Best Thread Correlation Trading - Basic Ideas and Strategies

actually theres a cracking question from someone I have corresponded with before giving some advice .............ive asked if I can reproduce the question and answer here ........

its probably one of THE most difficult aspect of trading to crack........especially lower TF trading ............and there is no simple answer ........

but I will try if I can

N
 
London morning :-

GBP sold off to -90's .......yen to -50's ........USD stayed net bear as well
CAD , Euro , Aussies stayed the buys

pairwise it was easy and 1 way traffic selling GU ........UJ and EJ buys were ok earlier and more recently ...Ucad sells earlier ...a few bounces since
resells on EA

easy street today for you forex traders out there .........

N
 
the clock is ticking ......

what currency is strongest at moment ?
what currency is sitting at a Support / Resistance level ?
what currency is weakest ?
where are the best correlation patterns forming to predict trades ?

damn that's a lot of questions

and that nice man at the seminar said it was easy ........just buy his software and trade when the green light flashed

..........sorry guys ..........its not that easy ........hate to break it to you new comers but it needs a little more than that in the tank to make consistent money .....but it is possible with finding your edge and plenty of practice ........so hang in there !!

N
 
NVP said:
market is consolidating ..nothing really breaking since 7am bar cracked open.......

will go for brekkie soon if it stays quiet like this

where am I on all those nasty question is last post ?


what currency is strongest at moment ? - NZD actually (??)

what currency is sitting at a Support / Resistance level ? - nothing major flashing

what currency is weakest ? - mr GBP

where are the best correlation patterns forming to predict trades ? - pretty messy at moment

so what does that tell me ...........well it tells me not to put out much cash at moment .....save it for better conditions ......which in scalping terms could be offered in next 3-5 mins ....who knows !!

N
Click to expand...

my last post this morning was about TIMING ...the most important aspect in trading

Why ?

because actually most traders after some practice / guidance / mentoring are generally pretty good at seeing what direction ANY market is going .......and also if its ranging

so if we were to say don't trade ranging markets for beginners ...focus on trending markets ......

once we have decided a market is trending ...........

its all about timing the entry - right ?? :)

Right ?? :)

ok...........simple ..........time the entry NVP ........that's simple :)

NO ITS NOT ..........ITS HARD !!!!

you basically have to wait for a retrace and then trade the bounce ........80% 0f my trades are bounces .......I don't like chasing fast moves into a new trend .............and I am not going to gamble on a move already well into maturity

if I do run some stuff next year this is where I will focus a lot of the discussions and training ........a lot of sellinars and vendors gloss over this area because they are scared people will want there money back .....its the real crux to making money ......

TIMING

so I said NZD was a buy and GBP was a sell in the comments above .......well heres the last few minutes on those currencies against the classic currency usd ...............there are pips there arnt there ........i'm my clever boy right ?

WRONG

you still had to get the timing right if you were only risking 5 pip Stops

so welcome to trading .................

T I M I N G :)



have a good day
N
 

Attachments

  • 2 currencies.JPG
    2 currencies.JPG
    58.6 KB · Views: 123
hey all

2 min pop in ...........as London morning session nearly over ....

nice solid bull yen and usd eh ? ........great buys all morning really
GBP was a sell but has slowly retraced north through morning
Sells have been aud and Euro ......

pairwise .......

the strong usd allowed EU , AU GU to all get to over -50 pips since 6am ....ucad to +50's

the strong Yen allowed the EJ to nearly -100 pips at times this morning

EA swung positive to deliver 50 pips as well eventually (not really with Euro flow but goes to show eh ! )

anyway .....plenty of pips on offer if traders were patient and used timing trading back into the trends
discussed here

N


cmon tell me you made pips
 
hey all

ok I got permission from the trader who I have been corresponding with occasionally to talk about .............TIMING of course ........heres his email (slightly changed to make it anonymous)

and yes I do share some of my scalping performance results with traders whom I trust and respect .....it helps to set the scene and help show them what is possible once you have accrued sufficient time and experience using a strong edge .......


more later once I get time


Hi Neil,


I hope this mail finds you well and enjoying the summer...... now we have one.

We have spoken a couple of times about correlation and as you suggested to me then, I am sticking with it.

have a more general question and if you feel you have the time to answer it, I would be very grateful.....I am suffering the age old problem, on entering trades and they immediately reverse with painful results. I appear to be right in my analysis but always to early. As I am having to keep fairly tight stops (money running out) around fifteen pips, on a five minute chart I am being taken out around ten times to one win. Then of course it stonks up or down and I just watch it happen AGAIN !!!


I am looking at a Imin corrie chart and a 5 min corrie chart plus some other stochastics and simple ma's and that`s it. I have read so much about this until my eyes bleed but I would, if it`s possible, like to hear your opinion. I I hope you don`t think that I am putting on good nature but I have come to trust what you think and say.

I hope your amazing programmed software is still serving you well. You may remember that you sent me the results of one days trading. I could hardly believe what I was looking at then and I still think about it now.

