Best Thread Correlation Trading - Basic Ideas and Strategies

[stephensteve]

...and here is the 15 min charts

 

[NVP]

Thanks v.v.v.v much for all the helpful info,

there is plenty to look at, I shall get on to it all today,

on another system that I use(3 ducks) i look at the 4 hour, then 1 hour, would I do better to wait until the bigger timeframes are telling the same tale on this system too ie 1 hour indicates, then 15 min, indicates too to confirm....???

Sorry to bombard you with so many questions, this is such a steep and great learning curve I am super keen to learn it all......I am a Corrie fan......!!!

have a great day, cheers, Steve

Andy's 3 ducks is a great system ....i'm a big fan

and if you load up 3 FXcorrelator charts on his TF settings on a 60 ma instead of a 20ma you can visually see the trades .......look back on this thread for 3 ducks (or even on caps 3D thread) ...ive talked about using the FXcorrelator a lot before :smart:

N

 

[NVP]

Things have quietened down now, 2 pm in Oz and 3 am in UK

I have entered EUR/US and now it is looking a bit flat,

the 15 min chart is no longer signalling, but the daily chart all looks good, (DAILY CHART BELOW)

Do I stay in the trades based on the daily or bail based on the 15 mins???

Do I stick with the chart that had the entry signal to find my exit..??

questions, questions, would appreciate your valuable opinion,

thanks, Steve
View attachment 157076

hey Steve

add some horizontal bars to your charts and set them to only show on certain TF's so you have no confusion as to what bar works for what TF ....

then condence the Charts and place where that bar gets crossed....look for 80%+ on pos and negs.....or even 90%

then open them up again for normal trading .....they are set !

if the market breaches either way then you are looking at probable retraces soon :smart:

N

 

[NVP]

hey all

boyoboy the Yen went hunting yesterday evening and euro got smashed

later
N

 

[NVP]

steves doing well.......fast learning curve dude !!

N

 

[stephensteve]

steves doing well.......fast learning curve dude !!

N

Thanks very much NVP..excellent teacher of course:smart::smart::smart:

I have read the 80/20 post but didn't understand, I should re-read it methinks..!!

wish me luck..!!

Cheers, Steve

 

[stephensteve]

jUST THOUGHT i WOULD SHARE THIS WITH YOU ALL,



Sorry I haven't included the Dow and 20 ma

NVP, are these the horizontal lines that may be used as entry/exit points???

a lot of action...!!! Cheers, S

 

[NVP]

jUST THOUGHT i WOULD SHARE THIS WITH YOU ALL,

View attachment 157086

Sorry I haven't included the Dow and 20 ma

NVP, are these the horizontal lines that may be used as entry/exit points???

a lot of action...!!! Cheers, S

hey Steve ......horizontal lines on charts for entry (and dont forget using them for potential exit signals as well) eh ?.....jees you catch on fast ......

I dont prescribe EXACT line values......its down to the experience of the Trader and preferences ....the larger the band width the longer you are taking to enter the trade ......

and I hate to add more complexity but you must have realised that each currency runs its own levels of Average volatility levels ....the Yen and the GBP regularly punch big big moves ....try doing that with the USD....sadly one size does not fit all......and the art of Using strengthmeters is you start to appreciate the individual personalities of Currencies....thats the key to success !

thats why pair traders struggle so much.....poor things are already looking at 2 mixed up currencies before they even start :whistling

later :smart:
N

 

[NVP]

well well ......the Yen has cured its shyness of that area North on the Zero eh ?

jees a regular northern local now ......

every sniff of a fall on the Dow and the Yen was north today .......and if in doubt trade the E/J......as I have been saying for a few weeks now .....

later
N

 

[stephensteve]

Thanks for your helpful replies and postings,,,NVP,

I shall try a bit more today, I have just entered a Sell GB/US, thus



Hope this looks ok, ( I have lost my Horizontal line though..!! )

Cheers, will try to get back soon, Steve

 

[stephensteve]

After 2 hours, the good fortune didn't last.


I closed at a loss of 6 pips

 

[NVP]

hey steve .........you need to think more about timezone trading and the effect on currencies

if I was trading the Asian I would be more focused on Yen,AUD and also the NZD as the active currencies to trade .........Aside from the USD which is the most popular pairing currency in the world (I think I read the USD is in 80% of all pair trades) the other currencies will be generally more Dormant as they are not subject to Economic news and business news

it takes a lot to move the Euro ,CHF or GBP during the Asian session......

