Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

3044 resell again

 

[Pat494]

Just had a look at cable on H4. The gentle rise since last Thurs may be ending soon.
??

 

[NVP]

3041...i will not give much away on this one ......b/e at worse

 

[NVP]

Just had a look at cable on H4. The gentle rise since last Thurs may be ending soon.
??

H4 ?.....whats that Timeframe .....hahahahaha...im below 1 mins dude .....

 

[NVP]

crap morning for me now .....im up ok ....but hate losing trades ....now im fully in the zone and taking no prisoners

 

[NVP]

3036 ....so tighten and follow cable south ......thats 3 decent scalps on cable this morning getting to 4-5 pips

 

[NVP]

ok i was just live calling in the zone shown ...........1 crappy faked scalp loss for spread and a 5 pipper ......pretty slow so far this morning but no complaints ......

grinding it out is the mantra for scalpers ...no glory here guys ...just grit and focus

 

[NVP]

ok been 1 more trade from 3040 to 35 ...really tight though ......
got to grab some breakfast as starving - back later

 

[Dentalfloss]

 

[Dentalfloss]

 

[Dentalfloss]

 

[Dentalfloss]

cable seems to have a minor bull flag forming
EJ..an opportunity to get in at the bottom....Should see blue and watch for the pullback
Could be wrong.....lol

 

[Dentalfloss]

 

[NVP]

Cable has continued to sell so had my head down trading it ......

have a good day ...i have
N

 

[NVP]

cable seems to have a minor bull flag forming
EJ..an opportunity to get in at the bottom....Should see blue and watch for the pullback
Could be wrong.....lol

hey DF - certainly nothing for me this morning much on EJ vs GBP pairs - i need divergence signals

 

[trendie]

1) Take a FXCorrelator indicator (available for free here)
2) Find the alpha Bull or Bear Currency (or both)
3) Trade it as a pair in the direction indicated
4) Repeat
5) keep repeating
6) did I say repeat ?

today ...alpha bear is red sterling..........and i like Cable .......

Eat - Sleep - Trade - Repeat

I see the bear is GBP.
But, isn't the bull the CAD?
Should you not be shorting the GBPCAD?
Or, is the bull/bear to be seen in context of where the USD is?

 

[NVP]

I see the bear is GBP.
But, isn't the bull the CAD?
Should you not be shorting the GBPCAD?
Or, is the bull/bear to be seen in context of where the USD is?

hey guys

ive recreated the chart below looking back ....

The concept of any relative strengthmeter strategies is to generally sell the bears and buy the bulls

looking at the brown cad and red GBP below ......why would I buy the brown Cad into the Bear red GBP ?

the grey swissie is alpha bull .......but I have a soft spot for cable ......my spreads are worse on GBPCAD and I dont like trading 2 volatile currencies unless i'm on faster Timeframes ...........

I classify the 3 main movers as GBP , YEN and CAD .....others tend to be slower ......trade these 3 at your peril together at 5 min TF and below ...unless you are BUCKLED UP

N

 

[NVP]

I see the bear is GBP.
But, isn't the bull the CAD?
Should you not be shorting the GBPCAD?
Or, is the bull/bear to be seen in context of where the USD is?

nope its ALL relative for all G8 ......unless i set up strengthmeters geared to 1 currency as base

this morning the Green USD was generally trading above 6am GMT opening levels (the top indicator) so i was comfortable chasing Cable sells .....the 3 currencies menrioned in last post are miels faster generally than the slower ones (like USD)....so i am primarily trading their direction and unworried about the volatility on secondary currencies like USD

when you get a day when a slower currency is moving well (like CHF did bull today) I SHOULD have been using it against say GBP ......but i didnt .....mea culpa .....there are reasons that i can go into some time ....but each story leads to another etc etc ....which is why I am told i am too discretionary by my programmer trading mates .......hahahahaha

the voices - they tell me how to trade !!!!......hahahahaha

N

 

[trendie]

Thanks, NVP.
I think I may have overthought the PDF with your docs.
It says
1) ONLY Buy currencies above the Zero (ie these currencies are trending above the moving average set)
2) ONLY Sell currencies below the Zero (ie these currencies are trending below the moving average set)
I would recommend you initially only trade USD pairs and the trading partner to the USD is up to you.....this system provides an edge to give you the predictive direction of the USD !

Also, it says, when using GBPUSD as an example,
Here’s that GU 1 hour chart on a basic 20ma setting ….if we were using a very very simple approach to trading we would only look for trades when the green USD and the Red GBP lines are on opposite sides of the zero
Never trade them on the same side ….why ? …..because they are both bull or bear!

I think I just misinterpreted that as the most Bearish and the most Bullish would result in a more extreme move, than if one currency was just hovering around the zero line.
I may revisit this (again!) later in the week.

Looks like you had a useful morning. Good stuff.

 

[NVP]

hey all - and thanks for the input and attention Trendie

you are most welcome here to chat and comment - i feel that so many guests on trade2win are scared to register and interact with us more seasoned traders .....(or old farts?)...we will not bite and are here to help

This is a shame as the T2win forum is friendly and welcoming to all (much more than most hostile forums for newbies) ....and the mods deal swiftly with any members who are disrespectful to newbies ....we have all been newbies !!!

N