Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Sorry to deviate off this thread but I saw the post notification in my e-mail and I am desperate to find a TRUE ECN. I got messed up last week from what was my normal profitable trading and my account is wiped because of it. I had about 8 weeks non losing weeks and as soon as I took £1500 out of my account, the market coincidentally worked different and could no longer trade my strategy.

Any quick reply for a TRUE ECN?

Sorry again for the topic deviation. I am desperate as I now trade for a living.

hey dude ....desperate is not a good place to be when you are trading...I suggest you open a new thread and ask for help there as well ......

cheers
N

 

[keydcuk]

hey dude ....desperate is not a good place to be when you are trading...I suggest you open a new thread and ask for help there as well ......

cheers
N

Yeah sorry NVP. I am in a bad place as I have a great system but a crap place to trade it. Sorry again!

Cheers!

Dan

 

[Jedster2001]

Sorry to deviate off this thread but I saw the post notification in my e-mail and I am desperate to find a TRUE ECN. I got messed up last week from what was my normal profitable trading and my account is wiped because of it. I had about 8 weeks non losing weeks and as soon as I took £1500 out of my account, the market coincidentally worked different and could no longer trade my strategy.

Any quick reply for a TRUE ECN?

Sorry again for the topic deviation. I am desperate as I now trade for a living.

It sounds like you are blaming your broker, and the markets for your recent losses and the inability to be able to trade your strategy.

The first step in dealing with losses is to be able to take responsibility for your own actions/trading, rather than find excuses as to why it isn't working.

Also, markets change. Perhaps you need to be able to recognise the conditions in the market where your strategy works, and only trade in those conditions. I know from experience that staying out of the market is hard. But, don't forget that being out of the market is also a position to hold in itself.

J

 

[keydcuk]

It sounds like you are blaming your broker, and the markets for your recent losses and the inability to be able to trade your strategy.

The first step in dealing with losses is to be able to take responsibility for your own actions/trading, rather than find excuses as to why it isn't working.

Also, markets change. Perhaps you need to be able to recognise the conditions in the market where your strategy works, and only trade in those conditions. I know from experience that staying out of the market is hard. But, don't forget that being out of the market is also a position to hold in itself.

J

Thanks for the advice. My strategy is a strong one and I have been around 20+ weeks without having a losing week. I do believe it was broker manipulation. I guess you had to be there to see how things moved when I placed trades in either position.

Saying this, I appreciate your last comment. "Being out of the Market is a position in itself" This is very insightful. Maybe I just need to chill until I see something to trade easier again.

Cheers!

 

[Jedster2001]

Thanks for the advice. My strategy is a strong one and I have been around 20+ weeks without having a losing week. I do believe it was broker manipulation. I guess you had to be there to see how things moved when I placed trades in either position.

Cheers!

If it is a UK based broker, then they have a whole bunch of regulation that they have to follow. For example, MiFID is very powerful and provides (amongst other things) transparency. The changes that financial institutions had to go through to implement it were huge. It means that they should have an audit trail to prove, for example, that they haven't manipulated their quotes.

If you genuinely believe that the broker manipulated the price to take out your stops, you should contact the broker and ask them for a tick chart covering the period. The tick will look very out of place compared with other brokers. You should also contact the FCA as they do take cases like this very seriously.

Saying this, I appreciate your last comment. "Being out of the Market is a position in itself" This is very insightful. Maybe I just need to chill until I see something to trade easier again.

Cheers!

No problem. Most people only think of there being two types of trade - long and short. I think of three, long, short, and neutral. It helps me make less mistakes by staying out of the market.

 

[NVP]

thanks J

and hope it works out for you K......

N

 

[NVP]

sorry all ...............

The building work at home meant I had to move all my equipment last night and it did not fire up properly this morning before leaving for work

if I have a house standing tomorrow I will try to fire things up then

Jeeees !

N

 

[NVP]

morning all...

I found a pc and a screen.........as good as it gets at the moment !

anyway the USD and Yen have had a couple of days under pressure but looks like on the 1hr (right chart) that USd is fnally making a run north .......

lets see what happens ...........again on this particular free 20ma system I look for clues from the Dow who is ranging at the moment

later
N

 

[lechatchat]

Hi Nvp,

I am experimenting a lot with FX correlator to try to find the underwater part of the iceberg with this indicator.

I just tried to do something you showed on one of your videos: to plot a moving average 20 on the FX correlator itself when showing only 1 currency.

I set all the currencies on "false" except one in order to just see the one on which I want to apply a moving average.

