Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

my ODL feeds are down again..... I sent all my applications through so will try to sort out

until then enjoy the day and be careful out there.......
N

 

[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

hey all

had a pm on this post.....heres a couple of mt4 keltners for your files (if you couldnt find it)

plenty out there in surfingland

N

 

[NVP]

no access to system

hmm

got to provide a few ID things plus some cash to keep the account open and allow indeffinate access to Mt4.......not an unreasonable request but havnt got that stuff to hand at work......

talk amongst yourselves and i'm sure JRP will update his performance at lunchtime

N

 

[jrplimited]

Hi N and everyone else,

Suitably refreshed from yesterday's GU mauling and watching a useless football match last night, I tip-toed into this morning's session and....

GU; Kept out of short trade as price scraped along setup area at 08:05 for four bars then changed direction. Set buy stop at 50204 after 08:55 bar printed new local high and nearly got filled by following bar but 09:25 big up bar did the business for me. Price stalled for three bars, tested local high then came down again taking out TS for 17 pip profit. No other setups following this.

EU; Bit of a mess chart wise this morning. First valid trade setup buy stop at 1.36364 filled by 09:00 bar, price retraced for two bars then moved up and formed 09:20 top then rolled over quite fast and 09:40 bar took out adjusted SL for 6 pip loss. Second trade entered short on 10:15 bar and price drifted around before moving slightly down then up again into a tight consolidation range from 10:35 onwards. Decided (wisely, as it happens!) to simply bail out as this pair didnt seem to know where it was going, so took a hit on the chin on 11:00 bar close and exited for 7 pip loss.

EG; Killer pair for me this morning. First trade entered short on 08:20 bar and price floated around for seven bars then things woke up and during 09:00 bar SL taken out for 14 pip loss. Second trade tried to stupidly chase an undecided market and entered long on 09:05 bar, price moved up after small pause then enormous 09:25 down bar took out SL (with some slippage) once again for 17 pip loss.

An ouch morning for me but thats life on the dark side for all us small time traders, so no complaints there as tomorrow is always another opportunity - trade well and regards,
Simon.

 

[GMP]

Hello NVP
I really should try this indicator of yours first before asking, but I'm off out and want to ask quick - I think I read it compares MA's - can this be changed to CCI or is it fixed? I've been going mad trying to find a simple MT4 indicator that plots the CCI for £$ & €$ on the same graph (i.e. not side-by-side like one I've seen) that I could use as a standard indicator for €£... simple enough idea I thought, but I've had no bloody luck whatsoever, and by christ I've searched!
Would this be possible using your indicator? If not, could a halfwit like me recode it to use CCI?
Thanks for your time.

 

[jrplimited]

Hello NVP
I really should try this indicator of yours first before asking, but I'm off out and want to ask quick - I think I read it compares MA's - can this be changed to CCI or is it fixed? I've been going mad trying to find a simple MT4 indicator that plots the CCI for £$ & €$ on the same graph (i.e. not side-by-side like one I've seen) that I could use as a standard indicator for €£... simple enough idea I thought, but I've had no bloody luck whatsoever, and by christ I've searched!
Would this be possible using your indicator? If not, could a halfwit like me recode it to use CCI?
Thanks for your time.

Hi GMB,

NVP (doesnt that sound james bondish!!) is probably tied up at the slave depot right now, so hopefully I can answer your Q in part....

From memory Keltner Channels are constructed by basic math functions of:-

pers:=7;
kbma:=Mov((H+L+C)/3,pers,S);
upkb:=kbma+Mov((H-L),pers,S);
dnkb:=kbma-Mov((H-L),pers,S);

So pers is obviously periods lookback to use; kbma calculates the H, L, C range's simple moving [pers] average; upkb uses kbma PLUS simple [pers] moving average of the H minus L range for upper channel; dnkb uses kbma MINUS simple [pers] moving average of the H minus L range for lower channels.

