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Hedge and Correlation Strategy

  • #661
  • Sep 2, 2009 6:51am Sep 2, 2009 6:51am
Quoting brucech
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
Bruce, this indicator is marvelous. Just watch it work! It portrays exactly, in numerical value, what we are seeing visually on Daily FX charts. Very nice!
  • #662
  • Sep 2, 2009 6:54am Sep 2, 2009 6:54am
Quoting Dreamliner
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?
Yes, just change the pairs on the input screen when the indicator loads.
  • #663
  • Sep 2, 2009 7:16am Sep 2, 2009 7:16am
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
Thank you for this. Do you know how to create the default levels in the coding so we do not have to manually create levels each time the indicator is loaded? For instance, for the GU/EU pair we should have levels at 19900, and 19000.

Also would like Fixed Min values and Fix Max values as default too. 18800 and 20300.

Attached Image
  • #664
  • Sep 2, 2009 7:25am Sep 2, 2009 7:25am
Quoting jeffreytp
Thank you for this. Do you know how to create the default levels in the coding so we do not have to manually create levels each time the indicator is loaded? For instance, for the GU/EU pair we should have levels at 19900, and 19000.

Also would like Fixed Min values and Fix Max values as default too. 18800 and 20300.

Attachment
you don't really want it hard wired in there because everytime you put it on a pair other than eu gu it would have its settings best thing to do is just manually do it for each pair and save a template with say "DreamMethodGBPJPY" or whatever
  • #665
  • Sep 2, 2009 7:32am Sep 2, 2009 7:32am
well not sure how it looks going forward but this indi doesn't do anything for us going backwards. the pic is what it looks like scrolled back in time. notice how my 19900 level is now no good
Attached Image (click to enlarge)
Click to Enlarge Name: dream 2.png Size: 5 KB
  • #666
  • Sep 2, 2009 7:33am Sep 2, 2009 7:33am
Quoting jtmoore007
you don't really want it hard wired in there because everytime you put it on a pair other than eu gu it would have its settings best thing to do is just manually do it for each pair and save a template with say "DreamMethodGBPJPY" or whatever

Just playing with this a little, if you increase the MaxBars to like 2000 or more and just look, you'll see the spread increase dramatically from where it is now. Pretty scary...
  • #667
  • Sep 2, 2009 7:35am Sep 2, 2009 7:35am
Quoting jtmoore007
well not sure how it looks going forward but this indi doesn't do anything for us going backwards. the pic is what it looks like scrolled back in time. notice how my 19900 level is now no good

Exactly
  • #668
  • Sep 2, 2009 7:36am Sep 2, 2009 7:36am
Quoting jeffreytp
Exactly

I think using the dailyFX for entry and FXCM Marketscope overlay for confirmation is the way to go with this.
  • #669
  • Sep 2, 2009 7:46am Sep 2, 2009 7:46am
I just can't find any correlation between the price difference and price movement of each pair. the spikes in the price difference are just spikes in one pair or the other. it doesn't tell which way price is going, just that a spike in one pair has occured Just my opinion.

i like the idea behind this thread and I like looking at the daily fx. i can't get marketscope to work. it says i need somthing 2.0?? ill try again
  • #670
  • Sep 2, 2009 7:50am Sep 2, 2009 7:50am
Quoting jtmoore007
I just can't find any correlation between the price difference and price movement of each pair. the spikes in the price difference are just spikes in one pair or the other. it doesn't tell which way price is going, just that a spike in one pair has occured Just my opinion.

i like the idea behind this thread and I like looking at the daily fx. i can't get marketscope to work. it says i need somthing 2.0?? ill try again

Here is the download link for the software:
http://www.fxcorporate.com/FXCM/FXTS2Install.EXE

Then go to this page to open demo account:
http://www.fxcm.co.uk/free-forex-accounts.jsp

On the top right choose Forex Demo and select your currency.
  • #671
  • Sep 2, 2009 7:58am Sep 2, 2009 7:58am
Quoting jeffreytp
Here is the download link for the software:
http://www.fxcorporate.com/FXCM/FXTS2Install.EXE

Then go to this page to open demo account:
http://www.fxcm.co.uk/free-forex-accounts.jsp

On the top right choose Forex Demo and select your currency.

thanks a lot will have to download on laptop at work. right now im on wife's laptop and just have the basics on this. having to trade through my vps.
ill get this up and running tomorrow
  • #672
  • Sep 2, 2009 8:01am Sep 2, 2009 8:01am
Quoting jtmoore007
I just can't find any correlation between the price difference and price movement of each pair. the spikes in the price difference are just spikes in one pair or the other. it doesn't tell which way price is going, just that a spike in one pair has occured Just my opinion.

i like the idea behind this thread and I like looking at the daily fx. i can't get marketscope to work. it says i need somthing 2.0?? ill try again
It's those "spikes" that we make large profits off of. A "spike" is something abnormal in the marketplace that, according to history, will return to normal.

So what we are doing is acting based upon history telling us that a spike, by definition, returns to a "non-spike" condition.
  • #673
  • Sep 2, 2009 8:05am Sep 2, 2009 8:05am
Quoting Dreamliner
It's those "spikes" that we make large profits off of. A "spike" is something abnormal in the marketplace that, according to history, will return to normal.

