Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

the white vertical lines mark marks when we talked in last posts

I was getting stoked on the Yen and USd getting together North of the Zero .........

nope - false signal

so in this new upgraded system since dow has never CLOSED below the 20 SMA we continue to hunt the Yen and or USD if they get below the Zero

Yen delivers again and again here ..........and I have a confession to make which I did in my VIP course last year ........

theres nothing wrong with a little U/J every now and again ........as you can see from this afternoon on the right hand chart .......

we chose to sell the yen ..........but perhaps USD was in the buy mix alongside the others ?

later all and have a good evening .....

jedster I hope that stuff was useful

N

 

[NVP]

Morning all......

Heres the 15m and the 4H......ticks show where one should have been trading or looking to trade

later
N

 

[NVP]

slow day so far ......except the GBP !

the ticks show the currency (USD and/or YEN) that I should be trading based on correlation to the Dow.........its a constant signal with no let up so its not perfect .........but it lets us know what we should be on if we chose to trade

I will try to get a video onto Youtube tomorrow with these new amendments and thoughts.......

Thanks
N

 

[NVP]

been a while since I dropped the goldmeter in ........its all available in the signature area for free

2 signals in 4h recently........follow the link for the rules ..or make your own up .............

The main kicker is that I have rebalanced Gold to show its relative value against other currencies instead of being the usual XAUUSD price that everyone quotes and uses.....

in this way when we see strong gold (Violet line) and weak USD (green line) ....and vice versa ......then thats action stations to trade XAUUSD with more confidence than blindly following trend lines.....especially if the gold line gets outside all other currencies as well

N

 

[NVP]

hey Noam

it works a treat .......thanks !

hows the trading going ?

N

 

[NVP]

mornin all

FXCM is down as its saturday so I cannot refresh charts and comment on yesterday evening

hmmm........thats a pain actually so I may load some more platforms up
N

 

[NVP]

hey jedster

i have managed to half solve my indicator issue....take a peek on the FXCM jason rogers thread where I explain my issues

cant figure what has changed to stop me generating new .EX files with each new indicator ??

its always done it in the past ??

N

 

[NVP]

hey all

sorry the weekend has proved difficult (and somewhat expensive) for me and I havnt got around to what I was going to do here .......apologies

I had to swerve my car quite seriously to avoid an idiot driver who took a blind bend far too fast ....I was suddenly up on a high kerb and smacked up one of my tyres + its 19" alloy..now awaiting repair tomorrow ........I want to cry as my car is only 6 weeks old .......I have insurance cover on tyres and alloys but its the bl**dy time wasted that hurts ......Grrrrrrrr

Sometimes I wonder why we all bother spending money on nice things..........always some S*ithead will spoil it for you .......

so sorry I am not in a good mood this weekend .........wife has gone shopping to avoid me .....

bonus then !

N

 

[NVP]

hey all

work + garage repairs this morning so busy busy

Heres the Year......EURAUD is 20% up so far ......not a bad trade if you called it early ..in fact using the Free 20ma system here you could have waited until late April (second picture below) on a weekly 20ma setting / signal before stepping in to make that 20%

so puts the Dows 18% rise 2013 YTD into perspective .......Currency trading can be much more lucrative than other markets.......as that 20% is on just 1 pair......so it excludes all the other nice trades we could have taken as well..as AUD was pretty much the only sell in the pack from april to date !

I only trade use and yen pairs on lower TF but up in the 4h, dailys and weekly TF's trade what pairs you want as the spread costs mean nothing

Nice .....
N

 

[NVP]

Jedster i'll contact you later .......depends on the garage's prognosis today mate !

N

 

[NVP]

mornin all

sorry busy busy busy ......will pop in later

N

 

[ZoomPips]

This thread was an interesting read. Have to go try out some of these things myself.

 

[NVP]

Good morning everyone

I am sadly struggling to spend the time here that I would like due to other Work and business committments but will still pop in from time to time.....

I will focus on higher TF trading here as it is easier to monitor and manage and is naturally the basis on which all the major hedge funds in the world "Trade" so they minimise noise and transaction costs

Daily TF it is then on a 20sma ........look at the chart below .....read the instructions below in the signature area and then the added twists/comments on the chart below .......and/or read this thread from start to finish to see my T2W journey to this point ...the thread is full of input from some very very good traders if you look hard enough.......

Play with the system then add your own spin.......I suggest initially playing with the MA speed as it dramatically changes the Game the faster or slower you go

I will still be around but not as much ......and still happy to answer questions :smart:

Good Trading and Health

Neil
NVP

 

[NVP]

so with Dow faltering it seems we turn to hunting buys on Yen and USD if it comes back north

same as the 20sma to a degree - on faster MA's we will have been buying both USD and Yen since late july as they were both above the Zero (regardless of Dow) with USd now folding a little south again.....

Try it .......20ma is the default setting on my training system and not intended to be the holy grail ..........

Until the next time
N

 

[NVP]

Hey all

I've loaded in below the amended rules incorporating the YEN / DOW / USD where one sees a permanent signal for trading...

all else is the same and feel free to experiment as I say in the document........The FXcorrelator is still available from the link below
http://www.trade2win.com/boards/for...-basic-ideas-strategies-1098.html#post1862498

As I update this I note the word document below had been viewed over 3,000 times now and the indicator uploaded nearly 1,500 times so I hope it is being of use to a few people at T2W !

Best regards again and I will still try to be here as often as I can..... :smart:

N

 

[mike.]

If the USD and YEN are on the SAME side of the Zero line TRADE THEM ….regardless of the DOW’s position

Neil, does this mean trade ether usd or yen against any of the other 6 currency that may be on the opposite side of the 0 line ?

Also, can you give a brief explanation why the dow is used as your first marker and the correlation between the dow,usd and yen.

 

[Jedster2001]

Neil, does this mean trade ether usd or yen against any of the other 6 currency that may be on the opposite side of the 0 line ?

Yes

Also, can you give a brief explanation why the dow is used as your first marker and the correlation between the dow,usd and yen.

Search the thread for some more in depth answers, but in short, when the dow is rising, there is often a tendency for the USD to weaken. And, the USD is well correlated to the Yen, so if the USD weakens, often so does the Yen.

I guess this is proven out by looking at the dow, and overlaying the dollar index over it. There is definitely an inverse correlation between the two and you can see this year the dow has been climbing, and the dollar index has been falling. However like most correlations, it breaks down from time to time...

J

 

[mike.]

Thanks for the explanation Jedster, I would of naturally thought along the lines of " the dow rising making a stronger US economy thus making the dollar stronger as opposed to weaker "

 

[elisab]

NzdUsd and the price of milk:

 

[calibu]

Hi all,
Can someone add an alert when the selected indexes are crossed to fxcorr indicator?