Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

interesting morning.....one had to brave a USD YEN divorce to trade that Dow rise .....the USD is certainly having a good Feb so far and wont be sold

GBP and Yen sure make strange bedfellows....although both are certainly the Dogs of the G8 in the last month or so......

N

 

[NVP]

heres the 1ma X-men showing last 2-3 months and of course February

look at the USD ...king of the Feb castle .....take a picture as the USD rarely gets to the top or bottom of the pack....its normally tucked away ....given that Equities are still bullish and not seeming to have a negative impact on USD this indeed could be the first G8 Winning month for the USD since November 2010
(I said it liked a quiet life )

and after a ballistic January I see that Euro is the bottom Feeder so far in Feb....

N

 

[NVP]

First and primary, despite what you may have heard or read about trading being an easy, get-rich-quick idea, the truth is that there are no trading secrets and no easy paths to quick success in trading markets. Hard work and experience are required to attain distinguished success.

hey all

i'm not actually going to get this post removed......by now anyone following my Thread here for nearly 4 years or having followed FXcorrelator.com (when its not under attack from Hackers :innocent will know that I call it fair and square 24/7 and have absolutely no time for scammers , marketeers and all the rest of the coat-tail-hangers that plague tihs industry and always will..

its easy easy pickings guys and cannot be stopped or policed....so wise up quickly and treat all dealings with other parties with the utmost care until you are ok with things

in this business your word is definately your bond.......:smart:
N

 

[NVP]

mornin all

ok G20 meeting later this week.........lots of brow beating about currency wars.....and the BoJ will get a lot of eyeballing about the Yens demise.......

spare me .......theres not one goverment attending that would'nt want to shed a few pounds (or Euros etc) to lighten their load ........although Germany seems very smug at the moment regarding Euros return to strength...unlike the rest of the europack........sigh.....

N

 

[NVP]

heres the fun..........on the left we see a Yen already back below the Zero after a brief visit to the north.......jees that was quick !

lovely sells on the Yen yesterday evening......(right chart)

N

 

[NVP]

worried about overtrading ? ......what about taking just 3 trades in 2012 ....just following the yen ? :smart:

N

 

[NVP]

no charts today ....back online later

feel free to post charts gang ....

later
N

 

[NVP]

thanks to Wackypete............he may have solved my remote access issues with a company called Screenleap........will look tonight

N

 

[Itshamish]

no charts today ....back online later

feel free to post charts gang ....

later
N

Courage of my convictions, so -looks like the EUR is a sell against USD JPY and... GBP

 

[Jedster2001]

Courage of my convictions, so -looks like the EUR is a sell against USD JPY and... GBP

Um, Sell?

Are you sure? Looking at those charts, I would be buying EUR at the moment, especially if you look at your middle indicator (I assume 1H ?) where EUR is on the rise. EUR strength has passed up above other currencies and is above zero. So I would be looking to buy EUR against those currencies.

Not that I'm an expert at all, but that's my interpretation of your chart...

J

 

[Itshamish]

Um, Sell?

Are you sure? Looking at those charts, I would be buying EUR at the moment, especially if you look at your middle indicator (I assume 1H ?) where EUR is on the rise. EUR strength has passed up above other currencies and is above zero. So I would be looking to buy EUR against those currencies.

Not that I'm an expert at all, but that's my interpretation of your chart...

J

Wot'cher, Jedster! Thanks for your response. My reasoning is that the EUR will correct from overbought. I looked at "other indicators" as I believe NVP recommends, eg in my case, Stochastic (5.3,3) and RSI (4).
Intraday view. Maybe I am a bit previous and it is also a bit of a dodgy time to deal - the lads are probably all at the Jamaica, or the Lamb in Leadenhall market! No name but two.
Trade canny,
H

 

[Jedster2001]

Wot'cher, Jedster! Thanks for your response. My reasoning is that the EUR will correct from overbought. I looked at "other indicators" as I believe NVP recommends, eg in my case, Stochastic (5.3,3) and RSI (4).
Intraday view.
H

I did wonder if that is what you were doing, effectively looking for a top in the strength. I'm not sure I would use it that way unless it had moved to an extreme (maybe it has, I didn't check).

Maybe I am a bit previous and it is also a bit of a dodgy time to deal - the lads are probably all at the Jamaica, or the Lamb in Leadenhall market! No name but two.
Trade canny,
H

I was in the Lamb just last week... :drunk:

 

[NVP]

I spent some time on this thread many a moon ago chasing the O/B and O/S .....happy for anyone here to be resurrecting the action ......

N

 

[Jedster2001]

I spent some time on this thread many a moon ago chasing the O/B and O/S .....happy for anyone here to be resurrecting the action ......

N

Occasionally I zoom right out and draw a line which marks approximate limits for the strength (of individual currencies). Whilst I wouldn't trade it alone, it might just help decide if a move has reached (or is reaching) its end.

The trouble is, the markets are always changing and you never know when a move will just continue. I therefore always get nervous trading against the short term strength, and that is essentially what one would be doing...

 

[Itshamish]

I spent some time on this thread many a moon ago chasing the O/B and O/S .....happy for anyone here to be resurrecting the action ......

N

What I didn't say, was that I am trading binary options! I was bounced out on EURUSD and GBPUSD -but a coconut for EURJPY.

I was interested in using BO as a hedge against 'spot' and 'normal' single pairtrading in the days before I discovered correlations! NVP and Jedster have convinced me that the latter is a very good 'edge' to use in BO trading as well.

It is just foolish to trade during dull periods. Now I am going to wait for NY and DIA for clearer indication. I would trade the Asian hours 0200GMT (less 'noise') but my broker doesn't make prices on FX during those hours - yet.

Jedster - I owe you several pints. I expect to be next in London some time in the next two weeks. I hope we can RV at the Lamb for the traditional City session and a good natter? I speak comprehensible English!
Anyone else interested?

Trade canny,

Hamish.

 

[NVP]

apologies but no............oi dont get to that big city bright lights London much anymore.... may do one of the Forex Expos if it suits though later this year

N

 

[NVP]

looks like I was rambling about convergence plays from here 2 years ago........no idea what those indicators are .........the mind is weak these days from too many Findus BeefBurgers

N

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-774.html#post1443982

 

[NVP]

its funny actually.....I hav'nt been back there on the Thread for quite a while ............Jees I was naive with some of those calls........but deffinately teaches you a lot on the hoof.....(sorry - enough of beefburgers)

older now and perhaps a few more pips wiser....perhaps ....
N

 

[NVP]

meanwhile the ole Dow keeps rollin along.....nice sells on Yen ......various partners along the way ...including a strange appearence by the AUD lunchtime......Jees that means the europeans were lightweight during that period .......

by now I hope you all realise I dont take the USDYEN positions to seriously if the Dow and Yen are opposed as signalling a trade ......

N

 

[NVP]

eh ?

those screens dont look correct ?.......i'm resetting all the charts .....ignore above

N