Strategy
Every currency has directly or indirectly correlation between them which could be positive or negative depending upon currency which can be measured from -100% to 100%. Where -100% means currencies moves exactly opposite to each other where as 100% means currencies moves in same direction and in middle range they corelate as per percent corelation in between them.
For exmaple GBPUSD--EURGBP Correlation 15M timeframe
This correlation between pairs keeps changing its range which could vary from negative to positive & positive to negative. Now depending upon the type of correlation between two pairs our Correlation EA will place place trades as
BUY-SELL or SELL-BUY
and waits for collective profits of it and once threshold is reached EA closes both the trades.
Working :- When EA loaded eg for GBPUSD & EURGBP corelation eg. current correlation 20% EA will open BUY- GBPUSD & SELL-EURGBP and monitor the trades for collective profit of both trades once is reaches predefined profit EA will close the trades but if not reaches and correlation changes from 20%-0%-Negative region EA will add new set SELL-GBPUSD & BUY-EURGBP, and keep monitoring.
Lets consider GBPUSD AND EURGBP in which correlation varies from positive to negative over a period of time in this EA can
BUY--SELL
SELL--BUY
Variation of Collective profits with % correlation between them
Graph of Profits VS % Correlation
Doing such makes margin required close to 0 (zero) and hedge trade between same pair and hence RISK is reduced.
Each set of trades gets different magic number for classic identification.
Inputs in Fx Correlation Expert Adviser
Inputs :
1. Lot
2. Profits
3. Loss
4. Symbol1
5. Symbol2
Results Screenshot from trading History
Every currency has directly or indirectly correlation between them which could be positive or negative depending upon currency which can be measured from -100% to 100%. Where -100% means currencies moves exactly opposite to each other where as 100% means currencies moves in same direction and in middle range they corelate as per percent corelation in between them.
For exmaple GBPUSD--EURGBP Correlation 15M timeframe
This correlation between pairs keeps changing its range which could vary from negative to positive & positive to negative. Now depending upon the type of correlation between two pairs our Correlation EA will place place trades as
BUY-SELL or SELL-BUY
and waits for collective profits of it and once threshold is reached EA closes both the trades.
Working :- When EA loaded eg for GBPUSD & EURGBP corelation eg. current correlation 20% EA will open BUY- GBPUSD & SELL-EURGBP and monitor the trades for collective profit of both trades once is reaches predefined profit EA will close the trades but if not reaches and correlation changes from 20%-0%-Negative region EA will add new set SELL-GBPUSD & BUY-EURGBP, and keep monitoring.
Lets consider GBPUSD AND EURGBP in which correlation varies from positive to negative over a period of time in this EA can
BUY--SELL
SELL--BUY
Variation of Collective profits with % correlation between them
Graph of Profits VS % Correlation
Doing such makes margin required close to 0 (zero) and hedge trade between same pair and hence RISK is reduced.
Each set of trades gets different magic number for classic identification.
Inputs in Fx Correlation Expert Adviser
Inputs :
1. Lot
2. Profits
3. Loss
4. Symbol1
5. Symbol2
Results Screenshot from trading History
