Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi N,

Will be commenting on this morning's bun fight a little later. Re your display problem; Try re-starting MT yet again (!) and load up M5 charts first so tick database is present and current, then load up your usual templates - I have one specific profile (top menu, File/Profiles different from templates) dedicated to my fab 3 pairs which has M1 up to Daily charts for all of them and this is great for pump priming tick database in case of problems.

Simon.

thanks mate

loading all basic markets and charts in again and will let it simmer for a while to catch up....

N

 

[NVP]

Hi all

system still playing up so not much to say today.........apologies

in our more private Forum I have been looking at some work by a dude called Kang Gun on forex factory recommended by recent contributor here....(thanks richard !)

wow its awesome stuff......I am slowly going through the threads and may contact Kang Gun for a pow wow as I like a lot of the indicators (albeit some are a little to complicated for me) and would love to incorporate anything that is good for the ole Correlatio....(can I say correlatio ? :innocent

I have read to a point so far where they now seem to be hitting some interesting areas re currency correlation and its usage in these systems so will try to work through this all by the weekend and see what can be pulled out....

heres the link...........
http://www.forexfactory.com/showthread.php?t=123284

this seems related but read the small print as these guys quite rightly warn that the tradign approaches (EA's) will shred your capital to the bone if not used properly........
http://www.forexfactory.com/showthread.php?t=152341

i'm not an EA fan actually preferring manual intervention and control but thats just me .......there are gems in these threads re correlation that can help us all.....

N

 

[jrplimited]

Hi N,

I too saw those fx factory threads a few months ago, the former seemed to had ended in tears when teddies were thrown from the prams over accusations of someone "profiting" from the op's concepts and selling ideas commercially, whilst the latter (as you quite rightly mentioned) has a large wealth warning attached - given because back testing showed a wipe out situation....

Like you, I'm not a fan of EA based trading as there is absolutely nothing on this planet (read, affordable to us mere two-bit traders!) that can replicate what our tiny brain's can take in when looking at charts and seeing a mixture of recent history and current price action - the 'net is littered with so-called fool proof 'bots that make fortunes; fortunes for vendors maybe, tears for users though!

I hope you dont deviate away from your past year's excursions into this mind blowing correlation concept as I can, and do, see it working day-in and day-out if one is just patient enough and careful enough to select the correct flag and go with that and not expect those snake oil merchant type promises of squillions of buckeroos every day - pop small and go for small pips, its consistency in small amounts rather than inconsistent dream land enormous gains!

Hasta manana and regards,
Simon.

 

[phreddyinbg]

And speaking of EAs and robots, in this morning's inbox there is an e-mail saying how they hate all this over-hyped, mis-sold robots promising the earth but not delivering!!

But we have a new one it is called TWISTER!!!

Must be from US, they obviously don't realise that a twister, in UK, could mean a swindler!!

 

[NVP]

Hi N,

I too saw those fx factory threads a few months ago, the former seemed to had ended in tears when teddies were thrown from the prams over accusations of someone "profiting" from the op's concepts and selling ideas commercially, whilst the latter (as you quite rightly mentioned) has a large wealth warning attached - given because back testing showed a wipe out situation....

Like you, I'm not a fan of EA based trading as there is absolutely nothing on this planet (read, affordable to us mere two-bit traders!) that can replicate what our tiny brain's can take in when looking at charts and seeing a mixture of recent history and current price action - the 'net is littered with so-called fool proof 'bots that make fortunes; fortunes for vendors maybe, tears for users though!

I hope you dont deviate away from your past year's excursions into this mind blowing correlation concept as I can, and do, see it working day-in and day-out if one is just patient enough and careful enough to select the correct flag and go with that and not expect those snake oil merchant type promises of squillions of buckeroos every day - pop small and go for small pips, its consistency in small amounts rather than inconsistent dream land enormous gains!

Hasta manana and regards,
Simon.

hey JRP

Dont worry....I think that my excursions will eventually be limited by my braincells operating in the environment of high octane PHD programming and academia

I'm much more of a meat and potatoes kinda guy and this activity is more to see what the indicators used (in non EA environment) could do to raise our games.....there are some very nice ones there that make the corrie look like a stone age wheel.....

