Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

new trap set.....

 

[NVP]

and now my remote connection has gone down.......

 

[NVP]

all this fun but remember the art of trading on the corrie is seeing the full picture
see how the commdolls crept up since 8.30 ?

easy money on a falling tag :smart:
N

 

[NVP]

ok gotta go.....cotton to be picked

I am open and honest here on this thread ....no games, no marketeering (well not much !) and no ignoring false signals that dont work....

as I leave I was trying to engineer a scalp from 2 trades that I assumed would be relatively non correlated in nature so one or the other

the big problem with this stuff is the Pip creep....that is markets are constantly testing you by creeping prices up and down to hit stops and activate trades

the trick is to stay dynamic and not say an absolute price of entry (if possible !!)

as I leave here is the scenario I was describing......I got the G/U sale but both trades were activated due to pip creep (damn that U/J !)

and boy oh boy is G/U still delivering !

hey nothings perfect............I'm just playing here and trying to show you how to get into a position where the G8 Dynamics should yield up pips to you if you know what you are doing.....

the G8 can be a pussy cat sometimes offering up hundreds of pips to everyone....then other times it is a complete son of a bitch.....if you can still make pips (or b/e) during the tough times then your trading career will indeed be sucessful

later all...signing off for now :smart:
N

 

[NVP]

AUD getting killed

 

[jrplimited]

Hi N and anyone else,

So, who upset G and E before this morning's session start?....

GU; Entered short at 53951 on open 08:20 bar, price stalled then dropped, made a weak rally and dropped again, tried another rally which had more legs and went a few points above entry then dropped down with 10:05 bar pouring petrol on fire, did a few more weak rallies and drops before running out of steam, trade exited (session timing) on close of 11:55 bar for 51 point profit.

EU; Had to wait until 08:50 bar for sell stop at 33558 to be filled, price went down then retraced feebly to lees than SL halfway level, good momentum came in on 10:25 bar and price drove straight down then went into narrow range and trade exited on close 11:55 bar (session timing) for 44 point profit.

EG; Just an ash cloud to look at chart wise this morning so no trading on this pair.

Not to sure why U is showing strongly against E and G right now, the Americans have their own budget defecit problems looming large real soon amongst aother "niggles" on the plate, so its best to be wary of any springbacks or rebounds as these usually are killers within the M5 time frame environment because of their [bar] sizes - trade well and regards,
Simon.

 

[NVP]

Hi N and anyone else,

GU; Entered short at 53951 on open 08:20 bar, trade exited (session timing) on close of 11:55 bar for 51 point profit.

EU; Had to wait until 08:50 bar for sell stop at 33558 to be filled, trade exited on close 11:55 bar (session timing) for 44 point profit.

EG; Just an ash cloud to look at chart wise this morning so no trading on this pair.

Not to sure why U is showing strongly against E and G right now, the Americans have their own budget defecit problems looming large real soon amongst aother "niggles" on the plate, so its best to be wary of any springbacks or rebounds as these usually are killers within the M5 time frame environment because of their [bar] sizes - trade well and regards,
Simon.

Hey mate.......your Eurotribe sells were absolutely bang on the money this morning 10/10

Tribal action saw Tag & Commdoll Tribes moving upwards with the Eurotribe falling
and the markets fell to support the Tag rise (See piccy)

For me its unusual to see the GBP so correlated to Euro and CHF ....normally it has more defiance than this ??...

been mega busy cotton picking so no time to look since that early stuff posted - tied up
this afternoon as well.....

must keep writing my corrie system guide documents........jees I hate trying to be organised

later....
N

 

[jrplimited]

Hi Simon.

I hope you're feeling better, after this procedure, and that you've managed to pass the disintegrated bits without too much discomfort.

Well done on the pip gathering. Some Mondays are very choppy and this was no exception. I missed most of the morning's action but, managed to grab a few pips on a Short EU in the afternoon. Usually, after a day of sideways movement, we get some good action the following day. Here's hoping

Hi Alan,

Thanks for this, been passing like crazy and inventing new swear words to boot!

You were bang on the button with Tuesday's observations after Monday's sort of nothing day, I did once try analising the Monday "effect" but couldnt get to a meaningful conclusion to see if this day should either be ignored or used with [say] 50% staking on all trades. Be interesting to hear other peoples thoughts on this....
Simon.

