Correlation trading - no charts required

[locle]

have EA would like to give you to test, but i do not know how to attach th file, please help

[begu]

Originally Posted by PIP CHASER

Ex: 1st entry long @ 1.5500, market moves -200 pips, open new long @ 1.5300, now average the 2 postions (1.5500+1.5300=1.5400), set take profit @ this level to close all positions, if pair continues moving down then average in again @ 1.5200 (1.5400-.0200=1.5200). So now you have a long @ 1.5500, 1.5300, 1.5200 (average is 1.5500+1.5300+1.5200=4.6/3=1.5333), set your take profit on these 3 positions @ 1.5333. You are looking to break even if the pair moves against your 1st position. While this is happening the other pair will normally be hitting their take profit level building you account balance. Hope this didn't confuse you.

hello PIP CHASER

Thanks for this very promising system and your work here but can you help me , i`m a little confused ...did you mean EVERY new entry to entry with BOTH currencies (eur/usd AND usd/chf) ?? i have understand to first open both currencies long ?
i`m correct in your example we had open 3 x eur/usd AND 3 x usd/chf (6 open trades ??)

thanks and sorry for my bad english ..

best regards and thanks for help

guenther

[PIP CHASER]

begu,

Take a look at the pic of my 2 open trades and 4 trades in the queue. Notice buy stop and buy limit levels relative to the open trades. Hopefully a visual will help you out.

PC

[ldinatale]

Originally Posted by PIP CHASER

begu,

Take a look at the pic of my 2 open trades and 4 trades in the queue. Notice buy stop and buy limit levels relative to the open trades. Hopefully a visual will help you out.

PC

Hello PIP CHASER,

just a question: when one pair (for example EURUSD) reached has average TP you close all opened positions (EURUSD + USDCHF) or only averaged trades (all EURUSD)?

Thanks.
Luca

[ldinatale]

PIP CHASER,

what do you think about differents levels of TP and SL, for example 50 pips of TP and 100 pips of Recovery Loss? I am trying to develop an expert advisor for this strategy. In backtest this strategy provides very good results but i need more details to automate the process....

[daydreamer65]

Originally Posted by PIP CHASER

This is a correlation trading system that assumes we don’t know where price is going. It uses two currency pairs (EUR/USD and USD/CHF) that only trades long positions (no shorts). The system doesn’t use Technical Analysis. It's all about money management and collecting swap interest.

Rules:

1) Use small equal position size dependent on your personal risk (currently testing a $5000 trading account using .1 lot for each position taken).

2) Enter a long for both pairs.

3) Enter a 100 pip take profit for both pairs based on rule #2.

4) Enter buy stop for both pairs at the take profit level based on rule #3 with a 100 pip take profit.

5) For the losing pair, position average (based on all open positions) using buy limits every 200 pips with a take profit set to break even for all averaged positions. Reset buy stop at this price level with a 100 pip stop loss.


Let me know if you have any questions. I don’t have any drawdown answers for long term at this time. I will post account transactions later tonight.

Will be interesting to see where this system leads, always
intrigued by correlations, both positive & negative, as a form
of hedging.

The problem any systems like these have is that they will do well when the market is trending in your direction or generally moving sideways

Sideways will probably see the best results, but as the 2 pairs are
-0.96 diametrically opposite a profit can be made from the trend
as well.

[PIP CHASER]

Update: Closed all averaged positions (4) on EUR/USD. Currently have 1 position in each pair open.

Profit: ~$480 since 04/29
Open drawdown: ~-$100

[daydreamer65]

Originally Posted by PIP CHASER

Update: Closed all averaged positions (4) on EUR/USD. Currently have 1 position in each pair open.

Profit: ~$480 since 04/29
Open drawdown: ~-$100

Well done pipchaser, hope you don't mind I have attached my
results since yesterday.

profit = +243 pips (that's in my account)

Open drawdown = - 106 pips approx.

[toddanderson]

What are you looking at for entry of the hedge ?
when and how are you looking at to decide on entry

Thank you

Originally Posted by PIP CHASER

This is a correlation trading system that assumes we don’t know where price is going. It uses two currency pairs (EUR/USD and USD/CHF) that only trades long positions (no shorts). The system doesn’t use Technical Analysis. It's all about money management and collecting swap interest.

Rules:

1) Use small equal position size dependent on your personal risk (currently testing a $5000 trading account using .1 lot for each position taken).

2) Enter a long for both pairs.

3) Enter a 100 pip take profit for both pairs based on rule #2.

4) Enter buy stop for both pairs at the take profit level based on rule #3 with a 100 pip take profit.

5) For the losing pair, position average (based on all open positions) using buy limits every 200 pips with a take profit set to break even for all averaged positions. Reset buy stop at this price level with a 100 pip stop loss.


Let me know if you have any questions. I don’t have any drawdown answers for long term at this time. I will post account transactions later tonight.

[daydreamer65]

Originally Posted by toddanderson

What are you looking at for entry of the hedge ?
when and how are you looking at to decide on entry

Thank you

correlation trading system that assumes we don’t know where price is going.

The answer is in the 1st line.