Best Thread Correlation Trading - Basic Ideas and Strategies

NVP

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Brexit ?..........what Brexit ?.......

RED GBP INDEX recorded a 300 pip swing this week so far off the vote on tuesday ...........

(sure im selling this morning) .....but jees thats great gains for the week so far !!!!

TRADE WHAT YOU SEE

N
 

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NVP

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Hi BP

Ive taken 4 main scalps so far today on cable ....


2971
2949
2943
2936.....this is think refers to the 38 price you mention ... i was a little late !

all took min 5 pips .......best runner was the first one at 2971 where i trailed to 2949
 

NVP

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sold cable at 2941 ..........im also scalping UCAD north ......sorry correction.... cad is strong so im Selling Ucad
 
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NVP

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36,172 1,763
much more nervous on this one as a big big pull back on last cable run...real big .....
 

NVP

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as usual today i trade my own strategy..........which is pretty simple

Trade the most volatile / trending pairs ....

Cable is top 3 today as usual so far london ......there are others but cable works just fine for me to focus on

as a result i have 5 from 5 scalps this morning ...no losers .........sure im only around 30 net pips up but thats just fine for me ...i rarely go more than 5 pips on a stop and 2% per trade ...........so thats approx 12% of capital base so far this morning ....

i get worse days ....but a decent day like this should crack at least 10% of cap base as long as i behave and dont do anything Dumb ............(and i am human so i do dumb things) :cool:

N
 

NVP

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scratch trade on last Cable sell......had already staked a b/e position fortunately ....

I think momentum on GBP and indeed Cable is done now ......for the moment ....since i am already well above daily target im taking a break back later

Ucad sell running so i will just trail that out .........67 to 62 so far

N
 

NVP

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Hey NVP I hope that you are doing good. What do you think about potential spread trading?

I was thinking that maybe it won't be bad to look for wide spreads between two currencies but instead of watching to buy stronger currencies, I am watching that spread will eventually back into normal between two currencies, which mean spread will decrease. Of course, I will like to currencies to start decreasing the spread before the eventual entry and of course price action must go with it

hi peter - hope you are well my friend

so - are you are talking about finding the 2 most divergent currencies and trading the convergence ? ......yes thats a pretty standard approach that i have talked about a lot over the years on my trade2win forum .........2-3 years or more back

in truth i rarely trade that strategy as i mainly chase trends....but it can be very effective if combined with the usual other o/b o/s indicators on the pair chart identified as alpha divergent in the g8 ..........like BBs and RSIs etc ..........you could easily combine price action patterns and perhaps some S/R levels to complete the strategy

you will normally find that CAD , Yen and GBP will dominate this strategy in pairs .....because they are the most volatile normally ........interestingly if yuo found an alpha divergence with currencies that are not on this trio that indeed would probably be worth looking at for a retrace trade

look at below ....5 min london morning on a 20ma FXCorrelator

see how the Yellow yen , red gbp and brown cad are ALWAYS either max or min value currency ?

sure some of them do reverse ..but the skew of the MA will always look better than it normally is

happy to talk more on this my friend ...........

had a great morning selling Cable today


N
 

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NVP

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recently sold off cable again ..........what a great day so far

took it around 2652 after the big bull move .....down at 2942 at moment ......

too easy today
N
 

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