Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Morning all.........

Cant get to my screens at the moment so watch this space

will be later tonight unfortunately
N

 

[NVP]

Mornin all.....

yen still well into southern territory this week.I see the USD has joined it overnight prompting some possible buys elsewhere.....

momentum on Dows climb has slowed .....

If Dow falters today then look to buy USD and Yen on lower TFs

N:smart:

 

[NVP]

hey all

yep already going nicely in my world.......heres the 15m TF

Dow falling and the yen already in good form rising .....Euro is the Sell

later all..i'm just trying to target some decent pips before leaving for work .....

N:smart:

again I need to make it clear that my own personal customised systems are not the default systems I offer here ......the 20ma based system here (for free) is just an example and introduction to Strengthmeter trading techniques

however I can promise you it is a pretty robust system and as you can see above would have shown the Yen rising and the euro falling from a few bars back

 

[NVP]

mornin all .....

Yen pushed back south yesteday as the dow futures continued to rise .....USD was already south on the 1 hr TF

nice signals then into late London morning Session buying the currencies comfortably north

N

 

[NVP]

just scalping that E/J play ..nice !

N

 

[NVP]

ok gotta scoot...I wanted to pick up some pips before work....

later all
N

 

[NVP]

mornin all.......

This week the Yen continues to struggle.......you can see on the 1st picture (right 1hr chart) it has been a nice sell ......being below the Zero >90% of the time......resulting in its bottom position in picture 2 (the x men weekly performance to date)

Yen sells off a nicely rising Dow that supports my correlation strategies

USD has been more reluctant but it is still sub zero so far this week

the gains were on the NZD and AUD so far ......

ANALysts The truth ??

Now if you are a subscriber to the many many Market analysts and commentaries and Gurus out there you will get hundreds of reasons and thousands of words thrown at you on a daily basis as to why X is happening and what this means for Y ....blah blah blah

do me a favour folks .........step back ....its all noise designed to distract you from your task of becoming a profitable trader .........all those Gurus and analysts want you to do is listen to them and buy the services they are being sponsored by, or buy the latest book they have written or even buy their master trading system that is setting the world alight .....
Yeh right.......

sure use market information and indeed seek out some sources that you find useful but then step away and find your own path .........

the only thing these people are ever ever right about is the past*** ......and thats about as useful to me as a chocolate teapot !

be good....

N

*** Well except their own track records that blur strangely during periods when they have lost money .....:whistling

 

[NVP]

Mornin all......

heres the 500/1 setting on the daily and also the 1hr

the 500/1 setting is a great way to see whats REALLY going on ......theres minimal drag or skew and you can use it to trade price action moves like Breakouts and Support/Resistance scenarios

The 1hr chart indicates the yen's sad plight this week as Dow delivers a grinding 300 point gain so far ......NZD took the prizes but you can see all Yen pairs will have delivered this week as long as you sold Yen

again a logical strategy today is to watch for weakness/retraces as traders lock in gains from the weeks action.....if you look closer you will see yen got hit last week as well so its been a hell of a run

Regarding the Daily TF .......heres the way to see what the longer term market holds for us and we can see that the current Yen sells are very much in line with the longer term 6 month sell trend

boy that yen dude is getting creamed .....sure GBP is struggling but the Yen is the Gorilla in the room** .......(??)

most currencies were solid buys generally with plenty of pips on the table

What next re the Dailys ? ........well you have to reach back to 2008 to see this kind of Yen momentum.........notice I didnt say the yen has suffered absolute values changes of the 2008 levels but its certainly warming up well....and in reverse !

again on a longer TF like this and trying to call the moves .....you have to regard all factors regarding the Yen ........it has to slow at some point but that will depend on the worlds appetite for risk and also when the BOJ decide they have the Yen at a level that works......they have clearly delared they will do whatever it takes and good luck to them as in the Markets its all about expectations and opinions and mindgames.....the market has realised they are not bluffing now so the fall continues in earnest......

have a great day and dont forget the 500/1 is a nice setting !

N

 

[NVP]

hey all

well I have to say the market has been kind and did what I was hoping.....:smart:

Dow weakened and the Yen came North.....

heres the 5min chart off that same 500 setting........2 big Yen pushes since early London Session selling whatever currency looked weak

later all
N

 

[NVP]

morin all........and relax ....its saturday ! :cheesy:

I can never relax.........its in my nature ......ask the wife.....put me on a beach and 10 mins in i'm bored and walking about trying to find out where the nearest shops are or talking to locals about whats going on........then from there I'm in a real estate or rentals office finding out about the local business climate and whats happening in their world..... :whistling

Nightmare .......but thats me .......I have to adapt that behaviour to trading and all other aspects in life....its a benefit or a hinderence dependent on how you play it ........i joke about retiring one day and relaxing by a pool........but in truth i know thats the LAST thing that will make me happy when those days arrive .........

so in summing up ........always know who you are and understand what you do .........it may be different from what you "think" you do .........and that knowledge gap will cost you dearly in trading .....and in life if you are not careful.....:innocent:.

later
N

Hint - if you dont know who you are ....then ask someone you trust or pay someone to tell you .........its that easy !

