Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

morning all

well the usd is entering a new week under pressure to sell........so that's where technically I will start hunting opportunities

lets roll.........

N

usd still moving south ...........little real solid opps yet to bag pips .........shes a little choppy and prone to fast moves so far ........

 

[NVP]

ok we are finally ready to rock ....buckle up

 

[NVP]

been trading on forexperians thread ...............took a couple of attempts but finally got rolling and put positive pips on the board for the session

back later
N

 

[NVP]

made more pips on EU..........nicely up for the morning

http://www.trade2win.com/boards/dis...ert-retail-forex-trader-3951.html#post2507314



ok back later

N

 

[NVP]

hi all

tied up but note that usd in bull phase on lower TF.........Europeans are bull as well so not really a session for me to be making pips

N

 

[NVP]

the eu is the sell for the Europeans ........but not yet .........usd still grinding south

 

[NVP]

4780 buy in gu tempting

 

[NVP]

was risky but gbp is due a bounce

 

[NVP]

Europeans doing ok against a still bear usd ..........as F says its about getting the timing and cycling right

back later
N

 

[NVP]

people ask me in my world what is trading vs gambling ?

well its this......the green line is the usd index based on my own indicator/calcs .........only trade usd pairs when you see a bias on the usd itself ........otherwise you are gambling......and losing !!

N

 

[NVP]

hey all

in the background........market has certainly fired up now since 13.00 hours........plenty of pips around with solid trending

N

 

[Phylo]

FXCORRELATOR_BASIC_FREE_VERSION_2013.mq4

Congratulations on your thread recently exceeding 1 million posts. A wonderful thread given freely of yourself to others.

Regarding FXCORRELATOR_BASIC_FREE_VERSION_2013.mq4 at this address - http://www.trade2win.com/boards/forex/71854-correlation-trading-basic-ideas-strategies-1591.html#post2443624

This indicator has a few code characteristics which, while not relating to correlation computation, results in inefficiency.

Code Flaw One:

int init()
{
   // set up indicator buffers
   for ( int i = 0; i < 8; i++ )
   {
      SetIndexStyle(i,DRAW_LINE,STYLE_SOLID,1);
      SetIndexStyle(4,DRAW_LINE,STYLE_SOLID,1);
      SetIndexStyle(7,DRAW_LINE,STYLE_SOLID,1);

1. Any currency line or lines set at thickness greater than 1 will return to thickness 1 if a) the timeframe is changed or b) the terminal is closed and reopened.
2. Any line set to style other than solid will revert to solid in the event of a) or b) above.

This results in having to reset line thickness and/or line style every time event a) or b) above occurs.

Solution:

      SetIndexStyle(i,DRAW_LINE); 
      SetIndexStyle(4,DRAW_LINE); 
      SetIndexStyle(7,DRAW_LINE); 
      SetIndexLabel(i,Currencies[i]);

Code Flaw Two:

int deinit()
{
    // delete all objects we created
    ObjectsDeleteAll(WindowFind(ShortName));

1. <ObjectsDeleteAll(...)> is a most troublesome piece of code. If this piece of nuisance is included as code it will delete all objects drawn with the draw tool if/when a) the indicator is removed and b) the timeframe changed. It also removes an indicator from my charts.
2. This requires all drawn objects (TA lines, fib lines, text, etc) to be redrawn if the indicator, in its present coding, undergoes events a) or b) above.

Solution: - note: ObjectDelete(..), not ObjectsD...

int deinit()
{
   // delete all objects we created
   ObjectDelete(WindowFind(ShortName)); 
  
   return(0);
}

Regards

 

[NVP]

thanks for that.......always been happy with those little flaws myself

if you want to improve it send me a copy at [email protected]

cheers
N

Ps - are you an accountant ? - (sorry that's an in joke that only accountants will get )

 

[NVP]

morning all

nice start to the day ..........eu rocking

N

 

[NVP]

i'm trading over at forexperienas thread gang .......


really frustrated about the recent gu selloff...........from this chart (usd and gbp indexes) you can see the gbp was a rampant sell vs the greenback that was frankly ranging

BUT

I need to see my greeny moving to get in amongst the usd pair action

N

 

[NVP]

forexperian continues to teach me the importance of timing mu usd pair trades ...........

I can call the usd direction pretty tight most of the time ..........so for me its very important I time paired entries and which currencies to use with the usd

heres the afternoon session..............from 12.30 the usd never ever looks back and on lower TF's that means its been a scalp buy afternoon for the usd and my trading

but does that mean I just trade every usd pair ?

well no ..........that's not how it works ..........you have to understand that the G7 will CYCLE their moves around the usd bull move .........they all don't move at the same speed/direction .......and indeed some may never ever get into a trading position with the usd ...like Yen a lot of the time as they move together so the divergent correlation never really happens to signal a trade

even on this simple example below .........can you see how it was really after 2.30 that the EU sells really went into business ?.............

in fact since the usd index (green) never ever falls back in price from 12.30 can you see how the price of EU at 12.30 ......1.0624..........can only go up because the Euro is still too bullish ........a bullish usd cannot make the EU go north on its own ............its impossible as all a bullish usd can do in isolation is sent the EU SOUTH

on lower TF's one may have picked the signals to finally sell EU earlier than 2.30pm.....I would have had to be really aggressive to have got that sell in the 0640's ........the 0620's were fine enough as it ran down to 0586 so far........plenty of pips for everyone when the usd trends like it has this afternoon !!

just wait for the currency correlation patterns to play into your hands .....don't rush it

later
N

 

[NVP]

usd turned south ........I called it at at 16.52 on Forexperians thread ....it peaked at 16.26 but I was not comfortable until nearly 25 mins later to open up the trades ............

as I have already said - l let the trades come to me

N

 

[NVP]

back tomorrow ..usd still below the 16.52 price but sluggish...........only a few pips around so far

N

 

[NVP]

morning all

usd has been bullish ..........

around 5.30 - 5.45 it challenged the run .........but picked itself up and hasn't looked back since

usd buying it is then

N

 

[NVP]

if you are following the Forexperian thread you will see I am pretty b/e so far today ........the usd is being troublesome (for me anyway) and the way I trade in last 70 mins

back later
N