Best Thread Correlation Trading - Basic Ideas and Strategies

[jrplimited]

Hi N and all,

Fantastic weekend weather wise, has summer started to arrive? Do politicians "distort" the truth? Enough of the dribble....

GU; First trade long entered at 44217 on open 08:05 bar, price started to climb rather reluctantly then collapsed in a heap taking out SL during 08:35 bar for 21 point loss. Second trade short entered at 43998 on open 08:40 bar, price shot down then went into a four bar range and wick of 09:05 bar caught TS for 15 point profit. Third trade buy stop at 44284 filled by 10:05 bar, price moved up after stalling then rolled over taking out SL during 10:50 bar for 21 point loss. Three trades (or rather two beatings!) and thats it for me on this pair.

EU; First trade buy stop at 23144 filled during 08:05 bar, price rose up slightly then collapsed in a heap taking out SL during 08:40 bar for 18 point loss. Second trade sell stop at 22694 filled during 08:45 bar, price jammed on the brakes, engaged reverse gear and ran over SL during 09:10 bar for 18 point loss. Two hits on the bounce and thats it for me pair wise.

EG; For first part of morning session chart was very confused so had to wait until past 09:30 for things to sort themselves out. First trade entered long at 85409 on open 10:40 bar, price started to drift downwards for five bars threatening SL but then large 11:10 up bar came to rescue and pushed price upwards to new 11:20 local high, price went sideways for three bars challenging last high print then it gave up the ghost and started to float downwards and trade exited on close of 11:40 bar for 8 points profit.

A real bad case of the chop monster raging around and eating up everything in its sight, talk about more chop suey this morning than in a chinese resturant! Goodness knows whats really going on, maybe you afternoon traders will see a bit of stability returning - trade well and regards,
Simon.

 

[GMP]

Hi N and all,

Fantastic weekend weather wise, has summer started to arrive? Do politicians "distort" the truth? Enough of the dribble....

GU; First trade long entered at 44217 on open 08:05 bar, price started to climb rather reluctantly then collapsed in a heap taking out SL during 08:35 bar for 21 point loss. Second trade short entered at 43998 on open 08:40 bar, price shot down then went into a four bar range and wick of 09:05 bar caught TS for 15 point profit. Third trade buy stop at 44284 filled by 10:05 bar, price moved up after stalling then rolled over taking out SL during 10:50 bar for 21 point loss. Three trades (or rather two beatings!) and thats it for me on this pair.

EU; First trade buy stop at 23144 filled during 08:05 bar, price rose up slightly then collapsed in a heap taking out SL during 08:40 bar for 18 point loss. Second trade sell stop at 22694 filled during 08:45 bar, price jammed on the brakes, engaged reverse gear and ran over SL during 09:10 bar for 18 point loss. Two hits on the bounce and thats it for me pair wise.

EG; For first part of morning session chart was very confused so had to wait until past 09:30 for things to sort themselves out. First trade entered long at 85409 on open 10:40 bar, price started to drift downwards for five bars threatening SL but then large 11:10 up bar came to rescue and pushed price upwards to new 11:20 local high, price went sideways for three bars challenging last high print then it gave up the ghost and started to float downwards and trade exited on close of 11:40 bar for 8 points profit.

A real bad case of the chop monster raging around and eating up everything in its sight, talk about more chop suey this morning than in a chinese resturant! Goodness knows whats really going on, maybe you afternoon traders will see a bit of stability returning - trade well and regards,
Simon.

Hi Simon
Bad luck this morning - I had a similar experience. All stop/start/about turn stuff, and it's not getting any better so far this afternoon! More evidence for taking a 3 day weekend!
- Gavin

 

[NVP]

Hi N and all,

GU; First trade long entered at 44217 on open 08:05 bar, taking out SL during 08:35 bar for 21 point loss. Second trade short entered at 43998 on open 08:40 bar, bar caught TS for 15 point profit. Third trade buy stop at 44284 filled by 10:05 bar, taking out SL during 10:50 bar for 21 point loss. Three trades (or rather two beatings!) and thats it for me on this pair.

EU; First trade buy stop at 23144 filled during 08:05 bar, taking out SL during 08:40 bar for 18 point loss. Second trade sell stop at 22694 filled during 08:45 bar,ran over SL during 09:10 bar for 18 point loss. Two hits on the bounce and thats it for me pair wise.

