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Correlation style traiding

  • #21
  • Jul 16, 2016 6:08am Jul 16, 2016 6:08am
Nor here,
The 3 pairs rule works like a filter
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  • #22
  • Jul 16, 2016 6:16am Jul 16, 2016 6:16am
and this
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  • #23
  • Jul 16, 2016 10:55am Jul 16, 2016 10:55am
Quoting fskliris
thorn please see this , in this case there is no entry in all pairs. {image}
Hi Fskliris,

I think you misunderstood my point. Your trade set up and trigger are fine, they do something similar in the Yen Trader thread and it works well in certain conditions. Please read my post again carefully and calculate. Its about exposure. If you are not sure what exposure is, please read up on it. Trading those 3 pairs in the same direction, at the same time, will in essence just be trading a double position of GBP/JPY. So why trade all 3 and pay much more spread?
  • #24
  • Jul 16, 2016 11:25am Jul 16, 2016 11:25am
Quoting fskliris
and this {image}
looks awesome,can you make a EA?
  • #25
  • Jul 16, 2016 12:41pm Jul 16, 2016 12:41pm
Yes Τhorn but if you split ypur bet i think the losses will be smaller if something goes wrong .
any way i will try to test it next week with out stoploss and take profit .
If somebody can do the same test with stoloss and take profit it would be nice to see .
I can make Ea . If i whant to do this i just pay for the coder
  • #26
  • Jul 16, 2016 7:01pm Jul 16, 2016 7:01pm
Quoting wanghaiyang
{quote} looks awesome,can you make a EA?
You can find the EA on YEN TRADER THREAD
started by abokwaik

Regards

Dan
  • #27
  • Jul 16, 2016 7:30pm Jul 16, 2016 7:30pm
Quoting thorn
{quote} Yup..multiplied by 2. Plus 3x the spread. People really need to think these things out. Buy GBP/USD (long GBP/Short USD) Buy USD/JPY (long USD/Short JPY) Buy GBP/JPY )Long GBP/Short JPY) The USD short and long cancel each other out, now you are left with 2 long GBP 2 Short JPY. So you are buying GBP/JPY x2.
This sounds correct. We should long GBPUSD and USDJPY and short GBPJPY in order to hedge correctly. I like this strategy.
  • #28
  • Jul 16, 2016 9:56pm Jul 16, 2016 9:56pm
Well, correlation some times works.
fooled by randomness in art
Meditation All Time Return: 8.9%
  • #29
  • Jul 16, 2016 11:49pm Jul 16, 2016 11:49pm
Well, YEN TRADER strategy is not the same with this one.
Any way the test will show its potentials
  • #30
  • Jul 18, 2016 8:10am Jul 18, 2016 8:10am
I came late from work and i lost this beautiful setup!!!
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  • #31
  • Jul 18, 2016 8:15am Jul 18, 2016 8:15am
Thanks fskliris for sharing your idea, do you use some EA to open a trade on that 3 pairs at the same time or you are doing it manually?
  • #32
  • Jul 18, 2016 8:22am Jul 18, 2016 8:22am
manually ,
  • #33
  • Jul 18, 2016 11:36am Jul 18, 2016 11:36am
Quoting fskliris
manually ,
hi fskliris, thanks for your ideas.
is your trade explorer strictly following the rules in post 1 - or you have also included price actions (your experience/gut feeling) in these trades?

