Best Thread Correlation Trading - Basic Ideas and Strategies
jrplimited
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Hi N and any viewers,
Quel damage! What a morning, looked like G and E were really stuck in the snow after the London open move - anyway on with the show....
G/U Ahh, yes... After that silly attempt to capture a short move without any momentum as called in near real time a few pages back, I lost 21 pips on that one as price took out my initial SL. Following that "great" trade I couldnt find anything on this pair for love or money as my buy and sell targets of 62234 and 61762 respectively seemed yonks away from price action - he writes as price heads towards the latter! Going to close down this chart now and accept the loss.
E/U Took ages to find a key point to trade off and eventually I entered short on 12:00 bar at 43729 as this looked to be a good break out of the 09:05 onwards range. Price moved downwards after a one bar stutter and as of at posting my TS is now at 43524 for a near 19 pip profit lock in - just taken out by the current 12:20 bar.
E/G Once again that London open move upset the apple cart here and although I could see a definite short bias, no decent opportunities presented themselves - a "mirror" of G and E relationship behaviour.
Definitely a case of beware this afternoon although I can now see prices begiinning to wake up. I'm following E/U for sure this afternoon.
Trade well and regards,
Simon.
Quel damage! What a morning, looked like G and E were really stuck in the snow after the London open move - anyway on with the show....
G/U Ahh, yes... After that silly attempt to capture a short move without any momentum as called in near real time a few pages back, I lost 21 pips on that one as price took out my initial SL. Following that "great" trade I couldnt find anything on this pair for love or money as my buy and sell targets of 62234 and 61762 respectively seemed yonks away from price action - he writes as price heads towards the latter! Going to close down this chart now and accept the loss.
E/U Took ages to find a key point to trade off and eventually I entered short on 12:00 bar at 43729 as this looked to be a good break out of the 09:05 onwards range. Price moved downwards after a one bar stutter and as of at posting my TS is now at 43524 for a near 19 pip profit lock in - just taken out by the current 12:20 bar.
E/G Once again that London open move upset the apple cart here and although I could see a definite short bias, no decent opportunities presented themselves - a "mirror" of G and E relationship behaviour.
Definitely a case of beware this afternoon although I can now see prices begiinning to wake up. I'm following E/U for sure this afternoon.
Trade well and regards,
Simon.
NVP
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NVP
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14.45pm update
Hi all
just popped in for a look.....
hmm...usd finally breached that top level then typically has dived straight back into the range again......:innocent:
nice momentum though and a moving USD helped make some nice pips on the the suddenly sluggish Euro and GBP.....
look at the bottom left chart (5m 14/3 index corrie) see how gold signalled that turn down for the USD and
the resultant action on the Europair / USD trades.........
N
Hi all
just popped in for a look.....
hmm...usd finally breached that top level then typically has dived straight back into the range again......:innocent:
nice momentum though and a moving USD helped make some nice pips on the the suddenly sluggish Euro and GBP.....
look at the bottom left chart (5m 14/3 index corrie) see how gold signalled that turn down for the USD and
the resultant action on the Europair / USD trades.........
N
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bit late for all this fuss but the USD has finally woken up so some xmas pips still on offer to those hanging around !
USD finally went north and so a few G/U and E/U pippies there....
see how the 5m corrie index has gold well south that was forcing the USD up
ho ho ho
arty:
N
USD finally went north and so a few G/U and E/U pippies there....
see how the 5m corrie index has gold well south that was forcing the USD up
ho ho ho
arty:N
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NVP
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back again........10-15+ pips if you stayed on the 6072 call (as it never breached back in the end !) - see chart atached ..also I note that the markets are driving usd down now ?:whistling
i'm miles away on other stuff now so going to call it a day
JRP dont be a stranger to us now your on xmas leave.....here and also on our P forum and googlemail as I would love to swop some more thoughts and ideas...
i'm actually in the canary islands over xmas (23rd - 3rd Jan) but will be popping into my favourite internet cafe where I tend to escape for half hour a day for my fix of trading and forex gossip....also theres a guy out there who dabbles and wants to set up a small trading office for other ex-pat traders so thats always good for a mega chat, drink and a scheme for another 2 hours a day......
god imagine....wake up in the sunshine ...pop to your laptop for a couple of cheeky trades and then rest of the day for sunbathing, sangria , swimming and....Sandcastles (to old for that other stuff now).........
