Best Thread Correlation Trading - Basic Ideas and Strategies

[jrplimited]

hey mate.......nice steady money again.....enjoy the drinkypoos and dont get into any trouble as we need you bright and early monday morning :cheers:

i'm stuffed at work so will try to post later......
N

Hi N,

Sorry day job is keeping you away as there is a lot of activity in markets right now. Will certainly be indulging in a glass or eight of the vino collapso tonight, that way I get to stagger around like Greek soveriegn debt looking for buyers!
Simon.

 

[NVP]

Hi N,

Sorry day job is keeping you away as there is a lot of activity in markets right now. Will certainly be indulging in a glass or eight of the vino collapso tonight, that way I get to stagger around like Greek soveriegn debt looking for buyers!
Simon.

keep the plate cupboard locked then.....

 

[NVP]

I cant believe it.....

I released the 50/20 corrie last week .....the passport to fame and riches and now lance has let the cat of the bag on a very underated indicator

I use it already like Lance says - looking for reversions to mean on my own individualised corries showing single currencies (sorry myself and JRP's private stable of indicators)

but practice and use it on any pairs chart and you will not be dissapointed....alongside the correlation principles of course !

we spoil you guys .......:smart:

http://www.yourtradingcoach.com/Articles-Technical-Analysis/My-Favorite-Indicator.html

N

 

[NVP]

week in perpective

hi all

heres what happened this week in a nutshell - pictures tell a thousand words but i will still ramble on anyway :-

FOREX


Yen (carry trade unwinds / risk aversion plays)


GBP (poor economic news releases on everything really + I said cheryl cole could be the prime Minister soon if x-factor job folds)

also rans
Euro and CHF made flat to bullish headway (how the hell did Euro do that )

Comm dolls got hit mainly due to fears regarding dovish global Economic forecasts

Markets (chart 2)

Gold (bold) fell most of the week ralying thurs/friday......usd did not leap into good correlation mode until mid tuesday then was ok

Dow30 had a poorish week (grey) and Crude, Dax and Ftse had good starts that gradually retraced back to flat

N

 

[NVP]

50/20 setting in action

hi all

heres the 50/20 setting of corrie alongside a 1000/1 to show the signals (30m TF as example here)
ive removed the curencies we dont mention much.....our 4 basics here + AUD in gold

if you were trading this seriously then you need to watch all the G8...but spreads are an issue so its a longer term trading tool then....

remember we always look for no forex Market signals here as well....so this is pretty naked and raw as far as making good multiple signal trading decisions

simple really :-

Sell currencies that fall below he zero and buy those that rise above

be nervous (ie close trades) of currencies turning back towards zero ...(or open trade in direction towards the zero if you are very aggressive

so what happened ?

seen worse weeks....2 monster Yen buy signals were the highlight for me and the GBP sell later in the week

vs yen - selling Euro on the monday trade and selling Euro and GBP on the early hours of the Thursday.....

the more you practice the better you get.....oh yeah and ALWAYS sprinkle with some other market correlation like the Dow and Gold

until tomorrow...still busy at work though
N

 

[NVP]

mornin all................jees monday

Dow and Nikkei markets like march......good movement up in the night on both though gold was more of a mixed bag

interestingly for me the tag were not exactly ready to cave down and were very resilient indicating some market consolidation will send tag up very comfortably this mornng...possibly flagging already !

if tis happens pull a G6 name out of the hat and sell it.....GBP already looks pants so give it a bash.....

N

 

[NVP]

heres news....

jesus those early GBP releases have as much chance of being better than forecast as the chelsea team have of winning the good husbandry award

N

 

[jrplimited]

Hi N and anyone else,

Late posting today as had to stop all trading by 11:40 this morning due to visit by tree "surgeon" (why are they called that?) who is going to chop a few of my trees down sometime soon - that will save me some work this sutumn when leaves fall! Here is the bun fight and what a viscious one it was....

GU; Just missed a long flag after opening bar so set buy stop at 51708 and filled by 09:15 bar. Price frooze then moved up and large 09:30 down bar took out SL for 21 pip loss - ouch on a Monday morning! Price went down with a bang after this and second trade opened short at 1.50996 (I dont give to much attention to round numbers!) on 10:10 bar and now I was on the express train southbound. Price did a sidewise crawl on 10:30 bar and again on 11:00 bar but resumed its journey quickly after this with 11:35 downward thrust bar and I exited after this for 202 pip profit.

