Trading correlation pairs by using the other pairs | Page 37 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MT4 MTF Correlation table and Correlation oscillator indicators 155 replies

Trading Crosses Using Correlation and Strength of Major Pairs 2 replies

Tribute to Madlen and other good programmers- Correlation indicators 2 replies

Using usd/chf - eur/usd correlation to see moves in EUR/USD 46 replies

Using PNN to capture the correlation between past and present data... 1 reply

Attachments: Trading correlation pairs by using the other pairs
Exit Attachments

Trading correlation pairs by using the other pairs

  • #721
  • Feb 25, 2021 6:00am Feb 25, 2021 6:00am
Attached Image (click to enlarge)
Click to Enlarge Name: thu2.png Size: 114 KB
  • #722
  • Feb 25, 2021 6:02am Feb 25, 2021 6:02am
Attached Image (click to enlarge)
Click to Enlarge Name: thu3.png Size: 100 KB
  • #723
  • Feb 25, 2021 8:26am Feb 25, 2021 8:26am
Attached Image (click to enlarge)
Click to Enlarge Name: thu25.png Size: 101 KB
  • #724
  • Feb 25, 2021 8:27am Feb 25, 2021 8:27am
Attached Image (click to enlarge)
Click to Enlarge Name: thu26.png Size: 112 KB
  • #725
  • Feb 25, 2021 8:30am Feb 25, 2021 8:30am
The British economy is going to outperform the USA and the European Union this is my prediction for the next six months.
  • #726
  • Mar 19, 2021 6:05am Mar 19, 2021 6:05am
Attached Image (click to enlarge)
Click to Enlarge Name: fri1.png Size: 103 KB
  • #727
  • Mar 19, 2021 6:11am Mar 19, 2021 6:11am
This is a long-term trade it's going down to the support line of 0.85431
  • #728
  • Mar 19, 2021 6:17am Mar 19, 2021 6:17am
Attached Image (click to enlarge)
Click to Enlarge Name: fri2.png Size: 104 KB


This is just a bit of upturn for The Americans because of President Trump's term.
Biden has already caused havoc in the American economy it will go down.
Because of his green plan shutting down plants and losing jobs,
  • #729
  • Apr 1, 2021 9:46am Apr 1, 2021 9:46am
Attached Image (click to enlarge)
Click to Enlarge Name: 2022.png Size: 117 KB
  • #730
  • Apr 1, 2021 9:47am Apr 1, 2021 9:47am
Attached Image (click to enlarge)
Click to Enlarge Name: thu1.png Size: 112 KB
  • #731
  • Aug 6, 2021 6:26pm Aug 6, 2021 6:26pm
Quoting redfan
{quote} My answer to your question is this, most systems can be profitable, I have become disillusioned with trading because of the brokers cheating First of all, they give you a £50,000 demo account. Which will run at 500/1 This puts every trader in a false sense of trading, Because on the demo account YOU trade 50p and win £50 You think to yourself if I could do that every day that's £250 a week that's a nice little earner, But in reality, you open a real account and you place £1,000 in your account they will not give you 500/1 you will probably...
You have done such remarkable work on correlation trading. No reason to stop trading because of leverage.

I use leverage to.increase capital efficiency. I trade futures because these are regulated by marketplace and no broker can make money by manipulating spreads. Brokers make money out of commission only, charged separately.

Now MT4 n MT5 brokers are offering two instruments : CFD based on futures as a market maker and making money from spreads .No transparency . Not genuine futures .

Brokers directly connecting with futures marketplace are transparent and their income comes from commission only. They do not charge swaps fee for 3 month contracts.

Initial margins or good faith deposits are fixed by the exchanges to allow trading. Normally not more than 10% of the contract value. In forex contract sizes are fixed. For index and commodities contract sizes fluctuate on a daily basis and arecalculated based on tick value for a single point change in index.

For me leverage is not a license to do overtrading. On the contrary it gives me room to trade comfortably.

