Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

weve had to wait for the H4 euro signal to line up as a sell but its worth it ..........

 

[NVP]

Euro H4 just turned south of Zero.......a place it has not really been for over 3 weeks

(ok - a couple of very very brief visits in the departure lounge)

I think the overnight bag may finally be required this week though......

N

 

[GMP]

Hi NVP
thought you might find this interesting:
http://www.dailyfx.com/forex/fundamental/article/special_report/2010/10/04/Forex_Fundamental_Monitor_10.04.2010.html
Happy trading!

 

[NVP]

Hi NVP
thought you might find this interesting:
http://www.dailyfx.com/forex/fundamental/article/special_report/2010/10/04/Forex_Fundamental_Monitor_10.04.2010.html
Happy trading!

Hey Gavin ......good to talk again

yep .............and as we know a corrie picture is worth a thousand words

look at that usd fall....and not just is last week or so :smart:

and umm.............who was the winner in this period ?

N

 

[djenky]

Hi Guys.

I’ve made a few changes to the FX Correlator which you may prove useful. None of the trading logic has been changed, just the way that the information rravic kindly added is displayed.

Although the indicator has been tested please use with caution until you are comfortable with the results.

Changes to FX Correlator V5:

• 3 different time frames allowed for the directional arrows table regardless of the chart time frame.
  
  
• Option to show 1, 2 or all 3 directional arrow time frames. To only show the pair names and not the arrow directional table, set ShowChartLines to 0 and ShowTable to true.
  
  
• Count down timer shows time until the next candle close. (The timer is only updated when a new tick arrives).
  
  
• Default average/delta settings changed to 20/1.
  
  
• Option to turn on/off the correlation chart.
  
  
• Option to turn on/off the directional arrow table.
  
  
• Option to turn on/off the timer.
  
  
• Order of the pairs changed so that USD and JPY are first in the list.
  
  
• Default line width for USD and JPY hard coded to 4.

Comments, suggestions & large amounts of cash welcomed. :clap:

Regards
DJ

 

[NVP]

Hi Guys.

I’ve made a few changes to the FX Correlator which you may prove useful. None of the trading logic has been changed, just the way that the information rravic kindly added is displayed.

Although the indicator has been tested please use with caution until you are comfortable with the results.

Changes to FX Correlator V5:

• 3 different time frames allowed for the directional arrows table regardless of the chart time frame.
  
  
• Option to show 1, 2 or all 3 directional arrow time frames. To only show the pair names and not the arrow directional table, set ShowChartLines to 0 and ShowTable to true.
  
  
• Count down timer shows time until the next candle close. (The timer is only updated when a new tick arrives).
  
  
• Default average/delta settings changed to 20/1.
  
  
• Option to turn on/off the correlation chart.
  
  
• Option to turn on/off the directional arrow table.
  
  
• Option to turn on/off the timer.
  
  
• Order of the pairs changed so that USD and JPY are first in the list.
  
  
• Default line width for USD and JPY hard coded to 4.

Comments, suggestions & large amounts of cash welcomed. :clap:

Regards
DJ

looks real good djenky ......responses please

ummm you want Cash ?.....I asked my young whizzkid swedish accountant and this was his response

......I think thats a No ?? :whistling

N

 

[Adamus]

http://www.youtube.com/watch?v=5P6UU6m3cqk

That's how good it feels when you're sitting on a warm poo, I guess.

Seriously though this little kid obviously wasn't short the dollar this morning. My little trading system got double whammied by being short yen as well.

It's all making me look at cross-currencies to bring some balance into the equation and co-incidentally I see you talking about NZD-JPY, AUD-CAD, AUD-CHF etc.

I put a couple up on my screen to check out and was disappointed to see the spread on AUD-NZD was 0.0005. What are they doing to justify spreads like that? Do they send the cash across the Tasman Sea by yacht or something? And this is IB who pride themselves on their spreads, not OandA or anyone who's taking their cut from the spread.

So, the question is, which of these cross-currencies are actually tradeable, or are they all pretty much the same?

 

[NVP]

That's how good it feels when you're sitting on a warm poo, I guess.

Seriously though this little kid obviously wasn't short the dollar this morning. My little trading system got double whammied by being short yen as well.

It's all making me look at cross-currencies to bring some balance into the equation and co-incidentally I see you talking about NZD-JPY, AUD-CAD, AUD-CHF etc.

I put a couple up on my screen to check out and was disappointed to see the spread on AUD-NZD was 0.0005. What are they doing to justify spreads like that? Do they send the cash across the Tasman Sea by yacht or something? And this is IB who pride themselves on their spreads, not OandA or anyone who's taking their cut from the spread.

So, the question is, which of these cross-currencies are actually tradeable, or are they all pretty much the same?