Thanks.
  • #34
  • Edited 12:06pm Jul 18, 2016 11:45am | Edited 12:06pm
The basic idea is in post one .
From now on its up to you people to find and tell more ideas , problemes solutions to fix them .
As you can see the system has no stoploss and no take profit .
I am hoping to fix it together otherwise the system is doomed to fail.
I am hoping that people will give more ideas about other pairs to correlate, additionals rules but i dont see that happen.
Anyway the big picture to this odea is to find correlative pairs that if all together move to the same direcion then something happens to the same direction or to the opposit one in the next candle
. For examble lets say that the 3 pairs USD JPY GBPJPY USD JPY move together for long , as green candles maybe the EURUSD (for example ) moves the same way in the next candle .
Money goes in one direction for these 3 pair inticates that money will get in a specific direction in another pair .
Did you get it?
I think that the way to check it is fix excel files put all prices and see what has happened in the past . I think its the only way . For now i dont have time to check this my sefl.
  • #35
  • Jul 18, 2016 4:41pm Jul 18, 2016 4:41pm
Quoting fskliris
The basic idea is in post one . From now on its up to you people to find and tell more ideas , problemes solutions to fix them . As you can see the system has no stoploss and no take profit . I am hoping to fix it together otherwise the system is doomed to fail. I am hoping that people will give more ideas about other pairs to correlate, additionals rules but i dont see that happen. Anyway the big picture to this odea is to find correlative pairs that if all together move to the same direcion then something happens to the same direction or to the...
I think I get the idea why you open all three in the same direction.
I made an EA which gave me the following conclusions:
- MA(10) or any other period/timeframe has no effect. Just less trades.
- As the pairs are correlated, my intuition is that we can use a fixed TP: Because their price move together, the sum of their profit/loss makes somekind of non-trending oscillation. TP between 50 & 60 worked well for EURSEK,GBPNZD,HKDJPY,AUDNZD,NZDCAD,CADJPY,EURNZD,NZDSGD,EURNOK. All crossed by USD or CHF. I didn't try JPY because my spread is too big. Anyway I don't like the results, I explain below.
- If the 3 pairs win, they win in the same candle or the very next one. Never later than 4th candle.
- It is useless to close the positions if they last more because the loss is so big it wipes the account.
- Losing positions are quite rare, although huge. SL:TP ratio is 40:1 which makes the strategy useless, even with a martingale. Imagine multiplying your lot by 4 for the next 10 positions.

My conclusion is that the losing positions must be examined closely in order to find a filter that works. I tried to not trade during the news, it ameliorates the results but this is not enough.
So if you have any clue to research further that would be great. ATR maybe or overbought/oversold?

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  • #36
  • Jul 18, 2016 9:38pm Jul 18, 2016 9:38pm
Quoting fredix
{quote} I think I get the idea why you open all three in the same direction. I made an EA which gave me the following conclusions: - MA(10) or any other period/timeframe has no effect. Just less trades. - As the pairs are correlated, my intuition is that we can use a fixed TP: Because their price move together, the sum of their profit/loss makes somekind of non-trending oscillation. TP between 50 & 60 worked well for EURSEK,GBPNZD,HKDJPY,AUDNZD,NZDCAD,CADJPY,EURNZD,NZDSGD,EURNOK. All crossed by USD or CHF. I didn't try JPY because my spread is too...
hi,fredix,thanks for your ea.
is it a mql5 ea?
  • #37
  • Jul 19, 2016 3:17am Jul 19, 2016 3:17am
Yes its mql5.
Considering what you want to do with the 4th pair, mt4 won't do. The idea is to move this EA to an indicator for buy/sell signals, which could be used on any pair. The option "all symbols" of mt5 will be useful to tell us which pair works.
  • #38
  • Jul 19, 2016 3:35am Jul 19, 2016 3:35am
Quoting fredix
Yes its mql5. Considering what you want to do with the 4th pair, mt4 won't do. The idea is to move this EA to an indicator for buy/sell signals, which could be used on any pair. The option "all symbols" of mt5 will be useful to tell us which pair works.
hi fredix
is this a indicator or EA?
can we backtest it?
  • #39
  • Jul 19, 2016 4:02am Jul 19, 2016 4:02am
This is an EA, of course can be backtested. Use the .set on GBPUSD M1 for a start.
  • #40
  • Jul 19, 2016 6:34am Jul 19, 2016 6:34am
This method doesnt works:

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