EU; Got snagged first thing by opening short on 08:25 bar and had to do a panic SaR on 09:00 bar for a 18 pip loss. Now long on second trade and price started to climb nicely and after seeing a 15 pip rise SL moved up to BE, but price obviously saw me doing this so it went into a shallow dive and small 09:45 down bar took this out for nada. I could see where this was heading so third trade sell stop set at 36168 and 10:10 bar filled this, then retraced to threaten SL on 10:30 bar and then rolled over again to go beyond initial entry, consolidated on 11:00 bar for a few bars and finally popped down and I exited on 11:35 bar for 84 pip profit.

EG; First trade went short on 08:05 bar but price hung around entry point for ages until eventually 09:30 bar put me out of my misery by hitting SL for 16 pip loss. Second trade opened long at 90137 on 10:00 bar and price did nothing on this bar which got me wondering a little, then it started to climb northwards, hit a few small sideways periods and I exited on 11:35 bar for 126 pip profit.

Dont really know to what extent 11:40 deadline had on final trades this morning so I'll be having a look later on - trade well and regards,
Simon.

 

[NVP]

Hi N and anyone else,

Late posting today as had to stop all trading by 11:40 this morning due to visit by tree "surgeon" (why are they called that?) who is going to chop a few of my trees down sometime soon - that will save me some work this sutumn when leaves fall! Here is the bun fight and what a viscious one it was....

GU; set buy stop at 51708 and filled by 09:15 bar for 21 pip loss
second trade opened short at 1.50996 for 202 pip profit.

EU; opening short on 08:25 bar and had to do a panic SaR on 09:00 bar for a 18 pip loss. Now long on second trade took this out for nada. third trade sell stop set at 36168 and 10:10 bar filled this for 84 pip profit.
EG; First trade went short on 08:05 bar for 16 pip loss. Second trade opened long at 90137 on 10:00 bar for 126 pip profit.
Dont really know to what extent 11:40 deadline had on final trades this morning so I'll be having a look later on - trade well and regards,
Simon.

WHAT !!!!.................have I gone to la la land and returned as a smurf......??

biggest morning haul I have ever seen.....JRP take rest of the day off

and tell him you were gonna be a Tree surgeon but always fainted at the sight of SAP :whistling

wow wow wow..what a morning......
N

 

[NVP]

sorry all..

today my job virtually doubled due to covering areas that may not be ever filled so I am sinking......havnt even looked at a screen since leaving home.....

jees ..............then you see what a Trading professional can deliver on a good day....even a 10th of that JRP Haul would do me daily if I ever turned pro.....

makes you think.....

N

 

[NVP]

finally home.....

wooa what a day ...look at that magical time just before 10am this morning..

markets were falling , tag was rising and the Euro twins were ripe for falls.....but seriously was it necessary to COLLAPSE !!?

look at the classic o/n breach lines on the middle chart......and I was tied up at work...

spare a penny for a cup of tea anyone ? :whistling
N

 

[NVP]

mornin all.....

quiet night.......markets down 1st half then rebounded......tag responded as expected but looks to me like not to much elasticity or enthusiasm was seen either way so hold the powder dry........those overnight breaches when they come will be key today

N

 

[NVP]

heres the news...

quietish actualy so markets will have to make their own fun.........which they will !

N

 

[NVP]

Gold

Hi all

heres a recent piece from Jack crooks and the boys at Black swan

I will add my comments to this later (busy at moment) as I am starting to see some nice trading opportunities when trading gold against the Tag movements and everything else we look at here......

WIP then.....

N

 

[jrplimited]

Re: Gold

Hi N and all else,

Did a bit of housekeeping last night on past month's trades and noticed that about four weeks ago I was long on GU at circa 1.62 - compare that to yesterday's low print! Just shows us all how volatile things have been.... Enough waffle.

GU; I knew I was going to have to struggle on this pair this morning so the name of the game was try not to give up too much of yesterday's gains, ermm.... First trade buy stop set at 49096 and high of 08:15 bar filled this, price went up then up again with a fairly long tail and 08:30 bar managed to push price enough for SL move to BE, then the whole thing rolled over and 08:45 bar took me out for zilch. Second trade opened long on 09:05 bar but price swung against me and took out SL during 09:15 bar for 21 pip loss. Third trade entered short on 09:20 bar but yet again got caught by another swing and SL taken out during 09:30 bar for 21 pip loss. That represented two on the bounce plus also three trades taken in all, which was rather annoying as a great long trade went and flagged itself soon afterwards - typical, although that wasnt what I screamed at the pcs!

