Is This Possible in Metatrader?

sorry its not the best and its kinda unclear but the 2 oscillators u see are correlation indicators. different periods. when theyr high up means correlation is positive and where it should be since im using usd/chf and usd/jpy and they are positively correlated. when it dips means correlation is less positive and the more it dips the better the entry. since we cant predict the future, what i do is use smaller positions sizes and enter on a decent dip. if it dips more against me then i enter another position. usually correlation never goes below -0.20 and thats big because the average for that pair is +0.84 means they move in the same direction most of the time. so a -0.20 means theyr starting to move opposite a bit. and thats what makes a really good entry.

when the correlation is big, we sell the upticker or the overperformer or the one thats higher on the chart and we buy the one thats underperforming or the other pair

u visually test it and see what u can find. enter when the correlation dips and exit when it goes back to normal or when u see profit. its really interesting

like i said if i can get a few people who would be interested in following a journal that i would make then id go for it. ill post entries/signals as time permits and as i see em comin.

the picture turned out crappy im not good with this posting picture stuff with a different charting software than metatrader but u should be able to see it

boxingislife,
You mention that "the 2 oscillators u see are correlation indicators" could you please elaborate on these. Are they FXSOL charting tools? do you know the calculations in order to program them into MT4?

For any other programmers---- is there a way to have an EA execute a trade on a different currency pair than the chart its attached to. In Boxingislife's example of receiving a entry signal from a divergence in correlation requires a buy of one pair and a sell of the other. Can I program just one EA or do I need to program two and run them simultaneously?

Thanks for the help.

yes its a new charting software available to fxsol clients.
i dont know the calculations but i know theres a way to edit the indicators. im not familiar with it so i have to look at the help docs and see what i can find. otherwise i know the correlation function isnt complicated and i think a search on google u can find it or wikipedia.org. and then do a search for correlation.

the one thing that might make this difficult to autotrade is that u gotta use the right correlation to make some pips. sometimes the correlation only dips a bit maybe from +0.84 to 0.60 and that could constitute an entry but chances are the spread will kill the profit. im not sure whats a good correlation level for entries but anything at 0.40 and lower would make a good entry and good profit. another way of doing this is the ea opening a position at 0.60 and then another at 0.40 or 0.20 to average down and a bigger position at -0.20 which would be a perfect entry and bring alot of pips in.

i forgot to elaborate on the indicator.
it measures correlation so if we use usdjpy and usdchf theyr very positively correlated. average around +0.80 i think

so +0.80 is where they need to be. but we can take advantage of the correlation and make profit. i simply just sell the over performer and buy the underperformer when the correlation dips to 0.30-40 and lower. the lower it gets the better but since we cant predict the future i simply enter small positions as it dips. once it dips to the negative area i enter a bigger position. nature of correlation is that it always comes back to its average. while the correlation exists im takin advantage of it

im testin in it out im gonna see how it works out. so far its been very consistent and profitable. but im still lookin for a correlation number where i can enter and at least come out 5-10 pips ahead. if the correlation doesnt dip enough and we enter, then were lucky if we get out at break even. so theres a correlation number prob around 0.40 where we can enter and come out at break even or a bit more. the lower the more profit we make

Boxingislife,

I for one would LOVE to see your results from your correlation trading. It would be great to get an idea of possible returns possible if you have the time.

I think you're right about scaling into the positions. That's the only way I enter any position is to scale in. With this method it will give you a lot of leeway if you enter your correlation trades too early.

I have an FXSol account I never closed, so I'll check out the Accucharts feature. I'm hoping we could develop something for Metatrader because this strategy would be perfect to capitalize on small price differences as they occur which may be hard to do manually; especially if attempting to trade this intraday.

Do you trade this intraday, or do you usually have to wait longer for divergences to develop?

i agree. the next step is to program it. as for now im working on finding the perfect ratio to enter and position size and all this stuff.

i found that trading anything lower than 15 or 30 min could be misleading even with correlation dipping alot. so im working on 15 min charts if that doesnt provide much profit ill move to 30 min and 1h which im sure woulld work. the spread is what kills any profit on lower time frames.

im posting in my journal some entries except not that much coz im still not sure on alot of things. but working on all of that

feel free to pm me or email me id like to stay in touch since u were the one to start this whole thread

Cool... I'm also a bit busy at the moment, but I'll stay in touch as I continue to work on this. I know the correlation method works consistently very well, I'm just trying to gauge whether it is the most efficient way to generate profits. That's why I look forward to your journal.