Hi Adamus

I do try to use the US Equities to (inversely) forecast the Tag team and CHF***

and theoretically the others should move together with equities....but individually calling intra (non) cross pairs is a pain apart from following the arrows dumbly and gleaning any key news in the marketplace to help the moves

at this moment GBP seems happiest with that Equities retrace up so in theroy its the kingpin to buy in any pairing that does not rob you blind on spreads

*** (as they did this morning see below)
N

 

[NVP]

the GBP has been the superstar today since about 10am GMT...faithfully following that us30 climb

it was a triple arrow buy from there and has never wavered

Problem has been finding decent partners to trade with who went Triple Arrows sell

see how great the G/U trade looked from the red vertical line at 1oam gmt today ? (GBP triple arrow signal)...trouble is the Usd has only briefly been available as a triple sell today and the Yen has not yet achieved that signal !

So sure - waiting for paired buy/sell arrows is a good system , but I have always believed no system is perfect, and you have to be able to use advanced (overide?) strategies to get into all the high probability trades that present themselves....

The absolute key is getting one decent buy or sell signal on a currency.....then I tend to use whatever I have to construct the best partner if one is not instantly presenting itself :smart:

PS - whenever you have just 1 currency presenting a signal in the G8 its a licence to print money...especially if you manage to pick the right pairing(s)..........

N

 

[NVP]

back again......hmmm

a 70 point fall in the US30 hardly send the tag team sprialling north does it ?

buckle up for some falling tag action.........:?:

closest to triple arrow buys are the GBP and the CHF......but the CHF swings both ways (!!??) so I dont like it at this point in time

N

 

[NVP]

ok - since the us30 looks like more grief coming thats not conducive to my prediction of selling tag so they wont be as bearish yet as hoped

With 3 arrow signals now on both - perhaps a little resumption of EURCHF selling then when it falls below the big support level shown ?

this combo certainly delivered this morning.....

N

 

[NVP]

sorry..I am still stunned at the TAG teams continued lack of appetite to rise....

jees if The US equities ever does decide to rise a little it will be a superb oppostunity to sell these 2 !!!

meanwhile the CHF is flying the flag for risk currency buys on offer to pair up with other sells

I have Euro, AUD and now NZD nosediving on 3 arrows

N

 

[GMP]

So, the question is, which of these cross-currencies are actually tradeable, or are they all pretty much the same?

It varies between brokers but generally I've found the £/$/€/¥ crosses have low spreads except for £¥ , and the CAD,AUD & NZD paired with $ are around 5 pips, as is AUDNZD.
Outside the $, the spreads are a bit rich for my wallet, reflecting the lower volume & higher risk in non-dollar pairs.
(Can't speak for CHF though, as I avoid it like the plague.)

 

[NVP]

It varies between brokers but generally I've found the £/$/€/¥ crosses have low spreads except for £¥ , and the CAD,AUD & NZD paired with $ are around 5 pips, as is AUDNZD.
Outside the $, the spreads are a bit rich for my wallet, reflecting the lower volume & higher risk in non-dollar pairs.
(Can't speak for CHF though, as I avoid it like the plague.)

agreed.....and CHF is a lience to print money for them due to its choppiness

thats why I have not dropped below a 15m TF on the triple arrow system being trialled here......if the system signals an exotic trade combination (buy sell) then there may be a small fighting chance of making a little money after the criminal spreads out there !

I See that Wordspreads are offering Zero pips on the high volume crosses now....dont get excited all though as we will be paying for it somehow on the pricing

N

 

[NVP]

ok off to some meetings now...see you all tomorrow

and be careful out there....I worry about you all !!!
N

 

[NVP]

perhaps this explains why a 100 point fall in the Dow is not really teasing the usd north much .......everyones betting on its southerly course

Euros flying on vapour now......sure Germany looks good , but a even the greatest goalie of all time cant win you a premiership title on his own :smart:

N

 

[GMP]

an observation hopefully of use to someone out there:
http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html#post1275194
I'm not around here much anymore but it's good to see the Corrie evolving. Best of luck all - Gavin

 

[NVP]

thanks Gavin

Gavin posts a frank and honest journal in T2W journal at :-

http://www.trade2win.com/boards/trading-journals/91616-icc-forex-system-testing.html

N

 

[NVP]

heres overnights

biggest pip spinner was selling AUD into Euro

busy today so will post when I can
N

 

[NVP]

classic tribal dynamics on the G8 at the moment

this is on a rising TF15m US Equities so the Eurotribe and the tag team are performing with my usually anticipated correlations.......Commdolls are real sick puppies then !

EUR & GBP (up)
CAD, NZD and AUD (down)
YEN,USD (down)

and CHF is undecided .....although recently its been in the Eurotribe camp and rising

I try to incorporate some tribal correlation dynamics into interpreting the Arrow signals received but again its (slow) work in progress....

N