**Steinitz** Method Revealed Here - page 26
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I couldn't agree more with you. I just started years ago with:
EUR/USD
GBP/USD
AUD/USD
USD/CAD
USD/CHF
USD/JPY
EUR/CHF
EUR/JPY
GBP/JPY
CHF/JPY
Yes I have overlap. But to strictly enforce non correlated pairs you would need a broker who has those pairs available. Also the spread and liquidity could pose an issue. GFT has a lot of pairs......Don, based on the info at: http://fxlabs.oanda.com/cgi/fxlabs.pl?id=4 looking at the 1 and two year correlations I find that the following pairs are the LEAST correlated so I believe I will stick to these pairs to make sure I'm basically not trading the same trade with different pairs.
EUR/USD
USD/CAD
USD/JPY
EUR/CHF
EUR/GBP
NZD/USD seemed like another good pair but I trade at Interactive Brokers and they do not offer NZD pairs for some reason. The correlation table does not list crosses such as GBP/JPY so its hard to tell where they stand. I might see if I can find that info elsewhere.
Good Trading!
Don, based on the info at: http://fxlabs.oanda.com/cgi/fxlabs.pl?id=4 looking at the 1 and two year correlations I find that the following pairs are the LEAST correlated so I believe I will stick to these pairs to make sure I'm basically not trading the same trade with different pairs.
EUR/USD
USD/CAD
USD/JPY
EUR/CHF
EUR/GBP
NZD/USD seemed like another good pair but I trade at Interactive Brokers and they do not offer NZD pairs for some reason. The correlation table does not list crosses such as GBP/JPY so its hard to tell where they stand. I might see if I can find that info elsewhere.
Good Trading!Good job!
I'll take a look at that. Let me ask you about IB.
1. I use to trade with them on stocks and loved their platform
2. Do they support MT4?
3. I see they offer only 50:1 margin. Any way around that?
4. What do you think about using them if we don't end up with an EA?
TIA
Don, based on the info at: http://fxlabs.oanda.com/cgi/fxlabs.pl?id=4 looking at the 1 and two year correlations I find that the following pairs are the LEAST correlated so I believe I will stick to these pairs to make sure I'm basically not trading the same trade with different pairs.
EUR/USD
USD/CAD
USD/JPY
EUR/CHF
EUR/GBP
NZD/USD seemed like another good pair but I trade at Interactive Brokers and they do not offer NZD pairs for some reason. The correlation table does not list crosses such as GBP/JPY so its hard to tell where they stand. I might see if I can find that info elsewhere.
Good Trading!Keep in mind if you have a -.99 corr it will move in opposite directions. That means it could be very corr against you. Just look at the pairs and think this through.......My mind is like jello right now......
Keep in mind if you have a -.99 corr it will move in opposite directions. That means it could be very corr against you. Just look at the pairs and think this through.......My mind is like jello right now......
Yeah I tried to get as close to center as possible on all the pairs and still have something to trade. I think I have it very close.
Yeah I tried to get as close to center as possible on all the pairs and still have something to trade. I think I have it very close.
I see what you are doing and the chart is logical. Nothing earth shattering there except for the center area that is interesting. I personally want a lot of diversity.
I might get some overlap but I can deal with it......
Good job!
I'll take a look at that. Let me ask you about IB.
1. I use to trade with them on stocks and loved their platform
2. Do they support MT4?
3. I see they offer only 50:1 margin. Any way around that?
4. What do you think about using them if we don't end up with an EA?
TIAI use IB because I trade Index Futures A LOT and it works great for that if you use another interface (DOM) such as ButtonTrader or NinjaTrader to handle order entry/mgt. I do not use the IB platform directly because I think its over complex and a pain in the ass to be blunt.
They do not support MT4 - BUT there might be some 3rd party tool out there that lets you hook into them with MT4.
I doubt it about the margin. It's not a concern of mine though as I usually trade very conservative like .5-1% risk per trade so I usually use very little margin.
