Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

come out with a handful of pips loss or hold yuor ground....your calls everyone

i'm holding just for the hell of it....forget the AUD entry and just sit on the europair trade till stopped out........

 

[NVP]

thats trading for you sometimes you just wanna cry......I have other indicators running that are telling me at least one of those 3 currencies should have risen a decent hit....but they havnt.......

 

[NVP]

if I had not entered this trade by now I would be saying that despite golds rise the Dollar will not fall much which means that a retrace could be imminent and USD will start to rise again selling europair....

were stopped out of G/U but E/U is still in there..I never entered the A/U

N

 

[NVP]

cut my losses on E/U and step out.......messy messy naughty naughty

N

 

[NVP]

i'll post lessons learned on this later.......but some you win some you lose !

like.......why am i trading during the "dead" lunchtime session ?

N

 

[NVP]

Hi N and everyone,

Cant believe its Friday already - where has the week gone? Here is my bun fight for this morning:-

GU; Entered long straight after 08:00 for 21 pip loss.
second trade short on 09:30 bar at 56806. 81 pip profit.

EU; short entered on 08:30 bar at 36226 for 72 pip profit.

EG; First trade entered short on 08:35 bar at 86678 for 9 pip loss. Second trade entered long on 10:50 bar for 12 pip loss.

Looks like the Euro zone's side stepped announcement of support for the four little pigs (Portugual, Ireland, Greece and Spain) hasnt really done anything to stop the big bad wolf (the markets) from huffing and puffing and blowing the currency down! The markets certainly dont seem to believe that Greece will be able to furnish its soveriegn debt and that belief will extend to the three other members of the little pigs group, plus we here in the UK might also get caught up within this question of soverien debt - I rather think that that is actually happening now.

Big question for us all is what the markets reaction is going to be to the good old USA's massive budget defecit when this bomb stops ticking and detonates? Eeek! Stand by for more blowouts - trade well and regards,
Simon.

A nice century my friend......you've had worse days trading then JRP.......:whistling

by the way you may of all noticed from my last escapade that JRP has not started any mentoring with me yet......

N

 

[NVP]

and of course the market then twists the knife........a 20 pip 5m bar on E/U ?????

the earlier posts explain my logic......although :-

was it over extended already ?
wise to do against the trend ?
wise to do during lunchtime session ?

spare me...
N

 

[NVP]

I saids it earlier and i will say it again...Yen is weak...very weak

N

 

[NVP]

try E/J as a buy punt this afternoon......it could surprise you...I think that Yern is going to dump soon and ...well apart from buying USD/JPY (sometihng I dont play with) the euro is as good a dude as any to buy into JPY...... above 123.10 sounds sensible as long as the journey to that price is steadyish and a few retraces.....

but what the hell do i know...........

hmmmm
N

 

[NVP]

so its ok for gold to rise and everyone have a good time now is it ????

N

 

[NVP]

markets dumping....buy Tag sell everything else...........

 

[NVP]

Gdnight night all.....time to go home....

hope everyone enjoyed the action earlier as my rusty/novice trading ideas were exposed on a premature entry**..... and then following the stop loss breaches I watched the prices follow through to missed trading profits......

hey - gimme a break....i'm a newbie goddamit......:whistling

N

** can i say premature entry before 9pm watershed...?

 

[NVP]

Hi all

hope you are all enjoying the weekend.....

Heres Boris talkin about those overnight Asian breaks again....he calls 3am EST (8am ) as this point......i'm not sure really and like my action dialling in at 7am really....depends clearly where the market is poised at these times......if its mid way then no issues as nothing to trade tlll it breaches anyway :whistling

no arguments re the fundamentals though...........if I was a professional full time trader I would rate the neconomic news releases as important as my Corrie signals and as Boris says in the video....if you get the breach alongside confirming news then it turns a good trade into a very high probabilty one......especially if the corrie signals are spot on as well

I was pm'ing JRP this weekend and he says the markets will rock this week and boy I have to agree......

I may call some Yen/USD plays this week as been playing a lot with them recently......yes I know its the TAG team but Ive decided to challege my rule of leaving that pair alone......1 pip spreads is an atraction as well......:smart:

bring it all on.......
N

 

[NVP]

mornin all......

I see the thread just celebrated 30,000 views over the weekend so I better come up with something half decent this week.......

JRP have you got the KB dress on to celebrate ?
N

 

[NVP]

W/C 15th Feb.......bring it on....

lets see whats cooking on the charts.....

hmmm....overnights were predictable.....markets drifting down.....tag drifting up.....europair downwards........Nice and simple start then that bodes well....

CAD took most of the tagteam pain in the night.....(not shown).....Aussie D and especially NZD were very perky alongside Tag so could be gud'day for them potentially buying against the Eurozone regadless of tag direction....

oh for a world of zero spreads eh !............then we could call things like Buy NZD sell EUR....

anyay as Boris said in yestedays video.......watch the overnight breaches now and lets see if the overnight direction gets rattled/tested in next hour or so.........as it usually does

and - be careful out there !
N

 

[NVP]

Forex factory have a brilliant economic calendar area and here it is below

use it and look out for the times when announcements get made on anything you are trading.......I didnt realise it was a B/H in usa (and canada) today ?

pretty quiet except when the Aussie twins get some news later.....perhaps prices holding up well o/n in antcipation of good news.....

N

 

[NVP]

early action and euro is looking quite strong......interesting....

 

[NVP]

so its gonna be last last week again eh

during my trip to work gold and the Dow30 futures rose , Tag fell......and euro stalled .............but guess what...GBP rose instead......

all that horizontal yellow line action was around 7.50am earlier on.....I see Gold and Dow30 (ws30) rising and think this will support a further E & G kick on (selling USD) ....I chose Euro as it was already proving strong....and see what happened....GBP whips through taking 20 pips on G/U and also 20 pips on E/G

nice idea but wrong currency punt NVP............

USD on its overnight lower breach line now......lets see what happens

N

 

[NVP]

hmmm.....of course if I thought that the USD was gonna tumble a little but was not 100% sure which of the Europairs was going to deliver the ole pippage

what I could do is chose 1 currency to pair up with the USD (eg euro) but then drop in a little insurance by also entering a E/G trade to ensure I get some payback if GBP goes north

so at around 7.50 am I could have traded

buy E/U
Sell E/G

I know you are all going to shout at me this is basically buy G/U trade - but by introducing euro into the mix the dynamics (based on the setup) do increase the % chance of breaking even or a little pippage on the table..........verses a pure G/U punt.......i think ??!!

this is actually looping back to the ole magical Jason fielder correlation code stuff (remember him) where he identified that The GBP sometimes can lag behind euro on a price move against USD...then slingshot past it in the same direction......not rocket science as we were all saying at the time and not worth $1997 !

I might be wrong here and I need to consider more whether this is a correct set-up that is leveraging the higher volatility of GBP correctly..........let me think some more regarding these scenarios.......hmmmm

basically I am more interested in a higher probability of being breakeven or a little right verses the ole lower probability of a big GBP win......defensive plays are what make you the consistent pips in trading not the super hero stuff.....

JRP knows where I am coming from here as we talk a lot about this holy trinity and how we can crack the code.......

N

 

[NVP]

ok see you all later..duty calls