Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

gonna be a long day at work so not much posting from me ......sorry

before I go beware the correlations so far today they are disasterous......dow is not working with Yen or CHF



N

 

[NVP]

a quick post as i'm taking a break from work.....

on my 5 min 80/20 system that I publish here....a few pips but scrappy as the dow (representing Global equities) has no real direction today and is therefore not putting any wind in the sails of the G8 currencies

you can also see this will generally send all the currencies into convergence mode and fall back inside the Neutral Zone (middle chart) on the 500ma setting

thats life.........and the markets do not exist to entertain us ! :smart:
N

 

[Kruspe_Svk]

a quick post as i'm taking a break from work.....

on my 5 min 80/20 system that I publish here....a few pips but scrappy as the dow (representing Global equities) has no real direction today and is therefore not putting any wind in the sails of the G8 currencies

you can also see this will generally send all the currencies into convergence mode and fall back inside the Neutral Zone (middle chart) on the 500ma setting

thats life.........and the markets do not exist to entertain us ! :smart:
N

Hey N,

yeah, no big news, ie EUR/USD only about 90pips today 😴 .. nevermind .. I was all day out of market 😉 ... hope more fun tomorrow 👍


K

 

[NVP]

Hey N,

yeah, no big news, ie EUR/USD only about 90pips today 😴 .. nevermind .. I was all day out of market 😉 ... hope more fun tomorrow 👍


K

hi K

on the 5mins (which I talk about here) there were pips (both ways) available trading E/U through the day................... however think that one had to break the stict rules to trade them

usually either

1) take 4 out of 4 on the 80/20 yen and usd direction vs Zero
BUT ignore the Dow

2) take 3 out of 4 on the 8/20 alignment and also align the (inverse Dow) to the tag

the 2 trades discussed in attachment take exception 2) and then 1) making pips on E/U

BUT...never compromise on the opposing currency....it must be on same opposing
side of the zero to tag

N:smart:

as Jack sparrow says in the pirates of the caribbean............

there not exactly rules, more like guidelines

 

[NVP]

hey all

More rule bending if you want to make money...........????

N

 

[NVP]

c'mon.....................easy pips on the table

what should you be trading ?

N

 

[NVP]

off to work.......later

N

 

[NVP]

busy busy busy.......but boy this one needed broadcasting 🙂:clap::cheers:😛arty:

the GBP is an absolute devil to trade...its like lightening and requires a different approach to the steady eddies like the Euro and the AUD

look at that move from the Neutral area line to the red touchdown line........virtually 1 X 5 minute bar !!!

Fastest Sprinter in the business

N

 

[banawa]

busy busy busy.......but boy this one needed broadcasting 🙂:clap::cheers:😛arty:

the GBP is an absolute devil to trade...its like lightening and requires a different approach to the steady eddies like the Euro and the AUD

look at that move from the Neutral area line to the red touchdown line........virtually 1 X 5 minute bar !!!

Fastest Sprinter in the business

N

yes yes what a winner hahahahaa gbp/us then eur/gbp we can celebrated champagne thanks again genius men god bless:clap::clap::clap::clap::clap::clap::clap::clap::clap::clap::clap::clap::clap::clap::clapvoila????????????????

 

[NVP]

Well done.....that was a fast draw needed to bag the pips

N

 

[NVP]

i'm very tempted to buy Cad/USD now .....but as you all know thats not a pair I would ideally recommend as they are both for me to tightly correlated

lets see
N

 

[NVP]

and this little rocket ...........

 

[NVP]

seems like the more traditional Tag team pairings for this time of the day (Euro & GBP) are now asleep.....although GBP has done enough work already eh !

N

 

[NVP]

watch GBP though as a buy .............its still prowling and I will drop the others like a brick
if that dude start rolling again

N

 

[NVP]

getting messy now on those trades ....yen is to to north spoiling the correlation now

 

[NVP]

c'mon yen join the damn sell party with chf and USD....

 

[AlbertoFX]

hi!...My Look today, when Is good idea take sell GBP/JPY?

Also, I do not see bands more 0.0001 , is it normal ?

Thanks

 

[NVP]

hey mate

load up the correlator on a GBPUSD chart and load my Template I offered as part of my convergence rules (read the convergence posts below in the signature area)
then you will see this below

meanwhile GBPJPY convergence plays need large pockets my friend :smart:

I would wait for a minimum of 6 bandwidths (ive seen it go to 9+ before retracing) on the 5 mins before calling a retrace position - and/or and you could look for some Dow falls that should help the cause (or even some flattening of the current rises)

remember GBP is the hyperextended one......yen has much much more in tank if dow keeps rising

good luck 👍
N

 

[NVP]

when I (eventually) get back from my meetings today i'm going to cry....

looks like my provisional tests re selling the tag team at lunchtime turned into a damn pipfest

doh !!

N

 

[NVP]

hi!...My Look today, when Is good idea take sell GBP/JPY?

Also, I do not see bands more 0.0001 , is it normal ?

Thanks

hi A

its just scaling as Mt4 continually autoscales the charts....and it will continually find the highest and lowest currencies as the boundaries of chart 🙂

N