Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi NVP

I don’t know much about the FXCorrelator but skimming through the thread intrigued me. I have a general question for you: what makes you believe that correlation keeps working on future data? Is there anything special about the FXCorrelator?
I have spent a fair amount of time trying to figure it out (Pearson’s and other related methods) but can’t seem to make it work. I found that cointegration and mutual information work better though.
Nevis

hey Nevis.....

you are correct ..........correlation is not exactly what we do here 100% of the time ....but that was the title I chose when I launched the thread....

can you expand on above please as it sounds interesting :smart:

N

 

[newt24]

Hello all,

Pls find attached the FXCORRELATOR-2a.mq4
with arrows indicating the trend.
Pls pay attention - default values are delta 3 with a 200 Period. You can change with kind of default values you need.

Just let me know if you need some features or anything.

ravic

Thankyou rravic for the update, I spotted a slight bug with the code (please note I have no programming exp, so you can prob write it better)

What the bug was, if you turned off any of the currencies, the arrow for the one you turned off would always appear, and it would always appear with the up arrow. It will not show an arrow with the file below:

But thanks for the update

 

[NVP]

great to see this interaction guys .....much appreciated

having stared at most FXCorrelator scenarios and settings over the last (nearly) 2 years and also having observed what currencies correlate (and non-correlate) together and under what circumstances and alongside what other markets - i'm pretty comfortable with the FXCorrelator's ability to generate a fighting chance of profit out there in the Forex cosmos :smart:

my preferred approach is utilising 3 Correlators (on different ma/delta settings) on 1 TF to give me signals that I then can map onto my simple G8 correlation/other market correlation rules to say trade or no trade

i'm going to post stuff here with some calls as an when I can but as I seem to work 20 hour days it will not be as regular as a full time trading dudes or marketing gurus with trading rooms etc etc...

my proof of success or failure will lie in the posts that now follow here over the next few weeks and if things are going well then perhaps I may consider offering the system to interested people.......lets see how it goes and early days at present

the system will not be able to be backtested due to the additional correlations/experience filters I apply to "dumb" chart signals

remember anyone can (please) post here using their own interpretations and questions.....i'm just trying to drive myself forward and get something finally published / achieved

right - lets begin
N

 

[NVP]

heres my Supercorrie on the 4h settings (and i'm closing up the chart to just show the new arrows )

rules are simple - I need all arrows in same direction to trade

as shown the AUD was a nice buy from early yesterday and CAD came on stream as a sell later in the day so that should have delivered pips when i had 2 currencies clearly to trade

but thats no use to you is it !!!

well.........i'm waiting on the EUR and CHF to hopefully all point north soon and naturally some continued bullish action on the ole US equities will certainly help the Euro's push (god knows what CHF is hooking to theses days)

since I am hopefull that USD and YEN will all align south with 3 arrows as well then the trades will be made appropriately

lets see what happens
N

 

[NVP]

if yuo believe this thing......

BUY E/U on the 4h charts

CHF has also moved to Buy but i'm nervous which camp its in (Eurotribe ot Tag team)

CAD and AUD holding still since yesterday

N

 

[NVP]

hey rravic

thanks for the PM and programming - I will try to respond later.....

N

 

[NVP]

yes I know that GBP is falling like a stone but i'm not watching the 5 min TF with my supercorrie

jees...........:whistling

N

 

[NVP]

if yuo believe this thing......

BUY E/U on the 4h charts

CHF has also moved to Buy but i'm nervous which camp its in (Eurotribe ot Tag team)

CAD and AUD holding still since yesterday

N

Hi all

i'm tied up now for the rest of the day in meetings.........you s/be about 20 pips up now on the E/U call from above .....clearly its early days and I'm calling off of a 4h chart so we are looking for some decent larger pip returns here off of bigger S/L's and drawdowns

I will get myself more organised over next week or 2 as to how I call these and Targets etc etc....

Cheers
NVP

 

[NVP]

always good for a read.........

(so thats why CAD is pants at moment)

N

 

[NVP]

Hi all

i'm tied up now for the rest of the day in meetings.........you s/be about 20 pips up now on the E/U call from above .....clearly its early days and I'm calling off of a 4h chart so we are looking for some decent larger pip returns here off of bigger S/L's and drawdowns

I will get myself more organised over next week or 2 as to how I call these and Targets etc etc....