I am fascinated by these threads though and love to read and learn from them......the guys are very talented and are convinced that EA's and the programming theories will beat the markets.....I'm more pragmatic on this front and believe you do need to blend everything together to be sucessful in trading...... training, knowledge, experience, good robust systems and proven indicators, gut feel , fundamentals and a little Luck.....

a 20 year fighter pilot will generally always beat a pre programmed computer in the air during a real dog fight as we as humans are the ultimate machine and half the stuff we do has still not really been explained yet re our potential....

N

 

[NVP]

hmmmmmmmmm

of course given its nearly 8am you will realise that my main pc has crashed again and will not link to the internet so no charts at the moment.....(this is my work laptop)

I will call the techies (but they will be undermanned due to weather)......but man o man this is becoming embarrassing

the 6 inches of snow outside will not help much today re getting out and about to rectify things either.........oh yeah and I still have the chest infection....

2010....?.....beam me up scotty

N

 

[NVP]

And speaking of EAs and robots, in this morning's inbox there is an e-mail saying how they hate all this over-hyped, mis-sold robots promising the earth but not delivering!!

But we have a new one it is called TWISTER!!!

Must be from US, they obviously don't realise that a twister, in UK, could mean a swindler!!

hi Phreddy

yep...they keep on coming dont they

N

 

[NVP]

hmmmmm

Got the techies working on it......apparently my speeds are to low and my home pc keeps dropping the signals......whatever....

Work internet access and db's have failed as well so got a call in to their IT desk

Game of I spy anyone ?

N

 

[phreddyinbg]

Sorry to hear about all your woes, hope all gets sorted soon.

Mrs Phreddy says "Chest infection from the Caneries is very common, you need anti-biotics to clear it, it is fungal"
We are not fans of the anti-b but in this case it is necessary, you must go to the Dr if you haven't been already.

Next patient please!!!

 

[jrplimited]

Hi N and phreddy,

Got only small snowfall here today - apparently the air is to "dry" for any serious stuff - I read that as forecasters getting it wrong again!

OK, onto what I saw on this morning's quite tough session with a few pics to boot:-

GU; A curse on those naughty big bars yet again. I had to wait after that 08:05 bra (bra? freudian slip there!) for a pullback and had a buy stop filled during 08:30 bar at 60466 which retreated by the close and then went a little further on next bar, and next, and with those tallish heads I decided to move initial SL about a third of the way up to 08:45 bar's body, then hey presto market fell over on 08:50 bar and stopped me out with a 9 pip profit. Second trade was going to be taken at around 60323 short but my charts didnt agree with that setup so I set a sell stop at 60164 and price took this out during 09:50 bar, went south for a bit then turned north for a 10 pip MAE before turning south again and floating rather gently down and starting to catch the momentum train. Used 60031 as first TS as I thought the momentum would allow me to track this trade much further down but the SoB turned once again and took me out for 11 or so pips profit.

EU; Had to wait until 08:55 close before getting any decent flag and entered long on 09:00 bar, wailed at the following small retrace a few bars later then cheered at push upwards following this. Got taken out by TS near end of 10:05 bar for 14 pips profit - it felt like it should have been far more than that! To me bias was long so ignored the short flags and for second trade and had buy stop filled during 10:50 bar at 43633. Price motored up on next bar allowing me to easily raise initial SL to BE, 11:00 bar drop had me thinking "... WTF? ..." (I'm very rude when trading!) and sure enough, 11:05 bar took me out for zero gain/loss.

EG; Felt both G and E were rising in a sort of tandem after London open so waited for one or other to break and show its hand. Sure enough it was G that had the flakey uptrend so after it fell over I waited for a flag and had buy stop filled during 09:40 bar at 89624 and rode the mini trend up for a few bars, watched in frustration as it retraced oh so gently but without real threat as far as I could tell, before finally engaging gear and doing the business for me and motoring on northwards again. Got a tad nervous around midday and, as it was getting near to my morning's session end, exited the trade at 12:10 bar close for 15 pips profit.

