Hello world! My name is Kelton and this is my strategy.
It has been know by names such as statistical arbitrage and pairs trading.
Basically I find two currencies that are highly correlated. When one goes up the other follows
the same amount roughly. What I do is wait untill something upsets the two currency pairs
that makes them fall out of correlation. Then I buy the underperforming currency and short
sell the over performing currency at the same time and the same lot size. Eventually these
currencies will go back to their normal path and touch again. I then close both orders and have
now profited the distance between the two when I opened the orders. It is considered a market
nuetral position because as I am losing on one order I am roughly making the same amount on
the other order. Until they come back to eachother and I profit.
I am up 43% of my account in 13 trades. Every one has been profitable so far.
Examples of correlated currecies are- EUR/USD AND GBP/USD, NZD/CHF AND AUD/CHF…
USE FOREX TICKET TO FIND CORRELATION NUMBERS. ANYTHING ABOVE +.80 IS GOOD.
ANYTHING BELOW YOU SHOULD NOT TRADE. I USE THE 5,15,AND 30 MIN CHARTS.
PLEASE LET ME KNOW HOW YOU DO ON THIS STRATEGY IT IS VERY POWERFUL.
THANKS FOR READING.