If you substitute the CCI in place of MA within the above math functions this will result in a rather wild and wacky output as of cource a standard CCI can range violently from -150 to +150 or more (cant recall exactly what as its been years since I used CCI), so not to sure where you could include CCI to determine Keltner outputs with a degree of stability.

Your MT4 platform will allow "calls" from other currency pairs to be made so yes, you can include [say] GU and GJ inside an EU indicator of whatever nature, classic example of that is the common RSI indicator whereby you have this plotted on EU sub chart plus also GU and GJ RSIs as well.

Think maybe your question was actually can CCI indy be plotted underneath one currency pair chart and also have some other currencies CCIs overlayed onto this as well - if it was then the answer is yes it can be done.

Simon.

 

[jrplimited]

Hi again GMB,

Doooh! Just realised what you meant here. You are talking about NVP's corrie indy and not that keltner channel he posted a few hours back - many apologies; I'll shut the hell up!

Simon.

 

[GMP]

Hi again GMB,

Doooh! Just realised what you meant here. You are talking about NVP's corrie indy and not that keltner channel he posted a few hours back - many apologies; I'll shut the hell up!

Simon.

Hi Simon
Thanks anyway - I should've made it clearer (I didn't realise there was another indicator on the thread). Sounds like what I want is possible, but I haven't got the first idea about coding. Just be nice to see them cross rather than comparing them side-by-side.

 

[NVP]

Hi everyone and welcome GMB

will get my mt4 platform permanently set later with spondoolies to ODL......done a deal so 100 quid fixes it and I naturally load up more cash if i trade with them.....

well worth it as I have so many variation of Corrie and its extending family that each reboot means major relaods on the new mt4 version......

I have a skeleton running again but cant be arsed to load everything again !!!!

so tommorrow we will have normal service although with the stupid work situation now I am trying to organise a newbie of mine so we have a more regular presence here

right question time above :smart:
N

 

[NVP]

Hello NVP
I really should try this indicator of yours first before asking, but I'm off out and want to ask quick - I think I read it compares MA's - can this be changed to CCI or is it fixed? I've been going mad trying to find a simple MT4 indicator that plots the CCI for £$ & €$ on the same graph (i.e. not side-by-side like one I've seen) that I could use as a standard indicator for €£... simple enough idea I thought, but I've had no bloody luck whatsoever, and by christ I've searched!
Would this be possible using your indicator? If not, could a halfwit like me recode it to use CCI?
Thanks for your time.

hey mate

its only natural to look for more recognised indictors that can provide more measured feedback to forex market activity ......

as an accountant and business analyst myself over the years I aways preach that if you cant measure it (output/productvity/downtime/lost customer churn) then you will never be able to benchmark or plot the benefit of any corrective actions taken... or judge if other solutions can yield even more benefit.....blah blah

the corrie can be measured.....just beef up the results values and add simple bar lines across the pages and then never trade if a currency is >0.0020 or <-0.0020 or over 0.0050 etc ec.............. just like CCI , stochs .RSI's and every other variation on this theme adding values will promote consistency of action based on values seen.......it works

however - we have walked this path in the past on this thread and Alan5616 pushed me a lot for activity in this area....but I am not a programmer either and believe me when TRO arrived last month I think I frightened him off with the PM list of ideas I wanted to bring to the table but couldnt code it

and also this thread is more a correlation based theme that the strength-meter contributes to.....and I like to keep it all a little more Esotheric and fuzzy in nature...as actually thats what markets are.....otherwise we would already be rich with EA systems !

So what can we offer ?

GMP - please be even more exlpicit re what you want to see .....is it a CCI for the pure index values of E and G above or is it a CCI for G/U and E/U alongside each other ?

if is of any use I have a RSI based system indicator somewhere for most of G7 against the Dollar ? ............

im sure a CCI version is out there in the cosmos........TSD-Forex and FF are strong
coding forums.......also ask the Woodie group who may have something (alhough I found them a little to cultish for me so you may have to wear a dress and stand on one leg to join)

spell it out here an perhaps the juices will flow.......why do you want it ?

workime so later dudes.....
N

 

[NVP]

Heres ovenights..........

