Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Heres the overnights

huge AussieD Rise :smart:

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[NVP]

The 1 hour signals tell us to wait for sell signals on the yen and usd :smart:

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[NVP]

see how the 5 mins are resisting buys on the yen and usd ? :whistling

wait for the sell signals on the dynamic duo as this is aligned to the 1 hour signals :smart:

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[NVP]

heres the latest edition of that famous Aussie Soap opera....

will AussieD and his lifelong friend KiwiD stop this nasty bickering and get back together ?

stay tuned Viewers - stay tuned

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-916.html#post1568198

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hey all..I love a challenge and I never put the bone down

This aussie soap continues as those damn aussie Twins continue to stay 3 bandwidths apart.....

I say again they will converge soon - but I think we need a dow fall to generate it :smart:

NOTE 1
see how the Euro keeps bouncing off the hyperextension area at the bottom of picture ?........no currency can stay for long at those deep depths

NOTE 2
its only at 2+ Bandwidths but the CHF is seperated from the USD and the Yen quite a bit at the moment....if it gets to 3 bandwidths on CHF vs USD thats a convergence trade signal

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http://www.trade2win.com/boards/for...g-basic-ideas-strategies-921.html#post1571388


hey all

Gap finally closing on these 2 but patience is needed .....and some more Dow falls in my opinion

Convergence trading is as lucrative as simple trend trading , but boy its harder work

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[NVP]

May soon be time to finally sell the yen/usd team again

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[NVP]

we could be cheeky and sell the yen and usd now...........the Dow is still extended south but I like the alignment to the 1 hour charts of the yen and usd (as discussed earlier in the day)

actually though not much on offer to buy perhaps the aussie D...I prefer not to play the CAD or the CHF against the Yen and USD as they all tend to move together in the same family

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[NVP]

I dont discuss technical trading here much on Pair charts as that is available on millions of other sites and the traders there are generally much more experienced than me

I focus on trading signals from the FXcorrelator

but heres a little departure...I've stated I like the A/U buy on my FXcorrelator..but when to enter my friends ?

to me its all about trading "Cheap" or "expensive" re price depending on when you are buying or selling a pair

for example below buying the A/U at 1.0744 is when the signal for me was from my Fxcorrelator as a trade.........but in fact it would be better to perhaps wait till it falls back a little and pick it up cheaper ........?

this is a real conundrum in trading .............you get the signal but that signal in itself means the trade must have moved significantly to trigger it...and you run teh risk of retrace as you enter ....

or do you wait for a better retrace price , but run the risk of missing the big move that never comes back ?

Decisions decisions :smart:

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[NVP]

a few minutes on...........its lunchtime so I have time to present a little scenario here :smart:

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[NVP]

and horror of Horrors a nasty pinbar hits us....

 

[NVP]

but the trade is still trying ...........we need the dow to rise :whistling

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[NVP]

dither dither..............

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[NVP]

damn..............do I bail ?

 

[NVP]

nearly there..........:smart:

or am I now gambling as the yen is above the 80 /20's ?

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[NVP]

hes gambling ............isnt he ?

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[NVP]

ok I need to step away soon and back to work.......I hate a lot of the tuition I see out there when marketeers show perfect signals and hindsight is 20/20 and everyone makes money

the FXcorrelator is good but its like eveything else .....it needs practice and the initial entry and confirmation is always a tricky period ..sure you can set a stop loss and leave it but if the signals change and tell you to bail youve given away needless money

AND I HATE LOSING EVEN ONE PIP ON A TRADE

so heres the last picture .........even on the last post we had the yen north and the AUD was south on the 80/20's that means the signal was fading

dont be scared to dip in and out ......its only a few pips on the line

if you set the trade up with a standard stop loss this happens and you give away money as the conditions change (violently) against you

there was plenty of time to Bail !!

ok later....sorry I couldnt generate a little pip profit on this occasion :smart:
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[NVP]

jees .....I know i'm tight on the Dow opening but why did the yen/usd decide to get a divorce just as I was playing with a trade scenario...........spare me

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[NVP]

hey all - back again

jees its been a frustrating afternoon.............looks like we need dynamite to get the USD north

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[NVP]

hey all

bit of down time awaiting feedback from a meeting.....

i'm scouring some of my favourite threads regarding latest fun on Basket and EA Trading

Damn theres some hotshot programmers at Forex Factory

anyway - heres the Grandaddy of my FXcorrelator and a MT4 report that changed my outlook on trading forever

http://articles.mql4.com/484

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the funny thing is a lot of the resultant Indicators that evolved were copied with incorrect coding .....so many many people walked away from this method due to the weird signals it gave off and also their total lack of understanding its potential power as a trading tool

 

[NVP]

the overnights 5mins TF offered 1 nice signal

Remember , I only use the 5 min TF here to demonstrate the 80/20 system as it offers a lot of activity for me to comment on

higher timeframes are usually more reliable to follow :smart:

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[NVP]

Nice today so far on the 5mins