Best Thread Correlation Trading - Basic Ideas and Strategies

hope this helps anyone who has been following me from way back

I've never shared my actual accounts/results before but because it was a demo I wasn't to fussed this time ...........

last 2 weeks constitutes my most concentrated efforts on scalping (mixed TF timescales prior to this) ..........

its specialist and needs a lot of fine tuning on my strengthmeter approaches .....................no sitting back and having a cup of tea !!!

N
 
NVP said:
....heres my track record to date ......I don't need fancy ratios just the facts !!

just out of interest today even with disasters was by best to date .......

TODAY

142 trades 72% win rate and I was making $1.40 per win and only paying $1.66 on my losses .....................damn commission mopped up this though and left me down £12 today

such is life but getting better ..............I still have only had just 1 win of $10 or above (and only 4 on $10).........so plenty to work on re letting profits run (as F always says) ............

my defence is getting tighter again now , my win rates are acceptable ..........but I need more profit runs to make this pay !!!

N
Click to expand...


Its good that us boring accountants ( ex accountant over 25 years ago for me) can see it all with the numbers

I know you know that out of those142 scalps - maybe 30 or more left on with a smaller stake size in profit could have taken your bottom line well into profit

For me - you did over 119 more trades than me today and as you might guess I have had a cracker

Will come back with some figures and ideas to look at later

Regards

F
 
Forexmospherian said:
Its good that us boring accountants ( ex accountant over 25 years ago for me) can see it all with the numbers

I know you know that out of those142 scalps - maybe 30 or more left on with a smaller stake size in profit could have taken your bottom line well into profit

For me - you did over 119 more trades than me today and as you might guess I have had a cracker

Will come back with some figures and ideas to look at later

Regards

F
Click to expand...

agrred ............many of these were following the same move ...so im alsos P*ssing commission down the drain............easily taking 4-5 trades to 1 simple one on a long usd trend .......that's stupid spreads and commissions given away !!!!

sorry i'm still not settling in ...........I cant seem to take my finger off of the exit trigger when I see profit in the bank

after all these years I should know better....its just harder when you are scalping to do that ..........for me anyway on such tight stops now ..........

i'm set on just 2 pips EU and 3 pips AU on LMAX stops...........therefore it proves to me i'm getting entries repeatedly correct ..............

in fact ironically i'm making it harder than it is !! (like Ronaldo running around the defence 3 times instead of once before he scores !!!)

never though of it that way before .....its great what a journal does :whistling

N
 
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Forexmospherian said:
Its good that us boring accountants ( ex accountant over 25 years ago for me) can see it all with the numbers

I know you know that out of those142 scalps - maybe 30 or more left on with a smaller stake size in profit could have taken your bottom line well into profit

For me - you did over 119 more trades than me today and as you might guess I have had a cracker

Will come back with some figures and ideas to look at later

Regards

F
Click to expand...


I know my problems well F..........we accountants are good at pointing those things out :LOL:

for example .......regarding the 90 mins of big usd sell off earlier today

you probably took 3-4 trades ............I took 37 trades on EU and AU for the same damn USD bear move :eek:

I made 78% sucesssful trades for the same single trade ???........made $36 net (after giving back 8 retrace/losses) but then paid $23 in commission and also paid probably 30-40 Cents per trade spread..say $10-12 of unnecessary recycled trading ?

whereas you will have taken the equivalent profits on single contract (guaranteed in even earlier !!!) and then only paid 10% of the commission and spreads I paid for less trades........

so your equivalent was probably say $40+ profit + add back $10 in spreads and then only deduct $3 commissions = $47 net profit ..............and thast before you had added multiple pairs and layered in and out !!

I made $13 ...for that period.......

jees I'm more charitable than Oxfam !!! :LOL::cool:

later......plenty of thinking to do tonight :smart:

N
 
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NVP said:
I know my problems well F..........we accountants are good at pointing those things out :LOL:

for example .......regarding the 90 mins of big usd sell off earlier today

you probably took 3-4 trades ............I took 37 trades on EU and AU for the same damn USD bear move :eek:

I made 78% sucesssful trades for the same single trade ???........made $36 net (after giving back 8 retrace/losses) but then paid $23 in commission and also paid probably 30-40 Cents per trade spread..say $10-12 of unnecessary recycled trading ?

whereas you will have taken the equivalent profits on single contract (guaranteed in even earlier !!!) and then only paid 10% of the commission and spreads I paid for less trades........

so your equivalent was probably say $40+ profit + add back $10 in spreads and then only deduct $3 commissions = $47 net profit ..............and thast before you had added multiple pairs and layered in and out !!

