Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

back again as been in meetings.........

heres the damn 5min and that convergence trade from hell.........not that the entry was signalled after the first hasty try today but jees it shows this is a tough tough game to play and a lot more work is needed to get us in shape

I am going to integrate the 20ma rule into the plan now (the currencies involved need to have their values on the same side of the Zero as the direction we want them to converge) as that Plus a realistic entry point based on recent Price action would have kept us safe on this trade so far and still waiting to pounce.......which what we are still doing as they are now at a whopping 4 bands width !!!

I have to say as well the driving Northern Dow was a recipe for "risk on" plays and naturally the gpb was gonna be benefitting from that (like it does in divergence strategies) AND the CHF decided it was going to unload as money exited from the swissie into more higher yield and risk products

with this in mind - its been a GOOD day for the 5 min divergent corrie (80/20) system and as I said these 2 will not mix it up on the same timeframe much if ever (think of it like you can never mix your offensive and defensive teams together at the same time in american Football as it would be stupid and inneffective)

so all in all this was a day when the Convergence team were always gonna sit on the bench whilst the Divergence team showboated - interesting !

N

 

[NVP]

heres what i mean..............plenty of pips on offer today re the G/U using our standard 80/20 divergence strategies - so the Divergence squad were unneeded

their time will come though - and they will be ready 😏

N

 

[Kruspe_Svk]

Hi N,

I was all day long off (university :smart: ).. and mr.NVP meantime still rocksssss 😈

you really go 150mph..I need some time to absorb your posts 😎

btw I´m already in NZD/CHF a couple days (I entered too early - still some red pips, but CHF is getting sloooowly weaker and NZD stronger).. I prefer higher timeframes (4H)... but it brings bigger DD (as you sayd - it needs some freedom and freer SL)

I need some rest and then I´m gonna read your posts more carefully,

c ya, K

 

[NVP]

ok going home............

you know the crazy think about that GBPCHF trade is that it has been teasing for so damn long that I might simply be able to trade it when the 80 and 20 mas of the GBP are finally both south and the 80 and 20 mas of the CHF go North.....

lets see what happens this evening (although both should settle down more for sleepy byes soon)

N

 

[NVP]

Hi N,

I was all day long off (university :smart: ).. and mr.NVP meantime still rocksssss 😈

you really go 150mph..I need some time to absorb your posts 😎

btw I´m already in NZD/CHF a couple days (I entered too early - still some red pips, but CHF is getting sloooowly weaker and NZD stronger).. I prefer higher timeframes (4H)... but it brings bigger DD (as you sayd - it needs some freedom and freer SL)

I need some rest and then I´m gonna read your posts more carefully,

c ya, K

yep - its fast and furious sometimes all...........

so much for me posting less today ..hahahahahaha 😆

N

 

[NVP]

also note to myself............the GBP is a volatile devil and I may have to run the rules to any GBP pair to 4 bands minimum signal (and not the 3 band Tribal width allowance handed just to EUR and CHF)

we will see all ...we will see

N

 

[NVP]

yep - its fast and furious sometimes all...........

so much for me posting less today ..hahahahahaha 😆

N

hey K

set up a 4hr corrie on a 500/1 setting and throw 6 bands onto it as you see them ( a Neutral , a Touchdown and a hyper-extended - 3 each side of the Zero) ......we could use your input ! 👍

N

 

[NVP]

Hi N,

I was all day long off (university :smart: ).. and mr.NVP meantime still rocksssss 😈

you really go 150mph..I need some time to absorb your posts 😎

btw I´m already in NZD/CHF a couple days (I entered too early - still some red pips, but CHF is getting sloooowly weaker and NZD stronger).. I prefer higher timeframes (4H)... but it brings bigger DD (as you sayd - it needs some freedom and freer SL)

I need some rest and then I´m gonna read your posts more carefully,

c ya, K

the DD is only a function of your price per pip staked....and it should be mega diluted at these levels I Hope as you spread your deemed % of bank across the many pips it could DD by as a stop loss

using this approach a 4Hr trade can have the same risk/return as a 1 min trade
N

 

[Kruspe_Svk]

Could I simply load your FXC 5MIN template on H4 ? But on my H4 CHF disappeared, it´s bug, or problem on my side ?

thx, K

 

[NVP]

overnights...............

 

[NVP]

convergence update...........ZZZZZZZZ 😴

 

[NVP]

hey all

i'm gonna play with the 1 mins today using bands and same rules

trading on the 1mins would only be feasable on the USD pairs though due to spreads

but we are experimenting to see behaviour

heres the numbers for the bars plus a template....

4 bands divergence as a minimum for all gbp pairs and other non tribal combos (see previous rules set yesterday)

N

 

[NVP]

Could I simply load your FXC 5MIN template on H4 ? But on my H4 CHF disappeared, it´s bug, or problem on my side ?

thx, K

Hey K

A 4h TF will need new band settings due to the higher TF's so I would recommend you set some up based on eyeballing history

set the hyper extension band at just 5%+ of any currency touches then devide it into thirds back to the Zero for the other 2 band settings

a currency dissapearing is strange ..............not sure why

N

 

[NVP]

hey all

hope you are all enjoying the pips on GBPUSD :smart:

ever since I started the Convergence discussions and activity here yesterday the standard divergence strategy on my 80/20 ma corries has gone absolutely platinum for pips 👍

however with 5 bands divergence now on GBP(and also touching the hyperextention band) vs those risk hit Yen and CHF currencies its only the rising Dow thats keeping them apart for a mega convergence play

and my convergence Team are ready to destroy them 😱

later
N

 

[NVP]

at around 7.20am the GBP got south on its 80 and 20 mas (5mins) and the chf got north on both

thats the first time for many many an hour and I though we were gonna be in...but no it all reversed and the dudes went 40 pips north on the damn GBPCHF......frustrating !

so i'm waiting for the following signal and then i'm sending the convergence team back onto the field again to kick some butt................

1) GBP is below Zero on the 80/20 mas on 5min
2) CHF is above Zero on the 80/20 mas on 5min
3) the Dow gets inside the 20ma on the 5mins and is falling

we have 3 in action presently 😏

N

 

[NVP]

hey all

I fancy this sell for 20 pips..talk later

n

 

[NVP]

its based on the dow looking as if its gonna dump.....

 

[NVP]

the convergence Team are in play.....lock up the china 😢

 

[NVP]

you are kidding me ..............the dow is falling and chf falls ???

 

[NVP]

embassassing but I should have at least waited for the gbp and Chf to swop sides on the 20ma

still its only demo.....not over yet and my team are still on the field giving it 100% effort

N