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Correlation system

  • #1
  • First Post: May 20, 2009 5:35am May 20, 2009 5:35am
hi, i'm testing this system based on correlated pairs with profit results at the moment.

i have a journal here in forexfactory that it's updated day by day with the results of the day.

the system is this:

in the minute 0 of the hours 10,11,12,13,15,16,17,18 GTM+1 you take this position;

First pair: BUY EURUSD - BUY USDCHF
Second pair: SELL EURUSD - SELL USDCHF

so, you have a target of 10 pips for the first and the second pair, when the divergence between this is +10 pips, close the pair.

open this two pairs in the hours that i said.

at the end of the day, close all pairs and start the next day.
sometimes i let it run to the next day. i'm testing what is better to do.

so, this system is now tested with demo account, don't use in live account.
  • #2
  • May 20, 2009 6:12am May 20, 2009 6:12am
I'm working on similar hedging strategy inspire by tokyomaster hedge EA and come up with entry and exit point which the system lack.

I make my trade on live account and it's making money

Will try our your system and see if I can further improve on the system I'm working on.
  • #3
  • May 27, 2009 5:58pm May 27, 2009 5:58pm
How has this been doing? Anyone doing it?
  • #4
  • May 27, 2009 6:15pm May 27, 2009 6:15pm
I'm trying to understand what you are doing here:

Let's say it is 10:00 AM GMT +1 you do the following:

BUY EURUSD - BUY USDCHF
SELL EURUSD - SELL USDCHF

You set a 10 pip take profit order on all four of these trades.

Then let's say it is now 11 AM GMT. You do the exact same thing as above, whether you already have open trades or not? Is that correct? So if two trades have taken profit you still do the same thing in opening orders each of the hours listed, whether the previous trades have taken profit or not?

Then at the end of the day close all orders.

Do I have this correct?

Also, how did you pick those hours?



Quoting Heral
hi, i'm testing this system based on correlated pairs with profit results at the moment.

i have a journal here in forexfactory that it's updated day by day with the results of the day.

the system is this:

in the minute...
  • #5
  • May 28, 2009 8:11pm May 28, 2009 8:11pm
Let me know if you already have a good result on back test

_____________________________

support resistance

.
  • #6
  • May 28, 2009 11:08pm May 28, 2009 11:08pm
I think he has abandoned this method, probably because it is not profitable.
  • #7
  • Jun 2, 2009 5:50pm Jun 2, 2009 5:50pm
hi, no i don't abandoned this method
i'm used it

i open ALWAYS at the hours that i say except at 15

so we open EURUSD - USDCHF buy and sell at 10,11,13,16,17,18

example:
if buy EURUSD - USDCHF is +10 pips, then close this pair

open this 4 pairs at the hour mentioned
close all at the end of the day
  • #8
  • Jun 2, 2009 6:18pm Jun 2, 2009 6:18pm
I am trying to understand. Let's say we buy Eur/Usd and Usd/Chf and we hit our 10 pip take profit on Eur/Usd. Now Usd/Chf is down 10 pips (or more) so we close that trade too?

At the same time we sold Eur/Usd and Usd/Chf, so on this pair we are plus 10 pips on the Usd/CHf and down 10 on the Eur/Usd, and we close this trade also?

This has accomplished us nothing. So I am not understanding the system. Please explain further.

Thank you.

Quoting Heral
hi, no i don't abandoned this method
i'm used it

i open ALWAYS at the hours that i say except at 15

so we open EURUSD - USDCHF buy and sell at 10,11,13,16,17,18

example:
if buy EURUSD - USDCHF is +10 pips, then close this pair

open this 4 pairs at the hour mentioned
close all at the end of the day
  • #9
  • Jun 2, 2009 8:29pm Jun 2, 2009 8:29pm
This is most definitely not a profitable system as explained. You simply take 10 pips profit on 2 and 10 pips, plus spread loss on the other two.
  • #10
  • Jun 3, 2009 2:26am Jun 3, 2009 2:26am
Quoting Dreamliner
I am trying to understand. Let's say we buy Eur/Usd and Usd/Chf and we hit our 10 pip take profit on Eur/Usd. Now Usd/Chf is down 10 pips (or more) so we close that trade too?
NO. we close the two pairs when EURUSD + USDCHF = +10
so, if EURUSD is +23 and USDCHF is -13, THEN we close this two pairs

Quoting Dreamliner
At the same time we sold Eur/Usd and Usd/Chf, so on this pair we are plus 10 pips on the Usd/CHf and down 10 on the Eur/Usd, and we close this trade also?
NO. like i said, we close the TWO PAIRS TOGETHER

to identify well, i put a comment to the order.
example:

if EURUSD - USDCHF is open at 10 and is buy, i put a comment like that: "B10" for the two pairs
it's more easy to see in the list for me

