Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

this is a chart with 4 currency individual indexes just overlaid on one another......

it allows more granularity of directional bias..........

but people must remember the scaling on each index is different and auto fitting to the chart ...so believe the direction but strengths of direction will vary (unlike the FXCorrelator where they are all aligned to same scaling)

its not my basic FXCorrelator that is ma based and always shows the G8

go to my links in the signature area below where I added all the G8 a while back


N

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[park600]

this is a chart with 4 currency individual indexes just overlaid on one another......

it allows more granularity of directional bias..........

but people must remember the scaling on each index is different and auto fitting to the chart ...so believe the direction but strengths of direction will vary (unlike the FXCorrelator where they are all aligned to same scaling)

its not my basic FXCorrelator that is ma based and always shows the G8

go to my links in the signature area below where I added all the G8 a while back


N

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thanks for the info, do you mind sharing the entry/ exits for this move?

I seem to wait for pullbacks when I get the signals on the correlators indi which normally lets me enter way too late or miss out on the move completely.

or if I do get the entry right, I end up waiting for usd to start moving against me for exits which is usually too late as well.

 

[NVP]

after yesterdays fun i'm head down today again.............more trading than posting !

i'm attacking usd buys ...heres where and when so far ths morning .....these are individual index based charts overlaid so see the links below for mt4 indicators

N

 

[NVP]

thanks for the info, do you mind sharing the entry/ exits for this move?

I seem to wait for pullbacks when I get the signals on the correlators indi which normally lets me enter way too late or miss out on the move completely.

or if I do get the entry right, I end up waiting for usd to start moving against me for exits which is usually too late as well.

Hi P

seriously I could write a 5,000 page book in trading using strengthmeters and indexes .....the options are endless

aside from my MA based FXCorrelator .........I use my indexes for scalp trading ..............alongside a few other things

timing is all .........the objective of my own style is to

1) work out the main bias of the usd

2) time entries where it retraces then bounces back into that bias

3) pair the usd with the currency most negatively correlated to the usd's direction

its not an exact science and takes a lot of market focus , experience + trial and error to perfect.........I also recommend strongly using time window analysis to help .......see forexperians thread

I m not a 100% holy grail guy here.........but look back and occasionally I publish results which tend to be pretty good

I do overtrade but have corrected that in last few months

heres below and opportunities to trade / buy usd this morning so far .warts and all

N

 

[NVP]

i'm banging away at usd buys gang .............Europeans have been bullish as well unfortunately so had to look at other pairs ...............will change again soon

N

 

[NVP]

the close correlation of usd and Europeans is really slowing my pip gains today

grrrrrrrrrr

 

[NVP]

one of my better live calls today so far ..follow the posts from here for 10 mins as I chase more usd buys successfully !!

http://www.trade2win.com/boards/dis...ert-retail-forex-trader-4961.html#post2574022

 

[NVP]

usd is like a rollercoaster and i'm calling them up and down at Forexperians thread

N

 

[NVP]

hey gang back for 2 mins ...

usd has gone king kong bear ......collapsed on 1pm bar change ...so I would advise trading accordingly and looking for usd weakness after any bull retraces now

 

[NVP]

usd ranging ..........no idea what next !!!

 

[NVP]

screaming pip gain on gu call

http://www.trade2win.com/boards/dis...ert-retail-forex-trader-4968.html#post2574226

 

[NVP]

Hi all

well after 15 years of trading strengthmeter based forex signals and being on T2win since 2009 talking about it I can only thank people for the kind comments and remarks I have received ....

I admit that my focus has gone to scalping in last year or more ..........no apologies but it was the natural progression for me and has tested my more traditional approaches to the limits

Forexperian entering the Forums also helped as he was proving how much money he was making scalping.............and I then redoubled my efforts to get my strengthmeter edge up to speed and adapted to the rigours of scalping

most people do ask me where the original FXCorrelator comes into the new equation and in truth I have to admit its not that prevelant in my scalping systems .....sure theres a few derivatives of it in play..........but the ma based FXCorrelator is not as effective for me as my more real time analysis / approaches

I use the G8 currency indexes (see links below) a lot more in my scalping and you must see that in my posts ...........

why ?

because they are real time with no ma delays ...........pure and simple....... .I need speed and immediate feedback in my scalp calls ............

this meant me relearning and starting again on many of the things I have preached here regarding ma based strengthmeter trading systems ..............that's not to say they don't have their place as they do ..........believe me .............but the rhythm of scalping is so fast I cannot afford to be sitting back in a chair and slowly buying on 20ma or faster crossovers ............I have to be more aggressive and pre-emptive !!

so that's why many of you look at my earlier published stuff in the links below (all still interesting in truth) and say to yourself and me ............."what is this stuff ?"

well its my path to where I am now ...........and we all have to adapt to survive.............always

N

 

[NVP]

so in my scalping it is a very simple principle but the devil is in the execution

1) pick a direction the usd is trading (from historic pattern)
2) wait for retraces from the trend/bias direction
3) go back in on the retrace bounce as early as feasible
4) trade a currency index moving in the opposite direction to the usd
5) take +/- 5 pips off the initial run (50-70%) ....then trail 30-50% looking for extension
6) repeat !!