And here, surpise... it just worked with the Euro, and not with any the other currencies.

See the pictures enclosed.

Maybe I did not understand properly but, it seemed to me that what you were showing on this video was: for exemple to go long in EU, look at when the euro cross the 20MA up on the fx correlator, and USD cross its 20MA down in the same periode of time on the indicator as well.

Was it what you were showing in this video?

Do you have any idea why I cannot plot a moving average on any other currency than the Euro? It is actually plotted but does not show.

Thank you very much for your thread and happy trading,

L

 

[Jedster2001]

Hi Nvp,

I am experimenting a lot with FX correlator to try to find the underwater part of the iceberg with this indicator.

I just tried to do something you showed on one of your videos: to plot a moving average 20 on the FX correlator itself when showing only 1 currency.

I set all the currencies on "false" except one in order to just see the one on which I want to apply a moving average.

And here, surpise... it just worked with the Euro, and not with any the other currencies.

See the pictures enclosed.

Maybe I did not understand properly but, it seemed to me that what you were showing on this video was: for exemple to go long in EU, look at when the euro cross the 20MA up on the fx correlator, and USD cross its 20MA down in the same periode of time on the indicator as well.

Was it what you were showing in this video?

Do you have any idea why I cannot plot a moving average on any other currency than the Euro? It is actually plotted but does not show.

Thank you very much for your thread and happy trading,

L

Hi,

I haven't seen the video you are referring to however, I assume that you are applying a moving average to the indicator and using either the "First Indicator's Data" or "Previous Indicator's data" for the "Apply To" option for the MA.

Assuming that to be the case, this only works for the first value that is output from the indicator you are applying it to. In the case of an indicator that provides many outputs, it will only apply to the first output. So, for example, it will work just fine with a classic RSI because it only has 1 output. The correlator has 8 outputs, so it only works with the first one, which in this case is the EUR.

You have a couple of options, but both will require code changes.

1) create "special" versions of the correlator, each of which outputs a different currency as the first output, so USD is, first, and another where GBP is first, and another where CAD is first, etc. You will obviously need 8 versions.

2) Create a new version of the indicator which only outputs 2 currencies (you choose which ones) and then add the calculation of the MA into the correlator itself, as a 3rd output. Obviously, this is at the expense of being able to show all currency strength at one time.

The first is probably the easiest to do. I would do it for you and post them here but unfortunately I am quite busy at the moment, so don't have the time...

 

[aspex]

Hi NVP
Are using 20/1 (avg and Delta)& H1 charts mostly at present?
Forgive ignorance at I just looked up and found I had not been back here for over a year

 

[NVP]

mornin all......

Dow broke channel recently and sent Yen south........

still tied up today so a frustrating week for me with virtually no trading possible

such is life..........think of the money i've saved

N

 

[NVP]

heres the last month on a 1ma setting weekly chart

look at 4 positive bars for the Dow and notice that in every week the Yen and/or USD will appear below the Zero ...........this used to be a much much more dependable pattern than recent times and is the foundation of the free system here

but remenber again this thread here is only the simplest introduction to Strengthmeters and correlation strategies and I can assure you its only the tip of the iceberg in this facinating area....

in any business situation the first step must be to understand your Market and see whats going on....thats what a forex Strengthmeter does ....without it you are trading blindly - regardless of the pairs you follow ..... :smart:


feel free to ask questions here or contact me at [email protected] and I will get around to answering I promise.......

Neil
NVP

 

[NVP]

Hi,

I haven't seen the video you are referring to however, I assume that you are applying a moving average to the indicator and using either the "First Indicator's Data" or "Previous Indicator's data" for the "Apply To" option for the MA.

Assuming that to be the case, this only works for the first value that is output from the indicator you are applying it to. In the case of an indicator that provides many outputs, it will only apply to the first output. So, for example, it will work just fine with a classic RSI because it only has 1 output. The correlator has 8 outputs, so it only works with the first one, which in this case is the EUR.

You have a couple of options, but both will require code changes.

1) create "special" versions of the correlator, each of which outputs a different currency as the first output, so USD is, first, and another where GBP is first, and another where CAD is first, etc. You will obviously need 8 versions.

2) Create a new version of the indicator which only outputs 2 currencies (you choose which ones) and then add the calculation of the MA into the correlator itself, as a 3rd output. Obviously, this is at the expense of being able to show all currency strength at one time.

