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Trading correlation pairs by using the other pairs

  • #81
  • May 4, 2020 2:18pm May 4, 2020 2:18pm
Forgot to put this on
Attached File(s)
File Type: mq4 OverLayChart (3).mq4   9 KB | 614 downloads
  • #82
  • May 5, 2020 3:51am May 5, 2020 3:51am
Just see a bit of bad news for the EU
sold the EUR USD, only in trade for 10 minutes,

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  • #83
  • May 5, 2020 3:55am May 5, 2020 3:55am
Going to leave this one running on the monthly chart only 10p,
left a good stop loss in place. Let's see how it goes,

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  • #84
  • May 5, 2020 4:25am May 5, 2020 4:25am
It's running well.

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  • #85
  • May 5, 2020 4:48am May 5, 2020 4:48am
This has all the signals for a sell
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  • #86
  • May 5, 2020 4:51am May 5, 2020 4:51am
Bad news for the GBP

GBP/USD Forecast: Dreadful data, hard UK decision, and loss of uptrend support all point down
  • #87
  • May 5, 2020 5:02am May 5, 2020 5:02am
Quoting redfan
Bad news for the GBP GBP/USD Forecast: Dreadful data, hard UK decision, and loss of uptrend support all point down
There is no good news for any currency except maybe NZD who are starting to lift lockdown to get the economy up & running and AUD currency backed by Gold asset/reserves
It never gets easier, you just get better
  • #88
  • May 5, 2020 5:10am May 5, 2020 5:10am
Quoting Shabs19
{quote} There is no good news for any currency except maybe NZD who are starting to lift lockdown to get the economy up & running and AUD currency backed by Gold asset/reserves

Yes, that's a good call, there's an impact everywhere.
  • #89
  • Edited 7:08am May 5, 2020 6:54am | Edited 7:08am
Quoting tiborf71
{quote} the correlation strategy works but only if we only trade within the one-way group. select groups aud, gbp, nzd.eur, cad. we can put usdjpy in any group because it's good. for example, the usdjpy usdchf, usdcad group should not be traded because they are too volatile.
In fact I think he is talking about relative strenght but it seem he did not understood it *or mabe I am the one who missunderstood what he is talking about*.

If you have USD/CAD and USD/JPY going up in a bull trend , at some point they will make a correction. If USD/CAD make a correction of 100 pips and USD/JPY make a correction of 30 pips, that mean CAD is stronger than JPY.When the correction will end, at the renewal of bull trend , USD/CAD will rise less than USD/JPY so one better chose USD/JPY for buy since the
less 70 pips move than USD/CAD reflect the buying presure (lack of sellers) on USD/JPY for that pair wich is bigger than on USD/CAD.

Alternatively one can opt for hedging the pairs, meaning if USD/CAD droped 100 pips and USD/JPY droped 30 pips, trader can choose to sell USD/CAD (since dropped more than USD/JPY) and buy USD/JPY (since droped less than USD/CAD) . The difference between the two pairs at some time will reveal a flaw wich hedging trader can exploit to extract ca$h.
If USD weaken, then USD/CAD will drop more than USD/JPY, because the increased volatility on it reveal vulnerability to further and even deeper drop. If USD strenghten again and bull trend renew, then USD/JPY will rise more than USD/CAD because the correction was lesser than on USD/CAD revealing stronger USD on USD/JPY than on USD/CAD.

Btw, thanks for the indicator. Useful to combine two charts.
Money moves the market, not an indicator.
  • #90
  • May 5, 2020 7:29am May 5, 2020 7:29am
Consider the difference in pip value too. USDJPY has a better pip value than USDCAD.

KP

Quoting andoseg2
{quote} In fact I think he is talking about relative strenght but it seem he did not understood it *or mabe I am the one who missunderstood what he is talking about*. If you have USD/CAD and USD/JPY going up in a bull trend , at some point they will make a correction. If USD/CAD make a correction of 100 pips and USD/JPY make a correction of 30 pips, that mean CAD is stronger than JPY.When the correction will end, at the renewal of bull trend , USD/CAD will rise less than USD/JPY so one better chose USD/JPY for buy since the less 70 pips move than...
Do your homework, follow the footprints of smart money
  • #91
  • May 5, 2020 7:36am May 5, 2020 7:36am
Triad trading.. great technique to spot a strong vs weak currency and filter the best one to buy/sell (you only pick the strongest signal/more clear unbalance signal and ignore the rest), i actually use it between eur/usd/chf

Highly effective if you know how to do it..

