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Correlation trading

  • #21
  • Dec 20, 2009 5:55am Dec 20, 2009 5:55am
Hi Middleastern,


I was surprised to see your system as i am working on something same. I do not look any other pair i just trade GBP/JPY while i watch both USD/JPY and GBP/USD. The movement of GBP/JPY is the most important key in this system. It moves very fast and you are in out so quick. i will upload my system soon once i get time enough.
Keep it up.
member
  • #22
  • Dec 20, 2009 10:57am Dec 20, 2009 10:57am
I have often wondered about a similar system and did build a spreadsheet once to show the movement from the days opening 00:00 for all pairs. My thought was that if you see the JPY moving down against all the other pairs then that would be a run on the JPY and vica versa. Similarly if that happened to teh USD or GBP that woul dbe a run etc on that currency. My only problem is how to measure th emovement. e.g. a trend indicator like MA or DMI and over what period? Not much diffenet to all the other problems ther are. I havbe programmed an EA which will give a single data for all pairs on a single screen and I have some of thi sbuilt. anyone with any ideas I would be prepared to share what I already have.
  • #23
  • Dec 20, 2009 5:53pm Dec 20, 2009 5:53pm
hi stevecartwright

intresting what you tell here. if you look for the person i think the name was parisienne...he told something similar...

Hedginghog

hi before you speak about complication you should realize what you are talking about and its also starange that people than start to apologize...this thing here has nothing to do with complicating things..it hast to do with understanding.
GBp/JPY is a cross pair...which base on the movement of GBP and Jpy and there movements compared to the USD. I wont you explain now how this works becausse people who understand much better than me did this here on FF. But if you dont believe open an EURJPY 1 minute chart. and look at the movement of EURUSD and USDJPY and then you can see. If you want to understand why EURJPY move or stop look at base currencie pairs and
you will find an answer. Thats the theme here. So before you talk try to understand whats it about.

regards lodol
  • #24
  • Dec 22, 2009 11:46am Dec 22, 2009 11:46am
I am not really interested in your views I was just posting some of my thoughts. I'll not bother goodbye.

Quoting lodol2
hi stevecartwright

intresting what you tell here. if you look for the person i think the name was parisienne...he told something similar...

Hedginghog

hi before you speak about complication you should realize what you are talking about and its also starange that people than start to apologize...this thing here has nothing to do with complicating things..it hast to do with understanding.
GBp/JPY is a cross pair...which base on the movement of GBP and Jpy and there movements compared to the USD. I wont you explain now how this works becausse...
  • #25
  • Dec 22, 2009 11:49am Dec 22, 2009 11:49am
Quoting bigmanin
Hi Middleastern,


I was surprised to see your system as i am working on something same. I do not look any other pair i just trade GBP/JPY while i watch both USD/JPY and GBP/USD. The movement of GBP/JPY is the most important key in this system. It moves very fast and you are in out so quick. i will upload my system soon once i get time enough.
Keep it up.
Bigmanin, we'd like to see your system. Can you upload it soon?
  • #26
  • Dec 22, 2009 11:56am Dec 22, 2009 11:56am
This is by no means "more simple", it is extremely hard. I used to trade this way but no longer do.

The reason it is hard is because if you look at the 8 hour chart right now you will see that it is clearly showing you need to Buy EUR/USD and Sell GBP/USD. You can change the timeframes around and you will get different buy/sell signals. Which do you use?

This method, in the long-run, I do not believe will be profitable.


Quoting errich fx
I use correlation too for my system, but mine is more simple,
ex. in this weekly chart (gbp attached with eur), you can see which pair good for sell and which pair good for buy

Attachment

-----------

channel patterns
  • #27
  • Dec 22, 2009 4:00pm Dec 22, 2009 4:00pm
hi stevecartwright

if you could read only my first sentence was for you and the other sentences are for
Hedginghog


regards
  • #28
  • Dec 22, 2009 4:43pm Dec 22, 2009 4:43pm
Quoting SteveHopwood
This sent me checking the code and I spotted some mistakes.

I have added an alert at the start of each new candle. It shows: the two correlation pairs; the minimum candle length adapted to the digits in the quote; the previous candle length; the candle length previous to that. I will remove the alert as soon as we know everything is working as it should.