I made $13 ...for that period.......

jees I'm more charitable than Oxfam !!! :LOL::cool:

later......plenty of thinking to do tonight :smart:

N
Click to expand...


I am going share some of my trading stats from over that last 5000+ intra day trades - as on the prior ones I did not know as much say 6 years ago as I know now

This will assist you with optimising your daily trading sessions and also give you another angle to look at with regards stops and targets and pyramding and peeling etc etc

Regards


F
 
this is diligent stuff. i just pull the trigger.
would be interesting for you to compare this demo with an fx pro demo and see which is the most punitive commission wise. my maths is not good enough for me to do this quickly!
i suspect i already know which account will rip you less
 
NVP said:
hey mm

if you are talking about the ma on the FXCorrelator then the MA average reflects the G8 average

so the FXCorrelator set on a 20 (below) shows what individual CURRENCIES are strong (>20) and which are weak (<20) where the MA line is always the Zero

and if you want to add to the fun.............wherever 2 currencies cross is the 20ma crossovers you see on their pairchart !

if you change the MA setting you will then see how the currencies are doing vs that new MA......therefore some people like having 2 indicators going and looking for currencies sellin on BOTH fater and slower MA.s


see how damn weak the cad is on the 1 hr TF...been a sell since yesterday........at the moment the cad is selling on virtually all ma settings !!! !!!!

N
Click to expand...

so in this instance cad jpy was the one to trade? after the green word "weaK" i mean
 
Forexmospherian said:
I am going share some of my trading stats from over that last 5000+ intra day trades - as on the prior ones I did not know as much say 6 years ago as I know now

This will assist you with optimising your daily trading sessions and also give you another angle to look at with regards stops and targets and pyramding and peeling etc etc

Regards


F
Click to expand...
That will be cool F.
 
Forexmospherian said:
I am going share some of my trading stats from over that last 5000+ intra day trades - as on the prior ones I did not know as much say 6 years ago as I know now

This will assist you with optimising your daily trading sessions and also give you another angle to look at with regards stops and targets and pyramding and peeling etc etc

Regards


F
Click to expand...

that would be appreciated........I think it will be eye popping stuff for us in the trenches ........;)
 
MajorMagnuM said:
this is diligent stuff. i just pull the trigger.
would be interesting for you to compare this demo with an fx pro demo and see which is the most punitive commission wise. my maths is not good enough for me to do this quickly!
i suspect i already know which account will rip you less
Click to expand...

fair point mm...............fortunately i'm on demo so I can focus on making more margins and then tidy up the details (like optimising rips and spreads) later ...

my current elephant in the room is my overtrading :cool:

and lets be very clear about this as well............if you factor in commissions I am losing a lot more trades than shown

N
 
NVP said:
that would be appreciated........I think it will be eye popping stuff for us in the trenches ........;)
Click to expand...

Hi N

I will stick with the key intra day trading info so that you can cherry pick what you want to incorporate into your daily trading

For a start - your win ratio is very good an needs commending on - BUT there will always be buts if you are counting any win over spread - ie 0.2 of a pip as a win and its still all from a demo account

MM as already found out trading live with say 2 lots on per pip is totally different than demo or just $1 and I am sure you know that from your previous live trading etc

I would say you need to only count wins over 2 pips net - I personally call a 1 pip either way just a break even in my own records and 2 pips plus a win

On batches of 100 live money trades my lowest win ratio's have been 61 to 63% and best win ratios on a few batches of 100 live trades at 85 to 87%

I base my own method on achieving over a constant 65% and anything over 75% is really cream on the cake

Stops need not be just 2 or 3 pips - I allow up to 7 pips in my model - but average now at 5 pips including spread cost.

