Correlation Trading Log

Hmmm, k. Well don’t get discouraged. Groundbreaking discoveries are not found by people who just follow the crowd. Who knows right?
Having said that, I must express my skepticism. I still fail to see how, if the lots sizes are adjusted accordingly to pip value, that a long EUR/GBP and long GBP/CHF will not cancel each other’s GBP out. Unless of course for a time, either the Euro or Swiss Franc, have an unusual pricing for GBP. But wouldnt that gap make for easy on the spot instant buy/sells for profits?

Also, well, regarding your long AUD/JPY and short NZD/JPY trades on the demo much earlier, i think you won simply because AUD/NZD was strongly trending upwards anyway. I mean, that pair has gained over 200 pips since the beginning of this week and it did not have large bounces, reversal or corrections since.
Which brings to another question, did you speculate on AUD/NZD prior to the decision to enter the 2 pairs of AUD/JPY and NZD/JPY?

Without saying to much of the strategy, as i have already put many people through the task of figuring it out xD, i’ll just say that this strategy doesn’t trade the cross. so if you’re trading audjpy and nzdjpy, you’re not trading aud/nzd. it may look like you are, but you’re not. and nah, i didn’t speculate on audnzd prior to the decision. my trades are opened solely upon my view of what’s going on, on both audjpy and nzdjpy charts

So therefore what happens on AUD/NZD does not matter at all?
I just noticed your lot sizes are not consistent with the pip value for the first 3 trades though. Wouldn’t that mean you are placing some of your money at JPY’s mercy? Since moving one way would weaken one side more than it strengthens the other and moving the other way would strengthen one position more than it weakens the other.

Well, i suppose what happens on aud/nzd “matters”, but for instance, i’ve never opened a cross chart in any of my trades…so, it doesn’t really matter all that much to me.

you’re right that the first 3 trades are inconsistent with the pip value; but, i think that you are looking at it from the way many traders view correlation. give correlation and magnitude some thought, try to view it from a different perspective and let me know what you think. like i said, i’ll be in the chatroom if you want direct exchanges of ideas.