Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
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hey all................ive been tied up but a little trading in the background
heres the day so far ......I took a little G/U on that breakout earlier in day but switched to E/U quickly with some decent pips .......
then dow weakened and I was hoping for a little selling on either the Euro or GBP on 15m's but as you can see the YEN and USD have stayed south and weak so no trades .....
I wont trade in these conditions as I reallyneed the yen and USD to be playing a little Ball with the Dow .........if you were "Trading Naked***" with the FXcorrelator there were a few pips around
N
****simply trade the FXCorrelator ignoring the Dow ........if Yen and USD are either above or below the Zero (on say the 20/1 default) just trade them against currencies on the other side of the zero....
simple and brutal !
heres the day so far ......I took a little G/U on that breakout earlier in day but switched to E/U quickly with some decent pips .......
then dow weakened and I was hoping for a little selling on either the Euro or GBP on 15m's but as you can see the YEN and USD have stayed south and weak so no trades .....
I wont trade in these conditions as I reallyneed the yen and USD to be playing a little Ball with the Dow .........if you were "Trading Naked***" with the FXcorrelator there were a few pips around
N
****simply trade the FXCorrelator ignoring the Dow ........if Yen and USD are either above or below the Zero (on say the 20/1 default) just trade them against currencies on the other side of the zero....
simple and brutal !
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NVP
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NVP
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hi all
well the final twist and turns happened with a few pips on offer last night......
heres the charts ......left chart is the 4hr 20/3 (bias) indicator....look at that fightback from the YEN/USD team as the Dow weakened this week
on the right 15m TF........we saw scrappy action but a few pips on offer if you were fast on your feet ......and not as fussy about dow/USD/YEN correlation......
ok i'm around today tomorrow then with some family for a festive break.....please bring questions and comments here if you want .......even if its just popping in and saying hello !
it would be great to hear from some of the people who have made this such a fun thread to be in over the last year or so......
N
well the final twist and turns happened with a few pips on offer last night......
heres the charts ......left chart is the 4hr 20/3 (bias) indicator....look at that fightback from the YEN/USD team as the Dow weakened this week
on the right 15m TF........we saw scrappy action but a few pips on offer if you were fast on your feet ......and not as fussy about dow/USD/YEN correlation......
ok i'm around today tomorrow then with some family for a festive break.....please bring questions and comments here if you want .......even if its just popping in and saying hello !
it would be great to hear from some of the people who have made this such a fun thread to be in over the last year or so......
N
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NVP
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heres a 5m chart but I set the ma to 500
look at those nice S/R lines in action on some of the currencies....
ive stopped talking here about using the higher ma settings on the FXcorrelator as its easier to show here my simple 20ma default setting and make observations that way
but dont think I am not using all of the FXcorrelators potential armoury to trade as I can assure you I am !.....
search for "500" in this big thread and go and see the posts made......theres a lot of them and it discusses how to trade price action signals on the FXcorrelator
N
look at those nice S/R lines in action on some of the currencies....
ive stopped talking here about using the higher ma settings on the FXcorrelator as its easier to show here my simple 20ma default setting and make observations that way
but dont think I am not using all of the FXcorrelators potential armoury to trade as I can assure you I am !.....
search for "500" in this big thread and go and see the posts made......theres a lot of them and it discusses how to trade price action signals on the FXcorrelator
N
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15 min tlb
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NVP
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Re: Guide to the FXcorrelator
no worries 15......
this is a very simple intro to Strengthmeter trading ......its the tip of the iceberg and a learning journey I continue to walk
N
no worries 15......
this is a very simple intro to Strengthmeter trading ......its the tip of the iceberg and a learning journey I continue to walk
N
Sometime ago I looked at "Getting Started in Currency Trading. Winning in Today's Market" By M Archer. Useful to have the basics in one place but I just don't see how Archer can make the latter assertion.
Out of 370 pages, correlation does have a mention... a half-page! The remainder of the book is useful for "resources" but is a re-hash of the "tried and tested" indicators and oscillators.
My question is - if, as I have often seen, more than 70% of new traders fail abysmally, why bother to buy 'advice' in books such as this?
The art and method of Correlation is obviously only studied only by a minority(Pareto principle 20-80?) and I bet we are more successful than any disciple of a "Get started" book!
Many thanks to NVP and a Happy Feast of the Holy Nativity to you all.
Out of 370 pages, correlation does have a mention... a half-page! The remainder of the book is useful for "resources" but is a re-hash of the "tried and tested" indicators and oscillators.
My question is - if, as I have often seen, more than 70% of new traders fail abysmally, why bother to buy 'advice' in books such as this?
The art and method of Correlation is obviously only studied only by a minority(Pareto principle 20-80?) and I bet we are more successful than any disciple of a "Get started" book!
Many thanks to NVP and a Happy Feast of the Holy Nativity to you all.