 

[NVP]

I see the Yen finally got bought yesterday off the recent big moves south

the Dow was a flat and not as bearish as I was hoping ......but hey.....i'll take the credit for tipping the Yens retrace yesterday morning in my gameplan!

the real interesting thing yesterday was the screen time that Euro and Yen spent together on the same side (north) of the 15m TF 20ma ......take a picture as that is a very low probability event .....and when it happens I jump for joy as I know its not going to last .........and I can trade that inevitable divorce (but thats another story for another time)

anyway have a good weekend and you all know where I am if any questions

N

 

[NVP]

Hey all

heres my goldmeter off of a Daily chart

read the links below to see how it works ......its not bad at all if you know what you are doing

and finally I seem to be getting a reduction in my dumbass guru gold e-mails.......however the really stalwart ones have moved to the "you must hold it now because it is cheap" message !!

thats after having lost you a hatload recently if you were mad enough to buy it (without consulting charts)

always trade what you see and dont listen to gurus.....

Cheers
N

 

[Jedster2001]

morin all........and relax ....its saturday ! :cheesy:

I can never relax.........its in my nature ......ask the wife.....put me on a beach and 10 mins in i'm bored and walking about trying to find out where the nearest shops are or talking to locals about whats going on........then from there I'm in a real estate or rentals office finding out about the local business climate and whats happening in their world..... :whistling

Nightmare .......but thats me .......I have to adapt that behaviour to trading and all other aspects in life....its a benefit or a hinderence dependent on how you play it ........i joke about retiring one day and relaxing by a pool........but in truth i know thats the LAST thing that will make me happy when those days arrive .........

so in summing up ........always know who you are and understand what you do .........it may be different from what you "think" you do .........and that knowledge gap will cost you dearly in trading .....and in life if you are not careful.....:innocent:.

later
N

Hint - if you dont know who you are ....then ask someone you trust or pay someone to tell you .........its that easy !

This is a great message.

You have to know yourself, which is frankly really hard when trading. There are temptations all over the place...

So very true about having to adapt...

J

 

[Jedster2001]

Hey all

heres my goldmeter off of a Daily chart

read the links below to see how it works ......its not bad at all if you know what you are doing

and finally I seem to be getting a reduction in my dumbass guru gold e-mails.......however the really stalwart ones have moved to the "you must hold it now because it is cheap" message !!

thats after having lost you a hatload recently if you were mad enough to buy it (without consulting charts)

always trade what you see and dont listen to gurus.....

Cheers
N

Didn't gold move! Wow...

I wasn't in the markets the last few days so couldn't capitilse on this move, however, it dropped more than 700 pips during the day and at one point lost over 400 pips in about 40 minutes.

Realistically it would have been very difficult to safely capitilse on these movements, so I hope no one is feeling that they lost out.

That sais, I hope no one was trying to pick a bottom here, you would have definitely been struggling...

J

 

[NVP]

hey Jedster - I hope the holiday was good .........welcome back

you know you should run a thread yourself on T2W about your background......most people have no idea what goes on in the Trading world you walked in and it would be fascinating to give us a small insight as a lot of the stories that most people hear are from people who have not walked the walk ........

N

 

[NVP]

heres Monday

looks like the Yen is still bullish on lower TF's.......dow easing a little through the Asians

N

 

[NVP]

Hey all

heres my goldmeter off of a Daily chart

read the links below to see how it works ......its not bad at all if you know what you are doing

and finally I seem to be getting a reduction in my dumbass guru gold e-mails.......however the really stalwart ones have moved to the "you must hold it now because it is cheap" message !!

thats after having lost you a hatload recently if you were mad enough to buy it (without consulting charts)

always trade what you see and dont listen to gurus.....

Cheers
N

jees this morning I get a moneyweek special report why I should buy gold .......its the greatest opportunity in living memory

Dont get me wrong.......moneyweek is not a bad weekly comic and worth a read if you want to keep an eye on the markets...but jees some of the Reporters and analysts talk some utter total Cr*p !

(Merryn what are you doing still there ?...and can you get a decent forex analyst in the team ?)

why ?.........beause they need to sell magazines and receive payment from some of the more "interesting" companies that sponsor them .......

Agora lifestyles, Fleet street Publishers, et all (or are they the same?)

they work on the principle that if they say the same thing over and over ..well eventually it will be right.....eventually :cheesy:

Damn !........now I know what I have been doing wrong

so a message to traders new and old...........sure.... take in a little information (especially stuff you respect) then walk your own path.... as no one else will walk it for you....or if they do, they will take your money and laugh all the way to the bank

N

 

[jeremiahkn]

Correlation trading strategy sounds very interesting, i tried it before 2 years ago but instead of making money i lost some good amount of money, perhaps i didn't do it correctly and am planning to search more information about it from this thread, but can anyone convince me that correlation strategy if profitable by showing me some myfxbook statement please?

Sorry guys i hope you understand where i'm standing, i've been burned too many times before.

 

[NVP]

Correlation trading strategy sounds very interesting, i tried it before 2 years ago but instead of making money i lost some good amount of money, perhaps i didn't do it correctly and am planning to search more information about it from this thread, but can anyone convince me that correlation strategy if profitable by showing me some myfxbook statement please?

Sorry guys i hope you understand where i'm standing, i've been burned too many times before.

Hey J

What system did you use ?.......

The Correlation and Strengthmeter strategies i show here are the tip of the iceberg and an introduction / invite for people to delve deeper and educate themselves in these areas

Sorry I never publish results ........I can fake some and post them here if you want ?

N

 

[NVP]

Mornin all.......

Yen is rocking north still...........who cares what the Dow is doing anyway :whistling.....

N