Best Thread Correlation Trading - Basic Ideas and Strategies

NVP

Legendary member
37,088 1,916
hey guys

I may look like i live on the cable pair ....but i will move in a heartbeat to a better trending pair if i see it ......thats why i make consistent profits ...i ride the pairs that are moving and trending better than the rest -

there are 28 pairs in the G8.....

so only ride the alphas......

and stop riding the donkeys !!!!
 

NVP

Legendary member
37,088 1,916
ok going to pack up soon as busy on other things .......

ok look at the chart .....5 waves of selling this mornings session on cable (below the open 6am price level)

sure i can see that Cad has been bull and Euro has help bull as well (my EG bull trades were ok as well)

but overall the usual alpha GBP was swinging like a trooper so why fight the obvious ?

great week for me...........no complaints on my daily pip hauls ....

N
 

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Aphaynes

Newbie
4 0
Hi Everyone....An ambitious title indeed !

I want to consolidate as much information as possible on the subject within this
thread....the works !

Over the next few posts I will try to share my own humble thoughts/Ideas on Forex Correlation and would appreciate as much feedback and input as possible to help my studies.

I am not going to try to dictate where this thread leads, but I am hopefully that it will deliver some great Ideas, references and "Gems" for all of us to incorporate into our Trading.

To get things started In next post I am going to discuss The Major 8 currencies and how I have found they tend to interact with one another and if there are any simple rules we can learn from this to assist our trading.....

I will also attach an indicator I use to assess how the 8 Currencies are performing which I would love to develop further and expand with everybodies help

Please start adding comments / requests and of course any references or threads that would be beneficial to have linked in this one

apologies if anything has gone wrong in this first post...I hav'nt posted much before and this is my first attempt at a thread !

more tomorrow - time and work permitting !
Neil
 

Aphaynes

Newbie
4 0
There is no such thing as Currency correlation, At least not in the sense that you can profit from it. Sure some currencies do trend together, for example Gold and Yen when the dollar is weak sometimes correlate, but there are also many times they dont. Also when one moves and you jump on another, why not just get on the first one? they will always move at the same time. Anyone I know who has tried to make a strategy for correlations has failed.
 

NVP

Legendary member
37,088 1,916
There is no such thing as Currency correlation, At least not in the sense that you can profit from it. Sure some currencies do trend together, for example Gold and Yen when the dollar is weak sometimes correlate, but there are also many times they dont. Also when one moves and you jump on another, why not just get on the first one? they will always move at the same time. Anyone I know who has tried to make a strategy for correlations has failed.
Hi there

I agree with you ....up till about 10 year ago i was still fooling with the concept of profiting from intermarket correlation and analysis as pushed by traders like John Murphy...

but despite the hype and the undesputable correlation that does exist at times ....I moved this thread on long ago and just went for the jugular in pairs correlation ...

this thread does try to make it work in its early years ... ...so the title is actually a little misleading

all relative strength analysis now from me and its merits in maximising opportunities for Traders

N
 

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