The robot will do nothing whilst the broker is closed, but you can force it to display an alert by opening the robot for modifying, going to init(), and removing the comment symbols from these...
Hi Steve,
It seems that the newest version works as it should, and these last couple of days of forward testing showed an interesting behavior I didnīt quite expected.

When the set-up is in place, the EA opens a trade with fixed SL and TP. TP is hit, the position is closed, but if the rally keeps going on and the counter-correlation setting remains in place, the EA then opens another trade in the immediately following bar, and so on with the following bars. What happened is that at a certain point gbpjpy retraced, so the last trade was a loser. Sometimes it was the second trade, sometimes the third. Beyond the losses of the last losing trade, we are also paying spread every time a new trade is opened; in the case of gbpjpy it is 5 to 7 pips each, depending on the bloodsucking crook.
I think a trailing stop is the solution for this. It would save us the spread of all trades beyond the first one, and if we catch a nice wave it will hopefully let us squeeze a nice amount of pips before the first retracement.

By the way, Merry Christmas to you all...
  • #29
  • Dec 22, 2009 5:40pm Dec 22, 2009 5:40pm
Quoting Middleastern
When the set-up is in place, the EA opens a trade with fixed SL and TP. TP is hit, the position is closed, but if the rally keeps going on and the counter-correlation setting remains in place, the EA then opens another trade in the immediately following bar, and so on with the following bars. What happened is that at a certain point gbpjpy retraced, so the last trade was a loser.
I think a trailing stop is the solution for this. It would save us the spread of all trades beyond the first one, and if we catch a nice wave it will hopefully let us...
I have experienced the same and was waiting for you to comment. This is one of the ways I have of gauging whether an individual has any real interest in what I am coding. You would be stunned to learn how many people have contacted me privately about coding an ea, then given no further feedback once I have coded it.

Thinking about it, the scenario we have both experienced is inevitable. If the conditions for trading are correct, then the robot will enter a trade. It matters not a jot whether a previously successful trade closes through hitting its tp or retracing to a trailing stop.

So, you need to think about how you want the robot to behave after a trade closes. Take your time; after tomorrow I shall not be coding again until Jan 4th.

  • #30
  • Dec 23, 2009 12:28pm Dec 23, 2009 12:28pm
Quoting SteveHopwood
I have experienced the same and was waiting for you to comment. This is one of the ways I have of gauging whether an individual has any real interest in what I am coding. You would be stunned to learn how many people have contacted me privately about coding an ea, then given no further feedback once I have coded it.

Thinking about it, the scenario we have both experienced is inevitable. If the conditions for trading are correct, then the robot will enter a trade. It matters not a jot whether a previously successful trade closes through hitting...
Iīll sleep on it. Enjoy your holidays, although it seems that youīre enduring an icy end-of-year in Europe. Take care, and happy holidays
  • #31
  • Dec 27, 2009 1:57pm Dec 27, 2009 1:57pm
Hi All

At the first big apologize for my stupid question but I can't find way to success self .

I have downloaded file "Middleastern GBPJPY correlation trading robot.mq4" prepared by SteveHopwood. I have opened MetaTradey and try add this strategy to chart. Unfortunately it isn't possible . It likes how strategy is unactive . What should I do to add EA to chart?


Thank You for advise.
  • #32
  • Dec 31, 2009 9:04am Dec 31, 2009 9:04am
Quoting SteveHopwood
I have experienced the same and was waiting for you to comment. This is one of the ways I have of gauging whether an individual has any real interest in what I am coding. You would be stunned to learn how many people have contacted me privately about coding an ea, then given no further feedback once I have coded it.

Thinking about it, the scenario we have both experienced is inevitable. If the conditions for trading are correct, then the robot will enter a trade. It matters not a jot whether a previously successful trade closes through hitting...
HI Steve,
Well, I have a few modifications to the EA, based on how it behaved these last days. These are two new conditions for opening a trade:

1. The last trade was closed at least 4 bars before.
2. The absolute value of openprice - closeprice of the last bar is higher than 5 pips (in addition to the current minimum high-low range of 10 pips)

If you donīt mind, please add a trailing stop option as well.

On another matter, in many occasions (I detected 5 or 6 times) the EA failed to open trades despite the conditions were met. It didnīt send any order at all. I cannot read code to try and identify why this happened, so if you wouldnīt mind checking it...

