Off hand, I don’t know every pair that bear strong correlations to each other, but there are a few that I recommend keeping a close eye on.
For instance, the GBP/USD and EUR/USD often mirror each other in the direction (not intensity) of the move. Although, often times one pair will lead the other (usually for a very limited amount of time). By taking advantage of these divergences, you can place a trade in one pair knowing that it is going to make a move your direction because the movement was foreshadowed by the other.
In addition, you can also find strong correlations between certain futures (gold, crude oil…etc) and the direction of a currency pair. I always find it fascinating to view a pair whose country’s primary export is a certain future and note the seasonal spikes in their currency value.
Do you have one in particular that you are interested in? I would be more than happy to backtest it and post the results.
Alright, the 7am CST trade worked out to our advantage today. Here is how the trade played out:
Entry Price: 1.4225
Exit Price: 1.4205
Trade length: 3 bars
Profit: 20 pips ($200)
Many of you have asked about why the stop is greater than the target. Today’s trade was a perfect example of why, sometimes, a trade needs room to breathe before turning your direction. Directly after we entered the trade, the market moved up another 30+ pips before making a move down. Had we made the stop less than the target (10 pips) or equal to the target (20 pips) we would have been stopped out almost immediately.
Because this type of trade occurs at the open of a major world market, there will be more volatility associated with the trade. Historically, the best way to “wait out” this volatility is to have a stop that is greater than the TP, even if it is only a slight difference.
Hopefully this helps. This was the last trade of the day for this thread since it is the weekend. Be safe over the weekend and I will “talk” to you all on Monday. Cheers! 
Good morning friends,
Hopefully you all had a great weekend and took advantage of some of the bearish gains to be made in the overnight session yesterday :).
The conditions lined up for the 7am trade this morning. Here is the setup:
Entry Price: 1.4032
Exit: at the open of the 11am bar
S/L: 1.4390
TP: 1.4012
Happy Trading!
Hey guys, sorry for the late update but the EUR/USD 7am trade reached TP this morning. Here is how the trade played out:
Entry Price: 1.4032
Exit Price: 1.4002
Trade length: 1 bar
Profit: 20 pips ($200)
I will update the board in the next hour or so for the GBP/USD trade.
The conditions did not line up for the GBP/USD trade today.
The conditions also did not line up for the AU open trade today, so that’s all folks :).
Good luck tonight and I’ll update the thread in the morning. Cheers!
Good morning all,
The conditions lined up for the 7am EUR/USD trade Here is the setup:
Entry Price: 1.4080
Exit: at the open of the 11am bar
S/L: 1.4140
TP: 1.4060
Good luck!
The 7am trade did not reach TP or S/L this morning. I will update the board in a bit for the GBP/USD trade.
The conditions for the GBP/USD trade lined up. Here is the setup:
Entry Price: 1.6186
Exit: at the open of the 5pm CST bar
S/L: 1.6146
TP: 1.6196
Good luck!
Are these strategies tested with real accounts ?
Thanks for the post gigtranza. Most certainly they are, in addition to the years of historical backtesting that validate their performance. Hopefully this helps!
The conditions did not line up for the AU open trade today either, but we are still in the GBP/USD trade until 5pm.
The GBP/USD trade did not reach our S/L or TP today. That’s all for today; as usual, I will update the board in the morning. Cheers!
Good morning folks, the conditions lined up for the 7am trade this morning. Here is the setup:
Entry Price: 1.4080
Exit: at the open of the 11am bar
S/L: 1.4140
TP: 1.4060
Happy trading!
The EUR/USD trade reached our TP today. Here is how the trade played out:
Entry Price: 1.4080
Exit Price: 1.4060
Trade Length: 1 bar
Profit: 20 pips ($200)
I will update the board later for the GBP/USD long trade.
Sorry for the late update. The conditions lined up for the GBP/USD trade. Here is the setup:
Entry Price: 1.6277
Exit: at the open of the 5pm bar
S/L: 1.6237
TP: 1.6287
Good luck!
The conditions also lined up for the AU open trade today. Here is the setup:
Entry Price: 1.4084
Exit: at the open of the 7:30pm bar
S/L: 1.4114
TP: 1.4074
Happy trading!
The GBP/USD trade did not reach our TP or S/L, but the AU open trade worked out to our advantage this morning. Here is how the trade played out:
Entry Price: 1.4084
Exit Price: 1.4074
Trade length: 5 bars
Profit: 10 pips ($100)
Good luck this evening and I will update the board in the morning.
Good morning friends,
I apologize for the late update, but the conditions for the 7am trade lined up and the trade worked out this morning. Here is how it went down:
Entry Price: 1.4181
Exit Price: 1.4161
Trade length: 3 bars
Profit: 20 pips ($200)
I will update the board later today for the GBP/USD trade as well.
I’ve done a bit of additional research on the GBP/USD trade and decided to slightly tweak the Entries/Exits on the trade (for more optimal profitability). Here are the new statistics for the trade:
Entry Conditions:
When the 2:30pm CST closes down enter at the open of the 3pm CST bar
Exit condition:
Close trade at the open of the 6:30pm CST bar
S/L: .0022
TP: .0010
Total net profit since 06/2009: $5,123.00 (100,000 quantity)
Profit factor: 1.378
Total trades: 232
Total winners: 151
Total losers: 82
Winning %: 65.09%
Avg monthly P/L: $213.46
I plan to introduce another system on Tuesday (this will give us some time to trade it without the week being almost over). Hopefully this helps. Cheers!