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

  • #21
  • Jun 11, 2009 1:59am Jun 11, 2009 1:59am
http://www.forexfactory.com/showthread.php?t=169828

refer to my posting
  • #22
  • Jun 11, 2009 2:38am Jun 11, 2009 2:38am
Quoting doshur
http://www.forexfactory.com/showthread.php?t=169828

refer to my posting
that's interesting, did you ever get it coded into an EA?

Maybe I can find someone to do that or try to myself. Can you tell me exactly what are the moving averages you are using to generate the initial buy signal for a pair?
  • #23
  • Edited 3:33am Jun 11, 2009 3:10am | Edited 3:33am
Quoting Blud4oilPrgm
that's interesting, did you ever get it coded into an EA?

Maybe I can find someone to do that or try to myself. Can you tell me exactly what are the moving averages you are using to generate the initial buy signal for a pair?
Hi,

I had coded into a EA just for some fun and the results are amazing. So had been studying correlation for these few days.

I have ideas like if enter a buy on EURUSD, sell for USDCHF as they have strong correlation.
  • #24
  • Jun 11, 2009 3:15am Jun 11, 2009 3:15am
Quoting doshur
Hi,

I had coded into a EA just for some fun and the results are amazing. So had been studying correlation for these few days.

would you mind posting it onto the forum? I would love to try it out.

Quote
I have ideas like if enter a buy on EURUSD, sames goes for USDCHF as they have strong correlation.
This is actually harder than it seems from what I've seen so far. One of the problems seems to be position sizing correctly. There's a thread out there started by Tokyomaster, he had an EA up that tried to do this. Actually, that's where I saw the correlation indicator. The issue seemed to be when usd/chf goes up and eur/usd goes down there were some big losses.
  • #25
  • Jun 11, 2009 3:34am Jun 11, 2009 3:34am
Quoting Blud4oilPrgm
would you mind posting it onto the forum? I would love to try it out.


This is actually harder than it seems from what I've seen so far. One of the problems seems to be position sizing correctly. There's a thread out there started by Tokyomaster, he had an EA up that tried to do this. Actually, that's where I saw the correlation indicator. The issue seemed to be when usd/chf goes up and eur/usd goes down there were some big losses.
sorry. i want to protect my entry trigger code.
as u read from other thread, my signal trigger is having 85% accuracy
  • #26
  • Jun 11, 2009 3:43am Jun 11, 2009 3:43am
Quoting doshur
sorry. i want to protect my entry trigger code.
as u read from other thread, my signal trigger is having 85% accuracy
I understand well thanks for sharing your idea, I just picked up some quick pips on 1 min chart

Reposting your rules here

design steps
1. any simple system (EG. Moving average cross overs) on eur/usd
2. using the same system for usd/chf and eur/chf

condition
if buy signal on eur/usd + buy signal on eur/chf + sell signal on usd/chf then execute buy

I'm using a 15 and 30 period moving average and the trend magic indicator.
  • #27
  • Jun 11, 2009 5:41am Jun 11, 2009 5:41am
Quoting Blud4oilPrgm
I understand well thanks for sharing your idea, I just picked up some quick pips on 1 min chart

Reposting your rules here

design steps
1. any simple system (EG. Moving average cross overs) on eur/usd
2. using the same system for usd/chf and eur/chf

condition
if buy signal on eur/usd + buy signal on eur/chf + sell signal on usd/chf then execute buy

I'm using a 15 and 30 period moving average and the trend magic indicator.
well, actually eur/chf is just a confirmation for a higher probability.
this pair is not very correlated to eur/usd
  • #28
  • Jun 11, 2009 6:21am Jun 11, 2009 6:21am
Be sure to check billbss's thread here. He's looking at when correlated pairs de-correlate, but is able to predict *which* pair will move in some direction.

Correlated pairs should follow each other by making lower lows or higher highs at the same time. When they don't, that's the opportunity. When pair #1 makes a lower low but pair #2 doesn't, you go long pair #2. It's that simple. It's very logical and sequential but requires checking the overlaid charts every 15 minutes.
You are in a maze of twisty little passages, all alike.
  • #29
  • Jun 11, 2009 2:57pm Jun 11, 2009 2:57pm
Quoting stevegee58
Be sure to check billbss's thread here....
Thanks I really like this approach. It is quite logical something that can be hard to come by!

