Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

this is why I love the FXCorrelator so much as it tells the market as it is and shows when correlation is aligned

yesterday I was faffing around trying to get trades out of a market where the yen and dollar were not moving together much and the dow was choppy

everyone all together ................what should I have done instead ?

later
N

 

[NVP]

hey all

heres what I see :smart:

N

 

[NVP]

actually now i look

the Euro vs CHF is quite a gap as well on the 5mins and if dow keeps dumping they should converge now

N

see all my convergence babble from page 775 onwards

 

[NVP]

speaking of convergence plays....I took a look at a call yesterday when I had lost patience with any decent yen/usd correlation

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-877.html#post1533924

nice.......but remember that a convergence play is only seeking that period of high bandwidth differences above the normal deviations , so I would never have stayed on the trade here once it got to 1 bandwidth as the edge had gone.........I cant guarantee 100 pip moves every time !!

N

all my convergence babbling is from page 775

 

[NVP]

final observation then gotta go


N

 

[NVP]

jees I should have said Sell E/J as well eh !!

N

 

[NVP]

ok duty calls ......have some fun out there today

as i leave the NZD looks like its bad day hasnt finished yet

N

 

[NVP]

back again ............whappen mon ?

N

 

[NVP]

hey all

apologies on the E/C convergence play ...........see I should have listened to my rules as set out from page 775 and waited for 3 bandwidths divergence before entering (doh)

jees I am soooo impatient and rubbish as a trader

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-878.html#post1534596

N

 

[maggieo]

I just thought I would share this thought with you guys. I've made a personal discovery about myself with trading this morning.

I didn't do well yesterday, but it was a bad personal day overall and that probably didn't help because I kept making mistakes probably due to distractions and stress. I left one trade running last night with a stop loss and went to bed. The reason I left it was because I refused to take one more loss yesterday. So I let it go.

When I got up this a.m., it had given me 114 pips. Well that was pretty cool. I'm not saying I'll leave trades overnight like this because of the risk, but I lucked out.

I placed a trade this a.m., then walked away to tend to my little dogs and get coffee on. Normally, I stay and watch my trades like a hawk. But I saw on this trade that it looked like I would have to bail out because it suddenly turned on me. So I walked away to tend to things because of course, I had placed a stop loss. I figured win some lose some.

When I came back to my desk about 1/2 hour later, I found that it had given me 156 pips. I'm not talking pip value, just the pip movement. So between the wee hours of the morning and early this morning, I had gained 270 pips and it's only 7:20 a.m.

So what I've discovered is that perhaps I watch my trades too closely. When I do this, I have a tendency to pull the plug when it make a little bit of a profit in fear that it will go down again, or I pull it when it looks like it is losing.

What this is is about trust and believing that your indicator works for you. My little Corrie, as I like to call it, is something you can trust and you can walk away from it and allow it to do what it was meant to do. If I'm sitting here bailing out with a little profit or bailing out when it appears to be losing is NOT allowing the Corrie to work. That's my discovery about myself.

So now I am going to try and break the habit of staring at the screen when I place a trade, go about my business and actually get something done during the day and hope for the best. I'm sure there will be times when I'll take as much a loss as I gained this morning, but that's okay, because percentage wise, the Corrie will always win out.

 

[maggieo]

Thanks NVP (Neil) for all your help and continued support. I'm wondering what broker you use. Mine does not provide the Dow and I'm tired of looking at a demo account to watch the Dow and my real account.

 

[maggieo]

My setup is a simple one. I use the H4 and H1, and then I use the simple Corrie, the one with just one set of arrows. Then I watch the Dow with the Corrie set up in another platform. I want to get this all on one broker if I can find one that doesn't just do Forex.

 

[NVP]

I just thought I would share this thought with you guys. I've made a personal discovery about myself with trading this morning.

I didn't do well yesterday, but it was a bad personal day overall and that probably didn't help because I kept making mistakes probably due to distractions and stress. I left one trade running last night with a stop loss and went to bed. The reason I left it was because I refused to take one more loss yesterday. So I let it go.