They are a little quirky and have issues but so does every other broker out there and I honestly see nothing better out there. Oanda is a good one as well MOST of the time. The spreads are higher than IB, but IB's crappy interest policies and commission probably make IB not as cheap as it seems upfront. One of the main reasons I stay with IB is protection of funds which is rare in the retail FX world.
Observation
Somebody asked what happens if the highest TF being the month is blue and all lower TF's starting with weekly are red. He asked what would I think. I have gave it considerable thought and I feel in my opinion that if for example:
Monthly = Blue
Weekly = red
daily = red
4hr etc = red
I would consider the weekly as the highest TF and work down from there. If your trade goes against you the rules would say exit if weekly turns blue. Yes you would lose a ton of pips but I have had my success thus far not having a pip stop.
Take a look at the charts and see how likely you would get stopped out let's say with a 1hr entry and all TF's up to a week are in favor of the trade direction.
I don't feel this is crazy trading. I think if you adopt your own pip stop and alter things you might be shooting yourself in the foot. I never have too much trade capital on any one trade which gives me a piece of mind.
Please don't assume I believe in any martingale system. I don't. I truly understand them having been exposed to all the betting methods known to mankind in the casinos. You can't obtain any edge from any betting style if the underlying method has a negative expectancy.
If you have a positive expectancy you can vary all sorts of betting gyrations and you will have various outcomes based on how much you risk.
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If you over trade your account exactly double based on your edge and capital you will break even in the long run. If you over trade your account by triple you will loose in the long run.
This is all based off of good research when we are faced with how much to wager based off of our edge and capital size. It works with any method that offers an edge and one bases his trade lot size according to bankroll amount.
Here is the rub. What edge do we have? To figure ones edge it becomes a little tricky. You need to calculate how much money you put into action and divide that by your profit/loss. Now what makes this a little more difficult is most of us work off of margin.
There are two schools of thought. Do we use the money we wager as only our margin requirement or do we use the full amount put into action? I guess both ways are correct. You could have a margin call if a nuclear bomb went off thereby altering your money placed in action since you could theoretically have to pay all the money back you had on margin. So there you go. I just got off track and hit one of my tangents, sorry.
I use IB because I trade Index Futures A LOT and it works great for that if you use another interface (DOM) such as ButtonTrader or NinjaTrader to handle order entry/mgt. I do not use the IB platform directly because I think its over complex and a pain in the ass to be blunt.
They do not support MT4 - BUT there might be some 3rd party tool out there that lets you hook into them with MT4.
I doubt it about the margin. It's not a concern of mine though as I usually trade very conservative like .5-1% risk per trade so I usually use very little margin.
They are a little quirky and have issues but so does every other broker out there and I honestly see nothing better out there. Oanda is a good one as well MOST of the time. The spreads are higher than IB, but IB's crappy interest policies and commission probably make IB not as cheap as it seems upfront. One of the main reasons I stay with IB is protection of funds which is rare in the retail FX world.Thanks for your insight into IB.....
I B damn
I see what you are doing and the chart is logical. Nothing earth shattering there except for the center area that is interesting. I personally want a lot of diversity. I might get some overlap but I can deal with it......
Ok. Well my thinking is for example: EUR/USD and USD/CHF will give the same signals in theory since they move in tandem almost - so instead of trading a lot on each you might as well put it all on EUR/USD and save some spread or still only trade 1 lot on EUR/USD so you arent over exposed. Anyway....just something to ponder....
Ok. Well my thinking is for example: EUR/USD and USD/CHF will give the same signals in theory since they move in tandem almost - so instead of trading a lot on each you might as well put it all on EUR/USD and save some spread or still only trade 1 lot on EUR/USD so you arent over exposed. Anyway....just something to ponder....
Yes I see that. That is interesting. In that case you point out you would be correct in Euro based on spread and liquidity.