Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

i'm a fan of Tom Yeomans accustrength.........

Ive never bought or used the software but clearly its principles are very similar to my (free)FXcorrelator..... Tom generally advocates trading support / resistance levels off of Real time currency prices which are unskewed by MA's like my core 20ma system is.........

having said that - take my Fxcorrelator to a 500+ma setting and you can trade the currency lines using support / Resistance as well.....so we are not that far apart in fact ......I just play more tunes on my indicator ! - go back in my T2W thread here and you will see a lot of posts and trades using the 500ma setting .......so its all here if you look

OK heres some news from Toms Camp..........and I will be interested to see what the "Saxondale system" is using strengthmeters......for obvious Professional and perhaps dare I say [potential] copyright reasons !

hmmmmmmm
N


There should be some terrific opportunities in the days to come as the currencies are beginning to react to the events surrounding the holidays and the often used word fiscal cliff. Is there any doubt that they will pull the rabbit out of the hat at the last moment? If not, there are some great hedges and I will talk about it next week.

At Tradetime, we have introduced to a new methodology using the currency strength chart and we need a few more days to get everything together. This unique system has totally panned out after two years of testing in the field. I will be proud to announce to our subscribers yet another trading system that proves the worth of selecting individuals based on their merit and circumstances.


The Saxondale Methodology


Rigorously tested over the last 2 years, this methodology will show anyone who sees it that strength trading is the only permanent way to make a living in Forex today. Jazzy technical indicators and "flash in the pan" systems come and go while fundamentally sound methodologies like Strength Trading and the Saxondale Methodology prove themselves over years and varying economic conditions. It is unique and has proven to be very profitable for all small Forex speculators. Like the ForexGrail system, we know that it will be a huge success.


I will be sending out details and complete information before the end of this week and those who subscribe to AccuStrength this month will get the first taste of what will become a world class system of trading Forex as soon as it comes through from the publisher and designers.

The e-book will be in most popular formats and I expect the first editions to be sent out to AccuStrength subscribers as a wonderful, life changing Christmas gift.

Stay tuned for more information on this exciting event Thursday through this email list. We know from experience that very few people will tell anyone other than a close friend about a working Forex system for fear of it blowing apart from popularity. (Their fears are not groundless.) However, for those who have a close friend they want to share, tell them to go to our front page and sign on to what will become an epoch in their lives. Currency Strength Chart

Have a fantastic day everyone!

Mark Denson

 

[NVP]

hey all

well well.....have you been enjoying the pipfest on Euro and GBP ?

everything perfect :-

left chart
20/3 (4hr) setting shows the bias is for buying GBP and Euro and selling the lower Yen and USD lines........and even a rising Dow !

middle chart
20/1 15m FXcorrelator shows Yen & Usd below the Zero and the dow above its 20 sma ......(Euro and GBP are above Zero offering buy trades !)

Right charts.....E/U and G/U deliver pips !!

doesnt get better than that gang ......

later
N

 

[NVP]

Ballsy call...........Ballsy Call.....

FT.com

One of the world’s most prominent hedge funds is sitting on a $500m profit after making a bet that Greece would not be forced to leave the eurozone, bucking the trend in a difficult year for the industry.

Third Point, headed by the billionaire US investor Dan Loeb, tendered the majority of a $1bn position in Greek government bonds, built up only months earlier, as part of a landmark debt buyback deal by Athens on Monday, according to people familiar with the firm.

The windfall marks out the New York-based firm as one of the few hedge fund managers to have profited from the eurozone crisis. Standard & Poor’s, the rating agency, raised its assessment of Greece’s sovereign debt by several notches on Tuesday, citing the eurozone’s “strong determination” to keep the country inside the common currency area.

Mr Loeb is one of only a handful of hedge fund titans to have made big returns this year. The $2tn hedge fund industry – made famous by investors such as George Soros, who bet against the British pound and “broke the Bank of England” on Black Wednesday in 1992 – has struggled to find its confidence after two years of lacklustre returns.

John Paulson, the hedge fund manager who correctly called the US housing crash, has been among those wrongfooted. Mr Paulson has seen his bets on a US economic recovery and a deterioration in the health of Germany’s bonds both unravel. Since 2010 his flagship fund has lost more than 60 per cent of its value.

Audacious bets in Greek bonds, which have made a handful of managers huge amounts this year, have been a rare exception to the industry’s record. Third Point is the largest hedge fund holder of Greek bonds, according to traders.

The Greek government swapped holdings of its own debt for notes issued by one of the eurozone’s rescue facilities at a value of 34 cents on the euro. Third Point had scooped up holdings of Greek debt earlier this year for just 17 cents on the euro.

The firm has also retained a sizeable position in Greek debt because Mr Loeb believes there could still be a long way for the bonds to rally further next year. Analysts at the firm believe the bonds could rally by a further 40 per cent.

A spokesperson for Third Point, which manages assets of $10bn, declined to comment on the trade.

Third Point has made its investors a 20 per cent return so far this year, compared with 4.9 per cent for the average hedge fund.

Mr Loeb, who has earned a fearsome reputation in the investment world for penning acerbic, but acutely observed public letters to those he disagrees with – from recalcitrant corporate board members to President Barack Obama – is one of the US’s most successful hedge fund managers.

Mr Loeb, who turned 51 on Tuesday, has recently moved the focus of his firm away from shareholder activism towards making bets across a range of asset classes. The fund has been particularly active in Europe in recent years.

