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Hedge and Correlation Strategy

  • #641
  • Sep 1, 2009 5:26pm Sep 1, 2009 5:26pm
Any pointers how you get clean data that lines up into excel e.g all the times lining up? Ta

Red

Quoting lcfxtrader
I will explain when I get home what I believe the data is saying.
  • #642
  • Sep 1, 2009 6:02pm Sep 1, 2009 6:02pm
Just have manually do it. Sucks though
  • #643
  • Sep 1, 2009 8:39pm Sep 1, 2009 8:39pm
Good indicator for MT4 to overlay two charts on one another.
Attached File(s)
File Type: mq4 OverLayChartLINE.mq4   12 KB | 943 downloads



Good indicator to see correlations ebtween two pairs. Appears on bottom of chart. Question is how to use this to our advantage, if any.
Attached File(s)
File Type: mq4 Correlation_1working.mq4   3 KB | 1,068 downloads
  • #644
  • Sep 1, 2009 8:58pm Sep 1, 2009 8:58pm
Closed out the GBP/JPY USD/JPY trade of earlier today at a 1% gain. 5% this week so far.
  • #645
  • Sep 1, 2009 9:04pm Sep 1, 2009 9:04pm
Well after being on the wrond side of a trade for 20 days I have come to learn a valuable less which I believe will nearly safeguard this strategy:

Use the DailyFx for entries, BUT confirm direction with the charte in FXCM's Marketscope. Here is Why:
Attached Image (click to enlarge)
Click to Enlarge Name: Rule.jpg Size: 160 KB


I entered this trade Buy GC, sell EG on 8/10/09 according to dailyfx. GC is in the midst of a big down trend. Well I entered against the trend and I am still reaping the consequences. Had I used Dailyfx for the trigger and only entered when DailyFx indicated to Sell GC and Buy EG, I would have been in good shape. I think if you pay attention to the Marketscope charts in FXCM and use DailyFX for entried, you'll be in good shape.

Also, See below for comparison of chart view for the Mt4 overlay vs the FXCM marketscope. I am going to toss the Mt4 indicator.
MT4:
Attached Image (click to enlarge)
Click to Enlarge Name: bad.jpg Size: 191 KB


FXCM:
Attached Image (click to enlarge)
Click to Enlarge Name: good.jpg Size: 151 KB


Bad Trade log:
Attached Image (click to enlarge)
Click to Enlarge Name: rule2.jpg Size: 56 KB
  • #646
  • Sep 1, 2009 9:07pm Sep 1, 2009 9:07pm
Quoting Dreamliner
Closed out the GBP/JPY USD/JPY trade of earlier today at a 1% gain. 5% this week so far.
Did you buy GJ and Sell UJ?
  • #647
  • Sep 1, 2009 9:09pm Sep 1, 2009 9:09pm
Quoting jeffreytp
Did you buy GJ and Sell UJ?
Yes.
  • #648
  • Sep 1, 2009 9:16pm Sep 1, 2009 9:16pm
I can't tell, are you trading negative correlated currencies? Sorry, I'm no good with abbreviations like GC and EC, etc.
  • #649
  • Sep 1, 2009 9:17pm Sep 1, 2009 9:17pm
I took this trade also. I had to leave the office so I switched take profit ea on and won't see it again till thursdY. Won't do that live don't worry. Hope ea does it's job. Anyone care to give more insight to the spreadsheet?
  • #650
  • Sep 1, 2009 9:19pm Sep 1, 2009 9:19pm
Quoting jeffreytp
Good indicator for MT4 to overlay two charts on one another.
Attachment


Good indicator to see correlations ebtween two pairs. Appears on bottom of chart. Question is how to use this to our advantage, if any.
Attachment

Will take a look at. Thanks
  • #651
  • Sep 1, 2009 10:37pm Sep 1, 2009 10:37pm
Here's a better spreadsheet to look at the charts compared to the others posted.

Chart #1
Blue line = EURUSD 5M running close data in column N
Pink Line = GBPUSD 5m running close date in column O

Chart #2

Black vertical line = plots the spread between column N & O every 5 minutes

Hopefully you can see some good entry points over a large sample period.

Can someone please set this spreadsheet up so that it has real time data from MT4 that would refresh every 5 minutes and drop off the oldest data over a given sample period? Maybe one of our talented programmers can create an indicator.
Attached File(s)
File Type: xls EUGU.XLS   397 KB | 752 downloads
  • #652
  • Sep 1, 2009 11:21pm Sep 1, 2009 11:21pm
Quoting lcfxtrader
Here's a better spreadsheet to look at the charts compared to the others posted.

Chart #1
Blue line = EURUSD 5M running close data in column N
Pink Line = GBPUSD 5m running close date in column O

Chart #2

Black vertical line = plots the spread between column N & O every 5 minutes

Hopefully you can see some good entry points over a large sample period.