EG; For first part of morning session chart was very confused so had to wait until past 09:30 for things to sort themselves out. First trade entered long at 85409 on open 10:40 bar, trade exited on close of 11:40 bar for 8 points profit.
- trade well and regards,

Simon.

YEOUCH....that was real messy today

heres the E G U bunfight below on a 5 min hybrid of mine

pre 8am there was a nice buy E & G into U on offer but naturally risky pre ftse opening (and only larger spreads offered on scalping )

as soon as 8am arrived it was chop central.....on my hybrid systems I denote chop when those faster lines dont get clear of the (slower) dynamic resistance lines and keep cutting back just as you are getting ready for a trade (or worse just as you enter )


I see a couple of possible scalps there through the morning, but scalps dont get you the pips that JRP is hunting so its chalk and cheese here

scalpers will not turn in 100-200 pip hauls by lunchtime so never believe any hype speeled by marketeers telling you to use scalp level investments per pip (naturally geared higher) to deliver you non- scalp type results as thats the cr*ppy drivel they use to convince you that they can double your bank on a weekly basis ..........

hope tomorrows better
N

 

[NVP]

Hi Simon
Bad luck this morning - I had a similar experience. All stop/start/about turn stuff, and it's not getting any better so far this afternoon! More evidence for taking a 3 day weekend!
- Gavin

yep again the pm is messy with even the scalp pickings light on the ole EGU !

however if you'd been selling the commdolls into tag it's been a different story (second chart)
thats the beauty of the FXCorrelator....youre always watching the whole G8 for trends and opportuntities as theres always money being made generally somewhere :smart:

later ......sun is shining in canaries and beer to be drunk

N

 

[GMP]

Back down to earth with a bump today:
http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1129764

 

[jrplimited]

Hi N and all,

Intead of trading GU and EU this morning, I decided to visit the carvery instead....

GU; First trade long entered at 45032 on open 08:25 bar, price rose a wee bit then fell over taking out SL during 08:35 bar for 21 point loss. Second trade sell stop at 44604 filled by tail of 08:50 bar, price turned round and marched back up the hill taking out SL during weird looking 09:00 bar for 21 point loss.

EU; First trade buy stop at 23888 filled during 08:10 bar, price moved upwards a bit erratically to new 08:25 local high print then collapsed taking out SL during 08:50 bar for 18 point loss. Second trade short entered at 23763 on open 08:55 bar, price immediately turned round and took out SL during 09:00 bar for 18 point loss.

EG; First trade long entered at 85566 on open 08:05 bar, price floated around for ages with a definite upwards bias, a bit of momentum crept in around 09:30 ish and gave price a kick northound, new 10:10 local high printed then price retreated away without breaching prior low pivot, rose up to challenge last high with 11:05 bar then fell away again but this time without any threat and trade exited on close 11:55 bar (my session end) for 34 point profit.

Another chop infested day on GU and EU and I was fortunate enough to be able to have EG trade "riding" until session end to mitigate some of the carnage. Big naffing ouch there - trade well and regards,
Simon.

 

[NVP]

Hi N and all,

Intead of trading GU and EU this morning, I decided to visit the carvery instead....

GU; First trade long entered at 45032 on open 08:25 bar, taking out SL during 08:35 bar for 21 point loss. Second trade sell stop at 44604 filled by tail of 08:50 bar,taking out SL during weird looking 09:00 bar for 21 point loss.

EU; First trade buy stop at 23888 filled during 08:10 bar,taking out SL during 08:50 bar for 18 point loss. Second trade short entered at 23763 on open 08:55 bar, turned round and took out SL during 09:00 bar for 18 point loss.

EG; First trade long entered at 85566 on open 08:05 bar, exited on close 11:55 bar (my session end) for 34 point profit.

Another chop infested day on GU and EU and I was fortunate enough to be able to have EG trade "riding" until session end to mitigate some of the carnage. Big naffing ouch there - trade well and regards,
Simon.

yeouch............whatta day, whatta day.....

unfortunately the eurotribe was playing alongside the tag team (ad both opposing the commdolls) until the afternoon session when some light entered the tunnel......

