Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Jees cobber .....did someone break the Aussie D's surfboard ?

 

[NVP]

dow south = tag north...........still on full gas

N

 

[NVP]

heres the trader conundrum

If we assume that the more trading rules/Criteria that are applied to a system (I mean sensible ones) the better quality your signals will be......

also we are told that higher timeframes are more reliable and only trade on them and ignore those nasty unreliable 1mins and 5 mins

So how do you maintain a good flow of profitable trades (and income) whilst ensuring you maintain the premium signals you can.....?

answer............you cant !!!

Thats my problem with even 1h+ charts ........if I apply el premo Strategies I will get (roughly)the same number of signals as I do below 1 hour timeframes

so therefore at the end of any week If I am trading 5 mins charts (as a 24/7 robot) ! will have (approx) acted on :-

12 times the number of signals on the 1 hour charts
48 times the number of signals on the 4 hour charts
300(ish) times the number of signals on the daily charts

and assuming we must use the ole money management of max 2% of bank stash per trade.............we are gonna starve unless we are trading lower timeframes as a professional

sure I'd love to live my life on the 4hour signals with complex criteria to ensure profitable trades.....but I will starve on it :smart:!

N

 

[NVP]

thats why even scalpers can make money

they have simple (but effective) rules and execute at levels of efficiency and speed that deliver small average + pips per trade....but the volume/turnover is the key


What you have to ask yourself is this....

trading signal flow - what am I going to do re :-

Quality vs Quantity vs my Income requirement and expectation ?

Good traders have learned what they can expect to earn (blood sweat and tears) and Beginners have no idea as they are still swapping systems and timeframes every 10 minutes and learning the ropes

thats why consistent and good traders take years to get to that point in the process, so decide now what camp you are going to be in and start refining that system you like

and for heaven sakes do not believe the many marketeers telling you the returns they guarantee with their systems...........it will all end in tears


N

 

[NVP]

heres lunch

N

 

[NVP]

Aussie D is firing up here......looking good and coming off the bottom of the pack today

 

[NVP]

one man trades (profitably) whilst another man sits and waits for higher TF confirmation

another part of the traders conundrum

decisions decisions

N

 

[NVP]

i'm outta here ..................tomorrow

N

 

[NVP]

jees - even i'm starting to believe this stuff works......

shame I am so tied up at work and on other projects all the time

try it for free here - all the indicators and instructions are below in the signature area...........sure you gotta poke around a bit but what do you want for free ?

later
N

 

[NVP]

heres the 1 hours...the big action was wednesday/Thursday when
the correlations all lined up a treat

during that period you s/be trading lower timeframes like demons followign the 1 hour trend signals

go back and look at the charts (or my posts) earlier that week during this phase......you will see that the buy Tag signals were very profitable for the 5mins :smart:

N

 

[NVP]

hey all

I am a huge fan of price action and support/resistance levels - in both pair charts and my FXcorrelator......

open an FXcorrelator and set it at 500ma or higher.....then do what i am doing below and see the S/R levels which give clues as to where to trade....(hey - hide some currencies on your versions to make it more clear)

i'll have a huge section on this approach in my forthcoming private Forum/Website (or whatever my IT dudes are currently cooking up for me :whistling) and we can discuss ad infinitum

meanwhile on this thread I focus on my simple ma based signals :smart:

N

for more Price action knowledge check out :-

yourtradingcoach.com (Lance Beggs)

http://www.stratsforextrading.com/dokuwiki/doku.php?id=path_of_learning:trend_within_a_trend

or the Naked Trader site where its a little funky but boy is there some wisdom there !

 

[NVP]

big selling pressure on the yen and usd currently

N

 

[NVP]

for example on the 5min TF (500ma)

heres a little hint

or alternatively if you are a pure S/R player just trade the bounces back.....

N

 

[NVP]

trade coming ?

N

 

[NVP]

in g/U 1.6254

 

[NVP]

S/L 1.6270

T1 6243 (!!) hey its an abyss after that

N

 

[NVP]

this is aggressive as the Dow is nowhere near below the 80 and 20 on the 5 mins

 

[NVP]

come out ...........its not turning and I dont want to spend 10 pips doing it

N

 

[NVP]

jees........I had 5 mins break from work and took a look at my screens and saw a possinble trade that was not in my criteria but was possible although an aggressive call

people this is not the way to trade.....you fit yuorself around the trade signals and not vice versa

N

 

[NVP]

I took an aggressive trade on selling g/u and got away with a small loss or B/E

I was headstrong and impatient..always wait for the trade to come to you

if this had been sucessful I have learned nothing and perhaps sealed the fate for more risky trades .....so dont do it :smart:!

N