lol sry Syn. Just playin w/ ya. Just tryin to keep a chill mood–forex can be overly serious sometimes =. Your assertions are very valid and I am sorry that it is frustrating you. I agree, this is not a newbie topic; however, I could not find a more suitable place to post…so, it kinda just ended up here…sorry bout that. As for why I posted it in the first place…I posted this strategy because I wanted to teach people how to trade a very unique and dynamic trading method. My method of teaching kinda goes like this though…I give you the basic building blocks, and you go build a block tower. It’s a very independent method of teaching, granted, but I have never been a fan of just giving someone the information–I think people, who give it a shot, learn better this way. Anyways, I hope that answers your post. if you have any questions about the concept, i’m always here to answer them
I see a politician found BP, write a lot, (act like a smartaxx saying something) without saying anything.
Actually it seems more he is “fishing” for answers he does not have.
I think he should change his name to “Blowfish” :D:D
When you say waves, do you mean just regular changes due to the correlations? Or something like news? It seems then that the really profit would come during something like news, which breaks the correlation somewhere. Say if the EURUSD and USDCHF were/are correlated, and some news came which positively affected the euro-zone. The EU would shoot up, USDCHF would just do what it’s doing.
The system that you haven’t mentioned, from your previous comments I can see that it’s much more complex than what I trade, when I come to think of it, I don’t know of anyone that trades something as simple as I do, and therefore I can say with confidence that your system will be a lot more complex than mine.
Well according to some of your posts, yours was at one time too: 301 Moved Permanently so really why did you feel it was necessary to make such a comment …specifically to me?.
If you are referring to the “A System That Can’t Lose” thread, all I can say is “that was then and this is now” and you have no idea how I’m trading now. I was just pointing out that due to the fundamental laws of correlation, many pairs can more or less form the same pattern thus giving multiple signals whether complex or simple.
Don’t know what you thought you helped me with, but it wasn’t that.
Haven’t seen the thread “A System That Can’t Lose”, I think your taking my comments as a personal criticism, I don’t know with what or if I’ve helped.
Ah yes, you refer to the stuff I used to use, boy was that so complex, I’ve probably gone from one of the most complex to one of the simplest, which in itself I think speaks volumes.
All I’m saying really is that with how I trade, I don’t use support resistance, don’t use any indicators, don’t use patterns/candle formations, no pricepoints, I can trade my system without even knowing the price! 1 simple money management and that’s it, so OK I may have been a little presumptuous in saying that your trading something more complex than me, but I would perceive that if you use anything I have mentioned above you would be trading something more complex. I would even push as far as saying that if you have to do any thinking at all when trading it would me more complex than what I trade.
I get you, I didn’t make a point of choosing my words carefully there.
But could they? I actually quite strongly believe that given the right tools etc. that anyone could, well maybe not but what I’m getting at is that a lot of people could never accept that they could do it, for instance I used NLP/EFT it’s such a simple effective way to sort your psychology out and it just works, some people will just accept that they could never trade because they could never handle the psychology without even trying to use really effective tools because they are just set in their ways and stubborn.
But no, yes! a great point you’re making, a heck of a lot of perception of what is what goes with trading FOREX.
I can see how this might be possible. Say you just guess (and I’m not assuming that brickman is doing such a thing) at a price direction. Or say you assume that if the previous candle was bullish, the next one will be bullish as well. You go long, set your stop loss such that it’s at 1% risk of account, and place your profit target such that your reward to risk ratio is greater than one. 50:50 chance of price going up or down on the next candle, and you could be profitable. The next candle would have to close high enough to make up the spread though.
But I only see how analysis can help increase profits, so why not use them?
You’d need to have an dynamic stop and profit target based the market conditions. Indicators can allow you to make better calls on PTs (i.e. ATR?). And even pause the trading process when there’s not much range in the market.
If the price is about to hit a support/resistance, level, this may allow you to place a small SL, which can in turn allow you to hold a large position to have it finally equate to 1% risk of your account, which can then lead to greater profits.
I have been thinking about this 1% risk, and it’s affect on the SL level and position size a bit of late. It seems that you can hold a larger position size, to allow for more profits, as long as your SL is decreased accordingly, so that the risk is kept constant at 1%. Ofcourse, tight stops will most run the higher probability of getting hit. But the profits one makes if the price goes the right way can, perhaps, make up for the increase in SL hits. However, maybe this increases the draw down on your account…
I simply trade price movement, I don’t care what the price is is just how much it moves, I watch the four pairs and when there is a big move on the USD the price continues to move long enough for me to get into a trade make some pips and get out.
There’s the other thread for “corr trading no charts required’ where people had the method of initiallylonging both E$ & EF pairs, adding positions in stages,maintaining a floating net which is collected as price retraces its previous move by atleast half. But its not always that it does that, thus messing up the whole thing. Alternatively, TJ would exit at week close at whatever small profit (always there, and sufficient). In the end it was profitable in the longrun owing to the 96% instead of 100% inverse corr, but I shelved it again due to time limitations, I did a link violation which stopped my posts there, and discovered (quite dramatically, I laughed alot) that even in a large positive float, one could blow margin from open positions accumulation so the +ve side arguably fails to fully cover for the –ve side of the hedge, even in net profit, how did I not know that. One also would need a separate account for this, and the other for other strategies, or some form of partitioning?
Leaks could be plugged by evolving a method which wouldn’t have to add on the loosing side as the stairs unfold; or a constant risk exposure of 4% or less per current stair in loosing side as long as one keeps adding on gaining side; or larger positions for gainer and smaller for loosing pair. Or a way to oil the mechanism with a trend-pre-identifier strategy and leaning more to the gaining pair of that direction, but that would remove the ‘no charts required’ simplicity. My best bet is the missing piece lies hidden in the ‘Close delta’ excel/relationship observed by PC mayor of that thread, or what its rightly called at post #45 here, and mayor here found it but won’t let up easily.
There must be such a piece, otherwise we have a big loafy lump of smooth something with nothing to do with it, humping lump!, may be roll it down the hill and hop on it, or sit under its shade in winter?, or use its float down at the beach, idle under-utilization of good corr.
My keyboard started emitting smoke - I was going to add that since then, things have changed back from Recession-recovery mode. Back then one couldn’t hedge on the same chart. Guess you’ll have to skim through that thread to get the whole idea accurately, too many words to repeat, go to page 1, then jump to page 8 onwards. Now that I revisited it, mT not TJ exits(ed) at week close, and it used to work somewhat.
Hi, I use correlations a lot during trading but have never used it for scalping so just wondered how you use it this way? Do you take 2 pairs that are correlated to move in the same direction, for example bullish, but where one of those pairs are currently moving the wrong direction, bearish, and scalp that?
