Posts Tagged ‘Forex Correlation’
Jason Fielder’s Correlation Code
October 29th, 2009
LATEST UPDATE:
Crazy Demand Forces Temp. Correlation Re-Open, But Not For Long!
More Correlation Code Copies are being released, BUT they could go within hours. Jason Fielder has been overwhelmed with the demand. His dedication to helping fellow traders drove the decision to hire more staff to support additional copies. Don’t delay…as these additional ones will go quickly!
Click Here To Secure Your Copy of The Correlation Code
Do You Use Correlation Strategies In Your
Forex Trading?
If Not, You Do Not Want To Miss Out On These Secret, Little-Known Strategies That The Big Players Use To Consistently Profit With Forex…
The Correlation Code was developed by Jason Fielder. The forex trading strategies taught in this program will show you how to take advantage of obvious relationships that exist in the market. These relationships are known as correlated pairs and by incorporating these powerful strategies into your forex trading, you will have the edge or unfair advantage over typical traders resulting in increased trading confidence and profits.
Forex correlation is used to describe the relationship between currency pairs. It is a quantitative measure of how currency pairs in the forex market reacts or moves in relation to other currency pairs.
Correlations range from 1 to 0 to -1. A correlation of 1 means the two currency pairs move in the same direction nearly all of the time. A correlation of 0 means there is no correlation between the currency pairs and they move independently of one another. And, a correlation of -1 is when one currency pair moves up, the other pair moves down.
Why is this so important?
Well, if you can learn to recognize correlated pairs, you can identify high probability moves which you can use to place winning trades. These trades are gold as they tip the scale in your favor because they are based on the strong fundamentals behind correlations. By using these universal market fundamentals, you are trading smart as you are using a consistent, predictable model from which to trade.
As you can see, correlation trading is powerful as traders can predict volatility. But…there is more to maximizing profits than just knowing when a move is about to occur.
Correlation by itself does not help you determine exact trades to place for entry and exits.
This is where Jason Fielder’s Correlation Code is worth its weight in GOLD!
Jason and his team have spent over 12 months researching, developing and testing over 80 different correlation strategies to determine the best, most profitable and consistent systems. The Correlation Code Course will teach you SEVEN powerful and effective forex correlation strategies that resulted from their research.
Click Here To Go To The Official Correlation Code Site
You can leverage Jason’s trial and error testing by getting your hands on this powerful forex trading course. These proven strategies, while used widely by institutional traders to repeatedly pull profits from the market, is a lesser known trading methodology to the average trader and rarely implemented properly by the individual trader. That will change for those that take action with the Forex Correlation Code.
In addition to getting access to all of Jason’s proven, profitable correlation trading strategies, you will also get Jason’s software application that you can use to implement the strategies you learn. This proprietary platform creates synthetic currency pairs to profit off of. The Correlation Code strategies are a super unique style of trading that truly works and you will be hard pressed to find anyone else teaching or sharing this knowledge.
Jason Fielder provides a 45-day 100% Satisfaction Guarantee that his system works and that you will make money by following it or your money back. You can get more details at the official Correlation Code site.
If you are serious about your forex trading and want to take your trading to the “Professional” level, then take a closer look at The Correlation Code. Jason is imparting his professional trading knowledge that is rare to find elsewhere and offering tremendous value to help you be a more confident, accurate and profitable trader.
Get ready to crack the code as the course and application will be available at 12PM on October 29, 2009.
Click Here To Buy The Correlation Code
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Generating Your Own Forex Correlation Tables
October 2nd, 2009
We’ve discussed how correlations can be useful in planning strategic forex trades. Getting proper correlation information is also important – and surprisingly, it’s something you can do for yourself, for free. It’s not even that difficult, though you will want a spreadsheet program and a charting program. We’ll give examples of what to do in both Excel and Open Office.
