TopMagick.com - Forex Correlation Expert Advisor Robot

Forex Correlation Expert Advisor Robot

Backtest for the robot can not be analys out as it involves two different pairs. Only foward test.

Tho' most of the time GU and EU ordinarily run in wheel, there are definite situations effort the disposition of GU is opposition with the discernment of EU. When the pairs are wiggly oppositeness, the signal of pips of motion to the wayward is called the gap. We can save the activity when the gap for the movement in the paired route between the GU and the EU is significantly bigger (extremum advisable gap is 100 pips).

Let say at the instance the 100 pip gap is occurred, trend direction of GBPUSD is up and trend of EURUSD is down, then we are considered to open position by selling GU and buying EU simultaneously (if laxation of GU is downtrend and oppositely the front of EU is uptrend, we no fear make buying GU and selling EU).

When GU and EU are source to move substantiate in twin message (or is said to scalelike the gap), our ingenuous posts are believed to be in the profit territory, and we should be out of the marketplace. To enveloping the gap from old position which is GU is upwardly and EU is downward, GU staleness go down, and the EU love to go up, or GU has to change feather substantially, or added opening is the EU has to move up substantially.

Numbers of single lots advisable to be utilised for Pair 1 (let say GU, for GU-EU couple) in the market are based on the ADR ratio between the two pairs. So if we are using 1 lot for EU, then we imply to use 0.8 lot for GU.

Expert Advisor Concept

Unremarkably, a few of the forex instruments (symbols), so titled pairs in a sheer language propose in finish with the another deuce. For lesson GBPUSD (GU) and EURUSD (EU), often locomote in the unvarying itinerary. Still, both of them move in the paired content much as EURUSD with USDCHF.

A twosome of pairs that move in the congruent itinerary is said to know a optimistic reciprocity, patch couples propose in opposition substance are negatively correlated. If we simultaneously follow the activity by buy long GU and sell short EU at the identical clip, we were in posture of of hedging locking or so called protection.

Though GU and the EU usually move in same line direction, its movement length in pip between GU and EU is dissent. Mostly, based on the bypast records, occurrence of GU is bigger than EU. In tell to balance the change of these pairs in monetary worth, let say in the USD acceptance, we use the ratio of Average Daily Range (ADR) between these pairs to ascertain the come of lots to be old during trading.

The normal ratio of ADR of the EU over GU in the phase of the subterminal 365 life is some 0.8. This capital, if GU moves in a day by 200 pips, the EU is prospective to advise a whole of 160 (= 0.8 x 200) pips. To get a fitting structure of equivocation in the USD, we use a smaller lot in GU. If we open position EU with 1.0 lot, then the traded lot for GU should be 0.8 lot, which is a lead of ADR ratio (0.8) increase with traded lot in EU (1.0 lot).


Markets:	Excels extremely well in trending style markets.
Time Frames:	All timeframe
Frequency:	Depending layer on the 100 pips settings about random trades a week per currency pair.
Currency:	Most popular are GBPUSD vs EURUSD pair.
Usage:	Read the usage document for details.
Automated:	100% fully automated trading system.
Description:	A very unique trading strategy that is simple to use. Manages all trade settings: the lot size, gap, pair, layer distance.
Format:	The fully automated version is only available in MetaTrader MT4 Expert Advisor format.
Brokers:	Works with 4 digit currency pairs. Compliant with all types of Brokers (NDD, ECN, or STP) supporting the MetaTrader Platform. The recommended Brokers of choice are Instaforex.
Delivery:	A download link for the Expert Advisor will be emailed to you immediately after payment has completed.
Price:	$175 USD (single license)
Risk:	None and not Margin Call (MC)
Profit:	10-30% per month consistent
Deposit:	Minimum 100 USD account cent ( 50 USD can )

Currency Correlation/Forex Correlation - An Introduction:

Currencies are priced in pairs, no single Forex pair trades completely independently of the others. How one currency pair moves relative to the any other currency pair is the correlation between those two pairs. While trading Forex, understanding and keeping a track of currency correlation (Forex Correlation) is very important especially if we trade with multiple currency pairs simultaneously..

Let's say, currency pair "A" moves in the same direction as pair "B" and we have been following up pair A's move very closely. We expect it to go up and we buy. We have not been following up pair "B" so closely and suddenly we look into that and the fundamentals or technical analysis suggests us that this pair may go down. We short sell. What eventually would happen that we would end up having profit on one pair and loss on the other as they moved in same direction. Similar case would happen if we simultaneously go long or short on two pairs which move in opposite directions.

Once we know about these correlations and their changes with time, we can take advantage of them to control our Forex portfolio's exposure.

How to use currency correlation?

Well, your slow speed because of an occasional traffic jam on the expressway does not really indicate that the average speed you would end up on the road will be same. The correlation are dynamic and change every moment. Take a note of the correlation of the past few days and compare it with the correlation value in the long term, say past one year. If the short term value is far different from the long term value, may be it's offering you a chance to place a trade... but how?

Let's say that currency pairs A and B has a correlation value of 0.98 during past one year. It means that they both move in almost the same direction. When currency pair A moves up, currency pair B also moves up with the same speed. Suddenly you notice that during the past one month or one week the correlation value of the currency pairs A and B is 0.10 i.e. moving in the same direction but with a different speed.

To clarify as an example let's say two cars are moving towards the same destination, one is moving at 100 miles/hr and another at 10 miles/hour. But we can assume that ultimately both may have to catch up on the speed (similar speeds). So what do we do? Well, we find out which one is slow and ride that. When we convert this car example to currency trading, suppose two currency pairs move in the same direction and have been moving up with a correlation over 0.60 in the long-term and we find that suddenly the correlation value in during the past few days has become 0.20, we just see which currency pair's movement (increase is slow) and we could buy that. On the other hand we could short-sell another currency pair.

Forex Correlation Value Range:

The currency correlation coefficient ranges between -1 and +1.

A correlation of +1 implies that the two Forex pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.

Positive Correlations:
A positive figure but less than +1 means that the currency pairs generally move in same direction but not always.
A value closer to +1 means that most of the time they move in the same direction

Negative Correlations:
A negative figure but more than -1 means that the currency pairs generally move in opposite direction but not always.
A value closer to -1 means that most of the time they move in opposite directions.

PRICE: $100 USD

DELIVERY: Download Link

FILE FORMAT: EX4 (MetaTrader Platform)

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