Before you go any further think this through very carefully. I have previously experimented with entering lots at a percentage equal to the daily range of a pair. I abandoned the idea pretty fast. It sounds like a good plan but it's not really. ...

Hedge and Correlation Strategy

Thanks SMJ I would like to better understand how the logic of your correlation co-efficient works. I'm refining some correlation strategies which involve a whole lot of number crunching. Conceptually I know what im looking for but practically i ...

Hedge and Correlation Strategy

Hi SMJ Love the indi and hedged pair function. Thanks for that. Since you coded the indi, could you perhaps tell us if the accuracy of the correlation percentage and correlation period is dependent on the quality and quantity of the history data ...

Hedge and Correlation Strategy

Think about the risk. A directional trade is more risky because any news event will either make you money or stop you out. A headged "trip trade" protects you better against any risk event and you also experience LESS draw down with a "trip trade' ...

Hedge and Correlation Strategy

Trade entered and closed in 24 hours therefore no "roll-over" rates... I call it "Daylight Robbery Rates"

Hedge and Correlation Strategy

Hi Astral Yes I have traded quads and practically all my losses were from them. Losses on hedged pairs only came when I entered to early or too late. When I analyzed my trading history, hedged pairs were WAY better with much lower draw down and you ...

Hedge and Correlation Strategy

Let me explain it this way... by using your pair choice above. If you enter a trade now... Buy-GBPCAD and Sell-NZDUSD. Any news event or stock event from 4 different currency pairs can negatively affect your trade. GBP, CAD, NZD, USD. You are at ...

Hedge and Correlation Strategy

First pick your "Correlation Time Frame" Say M30. And then calculate your "Correlation Period" is as follows: There are 48 x M30 periods in one 24hr trading day. So its 48 M30 periods multiplied by 240 days = 11520 correlation periods. To do the ...

Hedge and Correlation Strategy

Critical points to considder: Time Frame and Choice of Pair — Hi DreamLiner Ive been trading correlations for 6 months with good success and would like to share some important points that have really helped me to avoid losing trades; Time ...

Hedge and Correlation Strategy