 

[NVP]

Use this today......we will review tomorrow :smart:


load 2 correlators up side by side

Setting 20ma / delta 1 (or 14ma / delta 3 if you want it smoothed)

5 min and a 30 min (or if you want a scalping set up 1min and 5min)

Now just trade any pairs where 1 currency is on same side (going upwards or downwards) and one currency is opposite goong the side of the zero diverging away

heres an example........go gettum !
N

Hi all

bit more on that double corrie system...the 5min and 30min combo discussed earlier today

SEE COMMENT ON THIS PREVIOUS THREAD I THINK THE INDICATORS HAD NOT UPDATED PROPERLY AT THAT TIME

(note - always when opening up your system go to each corrie and change the timeframe a couple of times to shake it into life.....usually ok once you've done it and you can then reset back to the TF you need !)

ok since I always recommend trading the USD pairs this is what I saw.....at 7.30 GMT this morning (6.30 on my -1GMT charts below)....I noted the USD rising above Zero and Yen was already above zero on the 30m right chart...so USD Buy

but what to sell ?......only GBP and NZD were in the lower half of the 30min (right chart)....look at the left chart on the 5 mins.....messy but GBP and NZD were both sellable as well on 5 mins so the hell with it.....(actually within about 10 minutes it was damn obvious that G/U was the trade but I am not going to paint a pretty marketeering picture for you....just telling it straight)

so set your sail on selling NZD and GBP into the USD....and cast off NZD as the NZD rose with the USD leaving a lovely GBP run still going....

I am becoming more and more comfortable with multiple trades using the corrie....you just have to understand the dynamics of each currency you drop into that particular "basket" trade :smart:

N

 

[NVP]

gotta go.....later all

N

 

[GMP]

Hi Alan,

Thanks for this, been passing like crazy and inventing new swear words to boot!

You were bang on the button with Tuesday's observations after Monday's sort of nothing day, I did once try analising the Monday "effect" but couldnt get to a meaningful conclusion to see if this day should either be ignored or used with [say] 50% staking on all trades. Be interesting to hear other peoples thoughts on this....
Simon.

Hi Simon
The Monday effect has gradually been seeping into my consciousness. I couldn't trade yesterday, but when I looked at where I would have entered, I reckon I'd have been chopped to bits, especially p.m.... and I don't think that'd be the first time it's happened on a Monday.
Maybe profit targets of 10 to 20 pips would be a safer bet than waiting for your usual exits to trigger. Sort of thing that needs proper analysis I suppose, and life's getting too short now!
- Gavin

 

[NVP]

Hi Simon
The Monday effect has gradually been seeping into my consciousness. I couldn't trade yesterday, but when I looked at where I would have entered, I reckon I'd have been chopped to bits, especially p.m.... and I don't think that'd be the first time it's happened on a Monday.
Maybe profit targets of 10 to 20 pips would be a safer bet than waiting for your usual exits to trigger. Sort of thing that needs proper analysis I suppose, and life's getting too short now!
- Gavin

Hi all

this the way i see it re monday trading

Forex fires off of economic news and market activity.....

globally we still see (generally) a 5 working days on and 2 days off mentality re the markets

therefore following the weekends downtime the forex needs time to get some blood pumping and get the circulation flowing before it beds in....and that for me includes a decent run through of all the global markets (ie Far East , then Europe and of course the US markets).......

sooo that really means dont touch a thing until the Asian markets reopen on monday night/tuesday am !

JRP ....i've just created a longer weekend for all of us ....hoorah :cheers:

N

ps - all bets are off re this if Economic world war 3 equivalents occur during the preceding Friday !

 

[NVP]

Hi all

ducking in and out again ...

this was a nice U/J sell that presented itself - aided by my market correlation ideas

of course you could have just sold the G6 against that rising tag team....but thats much to easy and we humans do try to handicap ourselves in everything we do ! :whistling

later.....
N

 

[GMP]

EOD report http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1113570
Had to go out mid-morning, but didn't miss as much as I missed an hour & a half ago:http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1113560... but on the other hand, I got out of €$ just as it turned (pure luck, zero judgment) and made a tidy profit anyway.
It's just seeing those big fish slip right through your hands, when you know there are going to be far more difficult days trying to squeeze a few pips profit. Ah well, live & learn I suppose!

 

[jrplimited]

EOD report http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1113570
Had to go out mid-morning, but didn't miss as much as I missed an hour & a half ago:http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1113560... but on the other hand, I got out of €$ just as it turned (pure luck, zero judgment) and made a tidy profit anyway.
It's just seeing those big fish slip right through your hands, when you know there are going to be far more difficult days trying to squeeze a few pips profit. Ah well, live & learn I suppose!

That was spectacular Gavin, well done. Challenge for us all tomorrow will be keeping today's gains firmly locked in instead of handing them back over without even a whimper!
Simon.

 

[NVP]

That was spectacular Gavin, well done. Challenge for us all tomorrow will be keeping today's gains firmly locked in instead of handing them back over without even a whimper!
Simon.

100+ pips in a day is what its all about.....

N

 

[NVP]

Eurotribe

still a little stunned re yesterday and the 3 Eurotribe currencies

I normally call a lot of trades based on their disharmony......thats a chapter to revisit again then this week

N

 

[NVP]

Mr AussieD , mikey NZD and MC CAD just told me to remind you all of their *rse Kicking gig yesterday during london morning session (-1 gmt on the chart)

respect to the max dudes
N

(is that street enough or shall I say kickin again ? )

 

[NVP]

Following the tribes is a big part of my strategy these days....every piece of the G8 and market dynamics is watched/noted to see the opportunities....

shame about working full time then and those other things like life that get in the way !
N

 

[NVP]

overnights

nice AUD rise .......were there some economics released ?

N