I don't use that indicator.

Hedge and Correlation Strategy

I'm in with AUDUSD/EURUSD, CHFJPY/EURJPY and CADJPY/AUDJPY. Short term and long term correlation look good, gap between prices is wide enough and spread is not that high.

Hedge and Correlation Strategy

I think that it's important to pick pair combinations that are stable in time regarding their correlation. The combo that is well known for that is EURUSD/USDCHF. One way to verify the correlation stability is to get the value for different number ...

Hedge and Correlation Strategy

I printed a correlation value chart from MATAF during the last weekend. The value of r (1hr) for AUDUSD/USDJPY was +88.8. So to confirm I exported data from MT4 and calculated the r value for 30min chart (from 2/09/09 up to now) and got +0.13 as the ...

Hedge and Correlation Strategy

I just cashed in +51 pips on a trade I entered this morning. Not being greedy... I could have stayed in, but I have EURJPY/AUDUSD, CHFJPY/EURUSD and USDJPY/AUDUSD still running. Chamane image

Hedge and Correlation Strategy

This is what I have in my Navigator. Chamane

Hedge and Correlation Strategy

I just entered this trade. It should be a good one. image

Hedge and Correlation Strategy

Thx a lot! That's exactly what I am looking for. I can load the EA all right, but I'm afraid I still have a few questions. Is the dTakeProfit the level at wich the EA will close the trade? I suppose dStopLoss is set so we hardly ever reach that ...

Hedge and Correlation Strategy

Thanks. I bookmarked their Website. I didn't know such a service ever existed. I will try to find a way to alert me when the gap between the pairs has sufficiently decreased. I think they can also alert us when indicators of our choice move our way. ...

Hedge and Correlation Strategy

You are correct saying that price will snap back, but it can take a while for smaller timeframes. I am trading 30min charts and I expect the selected pairs to "meet" within 3 or four days at the most wich seems to be the case visually. Smaller ...

Hedge and Correlation Strategy

I would say the best correlation value is the one you can calculate for the timeframe you use. Since MATAF doesn't give them all, I would take the 1HR values for timeframes of 1Hr or less and daily values would be used for a crosscheck or for ...

Hedge and Correlation Strategy

Just closed GBPUSD/EURUSD with +22 pips.

Hedge and Correlation Strategy

I took two trades last thursday (arrows). Right now I am -84 pips on AUDUSD/EURUSD and +5 pips on GBPUSD/EURUSD. I could have closed everything earlier (circle), but I was asleep. I wonder if there is an automated way to close when in profit. image

Hedge and Correlation Strategy

I'm not sure I understand exactly why. To me, it's a matter of divergence and convergence whatever the direction price is going on each pair.

Hedge and Correlation Strategy

Thanks. But it seems to repaint. That's why it's been suggested to use Marketscope for overlaying. What's your experience with that repainting issue?

Hedge and Correlation Strategy

I see you are using Matatrader. What is your reverse technique?

Hedge and Correlation Strategy

Thanks. If you could reverse USDCHF, you would be able to follow Dreamliner's rules. MT4 Overlay's indicator allows it, but it repaints. Too bad, because EURUSD/USDCHF is probably the best correlation there is to trade. I can still use a spreadsheet ...

Hedge and Correlation Strategy

Billbss, How do you trade a negative correlation then?

Hedge and Correlation Strategy

I will let go and see what happens. Their recent history say that gaps can be even larger than that but price always converged afterwards. We'll see.

Hedge and Correlation Strategy

I entered both trades yesterday (vertical lines). Gaps are widening, but I suppose I should wait more. image

Hedge and Correlation Strategy