Great stuff. Was actually doing some backtasting and landed on those very websites when looking for correlation matrices AND noticed the same shortcoming with "Mataf" regarding the maximum time frame being the daily. It's truly great when you're researching a concept and find an informed authority that confirms it. Much appreciated!
Another solid vid Ali, great work. It takes me like an hour to get through these as I am taking stacks of notes and learning heaps. Thanks for the great content!
I have been studying correlation for years and my latest strategy has been to short only the highest of the correlated pairs and instead of a stoploss I will enter a buy on the lowest of the correlated pairs to hedge it out, then wait for convergence to close in profit
Very packed info! It would be great if you can do a video about market neutral strategy. Which is take two instruments highly correlated on the same category, like two banks, were one could be better than the other, so you can buy the one that are doing better one and sell the other. The good thing is doesn't depend on the direction of the market or being on a long biased market.
How can i do correlation divergence between two pairs, for example : Eurusd and Dollar index in SQX. DXY being the more powerfull currency, if it makes lower low, and EURUSD doesnt make a higher high, open a trade for buys for EURUSD to take higher highs. And if the other way round as DXY is more powerfull, if EU does take higher highs and DXY doesnt take lower low, open sells for EURUSD.
Great Video. Another idea would be to make video of correlation of Stock to its Seasonality chart. This would permit to compare stocks against how close they follow Seasonality charts like in Seasonax.
when you are looking for seasonality, by definition your correlations would be high. if you do seasonality on day of week however, where you have thousands then you can see that sometimes patterns will go out and come back in, which is to say high correlations comeback to zero or negative and then come back up again. Like I mentioned, correlations are not fixed on any timeframe.
I know,also you know , my questio was do you really trade like this ? Or you use correlation like this ? Why you are not using 100 percent correlated pair ? The pair itself is 100 percent correlated with itself ,we use correlation not to repeat same mistake in multiple trade ,we dont buy nzdusd at same time with audusd ,the other logic of usin correlation is to fill brokers pocket,every body is trying to teach forex,forex is unteachable atleast for most of the traders,its gainable,in between filling this gap with usless information is hurting traders ,this is confusing, correlation is just a hint to trade no strategy to trade
check out this video about Correlation in Forex ua-cam.com/video/Y4_e3NrFPfI/v-deo.html
This guy is one of the best, he actually goes into details
thank you for watching
Great stuff. Was actually doing some backtasting and landed on those very websites when looking for correlation matrices AND noticed the same shortcoming with "Mataf" regarding the maximum time frame being the daily. It's truly great when you're researching a concept and find an informed authority that confirms it. Much appreciated!
Glad to help and thank you for watching
Another solid vid Ali, great work. It takes me like an hour to get through these as I am taking stacks of notes and learning heaps. Thanks for the great content!
Viewers getting value out of the content, really makes me happy. Thank you for watching.
Hi thank you for giving good advice as I am new and have been doing what you are saying in one of your tips
What a good man 🙏
Glad to help
Great content 💎💎💎💎💎💎💎💎💎💎💎💎💎
I have been studying correlation for years and my latest strategy has been to short only the highest of the correlated pairs and instead of a stoploss I will enter a buy on the lowest of the correlated pairs to hedge it out, then wait for convergence to close in profit
Great idea, its hard to test though with regular platforms
Hello please can I contact you so you can show me how
Very packed info! It would be great if you can do a video about market neutral strategy. Which is take two instruments highly correlated on the same category, like two banks, were one could be better than the other, so you can buy the one that are doing better one and sell the other. The good thing is doesn't depend on the direction of the market or being on a long biased market.
Great suggestion!
Thanks for the video! what was the indicator for correlation?
There are many in trading view just search correlation.
In SQX if you combine strategies in a portfolio, you will a correlation tab
Cheers Ali, interesting uses of correlation there.
thank you for watching
How can i do correlation divergence between two pairs, for example : Eurusd and Dollar index in SQX. DXY being the more powerfull currency, if it makes lower low, and EURUSD doesnt make a higher high, open a trade for buys for EURUSD to take higher highs. And if the other way round as DXY is more powerfull, if EU does take higher highs and DXY doesnt take lower low, open sells for EURUSD.
Yeah, he said a lot of things, except how to build that
I can't find the CC VXI indicator on trading view
CC is the correlation indicator, and you need to add two instruments to measure the correlation
Great Video. Another idea would be to make video of correlation of Stock to its Seasonality chart. This would permit to compare stocks against how close they follow Seasonality charts like in Seasonax.
when you are looking for seasonality, by definition your correlations would be high.
if you do seasonality on day of week however, where you have thousands then you can see that sometimes patterns will go out and come back in, which is to say high correlations comeback to zero or negative and then come back up again.
Like I mentioned, correlations are not fixed on any timeframe.
Hey man ,do you realy trade like this ? Or its just to confuse amateurs ?
😊 Where is the confusion? These are all legit concepts that you can implement in your trading
I know,also you know , my questio was do you really trade like this ? Or you use correlation like this ? Why you are not using 100 percent correlated pair ? The pair itself is 100 percent correlated with itself ,we use correlation not to repeat same mistake in multiple trade ,we dont buy nzdusd at same time with audusd ,the other logic of usin correlation is to fill brokers pocket,every body is trying to teach forex,forex is unteachable atleast for most of the traders,its gainable,in between filling this gap with usless information is hurting traders ,this is confusing, correlation is just a hint to trade no strategy to trade