Best Thread Correlation Trading - Basic Ideas and Strategies

[GMP]

Hi N and anyone else,

The sun is shining again today so spring must have arrived, or is it because current UK government is about to get a good kicking in forthcoming election?!!

GU; First trade buy stop at 52782 triggered by wick of 08:10 down bar and SL taken out during 08:15 bar for a nasty but quick 21 pip loss. Chart showing upwards bias so second trade buy stop set at 52782 level once again (I never give up!) and filled by 09:10 bar. Price moved up slightly for two bars then momentum kicked in at 09:30, completely vanished on next bar then thankfully returned for following two bars, made a local high and started to slip downwards until low of 10:20 bar took out TS for 20 pip profit - probably should have tightened TS far earlier after local high print, but thats just naffing hindsight wishful thinking for you!

EU; First trade buy stop at 36753 filled by 08:25 bar, price immediately went into reverse gear and just missed SL by a few pips on low print of 09:00 bar, then it slowly started to recover upwards taking 20 minutes to reach initial entry point, formed new local high at 09:50, paused and attempted repeat of high then rolled over and took out TS during 10:20 bar for a miserable 6 pip profit.

EG; Couldnt find any decent setups so nothing doing here for me this morning.

After the past three days hyper activity this morning's rather narrow ranging and virtually directionless price action is to be expected, maybe EU might be worth a look this afternoon as it does seem rather vulnerable to short selling - trade well and regards,
Simon.

I got well & truly chopped up this morning - must remember to never trade with a migraine coming on!

 

[NVP]

I got well & truly chopped up this morning - must remember to never trade with a migraine coming on!

Hey mate ...if you are genuinely now using corrie alongside your standard system and
want to start posting daily updates similar to JRP feel free....more the merrier !

I dont trade at the moment so my posts are more general in nature

N

 

[NVP]

mornin all..........

GBP was weak overnight.......has it reached its zenith then of earlier this week ?

look at far right chart.......its breached the last few days range.....scary !

time will tell......
N

 

[NVP]

quiet day............that implifies the trades/moves that show (unless something unexpected gets announced)

in my corrie world its simple.....look for the markets to (inversely) confirm the Tag moves....then pair the USD with the most attractive currency showng strongest inverse direction to the USD

in other words trade the G6 in same direction as the markets......as long as all correlate together (but you know I usually break it down more than this it can get more complicated)

good trading
Neil

 

[NVP]

hi all.........

yeouch.....Eurozone got out of bed the wrong side this morning ....GBP looks like it fell down the stairs as well.....

if the Dow30 was not so bullish the yen would be more aggeressive on its rise and GBP would be even more in peril now than it is.. .....hmmmm

methinks the 1H TF breach is now in motion.......and rest of G7 are not sharing in the fall at all so far....

N

 

[NVP]

thanks, 5 min chart, corrie's on the bottom, 40/1...oo, and the CCFp in the middle is cut&pasted and has no relation to that 300/-300 scale there

Hi GMP

jees forgotten how much simpler the Corrie formula is to the CCFp !

the closest setting I can get for corrie vs the CCFp default formula is an 80Ma / Delta 5
which is a very mellow/smoothed 50-60 MA

I can confirm it is actually moving the USD around the pack like the Corrie but a little to slowly for my taste

also - the corrie has not got the luxury of chosing all those settings either

also the Kiwi D is not working properly on the CCFp...........the Corrie looks more accurate to me so god knows what CCFp is doing.....

sorry its corrie anyday for moi......but i am as bias as hell :whistling

N

re

 

[jreshu]

Nice thread very interesting one.........

 

[NVP]

Nice thread very interesting one.........

thanks mate.........

Spread the word as JRP needs a new dress and I need the viewing figures !

N

 

[GMP]

Hi GMP

jees forgotten how much simpler the Corrie formula is to the CCFp !

the closest setting I can get for corrie vs the CCFp default formula is an 80Ma / Delta 5
which is a very mellow/smoothed 50-60 MA

I can confirm it is actually moving the USD around the pack like the Corrie but a little to slowly for my taste

also - the corrie has not got the luxury of chosing all those settings either

also the Kiwi D is not working properly on the CCFp...........the Corrie looks more accurate to me so god knows what CCFp is doing.....

sorry its corrie anyday for moi......but i am as bias as hell :whistling

N

re

Hi N
Thanks for that, it pretty much confirms the conclusion I came to last night: I compared my trades on the days I was using the corrie for confirmation to those on the recent couple of days when I added CCFp to the mix, and even allowing for market conditions, it's clear that either too many indies spoil the broth, or CCFp was muddying the waters with some possibly inaccurate data.
So I've reverted to just the corrie, and I'd recommend anyone else wondering about how they compare to do the same. The corrie's ability to get right down to very short timescales makes it more adaptable anyway, so if there's potential data glitches with the CCFp variants as well, it's a no-brainer.
Which is what I need to do - stop thinking about setups and stick to what I know works. Too much thought, too little clarity!
- Gavin

 

[NVP]

heres latest..........

been a lovely run selling the Eurozone as no news nastys to spoil the fun......Dow30 has been relatively impressive and keeping Yen down below USD .....perhaps that will change soon ?

expecting some nice results from our resident Gunslinger JRP on his USD pairs

N

 

[NVP]

Hi N
Thanks for that, it pretty much confirms the conclusion I came to last night: I compared my trades on the days I was using the corrie for confirmation to those on the recent couple of days when I added CCFp to the mix, and even allowing for market conditions, it's clear that either too many indies spoil the broth, or CCFp was muddying the waters with some possibly inaccurate data.
So I've reverted to just the corrie, and I'd recommend anyone else wondering about how they compare to do the same. The corrie's ability to get right down to very short timescales makes it more adaptable anyway, so if there's potential data glitches with the CCFp variants as well, it's a no-brainer.
Which is what I need to do - stop thinking about setups and stick to what I know works. Too much thought, too little clarity! - Gavin

join the club........I have about 400 versions of corrie and other hybrids on the go - all promising but only part of the Jigsaw.......I see trades all the time but need to lock myself in a room and finalise a set-up/plan that I will use to trade with

Discipline is not my forte !

