Best Thread Correlation Trading - Basic Ideas and Strategies

[FaizanKauser]

Yeah NVP, we are all people who have busy lives, and forex signals are very appealing to me as it only takes a few minutes to read the signal and make the decision etc..

NVP just out of curiosity, how does a signal work?
I've been them work on paper, but how can someone predict that the price will move up/down ????

Thanks F

 

[NVP]

Yeah NVP, we are all people who have busy lives, and forex signals are very appealing to me as it only takes a few minutes to read the signal and make the decision etc..

NVP just out of curiosity, how does a signal work?
I've been them work on paper, but how can someone predict that the price will move up/down ????

Thanks F

Hey F

how does a signal work ?
how can someone predict that a price will move up/down ?

Jees ..the first one is relatively simple if you are a techy.........you write the software to detect the pattern(s) you want - then get a techy to build an alert process from your pc/platform to a website (where you will be alerted like we have subscribed thread alerts in T2w) or even straight to SMS etc etc

i'm not a techy but am currently paying programmers to build this kinda stuff....

the second question is the holy grail my friend and an eternal argument in trading circles

We all agree that fundamentals move the markets (eg changes to interest rates,economic news, Global events , war,riots , plagues , earthquakes , revolutions , floods).........although sometimes not as predicted :whistling....but they are catalysts that generate volatility which is what we need to trade to make money

and then we have the technical school of trading which states we can predict the future from past events and price movements on the charts ......be it ma's , RSI's, MACD's price action , fibonaccis , stochastics , bollinger bands.........the FXcorrelator :smart:..........the list of indicators and pretty charts are endless

but do they work ? .............of course some of them do .......sometimes

N

 

[FaizanKauser]

Wow, it sounds extremely interesting.. Just reading up on signals, I read about someone who gained almost 900 pips by following the signal. Alternatively, he lost about 300 pips as the signal was a complete dud.

But my question is, why don't we all follow these signals?
Yes their may be some errors regarding the signal, but most of the time they actually work... ???

Faizan

 

[NVP]

the week is starting off pretty slowly............:smart:

N

 

[NVP]

Wow, it sounds extremely interesting.. Just reading up on signals, I read about someone who gained almost 900 pips by following the signal. Alternatively, he lost about 300 pips as the signal was a complete dud.

But my question is, why don't we all follow these signals?
Yes their may be some errors regarding the signal, but most of the time they actually work... ???

Faizan

Hey F

I am not going to comment here as again I do have a conflict of interests as I will be offering these services at some point for anyone interested

you have to also realise that :-

1) Not everything (anything?) you read is true on forex forums and or the adverts you read ............this is a very shark infested business

2) You have to believe in the signals and the service provider enough to pay the (serious) money involved and stick with it in the bad (drawdown) times

3) you have to be ready to act as the signal arises and manage the exit (unless its an
EA)

4) what happens if you wake up one day (having paid £5,000 up front) and the service has disapeared in a cloud of smoke !!!

5) ultmately most traders usually decide to keep the money in their pocket and design their own destiny....which is still a problem as I believe most of us realise the poential we can earn but do not have the time to sit down and trade our systems (Jees I cant even get time to answer my e-mails I get regarding my T2W thread here !!)

I am hoping to offer a variey of tailored options to traders who believe in my FXCorrelator style approach to trading Individual currencies.........from DIY to Automated Alerts........but its all still Work in progess

N

 

[NVP]

yen and usd are still strong off a rising Dow on 5 mins

a Faltering/Dumping Dow would send those guys very north !!

N

 

[NVP]

the Dow won the tug of war and you can see that the yen and USD fell south of their 80/20's eventually

some nice pips

N

 

[NVP]

How long can the Euro stay strong ?

As traders we dont have to make these decision - we just trade what we see based on the prevailing market conditions

BUT.....

If I were a betting man and had to back a currency to deliver in Q3/Q4

I think I would take the ........

(Screen Freeze)
N

 

[NVP]

sorry......I meant to say the............(pc crash)

 

[NVP]

good grief ............ok all joking aside i'd back the Swissie of the G8 on offer

why ?

it is a tremendously flexible currency that can deliver the best of both words

providing safety plays alongside the Yen and usd and then becoming the best of bunch if the European currencies become flavour of the month

the only problem is if the Swiss bankers decide it is getting to strong and they sell

thoughts please everyone ..............who would you bet on for second half ??

N

 

[flipper26]

good grief ............ok all joking aside i'd back the Swissie of the G8 on offer

why ?

it is a tremendously flexible currency that can deliver the best of both words

providing safety plays alongside the Yen and usd and then becoming the best of bunch if the European currencies become flavour of the month

the only problem is if the Swiss bankers decide it is getting to strong and they sell

thoughts please everyone ..............who would you bet on for second half ??

N

If it was based on fundamentals I would have to go with the CAD (perhaps a little biased here). The economy is very strong, minimally impacted by the worldwide downturn caused by the US credit crunch and the banking system is touted as a model for the rest of the world.

 

[FaizanKauser]

NVP why do you use the dow when your trading, but not the nikkei for example ??
sorry if this is a silly question

 

[FaizanKauser]

Also, do you think if I use your indicator in conjunction with an RSI, MACD and a Stochastic Osc, for more safety and accuracy etc..
A stochastic really does help for entering and exiting trades.

-Faizan

 

[NVP]

hey all the us session below was nice

N

 

[NVP]

mixed overnights :smart:

N

 

[NVP]

If it was based on fundamentals I would have to go with the CAD (perhaps a little biased here). The economy is very strong, minimally impacted by the worldwide downturn caused by the US credit crunch and the banking system is touted as a model for the rest of the world.

hey F

if you look at the annual chart I produced you will see the CAD runs pretty correlated to the USD most of the time....

I agree with you and think that the CAD will probably outperform the US in Q2/Q3 and if the USD does well for this period we may see CAD piggy back and win the sweepstakes for the year beating all else :smart:

nice call - c'mon anyone else want to back a horse ?

N

 

[NVP]

Also, do you think if I use your indicator in conjunction with an RSI, MACD and a Stochastic Osc, for more safety and accuracy etc..
A stochastic really does help for entering and exiting trades.

-Faizan

Hi F

theres a ot of indicators out there in this business ......

In truth its what works for you that counts and the experience using that tool so if stochastics float your boat do it

but to all reading try to keep your tools of the "trade" to only a few....dont be a jack of all "trades" (jees ! )

N

 

[NVP]

and just some advice if I may be so bold to all

use the same tools re exit (on diff settings naturally !) - mixing these can prove very confusing and expensive

I Live and die by my FXcorrelator on entries and exits

N

 

[NVP]

NVP why do you use the dow when your trading, but not the nikkei for example ??
sorry if this is a silly question

F - thats the best question here for months

Dow fell into the mix as its the only 24/7 chart I have on my platform that I can use consistently alongside G8 forex mix

(many of my private MT4 indicators do integrate the Dow into the formulas alongside the G8 and other things like oil and Gold )

so if you want to use the Nikkei for the Asian session do it .........it will still be pretty ok

the correlation of global equity's are fascinating and perhaps I will have that as a section in my private site..........I have commented on this in the thread somewhere but I focus on Forex as its easier

Equity markets are not 24/7 through the week and this for me throws the flow

fascinating though and money can be made chasing the trends through the sessions as they open / close and also playing off the different volatlities of each particular market and their sector mixes :smart:

N

 

[NVP]

heres another way at looking at the strength of currencies

simple eh !

n