Will also add: 1) For highly correlated instruments, what will you do if the system gives an entry signal for both instruments? This is where it is possible to multiply the risk if both signale are taken. 2) Again for highly correlated instruments ...

For markets that have 0 correlation, it is possible that they may both/all produce losing trades, but highly improbable. There are many factors, including the time frame, but most importantly, the system when talking about correlation. Based on the ...

If trading any two markets that are highly correlated (either +1 or -1), effectively the risk is being doubled. It has been advised to trade non-correlated instruments. All currencies vs the USD should rise if there is a fall in USD.

Do a search on amazon for Ichimoku will bring up two books - one from 2007 and the other written in 2009.

The following relate to futures contracts over the past 180 days: CL vs the CME FX pairs (all vs the dollar): CHFUSD: 87% EURUSD: 88% GBPUSD: 89% JPYUSD: 62% CADUSD: 89% AUDUSD: 90% DX = Dollar Index (NYBOT/ICE): -89%

For the previous 180 days, the correlation between CL and 6E is +88%. If you have access to the daily data for the two instruments, Excel can be used to find the correlation coefficient - Tools >> Data Analysis >> Correlation.

Excellent article FXopportunist - thanks for sharing!!! It should be a 'must read' for anyone new to FX.