Interesting
and your TF is only M5 ?
and your TF is only M5 ?
Hedge and Correlation Strategy
- #3,765
- Mar 5, 2012 1:56am Mar 5, 2012 1:56am
- Joined Jan 2011 | Status: dump and pump | 4,055 Posts
All posts are my personal opinion
- #3,772
- Edited 2:08pm Mar 8, 2012 1:56pm | Edited 2:08pm
For your attention new indicator developed based on Chaikin's indicator.
You have to know there was published two versions of Chaikin's indicator - one of them there was made by Reshetov (incorrect) and other by Rosh - correct version. Here is used correct version, created by Rosh.
As you know Two pair's indicator based on Stochastic never reflect real price movement, especially if price reach 95% and more and 5% and less.
This indicator allow us to see real price movement and real divergence between pairs.
Look at picture 117.
There are four vertical lines with numbers 1-4. When we will look on Stochastic indicator we will see indicator fluctuation 95%-100% and anywhere between line 1 and 4 we can enter market.
Chaikin's two pair indicator show for us divergence growing and prevent us from DD.
When Stochastic (vertical line 2) show for us fake convergence which in future will be converted into divergence, Chaikin's indicator show us that divergence will continue. If we are not ready to keep DD, we can close deal here and prevent them.
As you can guess we have enter market at line 4, when we can observe stable decrease pairs difference.
Picture 118. Crosses of lines of Chaikin's two Pairs Oscillator predict for us Divergence.
Two indicators have to be in your indicator's folder of MT4 which are attached.
Place to your chart one indicator only -> CHO different Pairs 1.0.mq4
You can play with settings and can obtain other interesting results and share with us.
Good luck in trading !!!
You have to know there was published two versions of Chaikin's indicator - one of them there was made by Reshetov (incorrect) and other by Rosh - correct version. Here is used correct version, created by Rosh.
As you know Two pair's indicator based on Stochastic never reflect real price movement, especially if price reach 95% and more and 5% and less.
This indicator allow us to see real price movement and real divergence between pairs.
Look at picture 117.
There are four vertical lines with numbers 1-4. When we will look on Stochastic indicator we will see indicator fluctuation 95%-100% and anywhere between line 1 and 4 we can enter market.
Chaikin's two pair indicator show for us divergence growing and prevent us from DD.
When Stochastic (vertical line 2) show for us fake convergence which in future will be converted into divergence, Chaikin's indicator show us that divergence will continue. If we are not ready to keep DD, we can close deal here and prevent them.
As you can guess we have enter market at line 4, when we can observe stable decrease pairs difference.
Picture 118. Crosses of lines of Chaikin's two Pairs Oscillator predict for us Divergence.
Two indicators have to be in your indicator's folder of MT4 which are attached.
Place to your chart one indicator only -> CHO different Pairs 1.0.mq4
You can play with settings and can obtain other interesting results and share with us.
Good luck in trading !!!
- #3,779
- Edited 10:50pm Mar 13, 2012 10:40pm | Edited 10:50pm
Thread was focused on correlation, diff stoch and diff in prices; the main problem instead is DD; an cho indi is working fine but need to be managed.
Indicator Pair Diff in Pips provide us absolutely correct value of difference between correlated pairs.
Technique of trading described in this thread has limited possibilities and cannot eliminate DD. Any theory has her limits, unfortunately.
To trade without DD or with "cosmetic" DD only, you have invent absolutely different approach of hedging based on some additional market investigations and some additional trading tools. You MUST do what is prohibited here in this thread, but without negative trading outcomes, automatically creating some risk insurance sources during trading period. Unfortunately we live in concurrent World and I have very great hesitation that somebody will share it for general public.
Trading without DD allow to have 10%-30% from investment per day (and it is not limit !!!) net income based on my practice...
To obtain such results your trading technique and strategy have to be three times complex.
In thread like this you can expect only basic approaches, ideas and strategies and nothing which drastically will change your life
Good luck