Some brokers meet the exchange rules of proving them a bond for margin deposit and then take own risks by providing up to 80 % accommodation to traders only for day trading for charging slightly higher commission,





.
Practice makes a person perfect
  • #732
  • Edited Aug 7, 2021 4:34am Aug 6, 2021 8:04pm | Edited Aug 7, 2021 4:34am
Quoting simnz
{quote} You have done such remarkable work on correlation trading. No reason to stop trading because of leverage. I use leverage to increase capital efficiency. I trade futures because these are regulated by the marketplace and no broker can make money by manipulating spreads. Brokers make money out of commission only, charged separately. Now MT4 n MT5 brokers are offering two instruments: CFD based on futures as a market maker and making money from spreads . No transparency. Not genuine futures. Brokers directly connecting with futures marketplace...
As a day trader, I look for futures brokers who offer 10%-20% of what the Exchange offers for day trading and with hedging in the same symbol. Trading hours can't be 24 hours for qualifying day trading concessional margins.

Example:
Eurex takes Eur 8000 as margin for a Dax 30 mini index contract worth around Eur 80,000. 10% of contract value.
Eurex has two markets Cash market and Futures market.
So part of market hours is treated as day trading and a broker accepts Eur 400 as the margin deposit which will change once the day trading hours end unless you hedge it before ending hours and lock by trading in the opposite direction.

An exchange margin deposit is equal to 400 Eur or 80 pips (ticks of $5 value) of trading value which will be blocked and not available for trading.
As against this same Eur 8,000 money can get me an opportunity for 1600 pips with the broker blocking only 80 pips (Eur 400) as margin deposit for each lot.

Trading multiple lots at a time will block more money. Ideally, trading one lot at a time will be better.

This kind of aggressive leverage can encourage me to overtrade as well and make losses up to Eur 7600 or 1520 pips. When the margin deposit hits 400 Eur as balance n the account, the trading will be shut down. If traded recklessly I can lose 90 pips on each of 19 lots of martingale trades in a row and shut down my account.

Instead, if I calculate the maximum risk for each trade at 40 pips or Eur 200, then I can use Eur 7600 for trading up to 36 lots. If out of 36 lots, I make gains on 20 lots at 60 pips each and lose 40 pips each on 16 lots, my net profit will be :

gain of 60 pips x 20 lots = 1200 pips
loss of 40 pips x 16 lots = 640 pips.

Nett profit will be 1200 - 640 pips =560 pips.

560 pips on a capital of 1600 pips in a day! Or 7 % a month return on capital invested by way of margin deposit.

Leverage acts as a double-edged sword.
Practice makes a person perfect
  • #733
  • Edited 6:30am Aug 7, 2021 6:13am | Edited 6:30am
Quoting simnz
{quote} As a day trader, I look for futures brokers who offer 10%-20% of what the Exchange offers for day trading and with hedging in the same symbol. Trading hours can't be 24 hours for qualifying day trading concessional margins. Example: Eurex takes Eur 8000 as margin for a Dax 30 mini index contract worth around Eur 80,000. 10% of contract value. Eurex has two markets Cash market and Futures market. So part of market hours is treated as day trading and a broker accepts Eur 400 as the margin deposit which will change once the day trading hours...
I have found a broker who allows trading of CME's 6B British Pound Futures for Eur 500 as the minimum margin as against CME requirement of Eur 2,700 , controlling a contract of GBP 62, 500. Value.

It amounts to a leverage of 125:1 during day trading time which lasts for 11 hours from The trading time is Monday to Friday from 0:00 a.m. to 11:00 p.m. CET. In other hours the margin reverts back to Eur 2700. I would normally hedge it before 11 pm cet by executing trade in opposite direction , locking by hedging in same instrument and releasing the lock next day at 0.00 cet time to enjoy day trading margin leverage..

it is an incredible offer considering the broker is German Binfa regulated and the asset is from the regulated CME exchange marketplace. It is not.open to.US residents
Practice makes a person perfect
  • #734
  • Aug 9, 2021 3:08am Aug 9, 2021 3:08am
Quoting simnz
{quote} I have found a broker who allows trading of CME's 6B British Pound Futures for Eur 500 as the minimum margin as against CME requirement of Eur 2,700 , controlling a contract of GBP 62, 500. Value. It amounts to a leverage of 125:1 during day trading time which lasts for 11 hours from The trading time is Monday to Friday from 0:00 a.m. to 11:00 p.m. CET. In other hours the margin reverts back to Eur 2700. I would normally hedge it before 11 pm cet by executing trade in opposite direction , locking by hedging in same instrument and releasing...
Capital efficiency converts 55% return in 400% pa return

Calculating the margin on DAX 30, the difference is obvious.