Jees I sound like one of those rediculous Marketeering 4 page mailshots from vince stanzione !
later.....
N
i'm miles away on other stuff now so going to call it a day
JRP dont be a stranger to us now your on xmas leave.....here and also on our P forum and googlemail as I would love to swop some more thoughts and ideas...
i'm actually in the canary islands over xmas (23rd - 3rd Jan) but will be popping into my favourite internet cafe where I tend to escape for half hour a day for my fix of trading and forex gossip....also theres a guy out there who dabbles and wants to set up a small trading office for other ex-pat traders so thats always good for a mega chat, drink and a scheme for another 2 hours a day......
god imagine....wake up in the sunshine ...pop to your laptop for a couple of cheeky trades and then rest of the day for sunbathing, sangria , swimming and....Sandcastles (to old for that other stuff now).........
Jees I sound like one of those rediculous Marketeering 4 page mailshots from vince stanzione !
later.....
N
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jrplimited
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Hi and evening N and all,
Ha! How did you know I'd be pip fishing this afternoon? Its the betty ford clinic / trader rehab division for me....
Stuck to my earlier observation and watched E/U this afternoon and ran a long trade after the 14:20 bar for a quick 21 TP pips profit (more to be had but I was skimming), then watched that big 15:25 down bar and waited for good confirmation before jumping in short during 15:45 bar for another quick 18 TP pips profit.
That was me done for the day and adequate revenge for the overall 3 or so pip loss incurred during morning session, also done for festive holidays to boot and a nice way to finish - hurrah for the corrie indy!
Sooo N, you are slinking off to sunny climes real soon eh? I'll be trying to post a few things over the holidays as time and market liquidity allows plus getting your PF updated with other strategies discussed.
Enjoy the weekend everyone and hasta la vista,
Simon.
Ha! How did you know I'd be pip fishing this afternoon? Its the betty ford clinic / trader rehab division for me....
Stuck to my earlier observation and watched E/U this afternoon and ran a long trade after the 14:20 bar for a quick 21 TP pips profit (more to be had but I was skimming), then watched that big 15:25 down bar and waited for good confirmation before jumping in short during 15:45 bar for another quick 18 TP pips profit.
That was me done for the day and adequate revenge for the overall 3 or so pip loss incurred during morning session, also done for festive holidays to boot and a nice way to finish - hurrah for the corrie indy!
Sooo N, you are slinking off to sunny climes real soon eh? I'll be trying to post a few things over the holidays as time and market liquidity allows plus getting your PF updated with other strategies discussed.
Enjoy the weekend everyone and hasta la vista,
Simon.
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hi JRP
dont'cha just love a happy ending to the week .............
look at that afternoon into evening session...pure corrie Heaven and everyone behaving
as they should....
chart 1 - around 4.30pm the usd reversed back towards that darned range and something beautiful happened....the GBP produced a stready unvolatile northery trek with the Euro alongside.......you cannot understand how rare this is not to be cut to pieces on the normal whipsaws that are associated with GBP's temprement :clap:
conservative 50 pips on the G/U with an even steadier 30 pips on E/U (with a natural nervousness through the 00's that were both breached in the process)
Even G/E got a small shout (eventually) as when the G & E are moving together in an orderly direction and fashion the G should always be stronger...although only towards the end and the 10-15 pips werent probably worth the risk....
JRP and myself have Ideas when the G/E becomes a better option to trade so will share them when time allows...for me it wasnt the time above as ...well the g/U was so sweet anyway !
