Post your live Forex trades here...

We talked about the importance of correlation yesterday.

I bought CAD/JPY a moment ago and I have a pending buy order on the AUD/JPY.

Since these two pairs are not negatively correlated, these trades make sense, so everything is fine as far as the correlation factor is concerned. The Forex trader should always make sure he is not trading against himself.
 
xelite777 said:
I noticed that you are trading off the daily charts but your holding period is unusually short for that type of time frame.
More...
Well it was a short-term trade, it's the end of London session, we're close to April low, the (potential) double top neckline, still very low FX volatility, and it's almost a 1:2 RR. Enough reasons for me to say thank you and close. I still have EUR shorts elsewhere too.

BTW If your two pairs are positively correlated, then reduce the size of each long trade accordingly, because otherwise you're exposed to more risk.
 
boskop said:
BTW If your two pairs are positively correlated, then reduce the size of each long trade accordingly, because otherwise you're exposed to more risk.
More...

Saying that two currency pairs are not negatively correlated does not necessarily mean that they are positively correlated.

For example AUD/JPY and CAD/JPY (the two pairs I am following) are currently correlated at 48.4% on the small time frames, meaning there is no meaningful positive correlation.

Positive correlation usually starts at the 60% level.
 
positive correlation starts at 0.x % ;)

out of NZD/JPY long with a 0.25 % profit .. don't like price to be too close to the entry with a central banker maybe trying to talk down the currency in a few minutes
 
boskop said:
positive correlation starts at 0.x % ;)
More...

Thanks, that's good to know :p

boskop said:
don't like price to be too close to the entry with a central banker maybe trying to talk down the currency in a few minutes
More...

Yep, that Wheeler guy just need to say a word or two to move the new-zealand dollar by a 100 pip or more in 60 seconds! :D
 
forgot to mention -0.5 % loss from that failed USD/JPY short breakout.. was scaling out of it and only kept a little bit. I just went short again at 102.24 with stop on a daily close above 102.50
 
xelite777 said:
Bought Nzd/JPY at 88.15, 35 pip stop.

Boskop, sure you don't want to try that trade again? :p
More...

nope, don't like it, also doesn't make sense with my other positions right now. I do love to short the USD/JPY here - lots of good levels and indications.
 
You must log in or register to reply here.
Back
Top