Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

signing off as need to pop out ....

N

 

[GMP]

No EOD report today, as I wasn't trading the ICC system given the expected dodgy conditions. Turned out not to be as volatile as I was expecting, so I tried some "Freestyle" trades in various markets, and only managed to prove to myself that I need to stick to a system to have any chance of being profitable.
I ended up losing 36 pips in total, which illustrates how crap I can still be at applying what I think I've learned over the years.

 

[Boilersuit]

Hi Neil, Simon and all.
Well, I think that Correlation/ Divergence trading is key to understanding the fx markets. Its also one of the most tricky to follow on a consistent basis.

I use it alot in my own trading. But its does have potential pitfalls.
1st, correlation indicators lag.
2nd, what are the settings?( This can mean reoptimisation etc)
3rdly which rules of correlation analysis should be adapted? Crossovers? Picking the most positive and negative? etc etc

I'd also say that sometimes correlation works superbly. Other times not so well.
What I'd love to do is develop some sort of "predictive corrie". Personally, I tend to use it as a way of summarising the market, then going into candles, traditional TA etc to choose the best of potential trades and exit points.

Has anyone regularly used predictive rather than lagging( confirming) setups for Correlation?
rgds all.

PS it does pick some lovely predictive trades eg yesterday afternoon. But whipsawing on the shorter frames can also be something to handle with other indicators.

 

[cheetahcal]

Hi all

heres a crazy request.....:whistling

Apart from the relatively (easy) technical stuff/instructions re loading my new corrie hybrids into Metatrader (thanks GMP/Tigloo - Templates it is !)

I have to be honest and say i'm pulling my hair out re how the hell I create training and guidelines for my approach....

I have started writing an endless pdf....and realise its like watching paint dry....also I am endlessly improving and fine tuning my methods.....plus you guys are feeding / sharing great Ideas (mainly pms but thanks !)

so I am figuring the following approach (whish was where I was a while back) :-

1) I will provide a core set of corrie templates (20 and counting) and new Hybrid indicators (umm 10+) by initial e-mail to customers who want the systems

2) I will have a private forum where they are all explained to the members and can be dynamically updated by me (and members) as we develop the approaches...the forum will also be developed in various directions including our more experienced members being encouraged to post signals and market observations (same as here if we had some more experienced members !)....

chicken and egg really as I know that if followers had my hybrids and a little more formalised training then I would expect a huge uplift in participation. I am only scratching the surface here re my musings and observations as you can probably
guess :smart:

This forum will not be on T2W as we cannot operate commercial forums here ....(which I completely understand - apologies to moderators for progressing this to the stage it was)

does that sound a good idea ?
N

You've put a lot of effort into this strategy and thread. Some of us will help you write the instructions.
Keith

 

[NVP]

hey guys

Keith - thanks for kind comments, and Boilersuit....great to see you around again mate

no predictive stuff created BS.....i'm still summarising and consolidating the work to date and breeding corrie hybrids.....

there are G8 dynamics and relationhips that can work most of the time.....the other big advantage for the corrie is the helicopter vision that I believe can also detect when things are not gonna work quicker than everyone else......

N

 

[NVP]

overnights

after a nice run up is it time for a tag fall ?

try to post later but lots of cotton around today
N

 

[NVP]

I got this link this morning in my inbox....

Nice video and the system is only $997 to buy

http://www.delphiscalper.com/learn-more

funny.....the system looks a lot like this one I have been talking about here for many many months.....so save yourself some money

ask me here any other questions

Corrie Scalping system - not $997

read this :-

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-372.html#post1112898

then apply some common sense price action before you take the trade (dont try to trade into a support / resistance level & trade with the trend)

c'mon try it
N

 

[NVP]

overnights

after a nice run up is it time for a tag fall ?

try to post later but lots of cotton around today
N

Everyone pleased with that tag fall ?

then it was down to selecting your second currency.....only CHF and Euro would not have really delivered as they then fell with the tag team....(hey someone has to lose!)......

find the Tag direction ....then select 1 (or 2 ?) currencies that should generate pippage by moving against the tag

G/U was the 10/10 winner on this occasion..........funny that as GBP always tends to not generally move with the Euro/CHF team......hmmmm

N

 

[NVP]

yes all..I did spot that the tag fell !

N

 

[NVP]

dj30 futures is flying up....should keep tag falling for a while yet

 

[NVP]

heres the scalping systems take on that....

you want jam on that bread ?

do you also see how the system only offered you GBP and the Light blue NZD to buy against USD as the rest were below the zero on one or other chart.....thats good !

sure this stuff is good....but its not worth $997 !
N

 

[NVP]

ok in meetings now for rest of the morning will plug in later....

welcome to all the guests ....ask us any questions you have as we usually have a few correlation (and FXcorrelator indicator) experts on line here to help you......although they may be trading

the FXcorrelator is on page 64 here if you want it

later....
N

 

[NVP]

triple up move on the 3 eurotribe currencies - unusual !

 

[NVP]

hi all

tag really working hard to turn upwards now....give it time

 

[NVP]

sell E/G .8686

 

[NVP]

yes another hair-brained strategy being played with on the hybrids

this one involves trading GBP in opposite direction to the Euro and CHF....

no idea yet re what other G8 dynamics are needed to enhance the probaility !

N

 

[NVP]

the pure move was at 12.58pm but i was not watching....that would be a couple of pips in now but no big deal ...

N

 

[NVP]

umm...........am I that good really ?

 

[NVP]

8-10 pip target hit

i'm happy to call it luck for now....however the more we research the luckier we will get...

N

 

[NVP]

funnily enough this buy GBP sell Euro/CHF is even just about to show on my 4h hybrids.....perhaps a significant divergence is coming on G/E ?

N