NVP
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thanks Hamish
Everyone has to find their own path in life and indeed any endeavour they chose to undertake
I have been involved in Gambling since the early 60's .....growing up with a father and grandfather who were Bookmakers and professional gamblers.....so I was lucky to see first hand the true power of probability and the folly of punters from an early age..and how the 2 rarely meet in the average punters favour.....!
with this still in mind some 50 years later..... I urge everyone considering the vocation of Trading to take serious time out to learn the basics of Trading and to read and research as widely as possible before dipping their toes in the water ......surely a common sense approach to everything you chose to follow seriously ?
dont rush it.....you have limitless time to study ...but only limited money ......and dont be duped by the zillions of helpful traders/marketeers out there offering instant success and riches from the latest indicator and system (theirs).......its not worth it, as even if the system was half useful it will be based on their own personal views and philosophies and learning path to that point....they are not you and you are not them...you have your own path to walk and you will all get there at the right time and the right place.....we are never sure when though !
since seeing Trading first hand in the 80's (working for Shell International Trading in london) my own modest research and observations in the last 30 years have finally lead me to trading Forex via Strengthmeters and also Market Correlation techniques..... why ?........because it makes sense to me warts and all......I am a big picture person and like to see everything going on to look for clues and opportunities .....and I cant do that unless i am watching the wider markets and in Forex I am watching a basket of currencies to see whos doing what .......just my own thoughts
so to everyone here as a 1 week newbie or a 50 year veteran.....never stop learning and I hope you find your holy grail in 2013
cheers all !
NVP (Neil)
Everyone has to find their own path in life and indeed any endeavour they chose to undertake
I have been involved in Gambling since the early 60's .....growing up with a father and grandfather who were Bookmakers and professional gamblers.....so I was lucky to see first hand the true power of probability and the folly of punters from an early age..and how the 2 rarely meet in the average punters favour.....!
with this still in mind some 50 years later..... I urge everyone considering the vocation of Trading to take serious time out to learn the basics of Trading and to read and research as widely as possible before dipping their toes in the water ......surely a common sense approach to everything you chose to follow seriously ?
dont rush it.....you have limitless time to study ...but only limited money ......and dont be duped by the zillions of helpful traders/marketeers out there offering instant success and riches from the latest indicator and system (theirs).......its not worth it, as even if the system was half useful it will be based on their own personal views and philosophies and learning path to that point....they are not you and you are not them...you have your own path to walk and you will all get there at the right time and the right place.....we are never sure when though !
since seeing Trading first hand in the 80's (working for Shell International Trading in london) my own modest research and observations in the last 30 years have finally lead me to trading Forex via Strengthmeters and also Market Correlation techniques..... why ?........because it makes sense to me warts and all......I am a big picture person and like to see everything going on to look for clues and opportunities .....and I cant do that unless i am watching the wider markets and in Forex I am watching a basket of currencies to see whos doing what .......just my own thoughts
so to everyone here as a 1 week newbie or a 50 year veteran.....never stop learning and I hope you find your holy grail in 2013
cheers all !
NVP (Neil)
NVP
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heres 2012 on a 500ma daily setting........
the 500 gives you real granularity directionally unlike the 20ma which is more skewed to showing shorter term trending.......so try the 500 on any TF !
see where the tide turned in 2012 ?
Dow hit lows around early June - and that was where the Yen and USD were at their peak...all downhill for them after that !
and just look at the Euro.....if you were buying that critter from early August you can really pat yourself on the back .......amazing !
ok lets see what 2013 brings .....
N
the 500 gives you real granularity directionally unlike the 20ma which is more skewed to showing shorter term trending.......so try the 500 on any TF !
see where the tide turned in 2012 ?
Dow hit lows around early June - and that was where the Yen and USD were at their peak...all downhill for them after that !
and just look at the Euro.....if you were buying that critter from early August you can really pat yourself on the back .......amazing !
ok lets see what 2013 brings .....
N
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NVP
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hey all
jees.......a few days with family and friends and the brain has seized up......(dont say a thing!)
still cant retreat to my study and hide.....jobs and errands to run next few days so sorry its gonna be quiet here ..still for a while yet.....
I recommend everyone take the downtime to chill and enjoy it......as life is normally to busy to allow it
have a great new year
N
jees.......a few days with family and friends and the brain has seized up......(dont say a thing!)
still cant retreat to my study and hide.....jobs and errands to run next few days so sorry its gonna be quiet here ..still for a while yet.....
I recommend everyone take the downtime to chill and enjoy it......as life is normally to busy to allow it
have a great new year
N
swissforex
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Ok let's make some house cleaning
I've some free time 'cos this is a no trading and no job period for me
I've read the last 5 pages of this thread
--about your good q,yes I trade manually and put some trailing stop when I can't baby sit my trade. Sadly I've a very demanding job..Money management depends from Basket Size and timeframe,roughly it's a 200 pips b\e with a 30-50% trailing profit setup.
--Very good observations about the DJ correlation with USD\JPY, well done
--about my reputation here on T2W,rookie with only 22 posts,I love this Forum but I'm more active and well known on another popular ForexForum. And I prefer to trade rather than writing ,you know what I mean bro
--and again very interesting reading about trading lower TFs with your indi,I 've made some naked trades in the past when I was bored with my Basket trading,and I can testify that it is a good tool if properly managed
I still have to explore your Gold Variation,while I think I' ll pass the ball about Exotic pairs..
