Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

that machine is still rolling :smart:

 

[NVP]

actually fair dos to Bankroll....

this is a big thread

let me pull a post together with a simple set of rules to demonstrate what I do here .......

later today
N

 

[NVP]

Guide to the FXcorrelator

As promised here is a simple guide to using the FXcorrelator with a few other ideas and rules

ask me questions here....I am not an expert in this field as the learning never ever ever stops :smart:

use the indicator attached here....and go here if yuo want a video on a similar system

http://fxcorrelator.com/corrie2/free-indicator-and-video/

N

Note - you see me talk a lot about the 80/20 system in the thread in earlier months...all that means is using 2 FXCorrelators on a Dow chart and using an 80ma setting on 1 and a 20ma setting on the other and waiting for confirmation when all signals line up.............

Dont think this is easy though ....I'm not giving that much away here as like all things the rules are pretty simple ...However successful trading is about using a basic system and then adding your own disciplne , flair and experience to make it really fly !

is 20ma the best setting ?...who knows !....who cares !

 

[NVP]

and heres an example on the 15m TF tracking EURUSD..........2 big signals

ok plenty of false alarms as the USD has been dissapointingly weak over this period (the yen was the buy trade !!) but nothings perfect.........

as I said this is the introductory system to show you what it can do ....

thats 1% of the possibilities.......the rest is limited by our own time,imagination, experience and committment :smart:

N

 

[NVP]

hey gang

what do you think ?

sure its against the higher TF trends .....but so what ?

N

 

[NVP]

see how the US30 only confirmed its 20ma crossover on the 2ND crossover of the Yen and USD on that chart ?

the first Yen usd was a fakeout move ..........and the second crossover was the trade supported by the Rising Dow

not bad eh ? :smart:

N

 

[NVP]

this new system is rubbish

I nearly** lost some money on that recent G/U sell trade (attached) ....sure the E/U sell is up some pips but I want my money back .....I need 100% success rate

REMEMBER gang .....I said the system gives me a very high % probability of what the USD and Yen will do .....I cannot guarantee the performance of the CHF,GBP,EURO,NZD,CAD or the AUD on any trade

(well not for free here anyway .....do your own research and development haha )

ok - tell me how to make the system better ...ideas please

N

** sorry G/U sell is only up about 10-15 pips all....I'll assume the E/U sell at 40+ pips is making up for things and I'll try harder !

Apologies again - I realise all those expensive megatron systems out there are much much better than this approach and never lose money at all........

 

[NVP]

come on everyone ........get recommending this thread and get others on it and looking at the new document and instructions i've posted here earlier today

I have a bet with a mate I can hit 350,000 views by end of May and I hate losing .....

N

 

[deebee1]

lol...... heres 1 view.....

 

[NVP]

lol...... heres 1 view.....

thanks dude....just viewing the thread does it ...posting is not even needed

I like to stay ahead of that Captain Currency 3 ducks fellah ....his system is far to good and that thread is far too popular

N

 

[bankroll]

- What's your average risk/reward ratio?
sorry - but what does that actually mean ?

Risk/Reward Ratio Definition | Investopedia
Definition of 'Risk/Reward Ratio'
A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount of profit the trader expects to have made when the position is closed (i.e. the reward) by the amount he or she stands to lose if price moves in the unexpected direction (i.e. the risk).

 

[bankroll]

Re: Guide to the FXcorrelator

As promised here is a simple guide to using the FXcorrelator with a few other ideas and rules

ask me questions here....I am not an expert in this field as the learning never ever ever stops :smart:

use the indicator attached here....and go here if yuo want a video on a similar system

Free FXCorrelator Indicator & Video |FXCORRELATOR

N

Note - you see me talk a lot about the 80/20 system in the thread in earlier months...all that means is using 2 FXCorrelators on a Dow chart and using an 80ma setting on 1 and a 20ma setting on the other and waiting for confirmation when all signals line up.............