Chart 2 for me is why I created this thread.......trying to incorporate multiple signals to assist trade identification/entry and also exit warnings !
thats the 5m index corrie for the same session.......on a 14/3 setting (roughly a 20ma)
so above Zero = markets > their 20Ma and below = <20ma's, also when our 3 currencies (in bold) cross the zero that means that the currency is > or < the overall average 20 MA for all of the G8 currencies (ie stronger or weaker than the G8 average)
gold has been a revelation this week for me....and key to a lot of my scalping calls in the week just gone...it has been the forward scout most of the time almost dictating when the USD would consilidate and then change direction (they generally move in opposite directions remember)........
and yesterday was no exception.....look at Chart 2
the first green vert is at 4.30pm.....was that a big enough gold signal to finally stop buying USD ?
interestingly the other markets then started to follow upwards (with GBP and Euro in tow) which meant that a buy E & G punt was worthwhile (subject to any 1000/1 corrie S/R's or levels on the pairs charts)
then if that wasnt enough that vert 2 (approx 17.20) was from when more gravy got delivered because gold was deciding to go meet its friends on the north side and send USD downwards.....which it did...and the payload 40 pips got delivered on g/U !
the whole Forex vs other markets correlation scene is mega important to study and follow ....it has some broad brush principles that hold firm most of the time ...(see post #11 on this thread) but they do change and some markets will drive things better than others at times....you just have to be in tune and then use them ! :smart:
excellent end to the week meaning most tiny tims get a xmas turkey !
N
dont'cha just love a happy ending to the week .............
look at that afternoon into evening session...pure corrie Heaven and everyone behaving
as they should....
chart 1 - around 4.30pm the usd reversed back towards that darned range and something beautiful happened....the GBP produced a stready unvolatile northery trek with the Euro alongside.......you cannot understand how rare this is not to be cut to pieces on the normal whipsaws that are associated with GBP's temprement :clap:
conservative 50 pips on the G/U with an even steadier 30 pips on E/U (with a natural nervousness through the 00's that were both breached in the process)
Even G/E got a small shout (eventually) as when the G & E are moving together in an orderly direction and fashion the G should always be stronger...although only towards the end and the 10-15 pips werent probably worth the risk....
JRP and myself have Ideas when the G/E becomes a better option to trade so will share them when time allows...for me it wasnt the time above as ...well the g/U was so sweet anyway !
Chart 2 for me is why I created this thread.......trying to incorporate multiple signals to assist trade identification/entry and also exit warnings !
thats the 5m index corrie for the same session.......on a 14/3 setting (roughly a 20ma)
so above Zero = markets > their 20Ma and below = <20ma's, also when our 3 currencies (in bold) cross the zero that means that the currency is > or < the overall average 20 MA for all of the G8 currencies (ie stronger or weaker than the G8 average)
gold has been a revelation this week for me....and key to a lot of my scalping calls in the week just gone...it has been the forward scout most of the time almost dictating when the USD would consilidate and then change direction (they generally move in opposite directions remember)........
and yesterday was no exception.....look at Chart 2
the first green vert is at 4.30pm.....was that a big enough gold signal to finally stop buying USD ?
interestingly the other markets then started to follow upwards (with GBP and Euro in tow) which meant that a buy E & G punt was worthwhile (subject to any 1000/1 corrie S/R's or levels on the pairs charts)
then if that wasnt enough that vert 2 (approx 17.20) was from when more gravy got delivered because gold was deciding to go meet its friends on the north side and send USD downwards.....which it did...and the payload 40 pips got delivered on g/U !
the whole Forex vs other markets correlation scene is mega important to study and follow ....it has some broad brush principles that hold firm most of the time ...(see post #11 on this thread) but they do change and some markets will drive things better than others at times....you just have to be in tune and then use them ! :smart:
excellent end to the week meaning most tiny tims get a xmas turkey !
N
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NVP
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captain currency and the 3 ducks !
I love this system.......and so does everyone else from nearly 120,000 views !
