Best Thread Correlation Trading - Basic Ideas and Strategies

[jrplimited]

Hi N,

That indy looked interesting - well done to Ivan for digging it out. Have you seen the indy a clever programmer called Hannover, over at forex factory, did by request that "centres" a starting base point then calculates all currencies selected from this via use of a linear weighted moving average (LWMA) in a multi plot?

The concept looked quite good as a user could define [say] 06:00 hrs starting point (the near end Asian session / near beginning Frankie session) which would give enough time for the LWMAs to "seed" themselves and start plotting the convergence / divergence of main currencies against each other - similar to your corrie indy but with a starting point.

I often wonder how much noise and redundant history your corrie indy carries with it when watching it during the first few bars of our morning sessions....

Have a great weekend and regards,
Simon.

 

[NVP]

Hi N,

That indy looked interesting - well done to Ivan for digging it out. Have you seen the indy a clever programmer called Hannover, over at forex factory, did by request that "centres" a starting base point then calculates all currencies selected from this via use of a linear weighted moving average (LWMA) in a multi plot?

The concept looked quite good as a user could define [say] 06:00 hrs starting point (the near end Asian session / near beginning Frankie session) which would give enough time for the LWMAs to "seed" themselves and start plotting the convergence / divergence of main currencies against each other - similar to your corrie indy but with a starting point.

I often wonder how much noise and redundant history your corrie indy carries with it when watching it during the first few bars of our morning sessions....

Have a great weekend and regards,
Simon.

hey mate...............I watched Henry's video and blurb and sounds like his version restarts at a certaintime every evening to then run for 24 hours before it resets again.......

I will ask him whats it feeding but I guess its a 1min TF(or even the tick) of the 19 currencies......which is what tom yeomans system does and I would guess what this sucker does above you have quoted

makes my corrie sound like a wheesing old steam driven tram as it trundles along without ever taking a break.......

anyway I'm gonna run corrie against Henrys strength meter to see how it works.....

N

 

[NVP]

Hi all

you know I love my market correlations......Dow toYen and Gold to the USD

so you can imagine I am a little upset at the moment re the recent situation when it all goes a little pearshaped....:whistling

look at the 1 hourlys below.....left to right.....NK , DJ30,Gold and the 1000/1 corrie

this would be perfect.....except for Gold and therefore indirectly USD

everything is well below its 1h 200ma (purple) except for Gold.......which has decided to fall to just above the $1100 mark - when if full correlation was pumping it would be sitting comfortably now around $1140-50 !

so why this $40-50 variance to true value ?

Answers on a postcard please ............

N

 

[NVP]

heres the action

one day the markets will all shape up same side of the 200ma.....but not yet.....even on the 5m TF....:whistling

markets drifting into a buy mode now and tag obiging with some hits...GBP looks up for a rise..

looking further right the Eurozone has really enjoyed last few days taking pips off of everthing else........if markets stall with some sprinklings of poor Euronews then it could all end in tears this week.......

N

 

[NVP]

calendar time......theres an early GBP release right in the pits....

 

[GMP]

Hi N,

That indy looked interesting - well done to Ivan for digging it out. Have you seen the indy a clever programmer called Hannover, over at forex factory, did by request that "centres" a starting base point then calculates all currencies selected from this via use of a linear weighted moving average (LWMA) in a multi plot?

The concept looked quite good as a user could define [say] 06:00 hrs starting point (the near end Asian session / near beginning Frankie session) which would give enough time for the LWMAs to "seed" themselves and start plotting the convergence / divergence of main currencies against each other - similar to your corrie indy but with a starting point.

I think this is the one:
http://www.forexfactory.com/showthread.php?t=163158
Probably great to experiment with on a rainy day - looks like the base point & pairs choices are crucial.

 

[NVP]

Hi all...........

by about 8am this morning my signals were showing some buy tag possibilities....the markets started hammering below Key 20 ma on the 5mins between 8 and 9am....and GBP was falling since 7.30am in advance of all of these signals

hope it lasts as nice pips out there so far on selling G/anything .....!!

heres the Raw 1000/1 corrie in action with all G8 in attendance.....who needs anything else to see that sell ?
N

 

[NVP]

I think this is the one:
http://www.forexfactory.com/showthread.php?t=163158
Probably great to experiment with on a rainy day - looks like the base point & pairs choices are crucial.

Thanks guys

i'll try to look later on Plus load henrys indicator

covering other staff on leave this week so stuffed as usual :whistling

N

 

[GMP]

covering other staff on leave this week so stuffed as usual :whistling

N

You should take up trading!

 

[NVP]

nope......much happier being an armchair trader who ignores the bad signals and talks about the good ones..................

n

 

[jrplimited]

Hi N and all others,

Hope you all remembered that USA moved their clocks forward one hour yesterday, having set up charts last night ready for this I spent a couple of dooh minutes first thing this morning wondering what the heck was going on!

GU; First trade entered short at 1.51429 on open 08:05 bar, price dropped and paused several times but the momentum on down pushes was very strong and easily broke 1.51 level. Initial base found at 10:00 and price attempted feeble rally that failed and new low print made at 11:00 then a stronger rally took out TS during 11:15 bar for 98 pip profit.

EU; A real dogs dinner pair chart wise, waited to see if price would break out of initial range to buy stop at 37496 and order got filled by high of 08:45 bar then price fell over to take out SL during 08:55 for 18 pip loss. Second trade sell stop at 37308 filled during 09:00 bar and price wandered gently downwards printing new local low with lower highs at 09:20 then rallied slightly, repeated this after new local low with lower highs at 09:55, found another new local low at 10:50 but this time rally had some momentum behind it and took out TS during 11:15 bar for a very hard to get 7 pip profit.