One of those days where only small profits were on the table so we take and run!

Sorry to hear you still slightly under the weather (pardon the pun!) N and also your IT stuff is playing up, lets hope you get this resolved soon - follow Dr. phreddy's wise words on the infection bit....

Trade well and regards,
Simon.

 

[NVP]

Sorry to hear about all your woes, hope all gets sorted soon.

Mrs Phreddy says "Chest infection from the Caneries is very common, you need anti-biotics to clear it, it is fungal"
We are not fans of the anti-b but in this case it is necessary, you must go to the Dr if you haven't been already.

Next patient please!!!

Thanks mrs P....I have got some Anti b's now and will take them to get rid of this stuff...

hmmm.....can you do anything about the nasty rash I have on my.....

oops forget it !!
N

 

[NVP]

Hi N and phreddy,

OK, onto what I saw on this morning's quite tough session with a few pics to boot:-

GU;

market fell over on 08:50 bar and stopped me out with a 9 pip profit.
Second trade took me out for 11 or so pips profit.

EU; TS near end of 10:05 bar for 14 pips profit

EG; trade at 12:10 bar close for 15 pips profit.

One of those days where only small profits were on the table so we take and run!

Trade well and regards,
Simon.

thks JRP.............our resident pro trader delivers rain or shine....

(ps we must talk privately re those charts and indicators sometime)

N

 

[NVP]

what have I done to deserve this ?

hmmmmmmm.........

it appears I am the only person in the universe that is using a normal cable (ie non wireless) connection to my 3 year old pc.........and its upstairs so not near my main BT input plug socket (no no no....that would be far to simple)

so tomorrow it goes downstairs to be next to this socket for me to test connection speeds....and then we can get 1 step nearer the holy grail of a internet connection to the only PC I have with all my metatrader charts and settings on it.......

if we didnt have 200ft of snow outside and I wasnt ill with bad manflu type major problems that women dont understand then I would escape house and buy a new laptop .........but the south has ground to a halt of course.....

2010 going well so far then......

oh well back to I spy.....
N

 

[jrplimited]

Re: what have I done to deserve this ?

Hi N,

So, major upheavels on the 'net connection front for you then, at least with all the excersice incurred making a new location for your pc perhaps your "manflu" effects will start to wear off?

I hard wire all my pcs diectly to the main cable connection, wireless to me is a bit hit and miss at times and not something I'd tempt when live trading. Wireless is OK for my daughters and wifey use because if they dont connect or get dropped at anytime, I just blame it on atmospheric conditions - probably get found out one of these days and then all hell will break loose!

Get well soon and, most importantly, get connected even sooner...
Simon.

 

[NVP]

Re: what have I done to deserve this ?

Hi N,

So, major upheavels on the 'net connection front for you then, at least with all the excersice incurred making a new location for your pc perhaps your "manflu" effects will start to wear off?

I hard wire all my pcs diectly to the main cable connection, wireless to me is a bit hit and miss at times and not something I'd tempt when live trading. Wireless is OK for my daughters and wifey use because if they dont connect or get dropped at anytime, I just blame it on atmospheric conditions - probably get found out one of these days and then all hell will break loose!

Get well soon and, most importantly, get connected even sooner...
Simon.

Hi mate

I totally agree........I really need to hang onto the fixed cable approach as I have heard similarly re wirelesses problems.....more line testing tomorrow....

N

 

[alan5616]

Re: what have I done to deserve this ?

Hi mate

I totally agree........I really need to hang onto the fixed cable approach as I have heard similarly re wirelesses problems.....more line testing tomorrow....

N

Hi Neil,

I had perpetual problems, with my inet connection, when I was a BT customer. I switched to cable, with Virgin Media, back in Aug 2007.

Since then, I've had fewer disconnections, in total, than I used to have in a month with BT. If you can get a cable service, such as Virgin Media, in your area, then I would suggest that you check it out a.s.a.p.

 

[NVP]

Re: what have I done to deserve this ?

Hi Neil,

I had perpetual problems, with my inet connection, when I was a BT customer. I switched to cable, with Virgin Media, back in Aug 2007.