N

 

[GMP]

Hey mate ...if you are genuinely now using corrie alongside your standard system and
want to start posting daily updates similar to JRP feel free....more the merrier !

I dont trade at the moment so my posts are more general in nature

N

Well, I dunno if I could be arsed to make a regular thing of it (and I'd suffer in comparison to JRP!) but here's a little screengrab for anyone interested in doing a little scalping with the corrie. I just snagged 10 pips on a bounce in GBPJPY. 5m chart, Corrie's at the bottom, 40/1.
As the Yen (black) dipped below -0.00005, the price peeked up above the 23.6 fib, and I got in for a quick 10. Had this not been lunchtime, I might've stayed on board but sterling's very weak and the pair's heading back south even as I write this. It'll probably trundle sideways for a bit now before deciding which way to go this p.m.

 

[GMP]

join the club........I have about 400 versions of corrie and other hybrids on the go - all promising but only part of the Jigsaw.......I see trades all the time but need to lock myself in a room and finalise a set-up/plan that I will use to trade with

Discipline is not my forte !

N

Yes, I think you hit the nail on the head there - discipline is THE most important thing in trading, along with accepting our own fallibility:smart:

 

[GMP]

Similar use here: EURGBP, 5min, falling below 50% fib with EUR (Blue) comfortably below the neutral zone. If this wasn't lunchtime, I'd be short

 

[jrplimited]

Hi N and everyone else,

Cant believe Friday has arrived so quickly, must be a sign of old age creeping in....

GU; First trade sell stop at 51656 filled during 08:35 bar, price motored down nicely then stopped and formed base from 09:05 and started to reverse quite hard taking out TS during 09:30 bar for 9 pip profit. Second trade sell stop at 51508 filled during 09:45 bar, price moved down slightly, congested, formed weird 10:35 bar and went back down again to 10:55 bar low which didnt break previous print. 11:00 strong up bar taken as hint to get out pdq so exited at this close for 6 pip profit.

EU First trade sell stop at 36124 filled by long tail of weak 08:05 up bar, price did its usual on me after a small fall and rose up rather quickly to within a few pips of SL on 08:20 bar, paused then momentum suddenly appeared at 08:25 driving price downwards with a vengenance. New local low printed at 08:55, price tried to rally with some nasty looking tall wicks and long tails but failed and broke down through this congestion range with another burst of momentum to make 10:00 new local low, attempted yet another weak rally, went into another tight congestion range from 10:40 and broke out to form new 11:15 low and then went sideways. Price didnt seem to want to do anything more so exited on 11:35 bar close for 43 pip profit

EG; First trade entered long on open 08:40 bar and SL hit during next bar for 14 pip loss - a real no mercy quick death there! Second trade sell stop set at 89622 and filled by tail of 09:35 up bar, price went down then up and back down again, drifted sideways, jumped up a few pips above entry point at 10:55 then found some momentum and went back down again to make 11:20 new local low then started to stall and move sideways. Boredom plus time constraint kicked in so exited on close 11:50 bar for 12 pip profit.

A really tough morning session with the chop monster snapping away most of the time, even that EU trade was a hard fought battle and it took far to long to complete for my liking as you can see from waffle (!) length - time in market equates to risk exposure and all that good stuff. No idea at all what this afternoon will bring, but as the sun is shining here I'm off outside to play.

Trade well and regards,
Simon.

 

[GMP]

Correlator, Correlator on the Wall,
Which Yen cross is About to Fall?:?:

 

[GMP]

Correlator, Correlator on the Wall,
Which Yen cross is About to Fall?:?:

Answer? You'd have got more pips from Green (Sterling) but either would've got you some profit. Hope someone else made some money from that

15:05 update: anyone following this will have seen sterling continue to fall while the € (blue above) appears to be levelling out, showing how the corrie's relative strength indication can help you back the right horse. I always jump off the horse well before the finish line, just in case it throws me off and runs back up the way we've come...(aaargh!)

 

[NVP]

hi all..........

just popped back......look I notice the markets (dow30 and Gold) have finally agreed on a direction.....with devestating results

when the markets finally decide on a direction - instead of trading a decent G6 currency against the direction of the USD you could of course simply trade the U/J pair always trading yen in the direction the TAG Are now going

EH ?

see below ....the markets fall indicating the TAG will Rise....buy Yen on its direction against the USD.............we are betting that Yen will gather speed and overtake the USD......(it normally does)......and vice versa of course if markets are going up and TAg down etc etc .....!

different game and different rules to my traditional spoutings here......:smart:

N

 

[NVP]

GMP's on fire with his posts :clap:

i'll try to catch up later......well done GMP and welcome to the Crew.....now all we need is a nightshift manager ......as long as you have initials !!!

any offers out there ?......this Thread and potential trading crew are warming up a treat again.....and I love it when a plan comes together......

NVP

 

[NVP]

Correlator, Correlator on the Wall,
Which Yen cross is About to Fall?:?:

umm....are my eyes going mate or did you steam up the screen ?

N