Good thread, keep it up
  • #92
  • May 5, 2020 8:36am May 5, 2020 8:36am
Quoting redfan
Bad news for the GBP GBP/USD Forecast: Dreadful data, hard UK decision, and loss of uptrend support all point down
If you go to tradingview chart you can easily do those overlapping on chart and instead of using currency meters you can just pop up usdollar on trading view chart then overlap other charts on it,like the eurusd you can flip it to usdeur .
  • #93
  • May 5, 2020 9:39am May 5, 2020 9:39am
andoseg2
KeenPips
havo

I am openminded and will listen to any advice,
Thank you for your input.
  • #94
  • May 5, 2020 9:47am May 5, 2020 9:47am
Quoting Standfirm
{quote} If you go to tradingview chart you can easily do those overlapping on chart and instead of using currency meters you can just pop up usdollar on trading view chart then overlap other charts on it,like the eurusd you can flip it to usdeur .

Have you any chart pictures with the setting on,
I am very interested,
Thank you.
  • #95
  • May 5, 2020 9:57am May 5, 2020 9:57am
The topic of overlapping instruments is very interesting, however at some point the scale issue appears, especially if you want to do some backtesting. In this regard, this forum member has developed a very interesting tool to minimize or compensate it:
I quote bobfourie posts:
"---I have been reading this thread and it seems very interesting.
I see that you guys don't have an way to look back the history, so I recoded the Overlaychart indi into one that only shows the last overlay price, so no more repainting. I renamed it StaticOverlay.
I added an option bUseAutoCorr, if this is turned on then it would pick to mirror the other chart or not if the pairs are pos of neg correlated (the same currency must be in both pairs)"
https://www.forexfactory.com/showthr...95#post3029995

And:
"StaticOverlay is not the same as the other overlay charts, it was intended to be like that. It uses the same formula but unlike the other overlay's it don't show the repainted past.
An normal overlay example: if at 12h the gap for an given pair is 50 pips. Then 2 hours later at 14H the current gap is 60 pips, but looking back at time 12h, it is now 70 pips. This is repainting, and they all do it (look for your self if you dont believe me)
Now, staticoverlay will show gap at time 14h as 60 pips and at time 12h as 50 pips.
There is nothing wrong with the other overlays repainting, they where meant to do that. Also with SOverlay is that you have to pick the period, normal overlay just take the current visible bars as the period. I'm sorry if I did not explain it better when I posted it, but I hope this clears a few things up"
https://www.forexfactory.com/showthr...18#post3040518
Humble & Kalcker CLO2 = Covid killer
  • #96
  • Edited 10:32am May 5, 2020 10:10am | Edited 10:32am
Currency hedge examples.

Attached Image (click to enlarge)
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This is a good EA for free pair hedge,
anyone who wants to use it,
When you come to close your trades make sure the EA is switched off first,
or else it will place another 3 trades.
It's worth of practice on a demo account.

Attached File(s)
File Type: mq4 3PairsHedge.mq4   21 KB | 631 downloads
  • #97
  • May 5, 2020 10:22am May 5, 2020 10:22am
Quoting jusiur
The topic of overlapping instruments is very interesting, however at some point the scale issue appears, especially if you want to do some backtesting. In this regard, this forum member has developed a very interesting tool to minimize or compensate it: I quote bobfourie posts: "---I have been reading this thread and it seems very interesting. I see that you guys don't have an way to look back the history, so I recoded the Overlaychart indi into one that only shows the last overlay price, so no more repainting. I renamed it StaticOverlay. I added...
Great information,
I have read this thread a couple of months ago. It goes back to 2009,
thanks for the input
  • #98
  • May 5, 2020 10:41am May 5, 2020 10:41am
Open this trade this morning and it's been running all day,
going to let it run see what it's like tomorrow.

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  • #99
  • May 5, 2020 10:59am May 5, 2020 10:59am
Quoting redfan
{quote} Have you any chart pictures with the setting on, I am very interested, Thank you.
can I have your WhatsApp, telegram or Facebook name or number I can't post picture here have issues with posting pics here.
  • #100
  • May 5, 2020 11:35am May 5, 2020 11:35am
Quoting Standfirm
{quote} can I have your WhatsApp, telegram or Facebook name or number I can't post picture here have issues with posting pics here.

I've actually found the site you were referring to
I didn't even know it existed
thanks again
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