Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

2009 performances for corrie

Hi all

someone asked me who was doing what this year so far

heres a 1000/3 setting daily for 2009

so by looking at the left verses position now thats how theyve done

looks like the Yen (yellow) has fallen most so far despite rallying in in Aug /sept

the GBP to me looks like the winner here so poo to everyone else and rule britannia:clap:
(lets just forget late 2008 eh ? )

USD had been useless since Q2 really falling sloooowwwly

Euro and AUD nice and steady rise since August really

the corrie is great at market summarisation....you always know exactly where you are with the corrie (with practice of course)

so what happens next NVP?........how the hell do I know ???

N

 

[NVP]

17th Nov on 5min Corrie....

Hi all

heres today action so far...thrown in a little commentary on the 5min re the price action patterns I try to look for to help make the calls

PS - Euro looks weak at moment with all 4 others rising ?

N

 

[mikebondi]

i picked up the spare 50 pips on yesterdays trade so up 100 pips on corrie yesterday. now im just looking for a new setup.

 

[mikebondi]

i just opened a trade again using corrie divergence. o eur/usd and usd/chf . the gap was 150 pips plus and i took it. take profit is set at 50 pips a side. hoping for another 100 pip day.

i am in need of a good currency probability meter. something that will tell me for instance there is a 75 or 85 percent chance euro is headed higher or whatever. so the search is on i think i might already have one somewhere on my pc from another guy that has helped me with this a bit.

if i could refine the entry a bit more on this i think it might be a bit better. right now i have to withstand a bit fo drawdown before it swings back in alot of the times. hense the need for the probability meter or something similar.

mike

 

[NVP]

Hey Mike

Hey mike !

thanks for feedback and the PM's you have sent me........yes the correlator and this whole field of correlation trading is very under-rated as an approach - the main reason is that the current tools are considered to clumsy and that the patterns are hard to learn and difficult to spot.........

of course they are !........no one said trading is easy and I hope I am gradually showing people in my (lighthearted) style that it is possible to make money this way with the right tools and education.....I am self taught on this and have bags more to learn as new people join me and we grow together

Rule 1 in many legendary traders strategies is to look at the market a different way to the herd......and thats what we do !

anyway I will respond privately on your specific questions and requests

N

 

[mikebondi]

nvp

thanks a bunch for the info. i love how you put it no one said trading is easy. this is a constant learning environment. i love it though and cant wait to be full time trading. the challege is a ton of fun. i do agree copying someones strategy works for some but i much prefer working on a new strategy. i have a few that i trade that i have been taught and then there is corrilation. the folks i trade with regularly dont believe it will work and that is fine i do believe it will.

have a good day
mike

 

[mikebondi]

i forgot to mention the trade i opened yesterday closed for another 100 pips profit. looking for another good setup ill keep everyone posted.

mike

 

[NVP]

mikebondi trade - excellent !

i just opened a trade again using corrie divergence. o eur/usd and usd/chf . the gap was 150 pips plus and i took it. take profit is set at 50 pips a side. hoping for another 100 pip day.

mike

ref mikes post #304 see below............

N

 

[NVP]

totally agree

nvp

thanks a bunch for the info. i love how you put it no one said trading is easy. this is a constant learning environment. i love it though and cant wait to be full time trading. the challege is a ton of fun. i do agree copying someones strategy works for some but i much prefer working on a new strategy. i have a few that i trade that i have been taught and then there is corrilation. the folks i trade with regularly dont believe it will work and that is fine i do believe it will.

have a good day
mike

I have regular feedback that correlation is a good supporting tool but will never be successful as a stand alone strategy.......well watch this space !

N

 

[NVP]

5 min today

hmmm.............I like the euro so far today most !

GBP USD and Yen all started falling around 5am sh and still going down so far

N

 

[NVP]

nearly there ?

i forgot to mention the trade i opened yesterday closed for another 100 pips profit. looking for another good setup ill keep everyone posted.

mike

hmmmmmmmmm

hey Mike !

looking at my chart in post #308 i'd say that Euro was starting to diverge big time as overbought to CHF?.........with your new toy wait for the start of the convergence phase (soon?) supported by Tag team rising :smart:

but then they all dont work 100% of the time..........

N

 

[mikebondi]

nvp

i am hoping on top of hoping to be able to dive into this tool here very soon. it looks very impressive. my work schedule the next few days pretty much sucks. i saw what you were talking about i jumped in last night on a divergence corrie trade. it looked like a nice trade i have been riding it all day. looks promising to close here soon for another 100 pips. usd/chf drives me crazy cause it always lags behind. it makes me think of trying to get my daughter out of a toy store. lol i will get there eventually.

i am wathcing gbp/chf and eur/gbp lately for some divergence corrie on that pair as well. looking at it it has an amazing gap when it get stretched out. at first glance 200 plus pips.

thanks again for the chance to trade your indicator.
mike

 

[NVP]

Excellent !