I would run a permanent corrie version on this thread but we have not the resources at present as I really need more santas helpers here ! (hint hint :whistling)....phreddy are you playing with this ?
the corrie version of the 3 ducks starts here for reference
http://www.trade2win.com/boards/for...ing-basic-ideas-strategies-54.html#post991332
ok - heres the recent action....since everything is dictated by the highest 4H TF I can actually use
the relative positons, angles and direction of the currency lines to tell you what was possible
on just that 4h chart....we can also see if some of the more scalp trades called in the week
were sensible ones !
so heres a simple rules for the 4h corrie without checking out the lower TF's
1) to predict a buy(Sell) opportunity the currency has to be above(below) the other target currency on the 4h (3 duck 101)
2) the currencies have to also be angled in the direction we want to trade and not flat (buying sloping up and selling sloping down) or opposite direction
so heres this week below .....what do you see ?
early part of the week i see strong rising GBP (red) and AUD (Gold) whilst most others are falling or flat really.....
so applying the 2 rules the potential trades were :-
Buy GBP and sell Euro (and then also sell grey CHF once swissie was crossed)
Buy AUD and sell Euro & DHF (as above) + sell CAD(brown) when crossed
these trades made money using decent entry S/L's (remember this is 4H S/L control) and good exit management......fine tuning this down to next levels (1h 60ma corrie) would have helped even more !
that G/E would have bagged you 150 pips through the week but a draw down of 50 pips was needed to survive the first retrace (hence I say to manage your S/L to the TF being used and ATR's possible)
50 pips you gasp.....but you will risk a 10 pip S/L on the 5 mins right ? ( X48 multiple !)
amazingly I see that the grey CHF actually moved during the week (instead of being flat 300% of the time) and playing this against the AUD (gold) would have been the most steady trade of the week ?...NOT as it does not follow the system rules !!! (and I cannot get that chart up on my ODL broker charts (?)
on these higher TF's for me you can bring in the Yen which I love but cannot trade at low TF levels due to volatility...........the yen "rocks" and can be sucessfully correlated (negatively) against the markets like the USD......
this week it fell first half (oooo couldnt trade it against the GBP though if you strickly followed the 2 rules...).....then it rose and rules said you could buy it against the GBP for a while...but overall this is the challenge of conflicting systems and the mess you can get into with multiple rules........personally for me correlation rules overide any other systems and 1 of the top corrie rules is buy tag sell Europair so I would have been looking to hammer the yen with europair regardless of what the 4 hours said by dropping down to the 1h 60/1 timeframe to use the strict 2 rules and just following the slope on the 4h as a guideline instead of the crossovers.........but thats me with a scalping mentality !!
(God Captain currency will kill me for the heresy I declare on his 3 ducks here )
anyway - you get the ideas corrie fans....look through and test how excellent this is as a strategy ....download the corrie on page 64 post #505 to test it for real ....you need a 60ma delta 1 setting for this 3 duck system
please feel free to also post any questions to me or our resident professional pip terminator JRP !
NVP
I love this system.......and so does everyone else from nearly 120,000 views !
I would run a permanent corrie version on this thread but we have not the resources at present as I really need more santas helpers here ! (hint hint :whistling)....phreddy are you playing with this ?
the corrie version of the 3 ducks starts here for reference
http://www.trade2win.com/boards/for...ing-basic-ideas-strategies-54.html#post991332
ok - heres the recent action....since everything is dictated by the highest 4H TF I can actually use
the relative positons, angles and direction of the currency lines to tell you what was possible
on just that 4h chart....we can also see if some of the more scalp trades called in the week
were sensible ones !
so heres a simple rules for the 4h corrie without checking out the lower TF's
1) to predict a buy(Sell) opportunity the currency has to be above(below) the other target currency on the 4h (3 duck 101)
2) the currencies have to also be angled in the direction we want to trade and not flat (buying sloping up and selling sloping down) or opposite direction
so heres this week below .....what do you see ?
early part of the week i see strong rising GBP (red) and AUD (Gold) whilst most others are falling or flat really.....