EG; Entered long at 90762 on 08:10 bar, price rose slightly then stalled for four bars before momentum arrived on 08:35 bar and pushed price upwards. Tracked price to 11:00 local high then moved TS tighter and tail of 11:30 bar took this out for 33 pip profit.

I think EU might be worth watching for good signals during the afternoon session, poor old GU looks blown out of the water although that 1.50 seems to hold some sort of magic command over price action - trade well and regards,
Simon.

 

[jrplimited]

I think this is the one:
http://www.forexfactory.com/showthread.php?t=163158
Probably great to experiment with on a rainy day - looks like the base point & pairs choices are crucial.

Hi GMP,

Thanks for trawling around forex factory and digging up that indy. Yes it looks like the one I was waffling on about so I'll tinker around with it and see if it can be of any use to NVP, yourself and myself alongside NVP's corrie indy.

Simon.

 

[NVP]

Hi N and all others,

Hope you all remembered that USA moved their clocks forward one hour yesterday, having set up charts last night ready for this I spent a couple of dooh minutes first thing this morning wondering what the heck was going on!

GU; First trade entered short at 1.51429 on open 08:05 bar, a stronger rally took out TS during 11:15 bar for 98 pip profit.

EU; A real dogs dinner pair chart wise, waited to see if price would break out of initial range to buy stop at 37496 and order got filled by high of 08:45 for 18 pip loss. Second trade sell stop at 37308 filled during 09:00 bar and took out TS during 11:15 bar for a very hard to get 7 pip profit.

EG; Entered long at 90762 on 08:10 bar, for 33 pip profit.

I think EU might be worth watching for good signals during the afternoon session, poor old GU looks blown out of the water although that 1.50 seems to hold some sort of magic command over price action - trade well and regards,
Simon.

totally agree with comments.....you locked into the G fall and the rest was history !

re timezones - yep wondered why I am taking calls aready from over the water

N
N

 

[GMP]

Hi GMP,

Thanks for trawling around forex factory and digging up that indy. Yes it looks like the one I was waffling on about so I'll tinker around with it and see if it can be of any use to NVP, yourself and myself alongside NVP's corrie indy.

Simon.

Good luck, Simon - looks like alot of variables to play with.

Don't know if this would be of any help to anyone but it's a nice example of how the corrie can help with daytrading: I had a long position on USDCAD (see pic - 5min, CAD brown, USD red) and was getting a bit worried during the candle circled in blue. The corrie helped me stay in by brown not exceeding the dotted line (0.00005), and you can see a similar thing happen at the earlier 23.6 fib level too.

Shows how useful the corrie can be even at the nitty-gritty lower timescales.

 

[GMP]

nope......much happier being an armchair trader who ignores the bad signals and talks about the good ones..................

n

ah-hah, that's what most of the pro's do too, until their account fails and they suddenly disappear!

 

[NVP]

Good luck, Simon - looks like alot of variables to play with.

Don't know if this would be of any help to anyone but it's a nice example of how the corrie can help with daytrading: I had a long position on USDCAD (see pic - 5min, CAD brown, USD red) and was getting a bit worried during the candle circled in blue. The corrie helped me stay in by brown not exceeding the dotted line (0.00005), and you can see a similar thing happen at the earlier 23.6 fib level too.

Shows how useful the corrie can be even at the nitty-gritty lower timescales.

hi mate.....

is that the 1000/1 or what setting ?

also I know hindsight is bliss but it was a gorgeous pinbar bouncing off a dynamic resistance level/Ma line
(not sure what MA though)

(us armchair traders get time to read up on all the good trading words as we dont get our hands dirty with all that yucky trading stuff) :whistling

also try fibs on any Corries on 1000/1 setting applying it to the Currency lines ...............works pretty well but Fibs not my bag man...........

N

 

[NVP]

ah-hah, that's what most of the pro's do too, until their account fails and they suddenly disappear!

yep ....ive cut out the middle man trading bit and gone straight to preaching to anyone who will listen (Tee hee )

N

 

[NVP]

mornin all.......

nikkei and dow had a big push till 2.30am (red vert all charts) then have come of a little
Gold has kept going up....

this made divorce inevitable for the tag at that time.....although reconciliation may be in sight if the markets start rising now and Gold keeps steady/falls

GBP is one sick puppy.....I think l mentioned that it had experienced a nice retrace end of last week and sure enough the party ended yesterday......and now looks like that hangovers kicking in more and more....look at it teetering on that precipice on far right 1h corrie ................some bad UK news today and/or some flat/falling markets (espec Gold) and shes history.......

N

 

[NVP]

busy news day today....plenty of Euro then into north america

I think GBP is in trouble today so sell GBP based on how good/bad those Euro figures pan out.......its a beauty contest and if Euro can hold it together then GBP will be dumped by everyone....

N

 

[NVP]

Classic corrie

Hi all

busy busy....but keeping an eye on my newbie I am attempting to train....(god help her :innocent

heres one I was highlighting to her earlier that lept off the more basic charts I use and
share with you daily as you know - corrie 1000/1 on 5min + DJ30 and the Gold on 5mins with whatever MA's you feel should be in attendance......the ma's on theses dudes is the 8, 13 and 20's but simple price action would have told you the same story as Lower highs and Lower Lows signalled the demise of the markets for a brief time

also based on my premise of a very twitchy / weak GBP that I was watching for earlier on in my overnight commentary

simple and brutal with 50+ pips on G/U for the fleet of foot..... :smart:
N

and yes for those with a keen eye.....by 8.20ish everything was screaming in the opposite direction and the reverse trade has delivered around 20+ pips by doing the opposite.......GBP is as twitchy as hell today so keep the stops wider and bets lower.....