DislikedThat's excellent, thank you for the pictures, that's the way I trade.
Wait til you see my snapshot of a trading another pair, just waiting for it to cross all the way. Very profitable.Ignored
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DislikedI need some explanation:
I should exit when currencies cross each other, yes? It means - when currencies meets (touch) each other or when as Dreamliner wrote in the first post:
when the currency pairs cross (the one that was on the bottom is now on top, the one that was on the top is now on the bottom) ?
I always existed when currencies meet and touch each other.Ignored
DislikedEnter when there is a gap, exit when in profit, or wait until they cross completely, your choice. Please demo, demo, demo. That way you'll see it in action.Ignored
DislikedOk.
Another question:
do you trade during the busy hours (full of news releases) or wait till most indicators have been published? Also what tf is your favourite? Do you trade small time frames like 5min? Or 30min up?Ignored
DislikedIgnored
DislikedI traded similiarly today. I made my first entry at roughly the same time as you did, and made a second entry later in the morning when I saw the two pairs move opposite for a short time.
I trust that you were profitable as well? I closed all orders late in the afternoon, I try not to hold positions over the weekend.Ignored
DislikedHi Lawrence,
To reply to your post #287;
The way price is moving doesn't matter. The only thing that matters is the difference between the prices. Timeframe doesn't matter either for that matter.
I strongly suggest people read the "Correlation Strategy PDF" and look at the "Pairs.xls" listed earlier in the thread.
If you normalize the price difference you can clearly see the way the 2 pairs move together. Like a rubber band, they stretch apart, then come back...Sometimes they cross and flip. Once you get a handle on this behavior trading...Ignored
DislikedI've built an indicator based on the info in Pairs.xls and the accompanying PDF file.
When normalized price difference reaches one side of the range or the other, you know (or you can at least be pretty sure) that the difference will now go the other way.
You could manually adjust the Pairs.xls and enter the close prices for your pairs by hand, and generate a graph that will show you the normalized price difference.Ignored