NZD/JPY Correlations
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Thread: NZD/JPY Correlations

  1. #1
    That these were calculated by me . I will post more exotic correlations when there's an interest. Appreciate


    NZY/JPY

    NZD/USD .96
    GBP/NZD -.73
    USD/JPY .69
    EUR/USD .67
    USD/CAD .67
    AUD/JPY .66
    EUR/AUD -.63
    EUR/GBP -.56
    GBP/CHF .40
    USD/CHF .35
    AUD/USD .29
    GBP/JPY .27
    EUR/CAD .21
    CHF/JPY .15
    EUR/JPY .15
    EUR/CHF .13
    GBP/USD -.01

  2. #2
    Well, this is how I do it. You take any pair and discover it's daily range. Like you said, 1 method is to select the ATR, but make sure you do so from the daily chart. I only do that method with exotics that I can not find daily range data on. I usually do a 20 period ATR to match the 20 day ranges found on mataf.net. Then, you take the value of the currency per pip, and multiply it by the daily range.

    Ex. USD/JPY daily range 76 pips * $.82 per pip = 62.32


    do exactly the same with the pair that you want to market.

    Ex. GBP/USD daily range 128 * $1.00 per pip = 128

    Considering that the jpy is lacking from the DRP (exactly what I dubbed the daily range, and pip value), you need to add additional lots to the jpy side.

    128 / 62.32 = 2.05

    Therefore, you want to purchase 2.05 lots for ever lot of GBP. In my view, this formula is worth BILLIONS. I am demo pairs which haven't deviated double the disperse with this method. A savings account on steroids, and you do not have to see the screen daily. I have other formulas I created, like finding the optimum point for closure and re-entering a trade. Perhaps you have heard of Freedom Rocks? I understand a group of traders who uses that instrument, but they close and re-enter at 1.75% account increases. If they had this formula they'd understand they are WAY off. I love mathematics.

  3. #3
    Hey, this is fantastic. I really like mathematics #8217;s and statistics as well. My fiancé just likes chocolates though

    Anyhow, just tiny bit about me and my trading philosophy. I believe that every market has come into existence for one intent. The share market is for you to purchase the right to share in the annual earnings#8230;they do not provide you all the earning but just some in the shape of dividends, the rest they keep back and reinvest for another year and so on#8230;at the end, the share price adjusts to the size of earnings potential, this is general knowledge. One day you choose to split this agreement with the company and you also get paid your capital and the rest of the money that they kept back from you in the form of profit over the talk price you bought and sold in #8211; supposing it was a fantastic company hehehehehe. Anyhow, that is the sole purpose or reason why it is. It has nothing to do with specialized analysis and jobbing the market all the time day in and day .

    The Foreign Exchange market came into existence amongst other things to enable people to commit currency in countries with high interest rates, such as the Japanese can purchase British Pounds rather than placing the cash into a Japanese bank and see it rust away.

    My philosophy about trading, regardless of what market one trades is the closer one applies oneself to the core reasons behind the existence of the market you is engaging in, the more successful one is going to be since you're on the face of the market. The further away one is operating out of the core reason the specific market is in existence, the successful one is OR the tougher one has to work to make a living.

    I'm not minding technical analysis etc. or any other systems, simply stating why I pursue these kind of matters as the one#8217;s we are talking and not other ways. I've been trading Foreign Exchange for approximately 3 and a half a year now, employing a specialized system. I traded discuss markets for approximately 6 years. It took me quite a while to come up with my trading philosophy and I have it, I've reason to pursue matters like we are discussing.

    Anyhow, enough about that, back to business. It seems you have been working at this for a while as well and it is really great to know I#8217;m not alone on this crusade #8211; I want you well!!!

    Also, I#8217;m a pro-coder and eloquent in Metatrader language as well, if you want stuff to make things easier, allow me to know#8230;I've build quite an arsenal of resources to visualize ideas quickly. Of course utilizing small time frame data like 5 minutes at MT4 is useless for significance etc. as the data is filled with holes, but state 1 hour to daily is just peachy.

    Best wishes,

    MECER

  4. #4
    Quote Originally Posted by ;
    ...I'm demo pairs which haven't deviated double the spread with this technique....
    Hi,

    Do you believe that, after you enter the trades, the UPL (unrealized profit/loss) doesn't deviate with more than double the spread of the most significant spread pair? Could you afford a little illuion, just so we are on the exact same page.

    Thanks,

    MECER

  5. #5
    Quote Originally Posted by ;
    .. .finding the best point for closing and re-entering a trade. ...
    Hi, are you refering here to the positive/negative swings of the UPL. In other words, you will exit the setup when the UPL is upward state $500-00 and then watch state a synthetic commerce (not a live one - like a presentation ) untill it reaches perhaps (-$400), then re-enter the installation again, potential obtaining $900-00 on funding expansion plus all the interest?

    I've toyed with the above idea somewhat, made a indior that simulates the trades, having it visually it is easy to see in which the temptations are.

    Anyhow, Thank you for sharing your thoughts

    MECER

  6. #6
    Many times, Market only sticks to one range. .like the majority of last week. . .So its great we put half our money in carry trade..atleast in the conclusion of this day..our balence will keep rolling..but to make some good money..we need to trade..going with attention alone..will be too slow. . .and we wouldn't want to benefit from the benifit of simple money when we are old

    For the trading part. . I go just with GBPJPY and the movement of that currency have not altered a bit..it is quite expressive and very substantial interest bearing too..unlike GBPUSD which many folks trade..which has a nasty habit of turning a stroung fad and eating up all the balence.

    People generally stay away because of 9 or 8 spread..but it is very readily re-coverable.

