Correlation Forex pairs on same strategy, better reliability?

• 11/28/2018 at 8:21 AM #85884
  CKW

  Hi all,

  I have a doubt on same automated trading strategy on correlation forex pairs. e.g. EURUSD, AUDUSD on TF 30m.
  If same strategy works on both, does it mean the trading result is more reliable ? or not really?
  What’s your opnion / experience sharing? (view of automated trading)

  thanks!

  br,

  CKW

  

  CKW

  Participant

  Topics: 22

  Replies: 87

  Been thanked: 8 times
  11/28/2018 at 10:39 AM #85894
  Nicolas

  Some people tend to say that it is the case. Since forex pairs are not always fully correlated, how do the strategy perform in this case? How do you measure correlation, are you relying on a website or something?

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4774 times
  11/28/2018 at 11:00 AM #85901
  CKW

  Hi Nicholas,

  Attatched is sample of AUDUSD 30m (left) and EURUSD 30m (right) on Same strategy but slighly different in Stop loss and TP. (Max Stop loss capped at 80 points)
  Website saying AUDUSD, EURUSD strong correlation but according to PRT Correlation indicator is only+0.55 (AUDUSD vs EURUSD) which not fully correlated but both trading results are still acceptable. Do you think it should help at least better confidence level & better realibility?

  br,

  CKW

   

  

  CKW

  Participant

  Topics: 22

  Replies: 87

  Been thanked: 8 times
  11/28/2018 at 1:44 PM #85919
  Nicolas

  The correlation of timeseries is made upon a period. So according to the calculated window, the correlation coefficient will differ.

  According to the below picture, yeah, it seems that EURUSD is highly correlated with AUDUSD:

  

  CKW wrote:

  Do you think it should help at least better confidence level & better realibility?

  I would say yes in this case, but i’m not a guru 🙂  What is the strategy about? Any indis involved in decision making?

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4774 times
  11/29/2018 at 7:29 AM #85967
  CKW

  Hi Nicholas,

  Thanks for your clarification & picture. My strategy is mainly on Price Action with Simple MA20/50 and S/R to determine TP & SL (Risk Reward ratio at 1.5)

  br,

  CKW

  

  CKW

  Participant

  Topics: 22

  Replies: 87

  Been thanked: 8 times
• Author
  Posts