Everyone, find attached my current setup.
Attached Image (click to enlarge)
Click to Enlarge Name: c1.PNG Size: 86 KB
Attached File(s)
File Type: tpl correlation_template.tpl   10 KB | 846 downloads
File Type: mq4 OverLayChart-MA.mq4   11 KB | 860 downloads
File Type: ex4 HG_0001a_MTF.ex4   8 KB | 800 downloads
File Type: ex4 Trend Magic.ex4   3 KB | 787 downloads
File Type: ex4 Correlation.ex4   5 KB | 861 downloads
  • #30
  • Jun 11, 2009 3:01pm Jun 11, 2009 3:01pm
On the thread I linked to, there's an overlay indicator that inverts negatively correlated pairs. So if you want to see EUR/USD and USD/CHF overlaid you can, and it flops over USD/CHF so they're moving the same direction instead of the opposite.

I think it's cool as hell.
You are in a maze of twisty little passages, all alike.
  • #31
  • Edited 4:51pm Jun 11, 2009 3:16pm | Edited 4:51pm
Attached Image (click to enlarge)
Click to Enlarge Name: shot1.PNG Size: 102 KB


This is from around the NY open around 9 EST, see how it de-correlates before the converge...then EUR/USD rises
  • #32
  • Jun 11, 2009 4:04pm Jun 11, 2009 4:04pm
Quoting Blud4oilPrgm
Place this indicator on a 1 min eur/usd chart.
Hmmm...this indicator shows no data on my chart. Any ideas why not?
  • #33
  • Jun 11, 2009 4:19pm Jun 11, 2009 4:19pm
Quoting Bobcat2
Hmmm...this indicator shows no data on my chart. Any ideas why not?
did you place it on a eur/usd chart? what broker type is your MT? maybe try another one

I'm using MB Trading metatrader, from what I've seen so far it's very good.
  • #34
  • Jun 12, 2009 12:52am Jun 12, 2009 12:52am
messin around scalping late Asian session I'm liking this strategy more with every minute
Attached Image (click to enlarge)
Click to Enlarge Name: as.PNG Size: 48 KB
  • #35
  • Jun 12, 2009 11:58am Jun 12, 2009 11:58am
Quoting stevegee58
Be sure to check billbss's thread here....
what is your preferred TF?
  • #36
  • Jun 12, 2009 12:15pm Jun 12, 2009 12:15pm
I have MetaTraderFxOpen terminal and your Correlation indicator shows no data on my chart. I put the indicator in the indicator folder.
  • #37
  • Jun 12, 2009 12:44pm Jun 12, 2009 12:44pm
Quoting adria
I have MetaTraderFxOpen terminal and your Correlation indicator shows no data on my chart. I put the indicator in the indicator folder.
that's weird. I will look for some other correlation indicators, this one may have some problems with certain brokers it seems.
  • #38
  • Jun 12, 2009 12:48pm Jun 12, 2009 12:48pm
I can't help but seeing these charts as fractals because how the chart patterns look. maybe I will watch some fractal videos on youtube this weekend
  • #39
  • Jun 12, 2009 2:19pm Jun 12, 2009 2:19pm
Quoting adria
I have MetaTraderFxOpen terminal and your Correlation indicator shows no data on my chart. I put the indicator in the indicator folder.
Please do not try this strategy on non-ECN brokers if you trade on short timeframes, like 1 minutes. Sometimes the trade breaks as expected very quickly then reverse back again.. I can tell you a standard broker will not get you out or in at the top/bottom of these candle wicks. I think this can make a huge difference, even on longer TF

Your entry logic can change very quickly..
  • #40
  • Jun 12, 2009 6:28pm Jun 12, 2009 6:28pm
Quoting Blud4oilPrgm
that's weird. I will look for some other correlation indicators, this one may have some problems with certain brokers it seems.
I had this problem too until I realized that my broker named the pairs differently from how they are specified in the indicator settings. For example USDCHF is really USDCHFm. So I changed this values in the OverlayChart-MA and Correlation indicator settings and all is well.
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