You’ll need a charting program that downloads daily currency prices; there are plenty of them, and most will save the data in either comma separated values or native .xls formats. You’ll need to import the data into Excel; the simple way to do this is to simply open the file and cut and paste. You can also get a little bit clever and tell your charting program to overwrite the existing file after each download, and link to the file within Excel, by opening the data file and Excel at the same time, typing the equals sign in a cell, and then clicking on the appropriate cell in the data file. Repeat this for each currency price that you want to track.
What you’ll end up with is a series of columns pulled from the currency price pairs. (Be sure to label them). You’ll want to pull historical data running back a day, a week, two weeks, a month, three months and six months.
Now, underneath each of the columns, you’re going to use the Excel =CORREL() function. Enter =CORREL( and then select the first column of data, then enter a comma and select the second column of data.
If your data were in the columns A1 through A7 and B1 through B7, the final formula would look like this:
=CORREL(A1:A7,B1:B7)
The way that CORREL works is that it takes the values in the ranges and runs a standard statistical correlation (which is X-X * Y-Y over the square root of X-X^2 * Y-Y^2). The CORREL function requires that both sets of data have the same number of values in them, otherwise it will return an #N/A error. There are a few cases where CORREL will provide a #DIV/0 error, but you’re unlikely to run into them.
Now, to be real clever about this, repeat it for every set of currency pairs you want to track the correlations on. This will take about an hour or so to set up in most cases, and if you do it right, can automatically update every time you pull down a new range of currency prices.
If you’re deep into analysis, instead of using full ranges on the =CORREL() function, you can do this for every item that comes through and build a general trend analysis tool. Feeding these numbers into Excel’s charting functions can even give you regular charts on correlations – and setting up charts means going to the Charts and Graphs Wizard and selecting which cells you want to show on the data plot.
The aim here is to give you a quick glance picture that you understand about the correlation involved in a set of currency pairs, so that you can make informed decisions in a short period of time; though correlations aren’t going to change much on the ‘five minute plot’ that day traders live on, having the data update automatically, and having the summary in place (along with date and time traces for when things changed) can let you back track the correlation’s changes with news announcements, and see what, if anything, is driving them. This can be useful information for making a future forex trade later.
You can also do this sort of correlation mapping with tools other than Excel. Open Office also has a =CORREL() function, but it uses a semicolon (;) rather than a comma (,) for its formatting. It has the same limitations that the =CORREL() function in Excel does.
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Importance of Pairing Currencies to Achieve Forex Correlation
September 24th, 2009
A few years ago, people hesitated on a career that dealt with the Stock Market. Most people were afraid of losing invested money since they were not sure how to manage their shares of stocks properly. The same thing went for the Foreign Exchange Market. The pairing of currencies was really quite difficult to understand. At the present time, people are getting the hang of the Stock Market especially now that there are references available in the Internet and so is automated software that can give assistance to their needs.
There is one topic though that needs further discussion and it s all about Forex Correlation. This is all about the relationship between a pair of currencies over a given period of time. Now the correlation here is the measurement between a negative with a positive range. Bear in mind that the positive range is when there are two different currency units that move in similar directions. At the same time, when you speak of a negative range, the currencies move in opposite directions.
Correlation exists because the market which deals with the foreign exchange or Forex is made up of trading the pairs of currencies as one group. These pairs, like the USD with the EUR, are priced on the existing value of one currency and then divided by the other currency. What you are actually doing here is that you buy one currency and at the same time, you sell the other currency. Each pair that you trade at is two different ones and it is not to be considered as one stock or one commodity similar to how you consider stocks.
Now that the USD is not performing well in the global market while the EUR is still stable, what you have here is a negative state. You buy using the USD and you sell using the EUR which in the long run would give you capital gains and further strengthen your investment portfolio. Such a tandem would permit you to seek a wider range of options. They show a high level of Forex Correlation.
In any pairing you do, it is wise and of course highly recommended that you study the market first before you start pairing currencies. Understanding forex correlation is a key skill to consistently making profits trading forex.
To find out more about how forex correlation can help you be a more profitable forex trader, check out the Correlation Code.
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