TAG and Market relationship brutally pure......need I say more ?

N

 

[NVP]

Hi again GMB,

Doooh! Just realised what you meant here. You are talking about NVP's corrie indy and not that keltner channel he posted a few hours back - many apologies; I'll shut the hell up!
Simon.

tee hee !

 

[GMP]

hey mate

GMP - please be even more exlpicit re what you want to see .....is it a CCI for the pure index values of E and G above or is it a CCI for G/U and E/U alongside each other ?

if is of any use I have a RSI based system indicator somewhere for most of G7 against the Dollar ? ............

im sure a CCI version is out there in the cosmos........TSD-Forex and FF are strong
coding forums.......also ask the Woodie group who may have something (alhough I found them a little to cultish for me so you may have to wear a dress and stand on one leg to join)

spell it out here an perhaps the juices will flow.......why do you want it ?

workime so later dudes.....
N

Thanks for your reply. I've looked for hours, including TSD, Woodies, et al but there's nothing I can find that does what I want.

Essentially, I'm looking for an MT4 indicator that I can use on EURGBP. This indicator would show the CCI for GBPUSD plotted on the same chart as the CCI for EURUSD. (It wouldn't pull any data from the EURGBP pair.) It's basic arbitrage - in principle, when GBPUSD CCI crosses EURUSD CCI, EURGBP goes down, and vice versa.

I've seen an indicator that plots them side-by-side but that's useless as I've got them side by side in seperate windows already. And I've seen some that overlay two prices of different pairs, but that's not what I'm after- an indicator is much more dependable, and I find CCI most useful (RSI is a bit laggy in comparison). Maybe it can't be done in MetaTrader? There seem to be indicators for just about everything else.

 

[NVP]

Hi mate...........

hmmm this is an interesting one my friend as we are drifting into the eternal discussion re is trading/monitoring 2 pairs with the same Currency in it the same as just trading the pair directly ?

eg - isnt trading E/U and G/U the same as trading E/G.......various arguments from both camps on this subject

let me have a think and come back .............meanwhile our master gunslinger trades these 3 daily so perhaps he can throw in some 2 pennuth between trades late

i'll be back........
N

 

[NVP]

Thanks for your reply. I've looked for hours, including TSD, Woodies, et al but there's nothing I can find that does what I want.

Essentially, I'm looking for an MT4 indicator that I can use on EURGBP. This indicator would show the CCI for GBPUSD plotted on the same chart as the CCI for EURUSD. (It wouldn't pull any data from the EURGBP pair.) It's basic arbitrage - in principle, when GBPUSD CCI crosses EURUSD CCI, EURGBP goes down, and vice versa.

I've seen an indicator that plots them side-by-side but that's useless as I've got them side by side in seperate windows already. And I've seen some that overlay two prices of different pairs, but that's not what I'm after- an indicator is much more dependable, and I find CCI most useful (RSI is a bit laggy in comparison). Maybe it can't be done in MetaTrader? There seem to be indicators for just about everything else.

on reflection tell me the CCI settings you would use and I'll recreate it on the Corrie

N

 

[jrplimited]

Hi N and....

Ooooh late on parade today; tree surgeon and two helpers (yes, that makes tree fellas!) came round just after midday so all hell is let loose at casa moi.... Tough day so here is what I saw (aha; another tree pun?):-

GU; Price bumbed along the bottom during opening period then picked up a bit of steam on 08:40 bar to confirm long bias. First trade buy stop (revised three times!) at 50526 hit on high of weak 09:40 down bar, price recovered to entry point and sat there for two bars before popping up slightly, drifting sideways then 10:10 bar kicked in and off it went upwards and fairly aggressive TS was just taken out by 10:20 bar for 24 pip profit. Nothing else on this pair for the morning.