nvp

i am hoping on top of hoping to be able to dive into this tool here very soon. it looks very impressive. my work schedule the next few days pretty much sucks. i saw what you were talking about i jumped in last night on a divergence corrie trade. it looked like a nice trade i have been riding it all day. looks promising to close here soon for another 100 pips. usd/chf drives me crazy cause it always lags behind. it makes me think of trying to get my daughter out of a toy store. lol i will get there eventually.

i am wathcing gbp/chf and eur/gbp lately for some divergence corrie on that pair as well. looking at it it has an amazing gap when it get stretched out. at first glance 200 plus pips.

thanks again for the chance to trade your indicator.
mike

hey mate....you are my star contributor at the moment so keep flying the flag.......if you get time pm me with the detailed approach to your divergence strategy as the corrie is probably better trading the heavily negatively correlated currencies of Tag team vs others.........

it can get a little hazy on the very closely correlated currencies ( EUR & CHF) which you seem to be focussing on above (nothing is perfect)..let me know and I can recommend and tune you some indicators

NOTE TO ALL - remember I have no concept anymore of pairs trading ..... to me the EURO is Blue and is on my corrie chart as a single line moving and down as it strengthens or Weakens (its not 7 pair charts vs other currencies as in your world)

the FXcorrelator "brings currencies to life"........a bit like coffee does )

 

[NVP]

corrie - last 2 months

heres the world since late september........

I like Sterling as it is making nice progress and could be worth a punt as it resumes that upward turn after a recent breather (?)....might be worth a cheeky buy up to the high you see in October....then who knows ?

but what to trade it against ?...............Tell me what you see....anyone** ? :smart:

to all my budding correlators out there on this setting (the 1000/1) you can trade the currencies exactly the same as if you were trading a pair chart using a line setting instead of a Bar chart or other method....(support/resistance levels, HH's HL's LL's, HH's)...everything works the same way and is as predictable as any Pair chart gets.

Naturally you have 2 currencies to select for a pair decision....but on shorter TF's do you really need me to tell you the currency that must be in that pair ?

**PS - look at the Swissie (Grey) below in chart...about as interesting as watching paint dry....although on longer TF's like this it can be wonderful to use as a non volatile foil for a more volatile currency (hint!)


N

 

[mikebondi]

picked up the 100 pips so this week im up 300 pips on this alone. looking for another setup.

mike

 

[NVP]

great news !

picked up the 100 pips so this week im up 300 pips on this alone. looking for another setup.

mike

keep talking like this and we'll be fighting them off on this thread.........


N

 

[NVP]

timeframe analysis on the Corrie

Hi Peeps

I have just mentioned that the 1000/1 setting on the corrie can work using standard technical analysis principles like any line chart on a standard pair (not better and not worse)

so heres a classic Triple TF analysis of the current markets.....

AUD= Gold, Euro=blue, GBP=Red,JPY=Yellow, USD=Green....and i left the CHF (Grey) on the 4H chart as I was talking about it a Few posts ago to potentially sell against buying GBP (choices , Choices )

left = 5min , then 30m, then 4h

so tell me what you see and what looks good ...........the Tag team are a train going north at the moment so standing in front may not be recommended at present although is it to late to get on board now ?............ Doh !!!

N

 

[NVP]

a Good question !

ooooh yeah..........heres the answer you wanted....wheres resistance on the 4H TF ?

not long then before the party is over ?

What does basic pattern principles/Price action analysis tell us regarding major resistance points ?

although bear in mind on the shorter Timeframes theres plenty of pippage before those areas are hit !


N

 

[jrplimited]

Hi N,

Been tracking E/U sideways (grabbing a few pipadoolies here and there), G/U downards and E/G upwards all morning on M1 and M5 tfs, but now we are near Uncle Sam joining in on the bun fight everything looks to be pausing before a market direction can establish itself.

I'm keying any recovery or continuation pattern on the 10:30 hrs (GMT/London local) bar as for all three pairs this seems to have drawn a sort of line in the sand for today - anything can happen in the next half hour though!

Trade well and regards,
Simon.

 

[NVP]

Whats wrong with the CAD ?

Hi

Ive just been asked on pm's why I keep a few currencies off the chart ?

well they are all there if you want them...but basically following 8 currencies on the chart is like eating Airline soup in turbulence....

ITS GONNA GET MESSY :cheesy:

feedback from my respected muchachos in the early threads was lets ease it down and try to simplify things...... so I generally keep the CAD, NZD and the Swissie off the radar.....why ?

well........Its either the AUD or NZD to represent the big interest dudes and AUD is less Volatile which I prefer (just my preference)....

the Swissie ? , well its just Euro but more Snoozy.... I would include it if I traded longer TF's though as great for using against the more volatile currencies (spread is self defeating on lower TF's and boy it can twitch rediculous pips sometimes in low TF bars)

The CAD...well its toooo unpredictable for me and I have decent volatility already from the GBP so no cigar....

thats it... My personal Fantastic 5 that I watch non stop for the action

you correlator traineeeess....do what you want ...there are no rules

N