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Trading correlation pairs by using the other pairs

  • #421
  • May 30, 2020 5:58am May 30, 2020 5:58am
Quoting Shabs19
{quote} I dont trade correlations, they work for a while and then they dont. There is a link with EUR - DJIA - USD relationship with money flow. Something that I watch, every now & then. I dont use moving averages at all, except for MACD which I use for momentum and confirmation of trend. Principally all the information is on the Price Chart, you just need to do a top down analysis routinely.
Quoting bottomhigh
{quote} Even if there is a lag in diffusion of news between these instruments it's highly likely that you won't be able to spot it by eye. Are you using some high-frequency feed to spot differences in how fast they price in important information?
As I said I don't trade correlations per se, what you are talking about is Arbitrage, using high frequency feed to spot pricing anomalies.
and No I don't do that either. Just use a standard FCA regulated MT4 STP broker, with variable but tight spreads.
It never gets easier, you just get better
  • #422
  • May 30, 2020 7:04am May 30, 2020 7:04am
Here is a good site to check 10 currency pairs correlations over different timeframes :

https://www.fxstreet.com/technical-a...et/correlation

Attached Image (click to enlarge)
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It never gets easier, you just get better
  • #423
  • May 30, 2020 10:02am May 30, 2020 10:02am
There was some talk about news articles and I have a news indicator,
So I thought I would put it on here,
The settings are in the picture,
Hope it helps someone.

Attached Image (click to enlarge)
Click to Enlarge Name: NEWS33.png Size: 362 KB


Attached File(s)
File Type: ex4 News reader.ex4   104 KB | 194 downloads
  • #424
  • Edited 11:00am May 30, 2020 10:48am | Edited 11:00am
Quoting redfan
There was some talk about news articles and I have a news indicator, So I thought I would put it on here, The settings are in the picture, Hope it helps someone. {image} {file}
I use the same Newsreader, it can be minimised on the chart and also alerts before x minutes etc. as well as draw event lines on the chart into the future.
You seem to have an older version, not sure what is new in the update

https://www.forexfactory.com/showthr...5#post12737175

Attached File(s)
File Type: ex4 News reader-new.ex4   103 KB | 213 downloads


Earlier on, we discussed ADR to be aware of the currency pair average daily range in pips, so a warning to tighten stops if range is close or ADR is exceeded
I use this one :
Attached File(s)
File Type: mq4 Daily Range PeterE.mq4   2 KB | 301 downloads



ATR useful to know the aversge size of a candles range on a particular timeframe, in order to set stops at a safe distance. Adjustable to accomodate volatilty at different times of the day. Usually set at 150% of ATR or any number higher.
Attached File(s)
File Type: mq4 ATR in Pips-2.mq4   3 KB | 249 downloads


Attached Image


I see your rules have increased LOL.
It never gets easier, you just get better
  • #425
  • May 30, 2020 11:19am May 30, 2020 11:19am
Quoting Shabs19
{quote} I use the same Newsreader, it can be minimised on the chart and also alerts before x minutes etc. as well as draw event lines on the chart into the future. You seem to have an older version, not sure what is new in the update https://www.forexfactory.com/showthr...5#post12737175 {file} Earlier on, we discussed ADR to be aware of the currency pair average daily range in pips, so a warning to tighten stops if range is close or ADR is exceeded I use this one : {file} ATR useful to know the aversge size of a candles...
Great input
Thank you. Stay safe and have a nice weekend.
  • #426
  • May 30, 2020 11:43am May 30, 2020 11:43am
Quoting redfan
These yellow lines represent where the candles are the same colours, it's the one hour chart, every single one of them represented an entry point this was without looking at it any other indicators, {image}

hey fellas. it appears to my little peanut brain lol that the main part of the strategy is getting lost a bit....

The Ops main strategy = correlation + divergence = trading opportunity

post 160, 110, etc.


What I'd recommend is an EA for the main strategy in order to throw off alerts. Then it can be added to later. Without an Ea to spot setups the strategy is too difficult to spot pairs showing divergence especially on a candle by candle basis across multiple pairs.

Basically my conclusion so far is the original strategy is a good idea but requires an Ea to spot signals and be properly tested.


Cheers
  • #427
  • May 30, 2020 12:17pm May 30, 2020 12:17pm
Quoting dagoods
{quote} hey fellas. it appears to my little peanut brain lol that the main part of the strategy is getting lost a bit.... The Ops main strategy = correlation + divergence = trading opportunity post 160, 110, etc. What I'd recommend is an EA for the main strategy in order to throw off alerts. Then it can be added to later. Without an Ea to spot setups the strategy is too difficult to spot pairs showing divergence especially on a candle by candle basis across multiple pairs. Basically my conclusion so far is the original strategy is a good idea but...
Yes, it would be nice if something done all the checks,
but life is never that easy.
If you think you can come up with something, you are welcome to give it a try,
  • #428
  • May 30, 2020 6:10pm May 30, 2020 6:10pm
Quoting redfan
{quote} Yes, it would be nice if something done all the checks, but life is never that easy. If you think you can come up with something, you are welcome to give it a try,