Since then, I've had fewer disconnections, in total, than I used to have in a month with BT. If you can get a cable service, such as Virgin Media, in your area, then I would suggest that you check it out a.s.a.p.

Hi Alan

happy new year - hope all is well and good to hear from you !

i'm out in the sticks so apart from BT .....my options are limited

O2 service is extra cost anyway but they do try......I will review this ASAP to see whats happening now in my area.......trouble is everything takes weeks if you try to swich services........funny that !:whistling

Thread Update - no commentarries today again then...............guys think of the money you are all saving from not listening to my ramblings !

so new Japanese FM wants weaker Yen eh.....perhaps he should phone alistair darling for some advice.....UK are doing a great job to date on that front

N

 

[jrplimited]

Hello All,

Bit of snow clearing to do after morning session so apologies for this late post....

Well, what a morning but thats to be expected as its the infamous nfp day tomorrow (one week late due to festive holidays) and the preceding day [today] is quite usually a day of indecision, anyway this is the time of month I always use 50% pop stakes whenever trading - its THAT time of the month!! Onto what I saw:-

EU; Got suckered into a long trade on open of 08:10 bar which of course proceded to fall over slowly two bars afterwards and then during the 08:25 bar took my SL straight out without so much as an excuse me please! Horrible 20 pip loss there. Second trade, dived in short during first 30 seconds of 08:30 bar then screamed at price as it started to slowly retrace upwards again from next bar, although this time it gave me breathing space to drag initial SL to BE and sure enough the high of 09:00 bar took me out. watched in dispbelief as 09:30 bar started to climb up quite strongly and backed up my disbelief by placing a sell stop at 43722 after 09:35 bar "cooled" things down again and this was filled quickly during start of 09:40 bar. Rode that fairly nice wave southwards and didnt like the look of 10:30 up bar so exited at the close of this for 16 pips profit - premature as it happens as price (naffing typically!) chugged on south again afterwards, oh well. Third trade had a buy stop filled during 11:05 bar and this, of course as its THAT sort of day!, turned on me yet again for a trouser changing MAE before turning my way once again and I decided to simply get out of Dodge pdq after price broke through my initial entry point for a break even trade.

GU; Bit of a more simpler trade setup here - ie I lost quicker! Went long on open of 08:10 bar and had to do a rapido stop-and-reverse (hate doing those) routine during 08:25 bar after price moved completely against me and flagged short. Took a 20 pip hit (loss) on that futile trade. So now with second trade opened short what did that wicked price do? Yes! It went slightly further south for one bar afterwards and then turned north to test both my tolerance and SL to extremes! Nerves held out though as I felt I was on correct "side" of market bias and got a small reward for that as price again turned round and dropped quite sharply down.... Only to find a quite stable resistance point from which it started to rally up again and take out my TS during 09:00 bar for 14 pips profit. Third trade went short on opening of 10:15 bar and muttered very rudely to pc screen as price did the usual for today and went against me, but this time the adverse momentume wasnt strong enough for major trouser change juncture and I held on with only being able to adjust initial SL to a tad above BE after 10:50 bar closed before next 10:55 bar whooshed up and took me out for a 6 pip loss.

EG; Absolutely chaos chart wise, reflected in EU and GU erratic movements, and couldnt find any decent setups at all here. Saw one evolve short on 12:05 bar but thats outside of my morning session time.

Ouch! That lot hurt for sure but at least on the positive side it was only on reduced stakes per trade. Be very careful when trading this afternoon as this market looks about as friendly as the UK premier's (gordon "charlie" brown) fellow cabinet ministers - expect a political coup at anytime!

Trade well and regards,
Simon.

 

[NVP]

Hi all

I have some better access now .......moved pc downstairs to lounge (main BT point)
so not popular !

will have a look through stuff and fire out any observations.......charts seem all up to date as well now.............buying a laptop at weekend (weather permitting) as I cannot go on like this

N

 

[jrplimited]

Hi N,

Welcome back to the dark side! How is the manflu thingy?
Simon.