Cheers
NVP

eh ?............what planet was I on when I priced this post above ?

the E/U took a fall of around 50 pips on my announcement but has now rallied to about 60 pips above my call.......

thats trading the H4 charts for you......deep pockets needed :smart:

or I could have used some good ole price actio or even a lower TF to confrm the H4 signal.......but whats the fun in that ?

the H4 supercorrie is showing this below......CAD is still a lovely sell, AUD remains a buy ..... and i'll keep riding the E/U train a little more...........CHF has held as a buy but nah......

N

 

[rravic]

Hello,

A new variant of the indicator. Will be three columns with arrows.
First column - the actual chart where indi is attached
Second and Third column are the arrows from 2 different timeframes that can be changed from the indicator properties (when you attach it at the chart).
tf2 and tf3 and can have only the values: M1 or M5 or M15 or M30 or H1 or H4 or D1 or W1 or MN
(default are H1 and H4)

The chart must have have "Line graph" set as "None" color to see clearly arrows.
The numbers attached at each arrow represent the position of that currency line in the group of below or above the 0 line.
The indicator "correlator_library.mq4" must be placed in the same folder with FXCORRELATOR-3.mq4 and only FXCORRELATOR-3.mq4 to be attached to the chart.

Hope is not buggy, I have been tested several times.

have fun

 

[NVP]

Hello,

A new variant of the indicator. Will be three columns with arrows.
First column - the actual chart where indi is attached
Second and Third column are the arrows from 2 different timeframes that can be changed from the indicator properties (when you attach it at the chart).
tf2 and tf3 and can have only the values: M1 or M5 or M15 or M30 or H1 or H4 or D1 or W1 or MN
(default are H1 and H4)

The chart must have have "Line graph" set as "None" color to see clearly arrows.
The numbers attached at each arrow represent the position of that currency line in the group of below or above the 0 line.
The indicator "correlator_library.mq4" must be placed in the same folder with FXCORRELATOR-3.mq4 and only FXCORRELATOR-3.mq4 to be attached to the chart.

Hope is not buggy, I have been tested several times.

have fun

thanks rravic

I will have a look later ...

save your progammng energy my friend....you can imagne I have a few ideas myself

N

 

[NVP]

mornin all

heres the h4 supercorrie now......looks like no changes overnight

the commdolls are a little opposed but the tag team are aligned .......Euro and CHF in agreement so looks like old times are back in fashion.....GBP is its own man as usual

US Equities markets are still in bull mode so all aligned........

N

 

[NVP]

heres my EU view......

N

 

[rravic]

Hello,

I saw on the chart this morning that NZD will go down..
Assuming the GBP will go up (because this was behaviour last week, almost every day) I saw an opportubnity to buy GBPNZD

I will keep informed

 

[rravic]

regarding the last map, I really dont know how to interpret USD JPY. While is clear that the lines will align togheter (actually is a gap between) I dont know .. how?

 

[NVP]

Hello,

I saw on the chart this morning that NZD will go down..
Assuming the GBP will go up (because this was behaviour last week, almost every day) I saw an opportubnity to buy GBPNZD

I will keep informed

Hey RRavic

nice chart and love the capacity to load multiple timeframes....this will transform the usage of the indicator and watch more people arrive here now

see my PM's and I will advise how we develop this further....the first observation for me is to align the TF's (if possible) on top of each other like the Supercorrie I am publishing here at the moment....its easier on the eye to see a currencies trends :smart:

N

 

[NVP]

Hello,

I saw on the chart this morning that NZD will go down..
Assuming the GBP will go up (because this was behaviour last week, almost every day) I saw an opportubnity to buy GBPNZD

I will keep informed

hey RRavic

my supercorries love the NZD ...but the GBP they are not either 100% aligned down for me yet****...........Euro and AUD still a buy though


*** NOTE - in this trial version of my (first) supercorrie system the more volatile currencies (GBP, Yen) will suffer as the system is geared to support steady unfolding moves and not fast jumpy action

N

 

[NVP]

as followers of this thread will know observing what currencies are not doing corrleation-wise is just as important as what currencies are doing in tune with our experienced correlation assumptions.....

Soooo....history teaches us that generally the Yen, USD and now the (now unfettered) CHF will move opposite to Global Equities.....and the other G5 therefore with Global equity prices

so when I see the NZD and the CAD falling on a bullish US30 (H4)timeframe I need to understand what is blocking their upward progress and when it will be released

and of course if the blockage is not removed and equities then start to fall ?.........

N

 

[NVP]

ok off to meeting now for next few hours

heres some blatent and contrived flag waving for the current supercorrie signals, i'm staying off the more obvious X currency trades as they are more easy to spot....these exotics are more fun !!!

hindsight is a wonderful thing in this business

N