so applying the 2 rules the potential trades were :-
Buy GBP and sell Euro (and then also sell grey CHF once swissie was crossed)
Buy AUD and sell Euro & DHF (as above) + sell CAD(brown) when crossed
these trades made money using decent entry S/L's (remember this is 4H S/L control) and good exit management......fine tuning this down to next levels (1h 60ma corrie) would have helped even more !
that G/E would have bagged you 150 pips through the week but a draw down of 50 pips was needed to survive the first retrace (hence I say to manage your S/L to the TF being used and ATR's possible)
50 pips you gasp.....but you will risk a 10 pip S/L on the 5 mins right ? ( X48 multiple !)
amazingly I see that the grey CHF actually moved during the week (instead of being flat 300% of the time) and playing this against the AUD (gold) would have been the most steady trade of the week ?...NOT as it does not follow the system rules !!! (and I cannot get that chart up on my ODL broker charts (?)
on these higher TF's for me you can bring in the Yen which I love
but cannot trade at low TF levels due to volatility...........the yen "rocks" and can be sucessfully correlated (negatively) against the markets like the USD......this week it fell first half (oooo couldnt trade it against the GBP though if you strickly followed the 2 rules...
).....then it rose and rules said you could buy it against the GBP for a while...but overall this is the challenge of conflicting systems and the mess you can get into with multiple rules........personally for me correlation rules overide any other systems and 1 of the top corrie rules is buy tag sell Europair so I would have been looking to hammer the yen with europair regardless of what the 4 hours said by dropping down to the 1h 60/1 timeframe to use the strict 2 rules and just following the slope on the 4h as a guideline instead of the crossovers.........but thats me with a scalping mentality !! (God Captain currency will kill me for the heresy I declare on his 3 ducks here
) anyway - you get the ideas corrie fans....look through and test how excellent this is as a strategy ....download the corrie on page 64 post #505 to test it for real ....you need a 60ma delta 1 setting for this 3 duck system
please feel free to also post any questions to me or our resident professional pip terminator JRP !
NVP
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NVP
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Phil Newton.....
hmm - getting time for a squizz round the T2W threads
Phil Newtons threads are warming up again....hes a price action man and his stuff is no nonsense and well written
read it....I am again to see how I can apply it to corrie if possible
N
hmm - getting time for a squizz round the T2W threads
Phil Newtons threads are warming up again....hes a price action man and his stuff is no nonsense and well written
read it....I am again to see how I can apply it to corrie if possible
N
NVP
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i'm reading up on range breaks at the moment over at phil newtons site and anywhere else that I see.....
just reviewing ranges on the last 2 weeks on the 30m 1000/1 corrie
boy was that USD period about 10 days ago (thursday/friday) tough !
look at the tight range on the USD.....as I keep saying it takes 2 currencies to tango in trading and when your main "Scalping feed" currency decides to go to sleep for an extended period the world gets real tough !
naturally you expect slow times during the tradional non active market periods but that sucker lasted through the whole of thursday and the friday moprning session (GMT)...interestingly it took off like a scalded cat on friday afternoon emphasising the old trading adage that periods of reduced volatility usually herald a big move...
N
just reviewing ranges on the last 2 weeks on the 30m 1000/1 corrie
boy was that USD period about 10 days ago (thursday/friday) tough !
look at the tight range on the USD.....as I keep saying it takes 2 currencies to tango in trading and when your main "Scalping feed" currency decides to go to sleep for an extended period the world gets real tough !
naturally you expect slow times during the tradional non active market periods but that sucker lasted through the whole of thursday and the friday moprning session (GMT)...interestingly it took off like a scalded cat on friday afternoon emphasising the old trading adage that periods of reduced volatility usually herald a big move...
N
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jrplimited
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Hi N,
Great stuff you posted above re your corrie version of 3 ducks, that makes for fascinating reading and during my festive break I'll be experimenting with this little gem.