Can someone please set this spreadsheet up so that it has real time data from MT4 that would refresh every 5 minutes and drop off the oldest data over a given sample period? Maybe...
gonna take good look at this in th morn. Once we know exactly what we want the indi to do I'll get it made. Just a running total of delta would prob b pretty easy. I'll see about getting just this done. But I don't think this will give us all we r really after
  • #653
  • Sep 2, 2009 12:44am Sep 2, 2009 12:44am
Quoting jtmoore007
gonna take good look at this in th morn. Once we know exactly what we want the indi to do I'll get it made. Just a running total of delta would prob b pretty easy. I'll see about getting just this done. But I don't think this will give us all we r really after
Here is a indicator that shows the delta. LOL.... I am not a coder, but put it together to help us to see the delta..

extern int TimeFrame = 60; Looks best on 30 minute time frame.
extern int MaxBars = 240; You can choose how many bars to look back to.
extern string MainPair="GBPUSD"; Put the Higher price pair here.
extern string SubPair="EURUSD"; Put the lower price pair here.


Maybe someone can improve upon it.
Bruce
Attached File(s)
File Type: mq4 PriceDifference.mq4   2 KB | 1,028 downloads
  • #654
  • Sep 2, 2009 3:08am Sep 2, 2009 3:08am
Thanks. Still not convinced this is exactly what this system needs. But I think it can help. Will check it out
  • #655
  • Sep 2, 2009 7:28am Sep 2, 2009 7:28am
Quoting brucech
Here is a indicator that shows the delta. LOL.... I am not a coder, but put it together to help us to see the delta..

extern int TimeFrame = 60; Looks best on 30 minute time frame.
extern int MaxBars = 240; You can choose how many bars to look back to.
extern string MainPair="GBPUSD"; Put the Higher price pair here.
extern string SubPair="EURUSD"; Put the lower price pair here.


Maybe someone can improve upon it.
Bruce
Bruce, I see nothing when I put this in Metatrader. I opened it in a 30 minute GBP/USD chart and it opened a window underneath but it is completely blank. What am I doing wrong?
  • #656
  • Edited 7:53am Sep 2, 2009 7:42am | Edited 7:53am
Quoting Dreamliner
Bruce, I see nothing when I put this in Metatrader. I opened it in a 30 minute GBP/USD chart and it opened a window underneath but it is completely blank. What am I doing wrong?

Dreamliner,

Attach it to a GBPUSD chart 30M
Look at the
extern int TimeFrame = 30; Looks best on 30 minute time frame.
extern int MaxBars = 240; You can choose how many bars to look back to.
extern string MainPair="GBPUSD"; Put the Higher price pair here.
extern string SubPair="EURUSD"; Put the lower price pair here.

Make sure they are all set as above.

And it should work..

I am running mine on FXDD Demo
extern int TimeFrame = 5; Looks best on 5minute time frame.
extern int MaxBars = 480; You can choose how many bars to look back to.
extern string MainPair="GBPUSD"; Put the Higher price pair here.
extern string SubPair="EURUSD"; Put the lower price pair here.

I have mine on a FXDD Demo. With 5M chart zoomed out a little.
Bruce
  • #657
  • Sep 2, 2009 7:47am Sep 2, 2009 7:47am
I figured out the problem. If you have a mini account you must add an "m" at the end of the currency pairs. Now it works.

Quoting brucech
Dreamliner,

Attach it to a GBPUSD chart 30M
Look at the
extern int TimeFrame = 30; Looks best on 30 minute time frame.
extern int MaxBars = 240; You can choose how many bars to look back to.
extern string MainPair="GBPUSD"; Put the Higher price pair here.
extern string SubPair="EURUSD"; Put the lower price pair here.

Make sure they are all set as above.

And it should work..

Bruce
  • #658
  • Sep 2, 2009 8:01am Sep 2, 2009 8:01am
Great..

When it is trending down from above Sell GBPUSD and Buy EURUSD

When it is trending up from below Buy GBPUSD and Sell EURUSD.

I am using the 5M chart.

Bruce
  • #659
  • Sep 2, 2009 8:05am Sep 2, 2009 8:05am
Quoting brucech
Great..

When it is tending down from above Sell GBPUSD and Buy EURUSD

When it is trending up from below Buy GBPUSD and Sell EURUSD.

I am using the 5M chart.

Bruce
Yes, that looks exactly right. Looking at the Daily FX chart this morning was a great opportunity to sell GBP/USD and buy EUR/USD. Then as you sent your indicator, sure enough it was way up and trending down.

I'll continue to compare my entries with the Daily FX charts and this indicator. It would be nice if this indicator could have a numerical value displayed at the top of the chart.

Please keep us advised of how it goes on a 5 minute chart.
  • #660
  • Sep 2, 2009 8:40am Sep 2, 2009 8:40am
Quoting Dreamliner
Yes, that looks exactly right. Looking at the Daily FX chart this morning was a great opportunity to sell GBP/USD and buy EUR/USD. Then as you sent your indicator, sure enough it was way up and trending down.

I'll continue to compare my entries with the Daily FX charts and this indicator. It would be nice if this indicator could have a numerical value displayed at the top of the chart.

Please keep us advised of how it goes on a 5 minute chart.
Ah, nevermind, I see there is indeed a numerical value on the top right of the indicator window, so that works just fine.

Will this indicator work for other pairs such as GBP/USD and GBP/CHF?
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