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Trading correlation pairs by using the other pairs

  • #581
  • Jun 17, 2020 4:39am Jun 17, 2020 4:39am
Move stop into profit.
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  • #582
  • Jun 17, 2020 5:44am Jun 17, 2020 5:44am
Close trade, Out with a very nice profit.
I will tell you why I took this trade when I get time after.
  • #583
  • Edited 12:07pm Jun 17, 2020 9:15am | Edited 12:07pm
The first thing I noticed was that the Euro was at the bottom of the currency strength meter I then checked it against the other currencies at least six of the ones I checked, Had red candles,
I Noticed on the list that the USDJPY and EURJPY we're both going down as well.
These three pairs all correlated
I also read some financial news coming out of America
which persuaded me that the Euro was going down,

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  • #584
  • Jun 17, 2020 12:49pm Jun 17, 2020 12:49pm
How to use correlation to trade Forex.

part 3
A trader can use also different pips or point values for his or her advantage,
let's consider the EURUSD and USDCHF Once again, they have a near-perfect negative correlation, but the value of a PIP move in the EURUSD is $10 for a lot of 100,000 Units while the value of the pip moves in the USDCHF is $9.24 for the same number of units, this implies Traders can use the USDCHF to hedge the EURUSD exposure.
Here’s how the hedge would work:
say a trader had a portfolio One Short EURUSD lot of 100,000 Units and one short USDCHF lot of 100,000 Units. When the EURUSD increases by 10 Pips or points, the Trader would be down $100 on the position, However, since USDCHF Moves opposite to the EURUSD, The short USDCHF Position would be profitable, likely moving closer to the 10 pits higher, up $92.40.this would turn the net loss of the portfolio into -$7.60 instead of -$100. Of course, this hedge also means smaller profits in the event of a strong EURUSD sell-off, but in the worst-case scenario,
Losses become relatively lower.
It is very important to be aware of the correlation between various currency pairs and their shifting trends.
THIS IS POWERFUL KNOWLEDGE.
  • #585
  • Jun 18, 2020 3:08am Jun 18, 2020 3:08am
UP and running.
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  • #586
  • Jun 18, 2020 4:12am Jun 18, 2020 4:12am
Close trade, Out with a very nice profit.
  • #587
  • Jun 18, 2020 5:16am Jun 18, 2020 5:16am
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  • #588
  • Jun 18, 2020 5:28am Jun 18, 2020 5:28am
I've come up with this conclusion,
I've gone back in my trading history and I picked out the pairs that I've been trading the most, And the pairs I have won the most with,
I've now cleared all OTHER pairs of my charts,
I will only have the pairs that I have used on my chart which I have had success with,
You may want to try it you'll be surprised at what you traded and what you won the most with.
  • #589
  • Edited 6:24am Jun 18, 2020 5:35am | Edited 6:24am
UP AND RUNNING.
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Managed to get out with a small profit,
  • #590
  • Jun 18, 2020 10:11am Jun 18, 2020 10:11am
Quoting redfan
I've come up with this conclusion, I've gone back in my trading history and I picked out the pairs that I've been trading the most, And the pairs I have won the most with, I've now cleared all OTHER pairs of my charts, I will only have the pairs that I have used on my chart which I have had success with, You may want to try it you'll be surprised at what you traded and what you won the most with.
One of the reasons why I concentrate on only 8 pairs in my watchlist. You have to trade best - value pairs for your buck.
It never gets easier, you just get better
  • #591
  • Jun 19, 2020 4:46am Jun 19, 2020 4:46am
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  • #592
  • Jun 19, 2020 4:56am Jun 19, 2020 4:56am
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  • #593
  • Jun 19, 2020 5:20am Jun 19, 2020 5:20am
UP AND RUNNING.
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  • #594
  • Jun 19, 2020 5:30am Jun 19, 2020 5:30am
Out with a quick profit.
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  • #595
  • Jun 19, 2020 5:58am Jun 19, 2020 5:58am
Out with a quick profit
So why did I take this trade?
There was no diversions alert,
So I went to my second alert,
The 4-hour 1-hour and the 30 minutes were all red,
I then checked the currency Strength.
And the moving average, Both indicated a Sell position,
And the final confirmation was
I also noticed EURUSD was going down,
And the USDCHF was going up Which means you should sell EUR CHF,
(CORRELATED PAIRS)
The reason I close the trade was we were getting close to A support line.
  • #596
  • Jun 19, 2020 6:14am Jun 19, 2020 6:14am
up and running,
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  • #597
  • Jun 19, 2020 6:18am Jun 19, 2020 6:18am
Why I don't trade CHF pairs:

https://www.ft.com/content/21028746-...3-9a26f8c3cba4

https://www.bloomberg.com/news/artic...ghts-on-europe
It never gets easier, you just get better
  • #598
  • Jun 19, 2020 6:26am Jun 19, 2020 6:26am
I'm going to let the video show you what I've done with this trade
https://youtu.be/jQrzfG2uFkw
  • #599
  • Jun 19, 2020 6:33am Jun 19, 2020 6:33am
Quoting Shabs19
Why I don't trade CHF pairs: https://www.ft.com/content/21028746-...3-9a26f8c3cba4 https://www.bloomberg.com/news/artic...ghts-on-europe
That's very interesting, Thanks for that,
But that is one of the 7 pairs that I'm trading now,
So I think I will stick with it for the time being.
  • #600
  • Jun 19, 2020 8:47am Jun 19, 2020 8:47am
https://youtu.be/uibmJvQiGto
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