Netsrac Correlation Trade Indicator
End of year sale: The EA is available until the end of December for the price of $34 instead of $49. All future updates included.
Netsrac Correlation Trade Indicator (NCTI) is a very powerful tool to trade positive and negative correlated currency pairs and a perfect addition to the Netsrac Correlation Trader (NCT).
NCTI can do the following things:
- Shows the correlation between two assets
- Shows the value of -disbalance- between these assets
- Gives an alert, if configured thresholds for -disbalance- are broken
- Gives you a suggestion for trade directions
- Can be used to calibrate the NCT-EA
You can use the indicator with every timeframe. Higher timeframes give fewer but better signals.
If you have some questions or suggestions - please feel free to contact me. To better understand the principle behind the indicator, please read the blog entry at https://www.mql5.com/en/blogs/post/726798. While this blog refers to my Correlation Trader EA, the principle is of course the same.
This indicator can't be backtested, because it calculates two different currency pairs. To look, if the indicator suite your needs, use the free version of this indicator.
How to use the indicator (Short explainer)
1. Search for correlated pairs (you can do that easily with my Correlation
Dashboard or with some Internet correlation tools (eg myFXbook) - see some examples for correlations below
2. Install the indicator on the chart of the first correlated pair
3. Add the second correlated pair in the options of the indicator (Option "2nd Symbol to calculate correlation ...")
4. Configure Alerts
5. Wait for signals from the indicator - if the indicator suggest a trade, look for good entrys and do the trade ...
Examples for positive correlated pairs: AUDCAD-AUDJPY, AUDJPY-EURJPY, GBPCAD-GBPJPY, NZDCAD-NZDJPY, XAUUSD-XAGUSD [for use with the free
version: AUDJPY-NZDCHF, NZDCAD-NZDCHF]
Examples for negative correlated pairs: AUDJPY-EURAUD, EURGBP-GBPJPY, EURNZD-NZDUSD [for use with the free version: EURNZD-NZDCHF]