As you know (and as PMd to Phreddy) I will often use the M15 price action direction to "tell" me if scalping or mini trend following is the way to trade on M5 or M1 - contra trades to M15 direction equals scalp whilst trades with M15 direction equals mini trend. Keying off intra S/R levels plays an important part and the corrie indy is great for watching price action at or near these.
That works good for E/U and G/U pairs but is not neccessarily the best deal when looking to trade E/G pair, as this cross has a far better way for trading - I'm looking forward to getting that particular aspect under discussion with you on this thread as it will certainly attract those seeking piptastic wonders in the FX palace!
Off to build a snowman with youngest daughter now and catch wifey with a few well aimed snowballs when she steps outside to go shopping - well, at least thats what I dream about anyway!
Enjoy everyone - regards,
Simon.
Great stuff you posted above re your corrie version of 3 ducks, that makes for fascinating reading and during my festive break I'll be experimenting with this little gem.
As you know (and as PMd to Phreddy) I will often use the M15 price action direction to "tell" me if scalping or mini trend following is the way to trade on M5 or M1 - contra trades to M15 direction equals scalp whilst trades with M15 direction equals mini trend. Keying off intra S/R levels plays an important part and the corrie indy is great for watching price action at or near these.
That works good for E/U and G/U pairs but is not neccessarily the best deal when looking to trade E/G pair, as this cross has a far better way for trading - I'm looking forward to getting that particular aspect under discussion with you on this thread as it will certainly attract those seeking piptastic wonders in the FX palace!
Off to build a snowman with youngest daughter now and catch wifey with a few well aimed snowballs when she steps outside to go shopping - well, at least thats what I dream about anyway!
Enjoy everyone - regards,
Simon.
NVP
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JRP contact me anytime...
Jees - just been out for a walk and feet were bloody freezing even in wellies and thick socks
just discovered that the outside tap is frozen (cover was warm and safe in the garage
) ....so going to try to tease it to life so it doesnt freeze whilst we are way in the canaries....I was lucky enough to live and work in Australia for 2 years back in the 90's and I gotta tell you that apart from allowing the kids 1 day of xmas snow on the 25th.......the cold weather sucks for me....i'm a warmth dude
january and February should be compulsorily spent in the southern hemispere !
N
NVP
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2010 and target setting....
Hi all
i'm a big believer in setting your stall out to be successful....thats not at all costs though, and certainly not compromising any systems or strategies that work
But unless you get something to aim at then its easier to let yourself off and not keep pushing the envelope and improving your approaches......interestingly if you read about the best traders they are always testing, adapting and improving their approaches to ensure that they move with the times as systems have a habit of becoming defunct in this business :whistling
heres phils latest comments re what hes doing now.....
http://www.trade2win.com/boards/for...-range-break-out-strategy-51.html#post1009408
wow.........this kinda stuff gives me the real impetus for 2010 to start formalising a lot of what we are now doing so that one day I can be confidently saying what the 8+(?) main corrie strategies make us in a week.....thats alongside the book deals, Blogs,Youtube Videos, merchandising and chat shows on Cable channels of course :cheesy:
JRP........hows that Karen Brady dress looking now ?
N
Hi all
i'm a big believer in setting your stall out to be successful....thats not at all costs though, and certainly not compromising any systems or strategies that work
But unless you get something to aim at then its easier to let yourself off and not keep pushing the envelope and improving your approaches......interestingly if you read about the best traders they are always testing, adapting and improving their approaches to ensure that they move with the times as systems have a habit of becoming defunct in this business :whistling
heres phils latest comments re what hes doing now.....
http://www.trade2win.com/boards/for...-range-break-out-strategy-51.html#post1009408
wow.........this kinda stuff gives me the real impetus for 2010 to start formalising a lot of what we are now doing so that one day I can be confidently saying what the 8+(?) main corrie strategies make us in a week.....thats alongside the book deals, Blogs,Youtube Videos, merchandising and chat shows on Cable channels of course :cheesy:
JRP........hows that Karen Brady dress looking now ?
N
