Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hi all

the EURUSD journey today.....not bad :smart:

N

 

[NVP]

mornin all.....

nice tag push down at the moment ...us futures was bearish overnight but turning now a little suporting the tag fall

 

[NVP]

we got fans everywhere.....shucks


http://www.forexfactory.com/showpost.php?p=3900919&postcount=33

 

[NVP]

hmmmmm

 

[NVP]

not convinced about this moneyweek Recommendation :innocent:

http://www.moneyweek.com/investment...r&utm_medium=email&utm_campaign=Money+Morning

my comments are in the piece already...plus the graph below shows me more potential money in Buying Yen into USD (Sell USDJPY chart) especially if US Equities continue to fall...........

but then what do I know :smart:
N

methinks dominic is trying to draw some comments to boost circulation

doh ..........

yen has conceded some minor pips to the USD over last couple of days so money week were correct ...........

but have they won the war ?

400+ points on the bounce so far for wall street?......all good things come to an end my friends - so i wait....:smart:

N

 

[NVP]

heres something that is untradeable (?) but continues to produce a 95% probability on any timeframe

getting the USD and the Euro and the GBP on the same side of a 20ma scalper !!!

4h chart has most same sides but boy its not exactly cosy comfort for very long usually

try it ........then tell me how to damn well trade it :smart:
N

 

[NVP]

Confession time :smart:

I have thought about it and have spent many a happy hour or 10 debating this with the corrie crew here privately...........

I offer it up to you all as follows - and it is a new scalper strategy to be added to the stable for free ........:smart:

Standard terms and conditions apply as per using the FXCorrelator - I am not responsible for any losses made from trading this methodology or any derivatives

1) load up a scalper and put these 3 dudes on it (you could load the yen as well if you wanted to help gauge the probable usd direction)

then buy (or sell) the currency that is above (or Below) the zero and on its own against the other 2 that will be on the other side of the Zero

change trades when the arrangements change or trail stop losses when you are in the money until you are stopped out (or just target X pips based on ATR's for timeframe chosen)

see chart below - ive missed off the buys here just focusing on the sells ....just keep trading when one currency is suddenly on its own......closing out trades as you go whe zeros are breached

try it if you have the time and stamina...higher TFs are less work !
N

you can add the yen to introduce a triple trade play - but thats just stupid....isnt it ?

 

[nek11man]

I couldnt agree with this more, so far this got me one of the highest winning%, and I had been using for about a week. Keep this going. It'll be great if this get automated with a script.... then :clap:

we got fans everywhere.....shucks


http://www.forexfactory.com/showpost.php?p=3900919&postcount=33

 

[nek11man]

Hi NVP
does this new setup use the 20/1 PerAvr/delta??

nek

 

[NVP]

hey Nekman....sure use the 20/1 setting

be careful though and test test test

15m or above is less stressful and saves on spreads as you reduce your stake to cover higher ATRs for stops


N

 

[NVP]

overnights

 

[NVP]

ok gotta go to work....i see tag falling still

this whole session today is really looking good as the tag swing up and down smoothly
with the us30......... and yen is accelerating up and down past the usd without any barriers
or distortions

perfect corrie conditions !

bring it on......

N

 

[NVP]

this new system.......what to do ?

N

 

[NVP]

I couldnt agree with this more, so far this got me one of the highest winning%, and I had been using for about a week. Keep this going. It'll be great if this get automated with a script.... then :clap:

your probably doing it all wrong then Nek ..........

 

[NVP]

pm fun..........i'm still bogged down re work so no fun today possible

10 mins later .....

I see that us30 has fallen more (Driving tag upwards on anticipated path)

but only gbp and nzd have fallen significantly below zero ...(10 pips max on GBPUSD)

jees its hard to call those pesky G6 (non tag) currency moves !!!

N

 

[NVP]

this new system.......what to do ?

N

Hi all

I brought the mothballs out on this one as I wanted someting new to discuss....been trawling through my old notes on this and may need a few tweaks .....the main pain is when the dudes are in close proximity to Zero and things keep chopping you to death

let me have a think.....main obvious answer is to smooth the Ma a little to at least keep you from constantly changing tack......but I dont want to lose to much real time action

a 14ma delta 3 is a smoother version of the 20ma delta 1 so thats a start

see below..........20/1 vs 14/3.......???
N

 

[NVP]

oh yeah........

and one more thing that kinda starts to loop us back towards the scalper rules

only trade when the USD is on its own on one side vs the other 2

this means we dont multiple trade anymore and no EURGBP trades and we are hunting when GBP and EUR are on the SAME side and kicking ar*e as their own tag team move with usd on the other

keep it on the 14/3 for the moment - or go back to the 20/1 if you like it more !

whats this.........the GBP and EUR have their own tag team ?

so what happens if you put both tag teams in the same ring..........whos the daddy then ???

patience all ......patience :smart:

N

 

[NVP]

last post as got to go back into meetings

heres the natural conclusion to this process if you are an avid follower of the corrie

2 teams - trade on opposite sides......

been there and played with this as you would expect.....use the 20/1 and I personally ignore the damn Zero and trade when they just happen to be above or below EACH OTHER as teams....although this coincides a lot with just using above /below the Zero anyway

so yet another twist.............are we having fun yet ?
N
gotta go ..may try to explain these on some vids when time

 

[nek11man]

gonna try this tag team method, seems very interesting.
Do you suggest buy/sell the EURUSD or GBPUSD?

 

[NVP]

gonna try this tag team method, seems very interesting.
Do you suggest buy/sell the EURUSD or GBPUSD?

Hi mate

depending on what you are exactly are going to do (i suggest use post 3837)

then everytime the usd gets underneath or above BOTH the Euro and the GBP open trades on both pairs against the usd until an ATR target is hit or they cross back again
(use the Zero as signals or just use currency crossovers for even faster signals)

theres a further tweak you can make based on which currency out of the 2 (euro or GBP) is leading the charge when this signal happens....but it will restrict trades drastically

if the euro is top or bottom of the 3 currencies when USD signals the same on opposite side (ie when GBP is middle of the sandwich) only trade the GBPUSD pair

reasoning ?........if the Euro leads into the trade there is a high probability that the more volatile GBP will accelerate through and make more pips than the Euro's trade which may fade rapidly

but then if I'm saying trade the GBPUSD and the EURUSD you will still capture the GBP move anyway !

good luck
N