with 20ma and 80ma sitting on them like a normal pairchart

when you are as dumn as I am..... you need to be spoonfed

N

 

[Kruspe_Svk]

and i'm sitting in smoky bar with some drunk germans who like my colourfull charts

Hey Neil, it sounds like a good atmosphere

.. I´m happy you support me and you´re open to another approach

Basics of this approach is (Petar could write his experience, it would be great):

1) draw trend lines
2) wait till currencies reach borders of channel
3) again wait how currency reacts
4) there´s only 2 possibilities
4.1) rebound
4.2) breakout
5) when you think you know what happend (4.1 or 4.2) you should find currency in opposite direction and create pair
6) then open chart with that pair
7) check SR and another TA stuff
8) don´t forget to control your MM !!!

that´s all


As you said Neil "we start today one step at a time together"



K