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Hedge and Correlation Strategy

  • #781
  • Sep 3, 2009 11:32am Sep 3, 2009 11:32am
I'm sorry. This thread is very important to you. But whether you like it not, you are a directional trader as well. What you have created is not a methodology or a strategy. Its a trend indicator. All I'm saying is you should use this technique to place trades on a EURGBP. it gives you a very clear direction. with the guidance of a channel you can see where support and resistance are in respect to the starting trend. It will give you better takeprofit targets, and stop loss levels to protect you from the channel breakout. They do happen.
  • #782
  • Sep 3, 2009 11:37am Sep 3, 2009 11:37am
Quoting Petronix
I'm sorry. This thread is very important to you. But whether you like it not, you are a directional trader as well. What you have created is not a methodology or a strategy. Its a trend indicator. All I'm saying is you should use this technique to place trades on a EURGBP. it gives you a very clear direction. with the guidance of a channel you can see where support and resistance are in respect to the starting trend. It will give you better takeprofit targets, and stop loss levels to protect you from the channel breakout. They do happen.
I simply disagree with you. I considered your argument years ago, then reconsidered it a few months ago, and through much testing and asking questions came to the conclusion that you are wrong.

This thread is not important to me at all, if it dropped into the recycle bin tomorrow I would not be upset. I am only doing this because I found a way to trade that works FOR ME, and I want to share it with others FOR FREE. But I have no interest in keeping this thread going for the sake of keeping it going. If it helps somebody, then I feel good.

Again, I disagree with your statements about directional trading, after having listened to people like you try to convince me otherwise, after studying it inside and out, and having come to a different conclusion.

There is a website (and I forget the URL right now) that is devoted to this subject exclusively. Through their testing, mathematical formulas, etc. and through many years of effort, have determined your statements above to not be true. I agree with them.

So let's let this drop now, but please do feel free to start your own thread and I will subscribe to it, and there you can do any proving that you like.
  • #783
  • Sep 3, 2009 12:00pm Sep 3, 2009 12:00pm
we have a saying - "Different strokes for different blokes". we'll leave it at that.

i'm 10.85 in profit trading your system with 10000$ deals each way. it was 3 hours ago that i got in. how much do i have to wait for a 500$ profit?
  • #784
  • Sep 3, 2009 12:05pm Sep 3, 2009 12:05pm
another question... is there any other indicator in MT4 to show price overlay. the original at the start of a thread, redraws itself to full correlation, even though there was a gap there before
  • #785
  • Sep 3, 2009 12:22pm Sep 3, 2009 12:22pm
Dreamliner, could you share with us what your largest drawdown has been since you started trading this technique in March?
  • #786
  • Edited 2:44pm Sep 3, 2009 12:30pm | Edited 2:44pm
Added second time to this trade:

Attached Image (click to enlarge)
Click to Enlarge Name: chart3.jpg Size: 168 KB


Current open positions:

short GBP/USD x3
long GBP/YPY x3
  • #787
  • Sep 3, 2009 12:43pm Sep 3, 2009 12:43pm
Quoting Petronix
we have a saying - "Different strokes for different blokes". we'll leave it at that.

i'm 10.85 in profit trading your system with 10000$ deals each way. it was 3 hours ago that i got in. how much do i have to wait for a 500$ profit?
Well sometimes it's hours, sometimes days. Market determines profit.
  • #788
  • Sep 3, 2009 12:49pm Sep 3, 2009 12:49pm
Quoting tj_fxtrader
Dreamliner, could you share with us what your largest drawdown has been since you started trading this technique in March?
I haven't kept track, but I remember one that approached 10%, which seemed huge, so that must be the biggest one. I also remember entering that one with a smaller gap and really should have waited until it was bigger.

I've not had drawdowns anywhere near that recently, as I've been able to just "see" the gap needed to enter with not much drawdown.

For instance, the EUR/USD GBP/USD trade we entered last night has had a drawdown for me of nearly 1%.
  • #789
  • Sep 3, 2009 12:58pm Sep 3, 2009 12:58pm
Quoting T.E.Lawrence
Added second time to this trade:

Attachment

Current open positions:

short GBP/USD x3
long GBP/YPY x4

you should have profit now no???
  • #790
  • Sep 3, 2009 1:10pm Sep 3, 2009 1:10pm
Quoting Dreamliner
I haven't kept track, but I remember one that approached 10%, which seemed huge, so that must be the biggest one. I also remember entering that one with a smaller gap and really should have waited until it was bigger.

