Negative correlation Trading system - page 2

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daytradingfulltime:
No thanks I am not using this EA and don't have any intention of paying for one at this point unless I found on that was a perfect fit for this strategy.

That is OK. Freedom of choise.

Bingo

 

Trading update

prospector48:
Day,

Now that you have been testing it for almost a month, what have you discovered?

Don't get discouraged - it takes a lot of work to work up a good system and tweek it.;)

Prospector48

Doing well here are my results at the end of this week.[/ATTACH][/ATTACH]

 

thank you.

 

I have been testing this same idea with overlays,

I still working on it but there is big problems,

this is what I have found out so far,

1. you can never tell for sure where the crossings are

because the overlay change when you zoom in and out,

so there is no way we can say for sure where that crossing is,

and for what I been told it's impossible to create such indicator that is fixed

and therefore this makes buying and selling at the crossings very unsure

because we don't know where they are exactly,

2. if we buy sell on gaps,

we don't know where it will turn,

this is the biggest problem because if you enter a position

in the believe that the currencys will come together,

because the MA's are doing so,

they can instead suddenly turn away from eachother tousands of pips.

and you can get a margin call.

but Im sure you already know this by now,

I tried all kinds of indicators but so far none have been able to indicate the turn,

this system could make a lot of money if we can figure it out,

if you have any ideas how we could further develope some sort of indicator

it would be worth a serious try, feel free to PM me

 

i also using this system and the win to loss ratio is quite good..

only loss twice within a month and still make a lot of profit..

im using TF 15..and OP when the gap between the price is >140...

if the trade is against me,i will put 2nd order 70 pips from the first one..

SL is 50 pips from 2nd order..

TP is when the gap is close..

 

I observed certain thing, most currency take about 90min to readjust itself, if it reject a big needle on 1 x 30 min bar

correlation -- from the last 2 replies, it seem that you got 1 presumption

-- i.e. either USD big move

or EURO big move

so that say, if AUS move a lot, because USD weaken

then later, maybe CAD or CHF move a lot too -- with a TIME LAG -- I think it is what you mean by GAP

---- major currency got casino fun, have you thought about play with cross-currency

and it also rely on how your brain work (what you believe in, what pattern that you feel comfy)

--- the way, I see correlation is quite different from you or other people and even there is number to try to quantify relationship, but still need some practice to acquire knowledge on correlation-ship

 

2 pairs you may consider are GBPEUR and EURGBP availabe on CitiFX MT4.

 

What is the opinion of brokers about correlation trading?

I read a thread on another foruml where a trader has been accused of cheating because he was using some kind of correlation between time frames.

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