Best Thread Correlation Trading - Basic Ideas and Strategies

[miro1360]

here is picture made in excel, where was in 08.2011 bought combination
bEG+bGU+sEU (blue)
or ssb in red in lots 1+1+1
prices from close H4
and chart show maximal price oscillation during this time (pip/dollar is same - it changes with time, this change is not shown in chart)
we can take profit on this hedged oscillation
our first trade can not be taken randomly, it must be taken from some reference history point where you see that oscillation is on subjective extreme - bottom (bbs) or top (ssb)
... but this is long term strategy and I give me for this because it can be dangerous
at least, we can see it like other form of hedging

 

[NVP]

hey all........

usd now in full swing going pm session .........cad has had a real real good session so far .....been 50 pips up at times from early us ......

usd , GBP , Euro , AUD all bearish ........

ucad sells been the pair of the day re scalping ..to -50's

have a good evening
N

 

[NVP]

here is picture made in excel, where was in 08.2011 bought combination
bEG+bGU+sEU (blue)
or ssb in red in lots 1+1+1
prices from close H4
and chart show maximal price oscillation during this time (pip/dollar is same - it changes with time, this change is not shown in chart)
we can take profit on this hedged oscillation
our first trade can not be taken randomly, it must be taken from some reference history point where you see that oscillation is on subjective extreme - bottom (bbs) or top (ssb)
... but this is long term strategy and I give me for this because it can be dangerous
at least, we can see it like other form of hedging

how do you work your stops on this ?..........I know a lot of guys who work "basket" pair trading and this means stops become more difficult due to multiple pair correlation / combinations

N

 

[NVP]

Hey all

Got some deadlines I have to hit this morning.....will be online later

N

 

[NVP]

still tied up on some consulting work this morning - sorry

London has opened with a bull yen play ............mainly UJ and EJ the sell scalps to be on ..........nothing else much showing yet

hopefully on line later
N

 

[NVP]

jees watching the easy sells on Ej and uj at moment .......grrrrrrrrr

 

[NVP]

big changes in market correlation .........

Yen still the buy Bull ..............euro and usd have come big bull as well (screws UJ / EJ plays )

CAD and gbp dumped.........

N

 

[NVP]

hey all ......London morning over

usd and yen both had good bull mornings .......AUD / CAD / GBP / CHF sells

pairwise for scalping the Ea Bull did the best in my stable to +60 pips from 6am starts

also rans UCAD bull to +40's
AU / EJ bears to -40's

thats it......... i'm tied up all afternoon as well in meetings so have a good one in the markets

N

 

[NVP]

not going to get to charts again tonight - back over weekend - N

 

[banawa]

hell my friend are you aware about that new correlator and tell you when too trade with the momutum

 

[NVP]

heres the latest video of last week
N

 

[NVP]

hey all

heres the week ...........GBP did well (till Friday)

AUD and USD were the dogs

N

 

[NVP]

hell my friend are you aware about that new correlator and tell you when too trade with the momutum

hey B

how are you my friend ........still trading ?

what strengthmeter are you referring to ?..........they are very very prevalent now in most traders toolboxes.........

not like when I started in early 2000's .......no one had heard of them when I developed the FXCorrelator and everyone said they were useless and would never catch on

well they did !!!!!........and its been copied by thousands of traders now ...

N:smart:

beware though.........a lot of these Strengthmeters have been over engineered and the algorithms are a law unto themselves ............I always recommend keeping a strengthmeter simple so you KNOW what its doing ..............that's from someone who has built (and consulted on) a hell of a lot of strengthmeters out there in the market ......sure I have a few beasts in the closet .....but the simpler ones are never far away !!

 

[joseph1986]

Interesting thread. What do you guys suggest on sample size determination?

 

[banawa]

thanks for the reply please go there http://www.forexfactory.com/showthread.php?t=572589&page=43

 

[NVP]

Interesting thread. What do you guys suggest on sample size determination?

can you expand on that question J ?..........thanks

 

[NVP]

morning all .........

overnights
usd bull ..........GBP and AUD in support
CAD the sell , Yen bear

6am London opens
Still a lot of chop initially ...........been to gbp bull again , USD wont settle .........yen looking more bearish as session opens up

6am pairs scalping .....
nothing yet in my stable has really got outside the 10-15 pip range ...........poor morning for me .even for a Monday

low volatility so far

i'm watching the GBP buys , USD buys , Yen sells , CAd sells ........hmmmmmm


hey it will get better guys .....but i'm outta here soon as usual as need to make some calls

have a good day .............post 8am should see more action

N

 

[NVP]

usd/jpy started with a gap and +20 pips to bank as profit. Not sure why I have not noticed this thread before but good information.

hey there

usd was ranging for the brief sunday session last night ...........then came hard bull from around 01.30hrs ......nice bull run to +35's/40's pips

3 main sells for that period were GBP , NZD,CAD ..........yen in truth was tracking USD as as bull so I would not have been trading it

N

 

[NVP]

since this s a very slow morning the market is still too undecided or me ..so I will sit back even more ...............the gu will probably fake a few more times here ......

ive missed the UJ / EJ resells and am still watching Ucad come north slowly

BUT I need better signals than this to make money

leaning on buying the GU now with confirmed signals above the 3055

N

 

[NVP]

ok gang I need to make some calls ............duty calls elsewhere

ive made about 4 scalps this morning ....a few pips up but a very very light action morning for me

nothing showing at all ...........not one of my target scalp pairs has got outside a 10 pip range from 6am...........hasn't happened to me for many a week

if you are a novice or indeed intermediate scalper you will have lost money ths morning ...........don't worry about it ..its been a pig of a session so far

have a good morning ....be patient it will pick up later

N