I must say - I don't use a hard stop - only soft mental stop as scalp is always babysitter - until a profit is placed in stop or after 70% of stakes taken off the trade and banked

I use one click as I a m sure you do and don't use many limit orders

Based on my average 10 trades - I will have normally 2 to 4 losses - so work on 6 wins and they normally consist of only one trade over 15+ pips net and then 3 wins in the 3 to 7 pip range and the other 2 between 7 and 12 pips

I need normally between 5 and 10 Max trades to have one with a RR of over 3 on a scalp but 20 to 25% of the win trades will work on 30% stake with stop in small profit and go on to make over 20 pips plus

Today I had 3 trades on 30 % stakes make over 60 pip each and another 3 over 20 pips each - this is besides the 70% stakes I bank first off the pure scalp

Also I did make over 20 trades today - simply because it was busy

If we had the main after lunch rally actions before say 9 am - I might have only made 12 - 15 trades in total and would have been happy

Treat your day as totally opposite from when you were young and out on the pull at a disco or night club :)

In those days - you start very picky after the sexiest babe available and spend time with a plan

If it failed - by the end of the night anything in a skirt that walked was on :)

With short term intra day - get some pips in the kitty within a few hrs and get some swings on with stops in profit

After you have taken 10 trades or so - get very picky - choose potential waves that might move over 25 pips - don't chase any pips for a trade - your not drunk and need a quick lay nowadays - your planning for the cream ie - from say midday to 4 or 5 pm time

Everyday is different - expect the unexpected every 30 to 60 mins - its all part of the game

I can say trading over 50 s:) calps a day wore me out band in just missed so much of the main action

Even MM who I keep saying slow down pace yourself had taken less than 35 trades up to early evening

My history and stats say your priority is to finish the day with a profit - and I don't mean just 8 pips look at 25 to 50 as your daily goals - but never on more than 30 scalps

25 and 30 scalps plus in a day should only be taken if either you are on a roll and its a busy day and you are making over 200 pips - or simply you had a bad day after 15 trades and you need to get to a positive profit of over aminimum 20 pips so are having to take more trades to do it

Also - I need over 3 breaks every day from say 15 to 30 mins

If I have 3 bad trades consecutively - I take an hour off and then cheat by making sure I grab a minimum 3 pips profit off the next trades - just to break the psych etc

Learn to deceive the market like it deceives us

Don't be frightened of it - make sure that even on busy periods you read price on a 10 second tick chart until it seems slow

I will cover more in my other second thread - meanwhile pat yourself on the back - come off the trading Viagra and work smart and then in next 2 days you will see big improvements

All the very best - you will get consistent - because you are organised and know what's needed

Regards


F
 
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EOD trading

NVP,

I read a while back (august I think?) you said you were not going to scalp but stay on EOD trading. Over the past few months I have followed your intraday scalping exploits with interest - thanks for posting!

I am unable to day trade and am still testing the fxcorrelator on EOD trading so was just wondering if you still think this is a profitable option for the correlation and if so what settings (MA etc) and time frames you used for EOD entry and exits?

Thanks again for all your contributions to this forum!
 
thanks for the in depth input and support F............ I can assure you I will read and absorb it again and again ............and again ...........

many of these things I know inside of me ................but its amazing how many you can forget when you are in the heat of battle ..........and the blood starts pumping !!

that goes for anything in life of course !

thanks again.........I need to reset a few things on my scalping indicators but today I am looking to be much more strategic in my trading ........

the analysis yesterday was my first real look for a few days and was indeed very useful to me

N
 
sandyberg said:
NVP,

I read a while back (august I think?) you said you were not going to scalp but stay on EOD trading. Over the past few months I have followed your intraday scalping exploits with interest - thanks for posting!

I am unable to day trade and am still testing the fxcorrelator on EOD trading so was just wondering if you still think this is a profitable option for the correlation and if so what settings (MA etc) and time frames you used for EOD entry and exits?

Thanks again for all your contributions to this forum!
Click to expand...

hey S (and everyone)

firstly can I say that I still stand 100000% behind the benefits of using forex strengthmeters in trading......... and in particular my own FXCorrelator which is free and available here below in the links area :smart:

I can assure everyone here reading about my recent scalping exploits that the strengthmeters are not letting me down ..............its vice versa (mea culpa)

I am human and on a new platform and for the first time in 14 years am hitting the markets hard 8-10 hours a day (over 800 trades in 8 days) .............I have never had the luxury of so much time before ( 1 of the very few benefits of being made redundant :cool:)

the basic FXCorrelator is valuable on any timeframe for supporting trade entries/exits and I recommend it 100%

the devil (as F says) is always in the detail ..........its just a way of looking at the G8 currencies and is no use without a robust trading strategy and excellent execution and MM (what is ?)

so in answer to the question - use it .....it works ! :smart:

N
 
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