N

 

[NVP]

heres my thoughts on timezones from 2 years ago .......

http://www.trade2win.com/boards/forex/71854-correlation-trading-basic-ideas-strategies-806.html

 

[NVP]

After 2 hours, the good fortune didn't last.


I closed at a loss of 6 pips

thats a shame dude.......losses come with the territory

I like my losers like my visits to the dentist .....short and sweet ...and with long gaps inbetween........

but look at the earlier part of the chart ......big bucks for most pairings and more than enough to have covered the 6 pips

N

 

[NVP]

hey all

the yen just keeps on coming .......great week so far for the Yellow one ...

later
N

 

[NVP]

After 2 hours, the good fortune didn't last.


I closed at a loss of 6 pips

crazy eh ?

heres a small profit trading same signal
on the 15m TF...it got in earlier naturally

notice how the Dow immediately switches to positive bars on entry ......not a good sign .....doh !!

N

 

[Predicabo]

Have you considered the possibility what you are doing doesn't work? Have you made consistent profits with it? Any profit? If you are up on your starting balance from when you started using this, has it been the same method throughout or have you been constantly tweaking it? I'm asking if there is there any genuinely empirical basis for assessing the performance of this? And if you are making profits from it, when you calculate the amount you get paid per hour of screen time, how does that compare with the pay for flipping burgers? I'm just asking.

 

[NVP]

hey all ....quiet on the 15m TF front ....

why ?

because the commdolls (CAD , NZD,AUD) are all selling and active in the London session

that messes up signals ...unless you want to chase them ?....

later
N

 

[NVP]

Have you considered the possibility what you are doing doesn't work? Have you made consistent profits with it? Any profit? If you are up on your starting balance from when you started using this, has it been the same method throughout or have you been constantly tweaking it? I'm asking if there is there any genuinely empirical basis for assessing the performance of this? And if you are making profits from it, when you calculate the amount you get paid per hour of screen time, how does that compare with the pay for flipping burgers? I'm just asking.

Hey P

good question.......first off backtesting is fine and dandy in theory but it doesnt tell me half of the picture...... and in practice the levels I have more recently asked programmers to go to they told me to forget it or go spend a REAL lot of money to programme them...also I was still shielding some of my filters from them for confidentiality reasons anyway so it was a doomed mission

Show me a decently backtested profitable system and I will immediately show you the market dynamics that assisted it significantly (99% the case)

and if it didnt prove sucessful then it may have been the market dynamics were not good and someone has moved away from a decent system because of things they dont understand :|

The market is what provides the trading signals not the system......the FXcorrelator is the closest one will ever get to "seeing" the G8 Forex market .....so it does generate profits if the market provides good trending and dynamics .....full stop

and in truth of course there are many better ways to make money than the basic 20ma system here ......its an intro system .....I generally intiimate that most days encouraging people to experiment ......sure I'd put my own systems on this thread for free after nearly 10 years of research ....you're kidding right ?....hahahaha

so dude - read up on backtesting ......its not what its cracked up to be

have I made money ?..........sure I have .........do I make money ........sure I do ?.....enough to retire ?...of course not ......I dont allocate significant enough capital to do that as I am a part time trader and will only move to that when I focus 100% on my job as a full time trader......

and based on my current job that will not be for another few years yet.....and full time trading will probably bore my booties off unless I am significantly supported by EA's and trading higher timeframes to allow more freedom ....

Higher Timeframes mean less volume of trades and therefore less absolute income per day / week etc etc .......do not pass go do not collect £200

to apply a rate per hour for trading can only be used regarding the pips generated or return on Capital employed......you cant apply a $ rate as Capital is a variable thing and if I made 1 pip an hour but was betting £1 or £1000 per pip the results are different

in fact Flipping burgers will crucify even the best trader as if the Trader is only allowed to apply the same capital as required to flip burgers (bus fare ?) so its no competiion ......

in truth I would never recommend anyone consider full time trading as a living .....but thats just my take on things as I always look to generate multiple streams of income (preferably passive) and suggest most people looking to end up wealthy do so as well

later Gang.........the burgers are calling

N

 

[NVP]

hey P

I just read that post back.......apologies to all if that came over toooo heavy ..I actually didnt mean it to sound like that .........

it touches into the area of marketeering and other sales people out there claiming how empirically backtested they are and the riches that will now unfold if you pay them your $2000+ dollars of hard earned money for the holy grail system......

and they also tell you how you will become a full time trader and earn £100,000 a year within a short period of time .......

aahhh......makes my blood boil.......GRRRR .

oops !!
N