I was referring more to the majority of your other posts…occasionaly you contribute something consrtuctive and i appreciate that. this method of trading doesn’t utilize that “must understand” point, so really, it doesn’t influence anything about the system. it is simply a very raw and basic level of trading currencies
who knows =\
You are another one who joined today, for the sole purpose of defending a thread. We see you. 
I think there’s a whole point being missed here, I think there are two ways of using correlation, you can ‘trade correlation’ where you place 2 trades or more! to ‘minimise’ your risk, personally I would never do this, I don’t see it as minimising your risk, I see it as increasing your risk, more trades more risk. I use correlation as an indicator, to confirm a trade on one pair, I use 3 pairs as indicators to trade one pair i.e. the GBP/USD and the EUR/USD, EURGBP and USDCHF as indicators.
Yes it is. There seems to be more than 2 ways too. There’s also minimizing risk by diversifying, exploiting divergences from correlations, and trading 2 currencies based on their correlation’s reversion to the mean…whatever that means…lol.
This info has been a relief to a persistant problem I had. As I previously mentioned, I keep getting a situation where my signal is generated across several pairs which happens due to the correlations. However, my dilema comes from placing my outcome squarely in the movement of one pair which more often than not is the pair that just sits there while the other(s) move along profitably with much more volatility :mad:. Instead, it seems I could have split my lot size across 2 pairs and increased my odds of capturing the volatility. Sure it means less profit but at least it’s something, and the risk is the same as if I lost on only 1 pair. Sounds kinda sweet to me…I’ll just have to test it out now 
The “trend” is quite clearly visible isn’t it lol.
xtraction is a busy little birth mother.
So, you’re playing a positive eur/usd & a negative usd/chf to trigger your positive gbp/usd entry – with perhaps a negative tone on the cross pair (eur/gbp)?
I guess your cross pair addition is the lower ranked of the 4?
The cross could well be neutral or even biased against your desired flow in situations where the influence is being subdued due to a large (commercial) order being worked through the market, particularly into one of the 3 fixing time slots.
Strong negative $US influence (event risk) could still drive the Cable even though the cross is being impacted seperately, albeit temporarily. Often in those types of scenario’s, Cable would fail to move aggressively in line with other pairs until or if, the cross finished working the order.
Glad to be of help! but I sure as heck wouldn’t trade what you’re trading
I think you need to give the concept some more thought…I “trade correlation” always with two trades and have never closed a negative trade set.
Why would he need to give the concept more thought?
He hasn’t detailed exactly what he’s doing or how he’s doing it has he?
He’s simply stated he trades Cable utilizing eurusd, usdchf & eurgbp as a directional indicator type trigger.
Judging by his recent prior posts, it doesn’t take a genius to work out the guy is probably exploiting short timeframe windows of opportunity based around specific price action events.
Nothing new or particularly unique in that outlook, but if he’s got a handle on how & when prices interact at various stages of a typical trading session, & he’s developed an edge at exploiting such an event, then it’s a very smart way of pocketing $’s with minimal risk.
Yes we do, and rest assured so do the mods…
I don’t know if this will help the discussion along or not, but I found an article discussing correlation among forex pairs. They linked to a page where all the various calculations were done (for some reason I didn’t bookmark the original article).
Anyway, according to their breakdown, any pairs where[B] correlation is high (above 80) [/B]and positive then the currencies move in the same way. If the [B]correlation is high (above 80)[/B] and negative then the currencies move in the opposite way. If the [B]correlation is low (below 60)[/B] then the currencies don’t move in the same way.
Here’s the page with correlation of all the major pairs broken down by 5m, hourly, daily and weekly cross-indexing:
~ John (Merchantprince)
[I]“Nobody can be exactly like me. Even I have trouble doing it.”[/I]
yep, i use that website all the time!
What do you mean by that? I’m trading forex…what are you trading?..
You’ve nailed it, respect, I couldn’t put it better myself, I have in the past given it all a lot of thought, and I’m not going to give it anymore, I trade what I trade, I trade 1 thing and it works, it’s easy, you need some major patience to learn and to trade it, but it’s stress free and here it is on this link for you http://http://forums.babypips.com/newbie-island/32208-whats-good-fundamental-analysis-system.html#post168506
I would never trade anything as complex, nowhere near, in my book the simpler the better, the whole thing is so chaotic and complex, the simpler your system the easier it is, as long as it works of course.
What part do you perceive as complex…correlations or a system I haven’t mentioned?
No but ignorance is.
Obviously yes…
This is all a little bit to cryptic for me. And as a newbie it’s kind annoying and frustration. Feels more like a mystery or puzzle, rather than a genuine concept to learn or problem to solve. It appears like you have a good system, in your opinion, but you don’t want to give it out. This is fine as it’s your system and you can do what you want with it. But atleast provide an article for it, or lay down enough information where someone can teach themselves. I mean that’s what this newbie forum is for right? To learn.
I just dislike posts which pretty much say “Hey everyone, I have a system, it works, here are some hints, try to figure it out, if you can’t you don’t deserve it.” I mean, why post it in the first place?
So people who deserve it can use it =P