So what we are doing is acting based upon history telling us that a spike, by definition, returns to a "non-spike" condition.

yes i know this, the problem is i cant see that the spikes tell us to buy this and sell that. i really don't see how you can say buy this if heading down and buy this if heading up. it is different each time. just go back and look at spikes you will see that one time will be one way and the next will be the other.

I hope im wrong!! if so please show me where
  • #674
  • Sep 2, 2009 8:07am Sep 2, 2009 8:07am
Hi,

this way of trading is really thinking "outside of the box".

Been following the thread with great interst.

Do you guys set up some kind of alert when there is an abnormal spike, or do you check your charts many times during the day/night?

BR

PC

Quoting Dreamliner
It's those "spikes" that we make large profits off of. A "spike" is something abnormal in the marketplace that, according to history, will return to normal.

So what we are doing is acting based upon history telling us that a spike, by definition, returns to a "non-spike" condition.
Less is more...
  • #675
  • Sep 2, 2009 8:14am Sep 2, 2009 8:14am
Quoting pipcruiser
Hi,

this way of trading is really thinking "outside of the box".

Been following the thread with great interst.

Do you guys set up some kind of alert when there is an abnormal spike, or do you check your charts many times during the day/night?

BR

PC

no alert yet not even sure how spikes help other than knowing there is a larger price gap than "normal"
  • #676
  • Sep 2, 2009 8:16am Sep 2, 2009 8:16am
Quoting jtmoore007
yes i know this, the problem is i cant see that the spikes tell us to buy this and sell that. i really don't see how you can say buy this if heading down and buy this if heading up. it is different each time. just go back and look at spikes you will see that one time will be one way and the next will be the other.

I hope im wrong!! if so please show me where
jtmoore007,

Please indicate on some charts some of these spikes that you are referring to. I want to see if they do or don't indicate what to buy and sell at that time.

Thanks.

Bruce
  • #677
  • Sep 2, 2009 8:17am Sep 2, 2009 8:17am
Quoting jtmoore007
yes i know this, the problem is i cant see that the spikes tell us to buy this and sell that. i really don't see how you can say buy this if heading down and buy this if heading up. it is different each time. just go back and look at spikes you will see that one time will be one way and the next will be the other.

I hope im wrong!! if so please show me where
Right! Simply sell the one that has spike UP, and buy the other. Or if the spike is down, then buy the one that has spiked down and sell the other.

Example: if you look right now at EUR/USD and GPB/USD on Daily FX you will see that there was a spike, a wide gap, between these two currency pairs earlier today. The GBP/USD was on top and had spiked UP. The EUR/USD was on the bottom and had spiked down.

We entered by selling GBP/USD and buying EUR/USD. The gap is narrowing now, as expected.

A second example. Earlier GBP/CHF spike up while GBP/USD spiked down, making a gap. We entered short on GBP/CHF and long on GBP/USD. The gap has nearly closed now and we are in big profit (nearly 1% profit right now) and so will close the trade.

That's how it works. And it works consistently. I don't know when I started this thread, but I have not lost a trade since I started.
  • #678
  • Sep 2, 2009 8:22am Sep 2, 2009 8:22am
Quoting Dreamliner
Right! Simply sell the one that has spike UP, and buy the other. Or if the spike is down, then buy the one that has spiked down and sell the other.

Example: if you look right now at EUR/USD and GPB/USD on Daily FX you will see that there was a spike, a wide gap, between these two currency pairs earlier today. The GBP/USD was on top and had spiked UP. The EUR/USD was on the bottom and had spiked down.

We entered by selling GBP/USD and buying EUR/USD. The gap is narrowing now, as expected.

A second example. Earlier GBP/CHF spike up while GBP/USD...

ok i can get that!! what i was saying is that there is no correlation between the price gap being above a certain number or below a certain number. those numbers don't mean anything to me. BUT if you read the spikes in the manner you just described then you would probably do pretty good.

now then, lets start looking at it that way!
  • #679
  • Sep 2, 2009 8:23am Sep 2, 2009 8:23am
Quoting brucech
jtmoore007,

Please indicate on some charts some of these spikes that you are referring to. I want to see if they do or don't indicate what to buy and sell at that time.

Thanks.

Bruce
here is what im talking about
Attached Image (click to enlarge)
Click to Enlarge Name: dream 2.png Size: 13 KB
  • #680
  • Sep 2, 2009 8:26am Sep 2, 2009 8:26am
Quoting pipcruiser
Hi,

this way of trading is really thinking "outside of the box".

Been following the thread with great interst.

Do you guys set up some kind of alert when there is an abnormal spike, or do you check your charts many times during the day/night?

BR

PC
I only check a couple of times a day. Once when I get up, and then once or maybe twice during the day. My schedule is such that I am in the air for 14-16 hours at a time and cannot check until I land, so I can only check a few times during the day.

But the gaps are so very easy to spot once you get accustomed to seeing them. They almost beg you to enter. If they are not begging then don't listen, but if the gap is large then the "monster"s mouth is wide open ready to gobble pips.
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