why the sudden drop in this?

Obviously this type of strategy isn't for everyone as it carries higher risks than more orthodox ones. But proper money management can be applied to remove the large draw down risks. I don't think this strategy should be used as your core trading ...

I'm in that as well with a big DD...waiting for GBP/JPY to rally.

For the negatively correlated pairs has anyone tried doing 2 buys, or 2 sells as opposed to the sell top buy bottom?

closed eur/usd - aud/usd +40 pips, max drawdown was maybe in the 50 - 60 range.

sadly, 110 pips so risk reward is pretty bad. I might of been able to hold on for more than 40 though.

closed gbp/usd - gbp/jpy: +40 pips net, didn't close at the smallest gap but decided to take the profit.

sounds good....thanks.

I'm in this one. down -64 at the moment.

Attached is graph showing the straight price delta for EUR/USD - GBP/USD from March '09 till present. Quite the moving target and I think it would be tough to trade this way since its constantly changing. The daily fx and MS charts though are ...

I have yet to export data for two pairs and have all the times match perfectly. Its tedious but you have to go through it and match everything up and delete missing times.

"Has anyone thought about normalizing the data." There is a spreadsheet called pairs.xls and a pdf about pairs trading that does the normalized pricing in post 235.

"Your trading the spread so watch that first." true...but that's a moving target and constantly changing right?

How did you add that spreads window in NT?

Hey JM, awesome indicators, great work. I have a stupid question though, what font are you using in your screen screen shots? When I load mine it uses the system one and some of the descriptions run over each other for the variance indi.

Anyone else getting weird candles with renko like this in the screenie? Is this normal?

yeah Dreamliner, that makes sense. If you adjust the window size of the chart it redraws the overlay/scale differently.

Are you entering when the gap has exceeded a certain pip amount on the chart?

"Ok I see what I was doing wrong. So do you actually watch the charts to see when the pair goes 10 pips positive? You don't set take profit orders, you just watch the charts and close manually when 10 pips in profit, correct?" yeah, i think you wait ...