Quoting Dreamliner
This is most definitely not a profitable system as explained. You simply take 10 pips profit on 2 and 10 pips, plus spread loss on the other two.
check this last post and try to understand this system
  • #11
  • Jun 3, 2009 3:37am Jun 3, 2009 3:37am
  •  z8_fx
  • | Joined May 2009 | Status: Inquire of the Old, Learn the New | 5 Posts
a saying i heard from my boss:

Average teachers tell,
Good teachers explain,
Superior teachers demonstrate,
Great teachers inspire..

for easy understanding, would be glad if you can illustrate instead of wordings only in this case, snapshot of chart with position orders & maybe some account history would be very useful...
-=[Candles Exhaust Themselves to Give Light to Men]=-
  • #12
  • Jun 3, 2009 4:02am Jun 3, 2009 4:02am
z8_fx, i started a little journal here on forexfactory
this is the link: http://www.forexfactory.com/showthread.php?t=168555

i didn't continue with the thread because i saw that people didn't say nothing.
  • #13
  • Jun 3, 2009 7:17am Jun 3, 2009 7:17am
I think you should continue posting in the journal, but the problem we are all having is not understanding how you are doing this system.

Again, I say the following, as I have been saying:

If you open pair number 1 long (Eur/Usd and Usd/Chf) and Eur/Usd long hits your take profit of 10 pips, you will close both pairs, but you will do so at a loss because Usd/Chf long will be at a 10 pip loss plus spread on both pairs.

You have also gone short on number 2 (Eur/Usd and Usd/Chf) and so your Usd/Chf has taken profit of 10 pips, so you close both pairs, but you will do so at a loss because your Eur/Usd short is at a 10 pip loss plus spread on both pairs.

I am sure none of us are understanding what you are doing clearly, because you are making a profit (according to your journal) but we cannot understand how you do so.

I tried your system this morning, and the results were exactly as stated above.
  • #14
  • Jun 3, 2009 9:51am Jun 3, 2009 9:51am
here is the checkpoints that i use in one day with this system based on GTM+1 hour


1.- hour 10:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF


2.- hour 11:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF

3.- hour 12:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF


4.- hour 13:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF

5.- hour 16:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF


6.- hour 17:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF

7.- hour 18:
BUY EURUSD & USDCHF
SELL EURUSD & USDCHF


For all hours, when buys or sells are +10 pips, close this two pairs (EURUSD & USDCHF)
so LET IT THE OTHER RUN and if go to +10 close it or close all at the end of the day.

So, doing this we have the other two pairs lossing yes, but at the end of the day is normal that the correlated pairs come back and the winner pairs is more than the loser pairs.

ofcourse, this is not perfect and if the pairs are strong no correlated we'll have a loser day.

i hope this help
  • #15
  • Jun 3, 2009 9:56am Jun 3, 2009 9:56am
i remember like i said in the journal that i'm testing this strategy
don't use in real
  • #16
  • Jun 3, 2009 10:15am Jun 3, 2009 10:15am
Quoting Heral
if the pairs are strong no correlated we'll have a loser day.
OK. Let's say we have 100 days. How many days are winners, how many are losers? At the end it all bowls down to the question if there is a positive expectancy or not.
  • #17
  • Jun 3, 2009 10:23am Jun 3, 2009 10:23am
i don't know
like i said i'm testing it
with MT4 we can't backtest two pairs with expert advisors so, it must be doing trading
(if someone know other method to backtest this system can explain it)
  • #18
  • Jun 3, 2009 10:59am Jun 3, 2009 10:59am
Trading EURUSD and USDCHF is very simple.
Attached File(s)
File Type: pdf Statement.pdf   98 KB | 887 downloads
  • #19
  • Jun 3, 2009 3:53pm Jun 3, 2009 3:53pm
So you guys are able to be long and short at the same time on the same pair in the same account?

And tradepro, you seem to be timing your entries in some other way than Heral. Maybe using a little TA for buy/sell decisions?
You are in a maze of twisty little passages, all alike.
  • #20
  • Jun 3, 2009 4:23pm Jun 3, 2009 4:23pm
Quoting stevegee58
So you guys are able to be long and short at the same time on the same pair in the same account?

Yes. Alpari (UK) allows being long/short on the same pair in the same account.

And tradepro, you seem to be timing your entries in some other way than Heral. Maybe using a little TA for buy/sell decisions?
My strategy is different as i base my entry conditions on Trend/Power of EURUSD and correlation with USDCHF.
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