Hope this is not too big a hassle for you. Have a happy new year.
  • #33
  • Dec 31, 2009 1:00pm Dec 31, 2009 1:00pm
Quoting Middleastern
On another matter, in many occasions (I detected 5 or 6 times) the EA failed to open trades despite the conditions were met. It didnīt send any order at all. I cannot read code to try and identify why this happened, so if you wouldnīt mind checking it...

Hope this is not too big a hassle for you. Have a happy new year.
For reasons best know to my deepest, darkest inner-psyche, I coded the robot to check the previous 2 candles, not simply the previous 1. Who knows where I got this idea from?

I spotted this a few minutes ago. I had another look at the code because there is no point in adding the other stuff until the basics are correct.

Try the attached on Monday; if it sends the trades correctly, I shall add the enhancements you detailed earlier.

Cheers

Attached File(s)
File Type: mq4 Middleastern GBPJPY correlation trading robot.mq4   10 KB | 474 downloads
  • #34
  • Dec 31, 2009 1:48pm Dec 31, 2009 1:48pm
Quoting SteveHopwood
For reasons best know to my deepest, darkest inner-psyche, I coded the robot to check the previous 2 candles, not simply the previous 1. Who knows where I got this idea from?

I spotted this a few minutes ago. I had another look at the code because there is no point in adding the other stuff until the basics are correct.

Try the attached on Monday; if it sends the trades correctly, I shall add the enhancements you detailed earlier.

Cheers

Will test it this Monday. I noticed that you put the values of 2 candles on the alert, but just thought it would make it easier for you to spot bugs. Anyway, Iīll let you know how it goes.

Sometimes I find myself smiling while reading your writing; very British, I must say. Werenīt you one of "Yes, Minister" scriptwriters, by any means? ..."darkest, deepest inner-psyche"... oh my...
  • #35
  • Dec 31, 2009 2:27pm Dec 31, 2009 2:27pm
wanna be tracking along and testing with Middleastern, Steve, and company.

Ron
  • #36
  • Dec 31, 2009 8:37pm Dec 31, 2009 8:37pm
Quoting Middleastern
Sometimes I find myself smiling while reading your writing; very British, I must say. Werenīt you one of "Yes, Minister" scriptwriters, by any means? ..."darkest, deepest inner-psyche"... oh my...
Hehe. No. I just have a similar sense of humour to the writers of this series.

My humour reflects my life. I suspect the writers of YM did also. People often tell me I should write books because they would be funny.

The differences between myself and genuinely funny writers are these: my humour arises from situations in which I find myself and then is forgotten; their humour arises in the same wqy but is remembered and reproduced; their writing is funny every time, mine is only funny occasionally.

Sounds like the difference between me and successful traders. Maybe if I can master one, I can master the other. Hey ho. I will keep on trying.

  • #37
  • Jan 2, 2010 11:06am Jan 2, 2010 11:06am
Quoting Middleastern
HI Steve,
Well, I have a few modifications to the EA, based on how it behaved these last days. These are two new conditions for opening a trade:

1. The last trade was closed at least 4 bars before.
2. The absolute value of openprice - closeprice of the last bar is higher than 5 pips (in addition to the current minimum high-low range of 10 pips)

If you donīt mind, please add a trailing stop option as well.
I was in the mood for a bit of gentle coding earlier, so I have added the features you wanted. I assume you are familiar with my coding style and understand the inputs.

Anybody unfamiliar with my style needs to follow my signature link to multi-purpose-trading-manager and download the instructions manual.

I can't believe there will be no bugs, so sing out as they emerge on Monday.

Attached File(s)
File Type: mq4 Middleastern GBPJPY correlation trading robot.mq4   29 KB | 511 downloads
  • #38
  • Jan 2, 2010 11:44am Jan 2, 2010 11:44am
Can somebody who is familiar with EAs test this and provide the results for us? Thank you in advance.
  • #39
  • Jan 2, 2010 11:49am Jan 2, 2010 11:49am
Quoting Dreamliner
Can somebody who is familiar with EAs test this and provide the results for us? Thank you in advance.
Naaaah. We thought we would leave it kicking around in the experts folder.
  • #40
  • Jan 2, 2010 11:52am Jan 2, 2010 11:52am
Quoting SteveHopwood
Naaaah. We thought we would leave it kicking around in the experts folder.
You'd be surprised how many people do exactly that, or they test it and don't provide their results publicly.
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