Hi all, I hope you are all having a great holiday ! :)
- One way to double your profits in almost any trade is to add the sister pair(s) into your portfolio. If you spot a high probability trade setup on EUR/USD, the scenario is most likely to occur on its sister pair USD/CHF, but in this example the inverse is true as they are in anti-correlation. However this can also ruin your bankroll if you don't know what you are doing as this acts as a double edged sword, so proceed with caution if you are new to forex.
How to use the heat map? Simply choose the symbol of the pair you are looking to trade and historical correlation data will come up on all pairs. - If you press EUR/USD, you will see that USD/CHF is strongly blue all throughout the timeframes, this means that they are in strong anti-correlation. The opposite is true if the colour is strongly red, example : USD/JPY and CAD/JPY.
Good Luck ! - And let me know if you have any questions.
This is really usefull. Thank you very much and happy holidays!
Tradinggrouptw
⋅
Happy Holidays ! :D
BattleReady
⋅
Double your profits and double your risk! :)
emongtimothy
⋅
i used this for the past couple of weeks i only trade corrected pairs by hedging them and make sure i open trades when the correlation is eitherr -95, +95 and 0 i know atleast i will make some money coupled with market structre analysis, it takes headache out of trading
JazzForex
⋅
Interesting tip. Isn´t this basically the same as doubling up on your position in EU and in so doing, doubling your traderisk? Since you don’t really get 2 independent chances to win or lose a trade here; you get only 1 due to the very strong negative correlation. How does this relate to your money management rules? Happy new year!
Tradinggrouptw
⋅
yes that is correct. In regards to MMR its hard to say as I actively manage all my positions.