Best Thread Correlation Trading - Basic Ideas and Strategies

hey all

http://www.theguardian.com/money/2013/jul/20/learn-to-trade-stock-market-websites

I wanted to alert beginners again to this interesting piece in the guardian a while back

I was interviewed myself for the article and recommended that David (the journalist) also talk to John (Barlett) regarding some of the more interesting "Sellinars" our beginners are invited to attend

JB (an old friend and trading colleague) got the mention and I didnt ....but such is life !

still a good objective piece and something you should show to any beginner prior to them parting with time and or money (or not if you run sellinars)

Regards
Neil
(NVP)
 
ok the 8am bar got some volatility in the mix ..... mainly a GBP bull spike

did ok this morning in the end .........not top end but steady enough

have a good day dudes ...
N
 
hey all

heres a quick look at the week ........ive used a Standard FXcorrelator on a 240ma 15m TF ..no fancy bells or whistles added for this report !

the higher MA gives me a little less MA skew on the currencies .....

Monday - all about the mighty Yen (Yellow) - see the bull play right from Asian to peaking in us session ......plenty of pips on the table selling euro and usd into it

Tuesday .......Yen then got sold off ........Asian session.......GBP (Red) came bull from late us session money ...............Boomed up through the London session and still came in the us trading......bif pair moves on E/G and GU was ok (I did very well on GU Tuesday)

Wednesday .......GBP came back for more buying ......Cad (Brown) was a bull as well.......plenty of selling on other currencies (Especially yen) made it a very nice trading session .......smooth.......Buying GBP and CAD into a choice of sells

Thursday .........GBP and CAd both took heavy beatings ......so simply had to reverse the trades from yesterday to make money

Friday .....pretty low volatility (See on the chart ?)..........Red GBP was a range sell ..yen was bull ........(green )usd came bull through London session

That's it .......... YEN and GBP had their normal rollercoaster weeks .......I really like trading them in pairs as they deliver the volatility I need for scalping ........

have a good weekend
N
 

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Hi NVP!

Thanks for your thread. It gives me some confidence I'm doing the right thing. Actually in recent year I've been developing something very similar. I'm doing my calculation in R because I personally do hate Metatrader platform and its programming language MQL.
Though I've came out with different indexes calculations, the basic idea is the same as yours. You can check my strength "indicator" on the attached picture. What I'm currently tuning up is correlation "window", when it's small some wrong "signals" are generated, when too long buying tops and selling bottoms often happens.

Regards

Tomas

str.JPG
 
Last edited:
mcquak said:
Hi NVP!

Thanks for your thread. It gives me some confidence I'm doing the right thing. Actually in recent year I've been developing something very similar. I'm doing my calculation in R because I personally do hate Metatrader platform and its programming language MQL.
Though I've came out with different indexes calculations, the basic idea is the same as yours. You can check my strength "indicator" on the attached picture. What I'm currently tuning up is correlation "window", when it's small some wrong "signals" are generated, when too long buying tops and selling bottoms often happens.

Regards

Tomas

View attachment 225188
Click to expand...


looks good Thomas .....(y).....and you are on the right track with windows !

and MQL is a pain at times :sneaky:.....always happy to take a look at your settings and discuss some more ideas / options if you want (ive worked with a lot of traders and programmers over the years) ......send me an email at [email protected] if you ever want to discuss more ......

N:smart:
 
hey all

finished session earlier (see my scalping thread) .........markets going ok today considering the us holiday

N
 
London over .........average day by the look of things .....

GBP took the prizes for most volatile currency ......it swung like sinatra at times from 6am ....yen was also rocking but mainly bull ........

only GU really hammered the pips pairwise........selling to -100 at times off of 6am opens
others way back in pack ......

Summary

forex trading is a lot easier with a compass or map to show you what each currency (and indeed pair) is doing .........if you are focussed on only 1 or 2 pairs I guarantee you are missing out on most of the profitable moves .........

for the G8 Currencies there are 28 pair charts you need to be watching .......is your screen that big ?

unless you can afford that many screens (and multiple pairs of eyes !) you need to introduce strengthmeters into your trading strategy to filter/prioritise the trends and trading opportunities

I decided to take this approach as my main Edge in my trading from early 2000's and it hasn't let me down .......sure it needs focus and concentration at times ....but what doesn't ?

N
 
morning everyone

jees what a wild 30 mins of action earlier ..........best pippage for many a month before the 7am bar !!!

see my other scalping thread for details

N
 
ok session over

and a lesson learned for me .........or not ?

had a barnstorming session today plenty of pips made

so I always take more risk towards end of session .......and I think I can walk on water ( hint - I cant)

I never learn to stay in my zone 100% of the time

still it only appears when I am doing well so no real harm done ......but I could do better

(cant we all?)

have a good day
N
 
had some real fun on my scalp thread today ..:)........see over there what happened

jees the usd sat up bull for 60 mins ........but i just couldn't really milk it as much as i wanted

cheers
N
 
morning all

last session over for the week ..........see me at my scalping thread

a little bitty at times but pips were there ..........

if you are looking for nice slow decisions and smooth trends with hours to call the exits

then Forget Scalping :)

its messy , and rough , and whippy ........5 pips for me is my target before locking in trades ......at the most.........you cannot expect more in scalping .....so don't do it

go in with the heart/expectations of a swing trader and you will be boiled alive

totally different mindset and style to other forms of trading ....but very lucrative once you get your act and edge together

have a good day
N
 
Joe Ng said:
Perhaps can you analyse your trades with pic , so babypippers could know what you are talking about. How about money management aspect of this style of trading? Mind to share your thoughts? Much appreciated.

Joe
Click to expand...


let me see what I can do Joe

I am covering 3 forums these days so I spread the time thinner than before .....

I don't publish results anymore for weeklys - as when I have on other forums I get loads of abuse about falsifying them etc etc etc so its not worth the grief these days .....

some people just dont believe that experienced traders can do ok trading most days .......which is crazy to me as anyone will eventually do well trading if they apply themselves over time with a good system and solid execution and discipline etc etc ....like any profession !!!

let me see what I can do
N
 
late lunch - stuck my head in to charts and its a pipfest selling usd ........couldn't resist playing for a few mins

see the action on my thread

nice opening to US session....Usd being sold down the river big time !!!

N
 
what a trading day !!!!!!.....like shooting fish in a barrel ......
 
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