Thanks. Pleasure.
All pairs are correlated with all others, all the time, to some degree.
I use the correlation to check every trade I am looking at the make sure I’m not on the wrong side of another trade.
Ie. If I’m going to trade multiple pairs and I’m selling the eur/usd, then generally I want to be buying the usd/chf.
Make sense?
More great info. Thanks as always!
So with your sell eur/usd and buying usd/chf, this is because they move in opposite directions to each other? Are you therefore doubling your risk but also potentially your profit? I suppose buying them both or selling them both would effectively cancel the trade out??? Have i understood this right?
Cheers!
Yes, they were about 99% inversely [oppositely] correlated over the past year. So basically they mirror each other.
With regards to risk, it depends on which way you look at it. You are taking 2 positions [1 long, 1 short] rather than 1, but your also hedging exposure to the market. If something spikes one of the currencies it wont necessarily spike the other pair as it may be specific to the original currency.
Also, you don’t have to take the other position but it can help confirm your entry on the other because it will show up any differences in the price action.
If you did trade them both in the same direction then yes, they would likely cancel each other out, with 1 profitable and 1 a loss. [pretty pointless]
Overall its like anything in forex, its subjective. If your system isn’t profitable it could make it worse, but its its profitable then it should make it even better.
I hope that helps.
I have learnt alot from this thread, I must say. And what I have learnt isn’t too technical or difficult, its interesting and makes good logical sense to a newbie like me. So thank you for that.
You talked about being addicted to Forex in your earlier post - well, I have downloaded the babypips phone app just to keep on top of the posts when im out and about lol! (is that a good thing???)
How is zulu going for you WestFX? Over the last week or so, some of the other traders have gone very quiet (compared to normal) and some have gone into overdrive (again, compared to normal). You have remained calm and traded in your usual style. I like it!
Also, the profile picture of you is well cool. Looks like you are part of the Forex Mafia lol
I’m glad its been of use to you. Please rate the thread and myself on zulutrade if you can.
I also have the babypips app, I wont tell anyone if you don’t. lol
Zulu is fine thanks, its just a bit of a waiting game at the moment due to what i believe to be long term trend reversals, the euro seems to have committed but the pound is less sure.
Its just have things are every 6 months, year, 2 years, you just have to sit and wait.
Normally I would be trading more, but if I have to wait then that’s what ill do!
And yes I am part of the forex mafia, im Don Pipleone! lol
This will be my project for this evening…when the kids are in bed. :24:
Well done.
Let me know what think.
Haha! That’s awesome! Very good…
You’re too sharp for me tonight, i’m off to bed!
Saytin, the above is a really good read. A easy thing to achieve which must give a good trading advantage. It must!
Great share Don Pip.
The above is my homework for tomorrow. Will give some analysis too all going well (and will see if Pip Don agrees!)
Morning all.
The jpy news is rocking the boat a little, but everything should recover, we just need to hold on!
Well the combination of strong pound and yen news is really pushing some technical levels with regard to the long term turn around.
[B]I’ve removed all the orders from zulu and I’m just going to wait and see what happens.[/B]
Interesting stuff this morning!
What do you [I]expect [/I]to happen here WestFX? It seems like the GBP is still very strong but everything else is unsure!
Yeah, basically because I believe there is a large long term turn around in the market in general [happens every 6 months, year, 2 years], a lot of pairs are pretty unsure.
Above is my early post.
Its just going to be a case of waiting a week or 2 to see the different pairs fully commit.
The euro is looking like it has, as well as the yen. But the pound and aussie dollar are still a bit confused.
Only time will tell, we’ll all just have to be patient.
What level of profit are you expecting? I mean macro analysis is ok, but still give us so numbers pls…
Your so demanding Eddy! lol.
[B]IF ALL THE PAIRS COMMIT AND THEY HAVENT ALL YET, BUT IF THEY DO THEN…[/B]
EUR/USD DOWN PAST 1.22
CHF/JPY DOWN PAST 95.0
GBP/CHF DOWN PAST 1.40
EUR/AUD DOWN PAST 1.20
EUR/CAD DOWN PAST 1.25
AUD/CAD DOWN PAST 0.80
CAD/JPY DOWN PAST 85.0
GBP/CAD DOWN PAST 1.50
GBP/NZD DOWN PAST 1.80
AUD/NZD UP PAST 1.30
AUD/CHF UP PAST 1.00
GBP/USD DOWN PAST 1.60
EUR/JPY DOWN PAST 100.0
USD/JPY DOWN PAST 80.0
AUD/JPY DOWN PAST 75.0
USD/CHF UP PAST 1.00
AUD/USD UP PAST 1.05
EUR/GBP DOWN PAST 0.77
USD/CAD DOWN PAST 0.95
GBP/AUD DOWN PAST 1.60
[B]THESE ARE ROUGH NUMBERS THAT MAY CHANGE AS THE MONTHS GO ON AND THIS IS ONLY ONLY ONLY IF THEY ALL COMMIT. THEY COULD STILL EASILY CONTINUE DOING WHAT THEY HAVE BEEN DOING, WHICH IS THE OPPOSITE!!!
SO, I WILL KNOW IF THE ABOVE IS LIKELY IN THE NEXT FEW WEEKS.[/B]
Hi all.
WestFX, can you help please? I was about to open an account with AAAFX to start live/real money zulu with you, but I have come across some negative words about AAAFX (some going back to 2011). Do you have any experience of them and/or is there any other zulu friendly broker out there?
Also, with so many brokers out there, how do you know which ones are good and not going to give you hassle when its time to withdraw?
Thanks.
Hi Qureshb,
I personally only have experience with FXCM and have traded with them my whole career. I’ve never had any serious problems and overall I’m pleased with the service they provide.
Beyond that, I know that Alpari and Oanda have been around a while and are pretty popular.
If I were you I would google a few and look at some independent reviews, then maybe contact a couple.
I hope that helps.
Okay - thank you for the quick reponse!