Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Nice move earlier..........

As discussed the 80/20 combined with the dow signal can be a little late to the party but no-ones perfect !

play around with these settings (faster?) or anything else you want to do in fact

all I present here is that even simple Strengthmeter ideas can do to assist your trading :smart:

FaizenKauser certainly gets it (See next post) - excellent !!!

N

 

[NVP]

AUD still rising :/ ... Could of made 200 pips ... Need to sort out my SL/TP

yep - you nailed the move dude..........and there was other action around as well

N

 

[NVP]

and this time with live dow power ?

N

 

[NVP]

let me know ..gotta scoot into meetings

 

[NVP]

i'd pick the aussie D if you pushed me for a partner to buy or GBP for a fast buck or 2

Euro looks a little rich

remember that assuming we have correct signal on everything else still

the USD on the 20ma HAS TO CLOSE BELOW THE ZERO !!!

N

 

[FaizanKauser]

yep - you nailed the move dude..........and there was other action around as well

N

Yep the GBP and EURO were also chasing the AUSSIE which was nice

 

[FaizanKauser]

Forgot to add just did 2 more trades with USD/CHF ...

- The first one was at 2PM GMT, the USD/YEN went south slightly, I thought it was a perfect signal as the Swisse zoomed up past the 0 line... The dow was just above it's 20 and 80 sma which was very nice

- The second trade was about an hour ago at 5PM GMT, the USD and YEN brothers went up towards the 0 line on the 20 ma corrie, however on the 80 ma corrie it was still below the 0 line... Anyway the Swisse zoomed down way past the 0 line .. The dow was below it's 20 ma but above it's 80 ma..

Talk about the volatility of the CHF

I know how you don't like trading the swisse but I just couldn't resist, gave me good results too

 

[FaizanKauser]

Following the trend helped me out a lot!

 

[FaizanKauser]

The CAD was awfully quiet today hmm, loved the CHF and NZD

 

[NVP]

good overnights

N

 

[NVP]

Forgot to add just did 2 more trades with USD/CHF ...

- The first one was at 2PM GMT, the USD/YEN went south slightly, I thought it was a perfect signal as the Swisse zoomed up past the 0 line... The dow was just above it's 20 and 80 sma which was very nice

- The second trade was about an hour ago at 5PM GMT, the USD and YEN brothers went up towards the 0 line on the 20 ma corrie, however on the 80 ma corrie it was still below the 0 line... Anyway the Swisse zoomed down way past the 0 line .. The dow was below it's 20 ma but above it's 80 ma..

Talk about the volatility of the CHF

I know how you don't like trading the swisse but I just couldn't resist, gave me good results too

Sorry F

I dont trade the swissie against the yen or USD.....to me they are the same family so not on my regular list of trading strategies

if you accept that CHF (and also Yen) are generally more volatile than the usd - then you can utilise this power to make good pips on trading them in certain situations - just dont confuse volatility trades with standard directional trades

hey - whatever gets pips in the bank

N

 

[NVP]

hey all

I am a big fan of Andy's 3 duck system - especially for beginners to get into trading

without stealing any thunder - would anyone like to see how the FXcorrelator can help show you the 3 duck signals in action ?

Happy to do so in a video here if needed


N

 

[FaizanKauser]

hey all

I am a big fan of Andy's 3 duck system - especially for beginners to get into trading

without stealing any thunder - would anyone like to see how the FXcorrelator can help show you the 3 duck signals in action ?

Happy to do so in a video here if needed


N

I rerally like the simplicity of Andy's 3 duck system.. A while back I ordered his EBook, pretty good!

But i still prefer the 8020 system
Also your saying the FXcorrie shows 3 duck signals? I remember reading the word document that posted about your system and there was a chapter on the 3 ducks but in god's name I didn't understand

F

 

[FaizanKauser]

U

good overnights

N

Could've made a bit of money on the NZA and AUD... I love those oceanic pairs

F

 

[NVP]

I rerally like the simplicity of Andy's 3 duck system.. A while back I ordered his EBook, pretty good!

But i still prefer the 8020 system
Also your saying the FXcorrie shows 3 duck signals? I remember reading the word document that posted about your system and there was a chapter on the 3 ducks but in god's name I didn't understand

F

3 ducks is easily watchable using 3 compressed corrie charts

1) load 3 basic corries up and expand the chart bars , and then drag it
to smallest width

2) Tf/ma's as follows

left chart = 4H TF and a 60ma
middle chart = 1H TF and a 60ma
right Chart (Trigger) h = 5m TF and a 60ma

3) the trade when any currency is above another on all 3 TF's - thats it

NOTE THE ZERO IS NOT USED HERE - ITS PURELY USING CROSSOVERS OF CURRENCIES
TO DEFINE ENTRIES AND EXITS

so in the example below the GBP (red) is very strong in all 3 charts so we would be potentially buying it against most others


Then if you want to flavour it with a "corrie" mix
only ever mix Pairs as follows - 1 from each team

Team 1 - USD ,YEN . CHF.CAD
Team 2 - GBP,EUR,NZD,AUD

then only trade when Team 2 representative is moving in the same direction as the dow futures (hey just take the Dow direction on a 5 min 60 sma for this )

Thats it - see example below - since the NZD is the only member of Team 2 below Team 1 in all 3 charts (and supported by 5 min dow below 60 sma) we would be trading it as sells into Team 1 :smart:

 

[NVP]

whats better ?

hey they both kick butt !

N

 

[NVP]

U

Could've made a bit of money on the NZA and AUD... I love those oceanic pairs

F

in the current volatile markets they are both very active even though the London/us session instead of being asleep

N

 

[NVP]

NOTE

I am not trying to grandstand the 3 ducks here - just showing you how the FXcorrelator can show it

Nothing more and nothing less

N

 

[NVP]

and dont chase the NZD now............jees that trade activated on USD over an hour ago !!!

hahahaha
N

 

[FaizanKauser]

Wow it actually looks pretty good, with an indicator which alerts you whether a currency is above/below the YEN/USD it would be brilliant..
I know someone made a 3 ducks indicators which alerts traders if the currency is above the 60sma in all charts, that would really help here ..

F