When I got up this a.m., it had given me 114 pips. Well that was pretty cool. I'm not saying I'll leave trades overnight like this because of the risk, but I lucked out.

I placed a trade this a.m., then walked away to tend to my little dogs and get coffee on. Normally, I stay and watch my trades like a hawk. But I saw on this trade that it looked like I would have to bail out because it suddenly turned on me. So I walked away to tend to things because of course, I had placed a stop loss. I figured win some lose some.

When I came back to my desk about 1/2 hour later, I found that it had given me 156 pips. I'm not talking pip value, just the pip movement. So between the wee hours of the morning and early this morning, I had gained 270 pips and it's only 7:20 a.m.

So what I've discovered is that perhaps I watch my trades too closely. When I do this, I have a tendency to pull the plug when it make a little bit of a profit in fear that it will go down again, or I pull it when it looks like it is losing.

What this is is about trust and believing that your indicator works for you. My little Corrie, as I like to call it, is something you can trust and you can walk away from it and allow it to do what it was meant to do. If I'm sitting here bailing out with a little profit or bailing out when it appears to be losing is NOT allowing the Corrie to work. That's my discovery about myself.

So now I am going to try and break the habit of staring at the screen when I place a trade, go about my business and actually get something done during the day and hope for the best. I'm sure there will be times when I'll take as much a loss as I gained this morning, but that's okay, because percentage wise, the Corrie will always win out.

totally agree.....its a system used by a lot of the greats as they have already done the work ..........the watching dont make it better :smart:

I went to a seminar by a great old school trader called John Bartlett..........if he was trading higher timeframes (not scalping) he used to put his trade on then take the dog for a walk ......stopped him fussing with his trade


look at my convergence comment on the Euro/CHF ...if I had a gizmo that told me that those dudes were at 3 bandwidths then I wouldnt be fiddling and fussing with trades at just 2.7 bandwidths as I wouldnt know !!

its all about trusting your systems.......but have those S/Ls there of course ...

N

 

[NVP]

Thanks NVP (Neil) for all your help and continued support. I'm wondering what broker you use. Mine does not provide the Dow and I'm tired of looking at a demo account to watch the Dow and my real account.

i'm FXCM/ODL (uk)............not sure what they offer in the USA

N

 

[NVP]

My setup is a simple one. I use the H4 and H1, and then I use the simple Corrie, the one with just one set of arrows. Then I watch the Dow with the Corrie set up in another platform. I want to get this all on one broker if I can find one that doesn't just do Forex.

yep - the higher timeframes are nice currently for corrie settings

N

 

[maggieo]

Thanks, Ill check them out. Alot of the UK don't take US citizens.

 

[NVP]

Thanks, Ill check them out. Alot of the UK don't take US citizens.

no we brits are very fussy ................

N

 

[NVP]

hey all ......workload calls and tomorrow i'm out at some street parties celebrating our Royal wedding

have fun in my absence and talk again over the weeknd
N

 

[Kruspe_Svk]

hey all ......workload calls and tomorrow i'm out at some street parties celebrating our Royal wedding

have fun in my absence and talk again over the weeknd
N

Hi N and all,

you celebrate royall wedding and we start ice hockey world championship (you know, i´m big hockey fan )

Let´s go SLOVAKIA



K

 

[Kruspe_Svk]

hey all

apologies on the E/C convergence play ...........see I should have listened to my rules as set out from page 775 and waited for 3 bandwidths divergence before entering (doh)

jees I am soooo impatient and rubbish as a trader

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-878.html#post1534596

N

Hey N,

yes, is better to wait until 3 bandwidths, but there are still possibilities to get 3.1, 3.2 or more bandwidths.. so everybody should be prepared for draw down.

I prefere higher time frames for playing convergences.. so I have to be ready to control my trade (hedge etc) ... higher time frames could brings more pips, but there is also bigger chance to loss :!:

And Maggieo, you are right.. sitting and staring to open trades is dangerous.. emotions could destroy your trading strategy and your accaunt.

As you said, dog is a good way how to spent time instead of staring on charts


K