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Inverse Pairs

Hill
Apr 10 2012 at 06:24
12 ieraksti
Could anyone tell me if there are inverse pairs. Say one pair goes up the other goes down. Is there a list somewhere on the correlation of pairs? How one pair reacts to other pairs.

Thanks

PipGnostic
TheCyclist
Apr 10 2012 at 10:55
724 ieraksti
https://www.forexticket.co.uk/en/tools/01-01-correlation

eurusd and usdchf have a correlation of about -80%, so one goes up, other goes down.

Hill
Apr 10 2012 at 11:26
12 ieraksti
Thanks so much for the chart. Now there should be some way to trade this.

PayPip (PayPip)
Apr 10 2012 at 11:29
28 ieraksti
audusd / usdcad


is my preferred inverse pairing

PipGnostic
TheCyclist
Apr 10 2012 at 11:40
724 ieraksti
But for this kind of trading you got to know your shit. Betting x cents a pip just doesn't cut it. Got to be able to work out position values and basically a whole pile of things that Metatrader just doesn't even begin to cover.

Oanda reports a bit more but in the end you'll need to be able to do the math via spreedsheets mostly as this information just isn't available freely.

PipGnostic
TheCyclist
Apr 10 2012 at 11:45
724 ieraksti
The amateur way of doing it is to overlay two data series on a chart - lets say eurusd and gbpusd, as they move further apart bet they will towards each other. Simple as that.

PipGnostic
TheCyclist
Apr 10 2012 at 11:51
724 ieraksti
What is brilliant about this is that it moves you beyond indicators, which is where 99% of traders get stuck. I haven't bothered with indicators for years. Load of crock.

Bending your mind around this lot will get you into the right concepts to make fx work for you. You'll notice after a while that you don't even bother with indicators and you'll probably do better than ever. See it starts becoming about position sizing. When to own more, when to own less and so on...and that is key to fx.

PipGnostic
TheCyclist
Apr 10 2012 at 11:58
724 ieraksti
PayPip (PayPip)
Apr 10 2012 at 21:37
28 ieraksti

   TheCyclist posted:
   What is brilliant about this is that it moves you beyond indicators, which is where 99% of traders get stuck. I haven't bothered with indicators for years. Load of crock.

Bending your mind around this lot will get you into the right concepts to make fx work for you. You'll notice after a while that you don't even bother with indicators and you'll probably do better than ever. See it starts becoming about position sizing. When to own more, when to own less and so on...and that is key to fx.


Agreed, Its not really brilliant its called trading. It's nothing more than portfolio management and once you get it you really don't even need to look at a chart let alone any indicators. Consider it old school tape reading and portfolio management.

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