DislikedGuys, for your consideration ( I am trading this way 1 week with absolute no loss ) ( I had to buy a custom indicator but I am sure here are good coders that can reproduce it ):
If we begin with correlations in 1140 why not watch un-correlations in 5 min ?
1.- Watch correlation > 80 in Daily in 200 days
2.- Watch correlation < 80 en TF 5M in 200 periods:
* If correlation < 80 enter 1 lot, 1 sell, 1 buy according FXCM TradeStation visual mode.
* If correl < 85 ( grap grow up ) enter a second lot
* if correl < 90 ( grap continue up ) enter a thrid...Ignored
thanks for your observation. there are some typos in your post. can u add + - suymbols for the corelation condition. like corelation should be < -80 on 5min for entry. you forgot the minus symbol
can you explain the logic behind this system ? on higher tf, the corelation still exists. on 5 min the pairs went out of corelation and are negatively corelated. you are expecting them to come back to original corelation as per higher TF. What happens if they dont come back ? any stoploss ? we have seen the pairs could go out of corelation slowly even on higher TF.
i think stoploss exit must be there as protection. also how did you derive which one to buy and which one to sell ? do u use stoch difference ?