EU; Wacky session here, bias definitely up but without momentum it took until 10:15 bar before first trade buy stop triggered at 367548 and price drifted down slightly, rose up again to print new local high then retreated away from this, challenged it once more on 11:05 bar and finally I'd had enough of this lack lustre price "action" so exited on 11:20 bar close for 3 pip loss.

EG; Complete and utter basket case chart wise for me, so left this pair well alone.

As mentiond a few days ago, with nfp coming round tomorrow the markets would be a bit sluggish in their behaviour but I didnt realise just how sluggish that was going to be! Ah well, once tomorrow gets out of the way we can hopefully expect to see a lot more volatility returning.

Off now to put on lumberjack shirt (NVP; note shirt and not KB skirt!) and join in on the fun going on outside - trade well and regards,
Simon.

 

[NVP]

Hi N and....

Ooooh late on parade today; tree surgeon and two helpers (yes, that makes tree fellas!) came round just after midday so all hell is let loose at casa moi.... Tough day so here is what I saw (aha; another tree pun?):-

GU; Price bumbed along the bottom during opening period then picked up a bit of steam on 08:40 bar to confirm long bias. First trade buy stop (revised three times!) at 50526 hit on high of weak 09:40 down bar, price recovered to entry point and sat there for two bars before popping up slightly, drifting sideways then 10:10 bar kicked in and off it went upwards and fairly aggressive TS was just taken out by 10:20 bar for 24 pip profit. Nothing else on this pair for the morning.

EU; Wacky session here, bias definitely up but without momentum it took until 10:15 bar before first trade buy stop triggered at 367548 and price drifted down slightly, rose up again to print new local high then retreated away from this, challenged it once more on 11:05 bar and finally I'd had enough of this lack lustre price "action" so exited on 11:20 bar close for 3 pip loss.

EG; Complete and utter basket case chart wise for me, so left this pair well alone.

As mentiond a few days ago, with nfp coming round tomorrow the markets would be a bit sluggish in their behaviour but I didnt realise just how sluggish that was going to be! Ah well, once tomorrow gets out of the way we can hopefully expect to see a lot more volatility returning.

Off now to put on lumberjack shirt (NVP; note shirt and not KB skirt!) and join in on the fun going on outside - trade well and regards,
Simon.

 

[GMP]

on reflection tell me the CCI settings you would use and I'll recreate it on the Corrie

N

Cool....ideally I'd like to be able to adjust the period size & max/min's, but if that isn't possible beggars can't be choosers - 50 will do, -300 to +300. (It's just the standard MT4 indicator I'm used to - I think the multiplier is 0.015... that's about as technical as I get I'm afraid)
Thanks very much if it's do-able. Hopefully I wouldn't be the only one to find it useful, but I couldn't guarantee that. D'you accept donations for your indicators?

 

[GMP]

Cool....ideally I'd like to be able to adjust the period size & max/min's, but if that isn't possible beggars can't be choosers - 50 will do, -300 to +300. (It's just the standard MT4 indicator I'm used to - I think the multiplier is 0.015... that's about as technical as I get I'm afraid)
Thanks very much if it's do-able. Hopefully I wouldn't be the only one to find it useful, but I couldn't guarantee that. D'you accept donations for your indicators?

Actually, it'd be universally helpful if the two comparable pairs were selectable. I stick to €£ as it's nice & low risk, but the same arbitrage principle applies to any given trio of forex crosses. (Sorry, I think in slow segments...!)

 

[NVP]

Cool....ideally I'd like to be able to adjust the period size & max/min's, but if that isn't possible beggars can't be choosers - 50 will do, -300 to +300. (It's just the standard MT4 indicator I'm used to - I think the multiplier is 0.015... that's about as technical as I get I'm afraid)
Thanks very much if it's do-able. Hopefully I wouldn't be the only one to find it useful, but I couldn't guarantee that. D'you accept donations for your indicators?

JRP ? JRP ? are you there............weve found someone naive enough to send us some money.......

Seriously GMP for what you will end up with from us...we may have to pay you

this may take a while as i'm a little pushed at the moment so will hack what I have as soon as I can
N