Best Thread Correlation Trading - Basic Ideas and Strategies
Darksorrow
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Visited your site but did not see any strategy 🙁
Could you please guide me?
And i have been using CCfP for over 1.5 years now but did not do my research or read about it.
Was busy on some other forex stuff. But now it is time for me to make CCfP more worthwhile where i would not like add any new indicators as line studies gives me better view of market. So please direct me to your strategies.
Thanks
NVP
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Hey D
sorry I am not taking any new members on my paying site
if you skim this thread you will learn about my 8020 system that I use to introduce
what I do
but on my free site there is a 24 min video that explains the 80/20 system
Free FXCorrelator Indicator & Video |FXCORRELATOR
ok.....thats me banned 🙄
N
sorry I am not taking any new members on my paying site
if you skim this thread you will learn about my 8020 system that I use to introduce
what I do
but on my free site there is a 24 min video that explains the 80/20 system
Free FXCorrelator Indicator & Video |FXCORRELATOR
ok.....thats me banned 🙄
N
Darksorrow
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NVP
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hey all
merry xmas and happy new year ! 😛arty:
my xmas holiday started with bang - literally 😛
on 24th I tried to fire up my laptop on holiday in the Canaries and was greeted
with a pop and then smoke......😱
no life at all in it at all since then so its off to the pc shop tomorrow for some help....or a new toy ?
was a very lazy holiday for me then with no trading exposure at all - whats a chart again ?
anyway I have to load up all my backup mt4 platforms onto this steam driven pc I am on now at home....and get accounts varified to be producing charts again - so bare with me folks
N
merry xmas and happy new year ! 😛arty:
my xmas holiday started with bang - literally 😛
on 24th I tried to fire up my laptop on holiday in the Canaries and was greeted
with a pop and then smoke......😱
no life at all in it at all since then so its off to the pc shop tomorrow for some help....or a new toy ?
was a very lazy holiday for me then with no trading exposure at all - whats a chart again ?
anyway I have to load up all my backup mt4 platforms onto this steam driven pc I am on now at home....and get accounts varified to be producing charts again - so bare with me folks
N
NVP
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hey all
a big thank you for the votes in the awards this year 👍
coming second is an honour and to someone like mr charts is no shame at all for me as he is a legend 👍
anyway thanks again all....I will try to add some more value in 2012....
but in all truth less is more in trading and if i can just continue to convey to newbies that in just viewing individual currency behaviour (using the FXcorrelator) you can start to understand the Forex market and develop your own ideas
I spent hundreds and hundreds of hours just watching my G8 currencies move before starting to realise how they interacted together and under what situations (such as against equities)
find your own path and you will be successful in the markets....but it takes time :smart:
N
a big thank you for the votes in the awards this year 👍
coming second is an honour and to someone like mr charts is no shame at all for me as he is a legend 👍
anyway thanks again all....I will try to add some more value in 2012....
but in all truth less is more in trading and if i can just continue to convey to newbies that in just viewing individual currency behaviour (using the FXcorrelator) you can start to understand the Forex market and develop your own ideas
I spent hundreds and hundreds of hours just watching my G8 currencies move before starting to realise how they interacted together and under what situations (such as against equities)
find your own path and you will be successful in the markets....but it takes time :smart:
N
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NVP
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heres Boris from BK Forex ......
Number 3 is an interesting one and something newbies always fall for when sold to by the junk mail marketeers and those high volume/high % profit systems.............forget them !
Four Forex Questions for the New Year
T1. How many times will I trade?
As I noted recently this is perhaps the least asked yet the most important question you can answer. The frequency of your trades will determine the amount of risk you can assume. This is not a philosophical discussion but a pure function of statistics and you ignore it at your own risk. The back of the envelope formula I use is to reduce size by 50bp for every 100 trades I take. If my basis is 250bp of risk @ 100 trades I reduce it all the way down to 25bp of risk @ 1000 trades.
Final note: Five adds of the same currency pair at your initial risk level is NOT one trade. It's five distinct trades. Be honest with yourself to recognize when you do that.
2. What spread will I pay?
If you are paying more than 2 points spread on EUR/USD you are a moron. (So much for my holiday cheer Seriously, in an age when most platforms allow you access to 1 - 2 pip spreads across most major currency pairs paying anything more than that is just sheer idiocy especially if you are trading intra-day.
