Your example is not correct. The USD's don't cancel themselves out. You're either long or short the dollar vs the other two. And you still miss the point of playing the spread between the 2 pairs. The charts are basically just an indicator of how ...

Hedge and Correlation Strategy

The little time I've been able to spend looking and taking these trades, the more I wonder if it's supposed to be this easy LOL Good work everyone!

Hedge and Correlation Strategy

Thanks! That's an interesting indi but isn't quite what I'd like. It would need to be able to draw a line chart and set the beginning TF of comparision to 0%. Also should display the difference in the 2 pairs in both pips and %. It's a good indi ...

Comparing Two Pairs

Hi thatwasme. I have seen your percentchangefromopen indicator and it approaches what I need. I'd like to know if you'd be interested in making some changes. I'd be very interested in working with you on an idea. Shoot me an email or private message ...

Predictions for the New Year

That's tremendous! Good job. Just for fun I went back and re-read some of this thread from a month or 2 ago. What a hoot! I have no doubt this method can be very profitable. I just need to work on my implementation. Better entry and exits. Maybe ...

Hedge and Correlation Strategy

Good Description. I think that's exactly the method I've been experimenting with. I'vebeen trying a lot of different setups but it seems that just setting my chart to 1 day 5 minutes is a nice way to go. My chart is set to "percentage view" and it ...

Hedge and Correlation Strategy

Nice job. What pairs have you had the most luck with?

Hedge and Correlation Strategy

Not a stupid question. I should have been more specific. Yeah, I think that one was a short e/u and long u/c. I just got back and it looks like I should have kept that trade on but then again that's just being greedy LOL May be about time to go ...

Hedge and Correlation Strategy

Well, I took that trade above and just closed it for some nice pips. If I was able to sit here for a while I might play it the other way and see what happens.

Hedge and Correlation Strategy

This pair of pairs looks like it has some fun activity. Anyone trade this spread? It's a M5 one day chart of the USD/CHF and the EUR/USD in case you can't read it well.

Hedge and Correlation Strategy

Yea, good find. A little too early for me to find that one. Here's the same chart but from the thinkorswim platform. It's a comparison chart showing percentage change. The nice think about this chart is that both pairs are anchored at 0% at the ...

Hedge and Correlation Strategy

I looked at that chart I posted and maybe I should explain further since the clarity isn't as good as the original. This is just a chart for historical or educational purposes. It's not a chart you'd use for trading. It just shows the "gap" between ...

Hedge and Correlation Strategy

You're right. Maybe spread isn't the correct term. It's just a daily chart showing the "difference" between the e/u and g/u.

Hedge and Correlation Strategy

Thanks Dreamliner. Glad I found your thread. Pairs trading has always seemed to me to be a great way to focus one's trading. I'm a little more familiar with using futures and options for hedging purposes, but I'm intreged with the idea of trying to ...

Hedge and Correlation Strategy

You could do that sure, but its probably easier and faster to; 1) Subtract current price from open price 2) Subtract EURUSD from GBPUSD (current) This will show you which pair has moved more today, and where, and the relative difference between the ...

Hedge and Correlation Strategy

I concur. Followed the same plan with similar results. Weeks like this are to be expected but at least I live for another trade...

4H Box Breakout

I've just about finished reading this thread from start to finish and really think it's time to throw my 2 pips into the fire (so to speak). I've read over and over that trading pairs like EURUSD vs USDCHF is the same as trading EURCHF. That may be ...

Hedge and Correlation Strategy

Nice SS Dave. Thanks that's helpful. GJ looks like it could be setting up in a bearish continuation pattern. Let's hope that's what it's working on. BTW, I'm still learning my candle patterns so I may be all wet. Just feels like it right now. We'll ...

4H Box Breakout

Great. Thanks that did help. Hadn't played with all the settings yet. I'm used to using charts from thinkorswim so I'm still learning the MT charts. Have a good night.

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