    Last month it had 3 stroung trend..one upward for 1500 PIPS and 2 down for 1000 PIPS..as we understand since 2000 it's just gone up..still intraday trading upward and down..will get you 10 to 15 million PIPS

    On co-relation related stuff. . I found a fantastic post from kreslik..Im not permitted to post the link please do google on FPI kreslik (fractional product inefficeincy). .he clarifies how three currecies are inter-related rather than 2 because we generally think..it is essential read.

  7. #7
    Quote Originally Posted by ;
    On co-relation associated stuff. . I discovered a great article from kreslik..Im not permitted to post the link please do google on FPI kreslik (fractional product inefficeincy). .he explains how three currecies are inter-related rather than two because we generally think..it is a must read.
    Hi there,

    Well done on those GPJPY trades!!!

    Yes, Kreslik is about FPI, sadly it will probably never work with all the retail brokers we need to deal with. With NFP on friday there was a temprorary 80 point spike in the one FPI ring, but there was no way in hell Oanda was gonna provide me entrances, I tried on the demo simply to see what would occur, the live app went offline for a few minutes, the demo took the 3 trades, but staggered the entrances, killing the border None of those rings are interest positive either, so no use for in that respect unless we can find brokers that have their interest tables setup in this way they do allow for a small interest profit. I still haven't discovered one however

    I concur with you on trading appart from running the interest trades. I've a simple divergence sytem which I operate on a 5min Euro chart, not a lot of good action lately, but when it wakes up, I make somewhat. They've brought the avarage spread down to 1.2 pips the last week that I noticed

    that I also have noticed they do NOT have the NZDJPY pair, you can make this up though by buying the components ( NZDUSD and USDJPY ) doing so, they will pay you 17.205 for a web long NZDJPY and FXCM will bill you $14-00 on the oposing brief, fine $3-20 there to be made while the oppertunity stays I recon, would you confirm this perhaps? Only a pitty Oanda does not take credit cards, and that damn PayPal is most likely the priciest bunch on the web, PLUS being a South African, we're not permitted to receive money back via PayPal, only pay out

    Anyhows, take care of today.

    MECER

  8. #8
    Thank you for your notions. Very intriguing. I never thought of it that way before. In a less profound way I simply said to myself... hey, this may actually works! I've been trading for 7 months now and have been pounding away at carry trade tips for the past month. Naturally, I overlooked this initially in pursuit of instant millions.

    This is what I meant by double click the spread. If you start a trade you are negative X number of dollars because of the spread. Let us say it was 200. In some specific pairs I have demoed with large correlations the pair would not go more then -600 or 400. You need to figure a profitable deviation as possible drawdown, since we do not know how the pair will disagree. Hopefully, in our favor. So I believe you had it correct when you mentioned UPL. Thus far, the multiples of the distribute a pair deviates is really a good indior of how much leverage to use. Certain pairs require more or less margin, and it is not safe to estimate leveraging according to a percentage of account or quantity of lots in these cases.

    Formerly, I discovered the correlation for Spider on the AUDNZD vs the NZDJPY, but I believe I May Have erred. I understood that pair's data wasn't collected on precisely the same day, so that I will recalculate it soon.

  9. #9
    GBPJPY moved 250 PIPS today. . .after the rate hike in BOE..Its average range is more than 150 and more often it croses the 200 Mark,

    Hope you guys caught the PIPs, also bad after a very long party on the weekend, I woke up late and went live in US seesion

    Expecting GBPJPY after the downward movement, would leap up and cross 0.45 ish at the forthcoming weeks.

  10. #10
    Gxxr, I'm convinced that the formula below is wonderful, but it doesn't allow anyone but mathematics experts the ability to actually profit from it.

    Are you currently able/willing to explain how to develop a mathematics forumla, such as that which you have below, into a useable trading system that individuals that are not mathematics experts can demo and provide results on?

    I'm sure for you the formula is worth billions, but for me (a total math newcomer ) it isn't worth anything.

    I have noticed several people on this forum (not talking of you!) Who prefer to say things like, see, all you have to do is hedge 7 main pairs, extrapolate the gap in interest, combine daily swap occasions 1.087490 percent, add spread 5 times variety of pairs traded, take daily ATR and double it divided by 6, and you have the ideal trading system. See what I mean? Simple!

    And if everybody thinks they're a genious (that is probably what they're after) it actually benefits nobody.

    Are you able to expound on the formula a little in order to help us grasp the idea and apply it?

    Quote Originally Posted by ;
    Well, this is how I do it. You take any pair and find it's daily range. Like you said, 1 method is to select the ATR, but ensure that you do so from the daily chart. I just do that method with exotics that I can't find daily range data on. I usually do a 20 period ATR to coincide with the 20 day ranges found on mataf.net. Then, you simply take the value of this currency per pip, and multiply it by the daily range.

    Ex. USD/JPY daily range 76 pips * $.82 per pip = 62.32


    Do the same with the pair you want to hedge.

    Ex. GBP/USD daily range 128 * $1.00 per pip = 128

    Considering that the jpy is lacking from the DRP (exactly what I dubbed the daily range, and pip worth ), you have to add additional lots into the jpy side.

    128 / 62.32 = 2.05

    Therefore, you need to buy 2.05 lots for lot of GBP. This formula is worth BILLIONS. I'm demo pairs which haven't deviated double the spread with this method. A savings account on steroids, and you don't even have to watch the screen all day. I have other formulas I created, such as finding the optimum point for closing and re-entering a trade. Have you ever heard of Freedom Rocks? I understand a group of traders that uses that instrument, but they shut and re-enter at 1.75% account gains. If they had this formula they would understand they're WAY off. I really like mathematics.

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