Many thanks in advance
My Best Regards
 
good day on the rockface .......no complaints from earlier (See scalp thread)

have a good evening
N
 
todays sermon is on timing and prioritising pairs



gu just spiked to 72 and has retraced dramatically to 61 again

so my point is .........you either bought around 66 and took 4-5 spike pips

or you didn't trade at all ........

was that an impossible trade ?

if you took it and lost ..........bad luck
if you didn't take it .....then youve just saved some pips

but overall .........who the hell cares ?........this is trading so wear the losses or stop trading and take up knitting

also ........there are 28 pairs tradable on the G8 .........do you really think that while you are watching GU play silly buggers there are not better other pairs to be trading?

answer is that there are easily 2-3 other pairs better to trade at moment .....that why I use strengthmeters to watch them all .... get on the best pairs 100% of the time

you are watching the wrong pair guys .............

N
 
wicked wicked market at moment .........theres a lot of 5pip whips across the board

if you are an inexperienced scalper don't despair..............today is a real SOB so far !!

i'm only really a handful up today ...........usually I am 20-30 pips + by even 7am

N
 
ok I gotta scoot soon

be positive is a damn good trader ...............and he just helped me demonstrate the beauty of trading strengthmeters ...........

play the field .........do not get hung up on individual pairs ...there are 28 pairs always on offer in the G8

prioritise and select the best pair opportunities at all times :)

whist we all fixated a little too much on the GU (a natural thing to do)......other BETTER usd pairs offered 5-9 pips easy scalps .........

have a good morning ..I did ......:)
N
 
NVP said:
good day on the rockface .......no complaints from earlier (See scalp thread)

have a good evening
N
Click to expand...

did everyone have a good London morning session ?

yen sold off to -50's
GBP kept banging north to +60 at times
usd was a decent bear at the end
chf sold off heavily mid session

pairwise

GU buys
EA sells
AU buys
Ucad sells

dominated my main pairs traded .........not too shabby

N
 
to be honest the pre 6am trading has already filled my boots ....(see my scalping thread)

and I have some urgent stuff for work to do so if you will excuse me i'll bail for a while

will pop back later to see what market is doing ........

viscious bite back on UJ / EJ which is why I said wait ...........choppy market at moment .............and usd has switched to bear AGAIN now so no real clarity in market at moment .....................

cheers
N
 
how are we all doing folks ?

well the London morning session was a real humdinger !...shame I was so tied up

see my scalping thread for all the details

have a good afternoon..........if I get some time I will be more looking at soccer than charts .................mixed emotions for me as Gareth Bale is ex Spurs so if he scores I wont know whether to laugh or cry.........:)

N
 
NVP said:
how are we all doing folks ?

well the London morning session was a real humdinger !...shame I was so tied up

see my scalping thread for all the details

have a good afternoon..........if I get some time I will be more looking at soccer than charts .................mixed emotions for me as Gareth Bale is ex Spurs so if he scores I wont know whether to laugh or cry.........:)

N
Click to expand...

Bale scores AND England win ..........suits me (y)
 
been a real real good scalp session and I hope people are enjoying the ride this morning on my scalping thread .........have a good morning ...I have already

N
 
hey all ..........

well that me done for the week pretty much ........taking the hard earned advice of cooling my trading activity (as over confident) ...... .I eased off the accelerator a little last 30 mins and took only the best signals

did ok .........no complaints today

since 6am .....best pairs ?

well ive enjoyed the EA ..........been to -30's twice in session so plenty there up and down :)
Eu sold off to -30's
EJ sold off to -30's
amongst others

just ask yourself ....if a currency pair trends to + or - 30 pips in a 120 min period could you grab 5 pips out of that ? .....could you ?

well with practice you can take a lot more than 5 pips ..........just time , practice and the right systems

have a good day ..I have already :)
N
 
I am corresponding with a lot of traders at the moment and ejoy it ....sorry if I am delayed on some responses but time can be an issue...... (isn't it always ?)

can I ask you guys to look back to day at my trading comments from 6.30 .......follow the commetns and look at the charts being mentioned ...........now tell me where you would have traded ........

notce I only call what 5-6 pairs tops ?.............that's the PRIORTY pairs I am trading ..........none of the other of the 28 pairs are mentioned right ?.........that's just 20% tops of the possible combos in G8

so we are already on the main money flow right ?..........and money flows t omoney so you are in the right place to take the moves

RULE 1 for me in my scalping system is BE ON THE BEST PAIRS ..........

so take a look and see if you could have made more than you did this morning :)

N
 
You must log in or register to reply here.

Similar threads

S
Correlation Strategy
2
Replies
29
Views
31K
dreamliner
D
G
Gold Correlations
Replies
6
Views
2K
CharlesBakerfx
C
H
Correlation and Cointegration
Replies
6
Views
2K
tradern
T
F
Correlation Swap
Replies
0
Views
4K
Fartingale
F
A
Trading System Ideas
Replies
10
Views
4K
numbertea
numbertea
Top