N

 

[alan5616]

We've had a few choppy days, recently. I'm quite happy to sat out most of this, as I've been doing some cotton picking of my own. I've been tied up organising, and then running, a golf tournament for 70+ people. The big event was today so, now that it's over, back to taking on the enemy, again, tomorrow

 

[GMP]

We've had a few choppy days, recently. I'm quite happy to sat out most of this, as I've been doing some cotton picking of my own. I've been tied up organising, and then running, a golf tournament for 70+ people. The big event was today so, now that it's over, back to taking on the enemy, again, tomorrow

Welcome back Alan - which is harder, organising a tourny or trading forex? Or do both depend on the prevailing conditions...
- Gavin

 

[alan5616]

Welcome back Alan - which is harder, organising a tourny or trading forex? Or do both depend on the prevailing conditions...
- Gavin

Hi Gavin,

Organising the tourney is more stressful but, provided you complete your "to do" list, in time, then no real problem. If only trading was as easy.

I've been trading forex, full time, for nigh on 2 years now and still haven't stopped making stupid mistakes. No wonder the guys, at the top of their game, say that it can take 5+ years. I missed all the winning trades, today, and took the losers instead. I can't put it down to bad luck. When you break your own rules for trade entry, you're likely to end up in a losing trade.

A friend of mine has blown his first trading account, and now a second one, by trading what he thinks rather than what he sees. I did exactly that, today, and paid the price. The phrase "market takes no prisoners" comes readily to mind

 

[GMP]

Hi Gavin,

Organising the tourney is more stressful but, provided you complete your "to do" list, in time, then no real problem. If only trading was as easy.

I've been trading forex, full time, for nigh on 2 years now and still haven't stopped making stupid mistakes. No wonder the guys, at the top of their game, say that it can take 5+ years. I missed all the winning trades, today, and took the losers instead. I can't put it down to bad luck. When you break your own rules for trade entry, you're likely to end up in a losing trade.

A friend of mine has blown his first trading account, and now a second one, by trading what he thinks rather than what he sees. I did exactly that, today, and paid the price. The phrase "market takes no prisoners" comes readily to mind

Yep, I know the feeling well. The mental & emotional discipline is definitely the hardest thing to master. If you're not in the right frame of mind nothing seems to work, and it quickly becomes a vicious circle of frustration leading to more poor decisions and more frustration.
I've spent six years dipping my toes in & out of the markets and sometimes I wonder if I've learned anything at all about self-discipline... well, I've learned alot of the theory, but actually putting it into practice consistently is the tough bit!
Still, if you've survived full-time trading for two years, your good days must outnumber your bad days. The more money we lose, the more lessons we've learned
- Gavin

 

[NVP]

Hi all

I will try to to post some commentaries tomorrow ....been relaxing and finalising some trading screens for my scalping Hybrids and training documentation

wife suitably unimpressed now....so need to move into loving hubby mode tonight and taking her property hunting tomorrow

place in the sun eat your heart out....I would be bored to death living here in canaries but dont tell her that just yet................

N

 

[alan5616]

Hi all

place in the sun eat your heart out....I would be bored to death living here in canaries but dont tell her that just yet................

N

Hi Neil. You're not on another holiday? I never knew cotton picking paid so well

You could get very bored in the Canaries plus, you'd have to run the risk of trading with a very unreliable inet connection. When a Colima arrives, internet connection on the islands goes awol for hours/days at a time. Most other times, inet reliability is patchy.

Don't do it :!:

 

[Adamus]

According to babelfish, a "Colima" means "it sights on"????

I have a friend in Lanzarote who went off line for a week in Feb and when he came back he said it was the internet connection. So what's a Colima? Some sort of deep-sea telephone chomping squid?

 

[alan5616]

According to babelfish, a "Colima" means "it sights on"????

I have a friend in Lanzarote who went off line for a week in Feb and when he came back he said it was the internet connection. So what's a Colima? Some sort of deep-sea telephone chomping squid?

I, also, have a friend living on Lanazarote. This is the word she uses for the strong wind that arrives in Jan/Feb time. Can't offer any more info than that. I do know, when I've been chatting with her on MSN, we've had frequent interruptions which she blamed on the "Colima".

 

[NVP]

I, also, have a friend living on Lanazarote. This is the word she uses for the strong wind that arrives in Jan/Feb time. Can't offer any more info than that. I do know, when I've been chatting with her on MSN, we've had frequent interruptions which she blamed on the "Colima".