Incredible leverage . Good for an index trader like me who works for capital efficiency and not overtrading. I am hoping for 400% return based on
this kind of margin capital. Eur 400 margin means I must keep 1200 (88 buffer) 00 margin (for safety) to make Eur 4800 in a year to meet the target. If I use IB margin of 8,000 + 800 (buffer ) then same Eur 4800 will be 55% return in a year.
Practice makes a person perfect
  • #735
  • Dec 10, 2021 1:20am Dec 10, 2021 1:20am
Quoting kette
{quote} uc was good today you can test it {image} {file} {file}
Hi Kette,

What indicators are you using in the main chart window? Specifically the indicator with the upper and lower green lines and shaded box.

Thanks!
E
  • #736
  • Jan 19, 2022 5:08pm Jan 19, 2022 5:08pm
Hey Redfan,
this is a really great thread. I just went through all of it!!
I'd like to bring up post #96, #223, #349 and #377.
96 talks about the 3 hedge strategy - EurChf / EurUsd / UsdChf for example
223 talks about buying one and selling the other EU /UF
349 talks about entering with HTF price action
377 tries to tackle the issue I'm about to bring up.

If we buy and sell negative correlated pairs at the same time, we are doubling risk. I believe we should buy EU, buy UF and sell EF - Opening 3 trades like this means you are covering yourself with a buy & sell position on the Euro, Dollar and Swissy all at the same time. This way, after entering with HTF price action, once price starts moving we can decide if we'd like to cancel a position and let our winners run.

Attached Image (click to enlarge)
Click to Enlarge Name: triad.png Size: 115 KB

Right now for example, maybe EU wants to continue dropping. So, overnight I could place a sell on that, a sell on UF, and a buy on EF. I'd be protected, my positions seem logical, and I can get out of any potential loser once my strategy leads me to believe it's time to do so.

Any thoughts?
  • #737
  • Mar 13, 2022 11:10am Mar 13, 2022 11:10am
SIMMZ
Well if YOU point me in the right direction With a good broker I would consider coming back.

Octapad
The EU will drop It will come down to 0.82950 see post 730 I put that on the 1st of April 2021
  • #738
  • Mar 28, 2023 12:49am Mar 28, 2023 12:49am
Quoting redfan
{quote} My answer to your question is this, most systems can be profitable, I have become disillusioned with trading because of the brokers cheating First of all, they give you a £50,000 demo account. Which will run at 500/1 This puts every trader in a false sense of trading, Because on the demo account YOU trade 50p and win £50 You think to yourself if I could do that every day that's £250 a week that's a nice little earner, But in reality, you open a real account and you place £1,000 in your account they will not give you 500/1 you will probably...

Hey I came across your post when I was looking to confirm this exact style of trading. But looking for a little more extra depth especially when it comes to the minor pairs.

This post confirmed everything I was doing already and I felt at home albeit I have been doing too much experimenting especially with the minors. You did an awesome job with this post. I loved it all.


but I am jus disappointed that you have become disillusioned and disappointed by the brokers. I’m sorry about that. Tell us which brokers offer such low leverage. Because all over the internet we see brokers offering 1:500 and 1:1000 all the time. So what happened?
  • #739
  • Apr 23, 2023 9:30am Apr 23, 2023 9:30am
brokers offering 1:500 and 1:1000 all the time To play with on demo accounts
but the minute you sign up and put your money into their account you don't get anything like that the most I was getting were 1;20 I also had put £2,000 into my account
and they started taking the money by closing my trade too early,
because if have 3 trades On at the same time they will calculate that if all free trades lose you will lose more than two thousand pounds and they can't allow that to happen because they don't want you to go away Unhappy they just want to take some of your money So they close trades before they've given them a chance to turn around,
I have been following someone pretty good at Predicting which way the market's going to go Even as trading videos on YouTube and for £50 a month he will give you four trades every day five days a week for every working day in a month,I would say he is the top when it comes to predicting these roundabout 85% success rate He even gives a free one away every day but the trouble is he doesn't do it at the same time so yeah you have to wait there quite some time and then depending on what time it is and how long ago he put it on
FREE XTREMETRADER FOREX SIGNAL

(188) So..How To Use XtremeTrader Forex Signals? - YouTube
  • #740
  • Mar 21, 2024 4:52am Mar 21, 2024 4:52am
Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy.png Size: 23 KB

I got up this morning and decided I'm going to give this new system a go
Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy.png Size: 23 KB
1 trader viewing now