N

 

[NVP]

heres the usd so far this week ...........still musing on bias for today

 

[NVP]

still working the usd buys ...........

 

[NVP]

usd is a solid buy for me last 30mins but Europeans are not really playing .........nice little sell bounce earlier on GU....

gbp is red bottom window

 

[NVP]

Hi P

seriously I could write a 5,000 page book in trading using strengthmeters and indexes .....the options are endless

aside from my MA based FXCorrelator .........I use my indexes for scalp trading ..............alongside a few other things

timing is all .........the objective of my own style is to

1) work out the main bias of the usd

2) time entries where it retraces then bounces back into that bias

3) pair the usd with the currency most negatively correlated to the usd's direction

its not an exact science and takes a lot of market focus , experience + trial and error to perfect.........I also recommend strongly using time window analysis to help .......see forexperians thread

I m not a 100% holy grail guy here.........but look back and occasionally I publish results which tend to be pretty good

I do overtrade but have corrected that in last few months

heres below and opportunities to trade / buy usd this morning so far .warts and all

N

I am now 100% scalper (or very short term trader)................

Forexperian brought me back to life with his new threads a year or so ago and got me pushing the envelope again on my own approach...........for me the opportunity to get in on 3-5 pip stops max with optimum upsides is the only way to trade as it multiplies your returns faster than any other way of trading due to the volume of trades taken per day vs other TF's

I have shamelessly stolen F's time window approach and also love his 30%/70% take profit strategy at around 5 pips ..............I am much calmer now letting things run when I know I have profit already in the bag and still 30% on the remaining trend....................

I think the secret of becoming a really profitable trader is to shamelessly steal the best bits from great traders.......:whistling. .........and then fuse them to make your own edge ............I am now an amalgam of several world class traders that have shaped my approach over the last 15 years

N:smart:

 

[NVP]

So role of honour and thanks to these guys - and others now I thnk harder :-

Forexperian - has influenced my recent progress as already discussed...its great to have a proper trader come out of the closet as you will rarely see them appear so publically and share so openly what it takes to make serious money .............you can pay a lot of money to so called supertraders for mentoring and still be way short of what F has shared over last year or so for nothing ..........trust me you newbies.....also go back and read TRO's exchanges wth F in one of his smaller threads...........worth its weight in gold as they discuss programming his system ......

Jedster gave me endless support utilising his extensive quant/programming/trading background in the city and enabled me to test and discard a lot of my strengthmeter ideas and systems that I was struggling with ..........the trading game is like discovering a new drug...........you have to go through a lot of things that don't work to find what does - thanks again J !


The Rumpled One - yes TRO has been very influential to me - especially in my early days as he was one of the few practitioners / exponents of forex Strengthmeter analysis/programming in the early 2000's ............his work convinced me it was worth persuing as an edge ..........and whilst TRO has a zillion irons in every fire these days .......this was a turning point in my trading career as I decided on my area of specialisation

JRPLimited - Simon passed away from cancer a few year back now ..........he only posted here at T2win about 250 times .........but he was a talented and legendary trader with a background in running successful businesses as well as having traded in New York with the best of them in the 80's and 90's ....he was larger than life and lived it that way ........ and really got my head in the right place............the guy was trading up to his last few weeks ..............he is sorely missed by family and his many friends

Lance Beggs - Lance is not on T2win but is mentioned a lot here re price action - do look at his extensive and extraordinary work in that area .........Forexperian always says the devil is in the detail and this guy IS the detail !!! - Lance and I were corresponding a few years back and he was kind enough to critique a lot of my work even though he doesnt trade Strengthmeters ............still going strong as a supertrader and a great bloke even for an Australian

regarding forex strengthmeter mentors - I have none ...........there are a few notable names out there that talk about strengthmeters

(Henry Liu , Tom Yeomans Accumeter, Nigel Hawkes (Hawkeyetraders) plus a few dudes at Forex factory)

but in truth I was researching/trading strengthmeters before most of them published ..............Tom started in early 2000's like me and his product offerings over the years are interesting but not cheap ...........Look up Nigels products as they are forex strengthmeter based and interesting .....but again not cheap

most others drift away from the area as they cannot find the edge they seek...........but people must realise generally that the longer and harder you look the more you will find/learn on any subject ...................you wont strike oil 1 foot under the surface !

that's it for my T2win associates over the years .......... there are actually a few others as well ...........but most would not be known to anyone at T2win as they were mentors and very private traders

N

 

[NVP]

ok back later ......for me I would attack usd sells now .............shes not making new highs that much and fading.............euro looks due a buy at 1100's

N

well that attack on usd sells really didn't payoff as usd broke north recently ..........such is trading......I didnt lose on the trades attempted earlier

N

 

[NVP]

usd is in charge now this week.............not sure when the train stops