Why do prices move in the same direction but with a lag on correlated instruments? - page 3
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Hold and correlate on forex, everything works fine
AUDJPY-NZDCHF, CADJPY-NZDCHF, NZDJPY-CADCHF, AUDCHF-NZDCAD etc.
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The signal for a trade is ripe
How does it work?
Classic correlation: buy something and sell something, wait for a convergence/profit and exit the market. Looking for the next signal
You've discovered a gold mine... If only it were that simple.
Is the correlation determined by a fixed sample? For example for the last 100 candlesticks or dynamically?
for the whole available period, the parameters do not change from this, whether it is 500 candles or 50,000. The optimal period is M30. I do not know why, but it works best on it
Is the correlation determined by a fixed sample? For example over the last 100 candles or dynamically?
Here's more, now almost a full balance of pairs
You can see the pairs in the screenshot
Classic correlation: buy something and sell something, wait for a convergence/profit and exit the market. We are looking for the next signal.
It is called Pair Trading on different instruments, and it is called the Calendar Spread on similar instruments.
Correlation is a graph of the behaviour of the price difference between two instruments.
Exchange is centralised, forex is not, but it is essentially the same thing. Whatever Lenya Golubkov says, except that they also look into the glass.)
A beauty!
Strong knowledge!
The FOREX market differs from the FOREX because on the FOREX you trade with a DC computer, and on the exchange, the trades are held with real opponents!
Individual, Bank, Entity.for the whole available period, the parameters do not change from this, whether it is 500 candles or 50,000. The optimal period is M30. I do not know why, but it works best on it
The correlation should not depend on the timeframe at all.
It is not calculated using the "straightforward" method where one price is subtracted from the other.
Read here
https://utmagazine.ru/posts/6789-parnyy-treyding-para-akciy-korrelyaciya-kointegraciya-spreda-investicionnyy-portfel
Only derivatives for the same asset can be counted by simple subtraction, but even there are nuances, such as
such as the central bank rate and dividends. If it were simple, everyone would be "hanging out" in the Seychelles by now!
Correlation should not depend on the timeframe at all.
And it is not calculated by subtracting one price from the other, but it is much more complicated!
Read here
https://utmagazine.ru/posts/6789-parnyy-treyding-para-akciy-korrelyaciya-kointegraciya-spreda-investicionnyy-portfel
Only derivatives for the same asset can be counted by simple subtraction, but even there are nuances, such as
such as the central bank rate and dividends. If it were simple, everyone would be "hanging out" in the Seychelles by now!
I've been doing correlation since 2015, the first 2 years it went very badly and unstable until I realised the whole point.
What subtraction, it's not like that at all?
Now some more people will come and tell me that there is no correlation in forex. Well, let it be so, no means no.