The first is probably the easiest to do. I would do it for you and post them here but unfortunately I am quite busy at the moment, so don't have the time...

hey all

yep .....in this scenario you can only drop a 20ma onto the first currency in the programme which is the euro

in my videos and trading (in the early days)...to achieve this I created 8 versions of the Indicator with each currency becoming the Lead currency to enable this approach......

please feel free to change the indicator and get your hands dirty ....i'm not fussed as long as you dont call it the FXCorrelator

Jedster is our resident masterblaster programmer all.....but you knew that :smart:

N

 

[NVP]

Hi NVP
Are using 20/1 (avg and Delta)& H1 charts mostly at present?
Forgive ignorance at I just looked up and found I had not been back here for over a year

hey Aspex


Yep - i still use the 20ma here on any TF I care to show .........as I just posted its an introduction to the systems and 20ma is a solid MA in any situation

I rarely use it in my own customised trading systems these days BUT ........its also a very useful "anchor" for me to refer back to........

N :smart:

 

[lechatchat]

Hi Jedster,

Thank you for taking the time to reply to my post.

I assume that you are applying a moving average to the indicator and using either the "First Indicator's Data" or "Previous Indicator's data" for the "Apply To" option for the MA.
...

Yes that is what I do

Assuming that to be the case, this only works for the first value that is output from the indicator you are applying it to. In the case of an indicator that provides many outputs, it will only apply to the first output. So, for example, it will work just fine with a classic RSI because it only has 1 output. The correlator has 8 outputs, so it only works with the first one, which in this case is the EUR.

...

Yes that is what I was thinking. Thank you for confirming my thoughts.

1) create "special" versions of the correlator, each of which outputs a different currency as the first output, so USD is, first, and another where GBP is first, and another where CAD is first, etc. You will obviously need 8 versions.

...

I tried to do it, looking at the code, but did not succeeed. I manage to solved minor issues sometime, but unfortunately I am not a coder.

2) Create a new version of the indicator which only outputs 2 currencies (you choose which ones) and then add the calculation of the MA into the correlator itself, as a 3rd output. Obviously, this is at the expense of being able to show all currency strength at one time.

...

That would be sad since we would lose the point of this indicator.

The first is probably the easiest to do. I would do it for you and post them here but unfortunately I am quite busy at the moment, so don't have the time...

That would be great if you can maybe code the option 1 for just one currency, if you have time, let's say for GBP first for example. Then I could look at the code and see how you have done, and I could do it for the other currencies and then post them all.

Or if you just explain me how to do, and I would try to do it.

Anyway thank you for your reply,

All the best to all,

L

 

[lechatchat]

hey all

yep .....in this scenario you can only drop a 20ma onto the first currency in the programme which is the euro

in my videos and trading (in the early days)...to achieve this I created 8 versions of the Indicator with each currency becoming the Lead currency to enable this approach......

please feel free to change the indicator and get your hands dirty ....i'm not fussed as long as you dont call it the FXCorrelator

Jedster is our resident masterblaster programmer all.....but you knew that :smart:

N

Hi Nvp,

Thanks for you reply.

Jedster is our resident masterblaster programmer all.....but you knew that :smart:

Yes, I knew that.

I created 8 versions of the Indicator with each currency becoming the Lead currency to enable this approach......

If you cannot post these 8 versions, I will try to change the code myself, and post them here if I succeed and if it is ok for you.

All the best,

L

 

[NVP]

Hi Jedster,

Thank you for taking the time to reply to my post.



Yes that is what I do


Yes that is what I was thinking. Thank you for confirming my thoughts.



I tried to do it, looking at the code, but did not succeeed. I manage to solved minor issues sometime, but unfortunately I am not a coder.



That would be sad since we would lose the point of this indicator.



That would be great if you can maybe code the option 1 for just one currency, if you have time, let's say for GBP first for example. Then I could look at the code and see how you have done, and I could do it for the other currencies and then post them all.

Or if you just explain me how to do, and I would try to do it.

Anyway thank you for your reply,

All the best to all,

L

let me try and find one of my old indicators and post it here ..........once you see the diffs its easy to copy / paste ...............the first few are the worse

I am not a very good programmer but I have to say ...........you all do have to become a jack of all trades to survive in this business because programmers cost serious money and generally you will need to experiment yourself to get what you want .....:smart:

N

 

[NVP]

still tied up at work ...............

dammit a very poor week for me regarding screentime .........GRRRRR..........!!

have good weekends all
N

 

[NVP]

hmmm

this morning my connections have been lost for the broker I use for generating charts here .....

I cant be arsed to fire up a new demo somewhere so wiill chase them

sorry
N