Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

I run a lot of test strategies and systems off of the FXcorrelator

based on one of my better ones - I think this hour the yen and usd will fall and some nice buys will happen on Euro and GBP so far and I'm still contemplating buying the AUD as well

lets see if its a good hour :smart:

PS- if I get 15 pips out of any of the trades I will bank it

N

 

[NVP]

already banked G/U buy .....

 

[NVP]

the hell...I need to go to lunch so taking the handful on E/U as well

later
N

 

[NVP]

back with lunch

Damn I should've trailed G/U !!

N

 

[NVP]

I would be out now............dont worry about why

I place a tested and robust Exit strategy way way above my entry rules

make sure you have one that works for you as the diference between an average trader and a great one is the Exit strategy

anyone can generate fairly decent entries :smart:

N

 

[NVP]

....and I am nowhere near perfecting my Exit strategy - but I am on my way slowly with the help from a few mentors and plenty of research by trawling the forex Forum cosmos (all free)

N

 

[NVP]

i'm in again nicely this hour now....

also supported by the 5min standard 80/20 signals I publish here

N

 

[NVP]

no trades this hour (so far)...a little retracing going on :smart:

N

 

[NVP]

no trades in this hour as a lot of chop............lets see what the next hour brings :smart:

N

 

[NVP]

lower Timeframes are screaming at me to buy yen and usd

...but its all about control and I am hunting at higher timeframes at the moment (1 hour and above)

let the trades come to you

N

 

[NVP]

Nope I didnt trade in that hour either......


ok have to go to meetings....have a good evening

N

 

[wickedwin]

i'm in again nicely this hour now....

also supported by the 5min standard 80/20 signals I publish here

N

Which pairs would you buy in this screenie?

 

[NVP]

perfect overnights........just perfect

N

 

[NVP]

Which pairs would you buy in this screenie?

hey W

good question :smart:

if you read the thread (well the good posts when we are not playing :whistling) you will notice that the 80/20 system can call the next move of the yen and usd at around 80%+

which is pretty damn Good and gives us a lot of confidence regarding half of any pair we chose to trade (Jees dont you wish more brokers offered currency indexes to trade )

but chosing the opposing currency is the Holy grail in this system.........if you can get the same level of confidence in trading the second currency then we have as good a trading system as anything out there in the cosmos - Free or $$$$$'s to buy !

so what are the choices ?

N

 

[NVP]

Chosing the Best currency to trade against the Yen and USD

Ive discussed this a little in certain posts on the Thread ........

but its pretty straightforward if you are going to go a standard fixed system

1) chose a currency that is already above or below the 80/20 combination in the opposite side of the Zero as the usd/yen signal happens (mature signal awaiting the yen/usd signal)

2) chose a currency that hits the same signal above - But AFTER the yen/usd has already signalled its 80/20 signal (new currency signal emerging)

3) decide to just take a 20ma signal opposing the yen/usd based on above (ignore the 80ma signal)

3) above being a more aggressive/early trade based on the current scenario.....

so - which is best regarding selecting that all important opposing pair currency to the yen/usd ?...............it really depends on a lot of other things that need practice and experience (the position/correlations of the other G5 currencies relative to the currency concerned especially) ..........and plain dumb luck

I would recommend people trying a little multiple trading on these signals as you cover your bets a little more

but I dont want to get into basket trading here as it is a whole new chapter/area regarding Strengthmeter trading and theres a lot of very very good threads out there at FF that cover it better than I could

look for guys like ES trader , FerruxFX Dreamliner and Steve Hopgood as the forum starters / posters for the cream of the programming on Basket trading and their excellent EA's

N

 

[NVP]

cant get into my charts from work...............doh !!!!

 

[NVP]

choppy morning

N

 

[NVP]

although on the 1 hour chart this is now moving into a big trade signal territory

N

 

[NVP]

or are we all getting excited before the highr Timeframe kicks back in ?

Remember - dont get toooo tied up regarding (much) higher TF conflicting signals.....you can make hundreds of pips trading against a higher TF retrace that may never bounce back anyway :smart:


you just have to be VERY clear what TF and ma's etc you are trading and go for it

N

 

[NVP]

the USd may not go with the Yen on this move as its a big "risk on" carry play - possibly forming here........

selling CHF and Yen may be more profitable or even just sell yen into the USD

lets see :smart:

N