Third Point began buying up Greek bonds after profiting from a rally in Portuguese debt at the beginning of the year. Analysts from the fund have kept close tabs on Greek politicians and advisers and have been in ongoing discussions with the Greek government.

 

[NVP]

will catch up later........been focused on the market

N

 

[NVP]

hey all

sorry - been trading and needed to be on the ball as G/U can be tricky sometimes

OK look at the left chart (20/3 4hr) - European currencies rule the charts......

overnight and this morning they are trading with the trend above....the middle 15m TF chart shows this and I was happy until the AUD got big early doors london time and spoiled my plans a little as I was more wary of trading

luckily it retreated and I took on the G/U with some decent success to date

N :smart:

 

[NVP]

and now the Euro joins the party..............beautiful signals

I wasnt convinced it had the legs there.......

N

 

[NVP]

in truth i'm not convinced theres much more in the tank for these moves ....... and would prefer a little retracing to catch the breath

hmmmmmmm
N

 

[NVP]

USD and YEN havnt been this consistently depressed in the 15m TF since last week (11th/12th Dec).......make the most of it !

N

 

[NVP]

we are also now back into October Teritory for that Dow climb.......I cannot believe the optimism being shown regarding the fiscal cliff agreement that will be hammered out

(standard 20ma delta 1 Fxcorrelator on the daily below)

it wont be pretty ..........it wont be pretty


N

 

[NVP]

I see gold continues to struggle...........even with a weak USD in tow recently

I cant get toooo worked up with all the stuff published about Gold.....

I see it on my goldmeter indicator (below) priced against the G8 currencies and trade it if it gets above or below all of them (indicating that the market has chosen it as totally stronger or weaker than all the major fiat currencies)

thats it ...........full stop !

its free below in my signature area and heres my goldmeter thread at T2W

http://www.trade2win.com/boards/commodities/157250-fxcorrelator_goldmeter-9.html#post2037912


N

 

[swissforex]

I see gold continues to struggle...........even with a weak USD in tow recently

I cant get toooo worked up with all the stuff published about Gold.....

I see it on my goldmeter indicator (below) priced against the G8 currencies and trade it if it gets above or below all of them (indicating that the market has chosen it as totally stronger or weaker than all the major fiat currencies)

thats it ...........full stop !

its free below in my signature area and heres my goldmeter thread at T2W

http://www.trade2win.com/boards/commodities/157250-fxcorrelator_goldmeter-9.html#post2037912


N

Hi there

hello NVP
great thread you have here.

Finally I 've reached my target,now I'm a profitable Trader.My journey has started 4 years ago,and 16 months ago I started becoming heavily profitable

I trade BASKETs (my own variation) and price action,and I must admit that your FXCorrelator is one of my filters

you are a generous person,I don't know if other traders understand the power of the tools you are sharing for free!!

and as I can see you are sharing another gem , about GOLD
let me know if you need an help

 

[NVP]

Hi there

hello NVP
great thread you have here.

Finally I 've reached my target,now I'm a profitable Trader.My journey has started 4 years ago,and 16 months ago I started becoming heavily profitable

I trade BASKETs (my own variation) and price action,and I must admit that your FXCorrelator is one of my filters

you are a generous person,I don't know if other traders understand the power of the tools you are sharing for free!!

and as I can see you are sharing another gem , about GOLD
let me know if you need an help

sure - no worries .....send me any links or information at

[email protected]

and we can talk further ..........i love collaborating with like minded traders and have been very fortunate to work with some top programmers and traders in the last 3-4 years due to this Thread and sharing........

Some people get it ...........some dont ........

most of the Top Traders I have read about say that they could probably publish their systems verbatim......and still people wont get it .........!!

N

 

[NVP]

Swissforex.....

From your blog - I see you are a follower of forex Factories Trader 101 and the legendary basket strategy ...........

nice system - but flawed...........looks like you have found the edge....(they ignored my humble advice a while back........)

how do you play stop losses ?.....or do you just closely monitor the positions ?

excellent

N

 

[NVP]

by the way gang ............this is not a set up...........you all know I spend time in Swissieland.........but I have no Idea who SF is........... and if I did the name "Swissforex" at T2W would hardly be a cunning ploy for me to "sell" on here ............hahahahaha

N

 

[NVP]

in truth i'm not convinced theres much more in the tank for these moves ....... and would prefer a little retracing to catch the breath

hmmmmmmm
N

yep......the Dow retraced and some nice pips this afternoon selling what we
bought earlier in the day

and people say that trading is hard.... ?

have a great evening all
N

 

[NVP]

mornin all.....

jees that move south by the Dow got better and better......I thought things were looking a little too optimistic !

ok Dow is flat now and all is still, all is quiet.......

watch the breakouts for clues......and any economics of course ....we are in the last furlong now of 2012 trading but clearly anything breaking in the US situation could make it a fantastic finish !

N

 

[NVP]

ok im back in the room.....

this is a crucial chart to shape how you decide to trade in the futiure

do you see a breach opportunity or a retrace coming ?

N

 

[NVP]

the clock is ticking.........

 

[NVP]

clues

other timeframe evidence
pattern/order of the currencies
economic news
some simple price action analysis of key pairs

N

 

[NVP]

ok .......

I think we have some mileage in E/U and G/U but I would prefer it to retrace a little to get better prices ...and if I was scalping the 5 mins I would have already been in !

N