Dont think this is easy though ....I'm not giving that much away here as like all things the rules are pretty simple ...However successful trading is about using a basic system and then adding your own disciplne , flair and experience to make it really fly !

is 20ma the best setting ?...who knows !....who cares !

Thanks NVP for the explanation, that was helpful!

 

[NVP]

Risk/Reward Ratio Definition | Investopedia
Definition of 'Risk/Reward Ratio'
A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount of profit the trader expects to have made when the position is closed (i.e. the reward) by the amount he or she stands to lose if price moves in the unexpected direction (i.e. the risk).

Thanks B...........in truth I understand the Question more than you realise so apologies for the hook in ....

My Response to this is based around the premise that a lot of traders will tell you confidently what their RR ratio is based on historic returns or expected outcomes.....but I ask nothing from the markets and always expect nothing

in truth i think its a overated and misleading ratio
Why the Risk-to-Reward Ratio is Overrated


RISK

Sure I can tell you that my bet will probably be 2% per trade so thats one side.............but in truth I rarely drawdown that value (100% of Risk) as I will be bailing usually way before that figure is hit due to watching the market dynamics around the trade

REWARD

The Reward is a hypothetical ratio applied by Traders when they look at the trade....usually ATR or Price action driven ....or just literally set as a fixed ratio and applied to where the stop was placed (ouch)

When I enter a trade (so I have already decided to trade) My only approach is that I will not lose money on this trade...thats it ..........and then my R/Ratio performs as follows

1:1 - That was nice....keeps the wolf from the door ....
1:2 - A pleasant Bonus Ball
1:3 - Jees i'm good
1:4 - Perhaps I should write a book about this system as it generates high R/R
1:5 - Get me George Soros on the phone
1:6 - I walk on water and I'm glad I forgot to tighten the trailing stop

also remember the best traders in the world will split their trades into smaller Trades and apply different Exit principles to mitigate risk and optimise potential returns

I am a highly defensive trader in my approach and focus 100,000% on not losing trades ............and my mantra is "Dont lose money"

so in reality my aim and ratios are all around MINIMISING my % of losing trades and MINIMISING my loss per trade

Thats it .....I have no targets for the winning trades (ie above B/E) and certainly no aspirations regarding $ win per trade ......I rigidly and machine like trade a process and whatever comes comes !

keep the losing trades to a minumum and guess what happens to your P/L from any trades that make money

N

 

[NVP]

hey all

Remember this post ?

http://www.trade2win.com/boards/for...-basic-ideas-strategies-1100.html#post1862498

heres the 4h TF on the settings described ........now you could use this "big gun" to set the trades for the day on lower TF's

so what do you see ?

and what does that Gap between the USD and YEN and Zero mean

and what does this mean when the US30 chart (top) is bang flat on 20ma ?

hmmmmmm :smart:
N

 

[NVP]

well I dont know about you.........but the 15mTF certainly seems to have more clarity ................

The Yen and USD are still firing north following the 4h lead ......

so what are we doing sitting here talking ?

TRADE !!!

N :smart:

 

[NVP]

heres the Daily TF on the 20ma setting ..........

I've hidden all the other currencies except Yen and Usd..........

man o man what a gorgeous trade in may .....buying these dudes into everytihng else .....

i'm in love #

N

 

[NVP]

i'm trading against the 4H and daily TF markets at the moment and took some earlier Aud and NZD buy trades ............tempted by buying CAD as well but that can wait


sure it completely contradicts the earlier post on the 15m TF but you have to be in your own system and in your own set of TF and MA criteria .....I am demonstrating what is possible .....

a lot of these are showing recent moves and demonstrating the signals on the chart.....

on a 20ma (like this) a lot of these moves are already playing out for potential retraces remember.....

N

 

[NVP]

CAD buy would be in the frame now by the way..........and tighten AUD and NZD buy trades on 5m

 

[NVP]

G/U looking interesting for a fast sell on 5mins

 

[NVP]

I'd prefer the dow to fall a little more to get in though .... below 12515 on futures FXCM platform would be my entry point