Hi all

I suspect a combination of cashflow and mother-in-law in uk will keep it nice and uk based for me in the future so viewing poperty is just enjoying the weather and a break from the (tedious) beach !

fun arguing about the Euro with them as well

N

 

[NVP]

hi all

looks a little lifeless this morning so far......the DJ30 futures is flat and therefore the tag team are not showing a bias at present ....

looking at the 1hr on the right its been a great week to be buying Tag (yen+Usd) and selling commdolls.......thats why JRP has had a tough ole time on those Euro/GBP pairs with USD.....

hopefully today wil be better :smart:

later all....amanda lamb is calling me

N

 

[alan5616]

Adamus,

Sorry for the misleading info. The word should be Calima and not Colima

 

[jrplimited]

Hi N and all,

I guess that should read "Hola N, como esta?" as he is on his jolly hols right now, leaving us mere mortals to the mercy of the dreaded and very hungry chop monster....

GU; First trade sell stop at 43828 filled during 08:15 bar, price did nothing then rose to threaten SL during 08:30 bar and dropped down again to close below initial entry level, then went on a three bar erratic trip and finally took out SL during 08:50 bar for a 21 point loss. Second trade buy stop at 44042 filled by 09:35 bar, price went into weird bar mode then dropped like a stone taking out SL during 09:45 bar for 21 point loss.

EU; First trade short entered at 25262 on open 08:15 bar, price moved down quite nicely (!) printing new 08:45 local low then went into fairly tight consolidation range for nine bars, then 09:35 bar popped violently upwards out of nowhere and trade exited on close of this for 12 point profit. Second trade short entered at 25277 on open 10:45 bar, price dropped down and made a four bar flat line, rose up again to a few points above initial entry level, then retreated south again but couldnt grab any momentum, trade exited on close 11:55 bar (my session end) for 16 point profit.

EG; First trade short entered at 87047 on open 08:15 bar, price dropped down, then paused and then picked up a little steam to move off down again to new 08:55 local low print, then went into a fourteen bar sideways range, couldnt hold new 10:10 local low print and pushed upwards taking out TS for 8 point profit. Second trade sell stop at 86924 filled during 10:50 bar, price chopped around intial entry level for a few bars and as session time near to end, trade exited on close 11:50 bar for 11 point loss.

Thank whoever its Friday and copious amounts of red nectar are on the cards to be gulped down, perhaps the giggling juice will eradicate some of this morning's diabolical results - trade well and regards,
Simon.

 

[GMP]

Hi N and all,

I guess that should read "Hola N, como esta?" as he is on his jolly hols right now, leaving us mere mortals to the mercy of the dreaded and very hungry chop monster....

GU; First trade sell stop at 43828 filled during 08:15 bar, price did nothing then rose to threaten SL during 08:30 bar and dropped down again to close below initial entry level, then went on a three bar erratic trip and finally took out SL during 08:50 bar for a 21 point loss. Second trade buy stop at 44042 filled by 09:35 bar, price went into weird bar mode then dropped like a stone taking out SL during 09:45 bar for 21 point loss.

EU; First trade short entered at 25262 on open 08:15 bar, price moved down quite nicely (!) printing new 08:45 local low then went into fairly tight consolidation range for nine bars, then 09:35 bar popped violently upwards out of nowhere and trade exited on close of this for 12 point profit. Second trade short entered at 25277 on open 10:45 bar, price dropped down and made a four bar flat line, rose up again to a few points above initial entry level, then retreated south again but couldnt grab any momentum, trade exited on close 11:55 bar (my session end) for 16 point profit.

EG; First trade short entered at 87047 on open 08:15 bar, price dropped down, then paused and then picked up a little steam to move off down again to new 08:55 local low print, then went into a fourteen bar sideways range, couldnt hold new 10:10 local low print and pushed upwards taking out TS for 8 point profit. Second trade sell stop at 86924 filled during 10:50 bar, price chopped around intial entry level for a few bars and as session time near to end, trade exited on close 11:50 bar for 11 point loss.

Thank whoever its Friday and copious amounts of red nectar are on the cards to be gulped down, perhaps the giggling juice will eradicate some of this morning's diabolical results - trade well and regards,
Simon.

Hi Simon
I had a similar experience on these 3 - no signals apart from a horrible 26 pip loss on €£, which I only made back on a £$ signal at 11:55, which wouldn't have been much use for a noon finish...
Have a good weekend - at least the weather's being kind!
- Gavin