I've not had drawdowns anywhere near that recently, as I've been able to just "see" the gap needed to enter with not much drawdown.

For instance, the EUR/USD GBP/USD trade we entered last night has had a drawdown for me of nearly 1%.
Thanks Dreamliner. 10% drawdown is small considering how profitable the system has been for you so far.
  • #791
  • Sep 3, 2009 1:11pm Sep 3, 2009 1:11pm
Quoting jtmoore007
you should have profit now no???
Of course, +42.8 pips right now, but the gap isn't closed yet.
  • #792
  • Sep 3, 2009 1:18pm Sep 3, 2009 1:18pm
Ok like I promised yesterday here is a list of positive correlated pairs from mataf.
The correlation goes from around 60 % up to 100%.For example the trade we took yesterday Eur/usd-Eur/JPY was only 63.4% but was a beauty.Thats why i went so low at the %.

Here are the pairs:

GBP/USD-GBP/CHF
GBP/USD-GBP/JPY
GBP/USD-EUR/JPY
EUR/USD-GBP/USD
EUR/USD-EUR JPY
USD/JPY-EUR/JPY
USD/JPY-GBP/CHF
USD/JPY-GBP/JPY
USD/JPY-EUR/CHF
EUR/JPY-EUR/CHF
EUR/JPY-GBP/JPY
EUR/CHF-GBP/CHF
EUR/CHF-GBP/JPY
GBP/CHF-GBP/JPY

Hope that helps

Regards
  • #793
  • Sep 3, 2009 1:20pm Sep 3, 2009 1:20pm
Quoting T.E.Lawrence
Of course, +42.8 pips right now, but the gap isn't closed yet.

GREEDY GREEDY lol
  • #794
  • Sep 3, 2009 1:22pm Sep 3, 2009 1:22pm
just a thought
Attached Image (click to enlarge)
Click to Enlarge Name: Dream 1.png Size: 22 KB
  • #795
  • Sep 3, 2009 1:26pm Sep 3, 2009 1:26pm
Thank you very much! This list should increase our profit dramatically.

By the way, if anyone took the USD/JPY and GBP/JPY trade earlier it looks like its in big profit now.

Quoting thecambist
Ok like I promised yesterday here is a list of positive correlated pairs from mataf.
The correlation goes from around 60 % up to 100%.For example the trade we took yesterday Eur/usd-Eur/JPY was only 63.4% but was a beauty.Thats why i went so low at the %.

Here are the pairs:

GBP/USD-GBP/CHF
GBP/USD-GBP/JPY
GBP/USD-EUR/JPY
EUR/USD-GBP/USD
EUR/USD-EUR JPY
USD/JPY-EUR/JPY
USD/JPY-GBP/CHF
USD/JPY-GBP/JPY
USD/JPY-EUR/CHF
EUR/JPY-EUR/CHF
EUR/JPY-GBP/JPY
EUR/CHF-GBP/CHF
EUR/CHF-GBP/JPY
GBP/CHF-GBP/JPY

Hope that helps

Regards
  • #796
  • Sep 3, 2009 1:26pm Sep 3, 2009 1:26pm
Quoting jtmoore007
just a thought
Not big enough for me. Or if I took it I'd start with small lots.
  • #797
  • Sep 3, 2009 1:33pm Sep 3, 2009 1:33pm
Quoting Dreamliner
Thank you very much! This list should increase our profit dramatically.

By the way, if anyone took the USD/JPY and GBP/JPY trade earlier it looks like its in big profit now.

that trade would have been great.
might jump in
  • #798
  • Sep 3, 2009 1:52pm Sep 3, 2009 1:52pm
Quoting jtmoore007
just a thought
What chart package do you have there JT?
  • #799
  • Sep 3, 2009 2:04pm Sep 3, 2009 2:04pm
Dreamliner
Would it be possible for you to put your template of current setup you are using on post 1 as all the different indicators on this thread things are getting a bit confusing

Many Thanks
Geoff
  • #800
  • Sep 3, 2009 2:20pm Sep 3, 2009 2:20pm
Quoting Porkpie
What chart package do you have there JT?
Trade with ibfx but use marketscope thru fxcm for overlay. Links posted on I think page 43 or 44 by Jeffery. I would copy and paste but I'm on way home
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