EU: First trade entered short at 1.35153 on 08:20 bar and price immediately stalled on me until 08:40 bar broke down past entry point and momentum came into the game with a whoosh. Price attempted small retrace on 09:00 bar then went down again only to find suprisingly strong support after 09:15 big down bar, TS taken out during 09:25 bar for 43 pip profit. Watched price going up to see if any pullback setups would show themselves but this reversal trend was fairly strong and eventually flagged a long trade for me but time wasnt on my side to take this.

EG; First trade entered short at 90668 and price behaved itself by continuing its southbound trek with some typically weak looking bars en route and a flimsy rally attempt on 09:20 bar. Tracked price more closely after this and TS taken out by 10:25 bar for 32 pip profit, no more setups presented themselves after this.

Things should start to slow down a bit as we have the NFP data release on Friday and I've usually found that the markets tend to hover and dither prior to this - famous last words then Simon!

Trade well and regards,
Simon.

 

[NVP]

Re: Gold

Hi N and all else,

Did a bit of housekeeping last night on past month's trades and noticed that about four weeks ago I was long on GU at circa 1.62 - compare that to yesterday's low print! Just shows us all how volatile things have been.... Enough waffle.


Trade well and regards,
Simon.

see below.............GBP is a 1 way ticket down.......but wheres the bottom ?

cheryl Cole taking UK office next week I hear......she couldnt do much worse and we all get her no 1 album for free

its not funny is it

N

 

[NVP]

Re: Gold

Hi N and all else,

GU; I First trade buy stop set at 49096 and high of 08:15 bar filled this took me out for zilch. Second trade opened long on 09:05 bar for 21 pip loss. Third trade entered short on 09:20 bar but yet for 21 pip loss. That represented two on the bounce plus also three trades taken in all, which was rather annoying as a great long trade went and flagged itself soon afterwards - typical, although that wasnt what I screamed at the pcs!

EU: First trade entered short at 1.35153 on 08:20 bar for 43 pip profit. Watched price going up to see if any pullback setups would show themselves but this reversal trend was fairly strong and eventually flagged a long trade for me but time wasnt on my side to take this.

EG; First trade entered short at 90668 for 32 pip profit, no more setups presented themselves after this.

Things should start to slow down a bit as we have the NFP data release on Friday and I've usually found that the markets tend to hover and dither prior to this - famous last words then Simon!

Trade well and regards,
Simon.

hey mate - the holy trinity approach kept you in the black so well done

N

 

[NVP]

TAXI for NVP

what a scream............I am so muddled today see my comments on this article at the end ........

http://www.moneyweek.com/investment...r&utm_medium=email&utm_campaign=Money+Morning

TAXI for NVP !

N

moneyweek tends to be lightweight regarding currency trading and hopefully over time they will improve (unlike me )

 

[jrplimited]

Re: TAXI for NVP

what a scream............I am so muddled today see my comments on this article at the end ........

http://www.moneyweek.com/investment...r&utm_medium=email&utm_campaign=Money+Morning

TAXI for NVP !

N

moneyweek tends to be lightweight regarding currency trading and hopefully over time they will improve (unlike me )

Hi N,

Got bored with boys from Brazil match against Ireland so had a good read of that article you posted and commented on. Not to sure what moneyweek is all about apart from some form of advice portal for longer term investors perhaps? If thats the case then your comment over NOT holding longer term positions is very relevant in these volatile times.

Great example of this was GU's gap down of 100 pips plus on Sunday night, I personally just cant imagine holding overnight position let alone weekend positions right now, its real carnage out there as the market "flow" moves in and out of weak spot currencies; join this "flow" by riding on the coat tails and grab some quick pips here and there then shut up shop and watch for the next move.

Hasta manana,
Simon.

 

[NVP]

Re: TAXI for NVP

Hi N,

Got bored with boys from Brazil match against Ireland so had a good read of that article you posted and commented on. Not to sure what moneyweek is all about apart from some form of advice portal for longer term investors perhaps? If thats the case then your comment over NOT holding longer term positions is very relevant in these volatile times.

Great example of this was GU's gap down of 100 pips plus on Sunday night, I personally just cant imagine holding overnight position let alone weekend positions right now, its real carnage out there as the market "flow" moves in and out of weak spot currencies; join this "flow" by riding on the coat tails and grab some quick pips here and there then shut up shop and watch for the next move.

Hasta manana,
Simon.

agreed.....moneyweek is a half decent weekl read for generic coverage of business but its Currency commentaries can be hilariously naive........and they send out some howlingly bad junk mail and trading systems a la stanzione and others much worse.......even horse racing systems (aah takes me back a few years !)..... good for entertainment though....:whistling

Agora Lifestyles may or may not be affiliated to them but that company crops up a lot in their marketing as others may testify.......spare me

N