I'm not a coder bro. But there are plenty of divergence indicators and correlation indicators out there.. One would think an EA for this strategy could be made. I don't subscribe tot he cliche notion that life is never easy. Of course it should be made to easier on you, f possible.
  • #429
  • May 31, 2020 4:59am May 31, 2020 4:59am
Quoting Shabs19
{quote} Dangerous to trade around US market Opens. Many news events to watch out for between 13.00 - 13.30 and plenty of fake moves also. {image}
0.8995 is so important for eurgbp. When it was broken i wait huge move. All my trading concept tell me buy eurgbp. But that move was fake. Every trader falls into trap . I stopped. And after that i entered buy position between 0.8995 and 0.90 after that price went 0.9025 at that time my stop money And + %1 money come back me again. This was my game plan. I look big picture too not only correlation. As i said 0.8995 is so important that why monthly candle close this level. Have a nice weekend.
  • #430
  • May 31, 2020 5:24am May 31, 2020 5:24am
Quoting P.Action
{quote} 0.8995 is so important for eurgbp. When it was broken i wait huge move. All my trading concept tell me buy eurgbp. But that move was fake. Every trader falls into trap . I stopped. And after that i entered buy position between 0.8995 and 0.90 after that price went 0.9025 at that time my stop money And + %1 money come back me again. This was my game plan. I look big picture too not only correlation. As i said 0.8995 is so important that why monthly candle close this level. Have a nice weekend.
I am sure you are aware that all traders will be looking at the same price level as it was the previous weeks High. There are breakout traders & support & resistance, supply & demand, divergence traders watching the same level.
Now if I was a professional / institutional trader, in order to fill my orders, I would hunt stops of both types of traders.


Questions to ask youself before considering a trade.
So where do you think most retail traders would place their orders & stoplosses ?
What minimum distance would a stoploss have to be, to be safe, assuming you get the direction right ?
What lot size & drawdown will be acceptable for your strategy ?
Where on the chart, would you be wrong and reverse your position ?
It never gets easier, you just get better
  • #431
  • May 31, 2020 5:25am May 31, 2020 5:25am
Quoting dagoods
{quote} I'm not a coder bro. But there are plenty of divergence indicators and correlation indicators out there.. One would think an EA for this strategy could be made. I don't subscribe tot he cliche notion that life is never easy. Of course it should be made to easier on you, f possible.
I don't mind using indicators, But when it comes to the EA's I just don't trust them,
there's a thread on the trading platform called Monday Tuesday Wednesday, it's a pretty good system
when it was being manually traded, But then someone made it an EA and the trouble is when the EA started
it started doubling up lot sizes and before you knew it you are trading a pound lot and if it went the other way. It was nearly wiped you out like I say the system worked when it was manually trading,
  • #432
  • May 31, 2020 5:36am May 31, 2020 5:36am
Quoting Shabs19
{quote} I am sure you are aware that all traders will be looking at the same price level as it was the previous weeks High. There are breakout traders & support & resistance, supply & demand, divergence traders watching the same level. Now if I was a professional / institutional trader, in order to fill my orders, I would hunt stops of both types of traders. Questions to ask youself before considering a trade. So where do you think most retail traders would place their orders & stoplosses ? What minimum distance would a stoploss have to be, to be...
It is all about game plan. That was stop hunting yes. So my prediction was higher high above 0.9050. As i said sometimes we find ourselves in a trap. At that time important thing is what will you do.
  • #433
  • Jun 1, 2020 1:31am Jun 1, 2020 1:31am
Attached Image
  • #434
  • Jun 1, 2020 1:53am Jun 1, 2020 1:53am
Up and running let"s see where we go
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  • #435
  • Edited 3:32am Jun 1, 2020 2:50am | Edited 3:32am
move stop loss for a bit of profit

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Out with a small profit. went right back down and took my stop
  • #436
  • Jun 1, 2020 6:49am Jun 1, 2020 6:49am
Quoting redfan
move stop loss for a bit of profit {image} Out with a small profit. went right back down and took my stop
You were lucky to come out with a small profit, UK session will always hunt stops. The bears were in control from Friday on EURCHF.
Classic Bull Trap.
It never gets easier, you just get better
  • #437
  • Jun 1, 2020 10:28am Jun 1, 2020 10:28am
today is aud and nzd day.

i wait their falling but not happen. it was still a good day for me.

my last position is running. uj should be 109,30 according to other jpy currencies. so i wait for this position.

Attached Image (click to enlarge)
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  • #438
  • Jun 1, 2020 10:49am Jun 1, 2020 10:49am
Quoting P.Action
today is aud and nzd day. i wait their falling but not happen. it was still a good day for me. my last position is running. uj should be 109,30 according to other jpy currencies. so i wait for this position. {image}
I agree with AUD , NZD & CAD market phase Bullish from the H4 Charts. USD is Bearish.
Not from currency meters, just the charts.
It never gets easier, you just get better
  • #439
  • Jun 1, 2020 12:02pm Jun 1, 2020 12:02pm
some new positions

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  • #440
  • Jun 1, 2020 12:10pm Jun 1, 2020 12:10pm
Quoting P.Action
some new positions {image}
Any reasons why you took these trades ?
It never gets easier, you just get better
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