The spread that really interests me however is the one you will pay on your stop. The smaller the stop the higher the chance that you will lose. A pair can cross the same 10 point range 10 times during the day stopping you out for -100 points before finally making you that 20 pips you are seeking. The key is to make your stop wide enough as to avoid unnecessary exits yet tight enough so you can recoup it in no more than 2 days of trading. My personal favorite for intra-day trading is a 50 point stop
3. Will I trade high probability or high profit?
Remember this. No matter how much you beg. No matter how much pray. No matter how good a boy or a girl you have been, the trading gods will never ever allow to make a high profit trade with favorable odds. If you want to make 2 points for every 1 point of risk consider yourself lucky if you lose only 6 out of 10 times. If you want to win 3 out of 4 times prepare to risk 2 points for every 1 point of profit that you seek. In trading as in life the sweet spot is usually in the middle so I try to keep the odds as close to 1:1 as possible and strive for a better than 60-40% edge.
4. What's my fail-proof checklist?
If you want even a modicum chance of success in trading you must assume you will fail. To prevent failure from becoming a blowout you need a checklist. Here is mine.
Always attach a stop
Never add or double down
After three losses in a row walk away from the screen for the rest of the day
Number 3 is an interesting one and something newbies always fall for when sold to by the junk mail marketeers and those high volume/high % profit systems.............forget them !
Four Forex Questions for the New Year
T1. How many times will I trade?
As I noted recently this is perhaps the least asked yet the most important question you can answer. The frequency of your trades will determine the amount of risk you can assume. This is not a philosophical discussion but a pure function of statistics and you ignore it at your own risk. The back of the envelope formula I use is to reduce size by 50bp for every 100 trades I take. If my basis is 250bp of risk @ 100 trades I reduce it all the way down to 25bp of risk @ 1000 trades.
Final note: Five adds of the same currency pair at your initial risk level is NOT one trade. It's five distinct trades. Be honest with yourself to recognize when you do that.
2. What spread will I pay?
If you are paying more than 2 points spread on EUR/USD you are a moron. (So much for my holiday cheer Seriously, in an age when most platforms allow you access to 1 - 2 pip spreads across most major currency pairs paying anything more than that is just sheer idiocy especially if you are trading intra-day.
The spread that really interests me however is the one you will pay on your stop. The smaller the stop the higher the chance that you will lose. A pair can cross the same 10 point range 10 times during the day stopping you out for -100 points before finally making you that 20 pips you are seeking. The key is to make your stop wide enough as to avoid unnecessary exits yet tight enough so you can recoup it in no more than 2 days of trading. My personal favorite for intra-day trading is a 50 point stop
3. Will I trade high probability or high profit?
Remember this. No matter how much you beg. No matter how much pray. No matter how good a boy or a girl you have been, the trading gods will never ever allow to make a high profit trade with favorable odds. If you want to make 2 points for every 1 point of risk consider yourself lucky if you lose only 6 out of 10 times. If you want to win 3 out of 4 times prepare to risk 2 points for every 1 point of profit that you seek. In trading as in life the sweet spot is usually in the middle so I try to keep the odds as close to 1:1 as possible and strive for a better than 60-40% edge.
4. What's my fail-proof checklist?
If you want even a modicum chance of success in trading you must assume you will fail. To prevent failure from becoming a blowout you need a checklist. Here is mine.
Always attach a stop
Never add or double down
After three losses in a row walk away from the screen for the rest of the day
Last edited:
2be
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Hi NVP,
This thread is very worthwhile to read and the market correlation is one of the important principles to consider. For intra day trading of the DOW it might be indeed one of the main strategies and a positively simple too.
For some who would like to do some more reading on the intra market relationships there are some good books to consider like John Murphy, "Intermarket analysis", a bit dated but explaining the circulation of the capital involved in the global market.
I always keep an eye on currencies, gold, crude and indexes.
Thanks for your postings and for sharing this profitable approach with many.
The guarantee of any success is in understanding what the thing is all about and in serious application of learning and experience.
I wish all a Very Happy New Year and may many of you treat yourselves with good trading profits too!
2be
Petar_Serbia
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swissforex
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absolutely right👍
NVP
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hey Petar
been tied up my friend on many things.......perhaps I can focus more on trading in 2012 😉
are you trading well ?
N
francisfinley
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Hey NVP hope your IT issues get fixed.
Keep up the good work - good method and a good guy.
FF
Keep up the good work - good method and a good guy.
FF
