Posts Tagged ‘correlation trading’

Public testing of the new MT5 platform began on October 12th, 2009.

MetaTrader5 (MT5) is the long awaited next generation of the hugely successful MetaTrader4 trading platform (MT4). MT5 is not just an upgrade to MT4. It has been completely rebuilt from scratch.

Here are the claimed features of Metatrader 5.

• 3 chart-types, 21 timeframes and over 70 analytical tools
• 5 order types and 4 execution modes available for trading
• Implements practically any trading strategies
• Advanced built-in reports on all trading activities;
• Built-in indicators and graphical objects
• Allows quicker analysis of quotes and trade decision making
• High performance and outstanding speed
• MQL5 development environment with new IntellySence system and more advanced strategy tester.

As most of you will know, Metatrader 4 (MT4) is the most widely used “off the shelf” platform in the Forex and CFD markets. It is expected therefore that when MT5 is out of beta, it too will be widely used.

Today MT4 is the trading platform of choice for virtually all Forex robots as well as custom indicators and scripts.

Unfortunately, the Metatrader4 language (MQL4) will not be compatible with MetaTrader 5 (MQL5). In order to meet the incorporate the requested features and execution speed, a new object oriented programming language was developed. As a result, existing MT4 custom indicators and EAs (.mq4 and .ex4 files) won’t work with MT5 platform.

You may be thinking that any new investment in MT4 custom indicators, scripts and robots is wasted. That is certainly not the case. MT5 is likely to be in beta for at least 6 more months. The current Mt5 beta doesn’t even include a strategy testing function. So it could be as long a year before any significant MT5 robots become available.

Even when MT5 has matured into a stable trading platform,  the amazingly popular MT4, is still going to be supported by brokers for many years to come. If traders demand it, brokers will support it. You can expect many brokers will be supporting both platforms and there is nothing to stop you running both MT4 and MT5 clients at the same time.

It is only a matter of time before a MT4/MT5 compatibility is developed. Most likely this will be in the form of a compatibility module or MT4 virtualization plugin for MT5. Rather than recoding every MT4 indicator and EA for MT5, it is almost certain that some clever programmers will code a virtual MT4 plugin platform for MT5. Much like the way you can now run Windows in a virtual machine on a Linux box or Linux inside of OS X.

Once a tool is developed to convert existing Expert Advisors and indictors from MT4 to MT5, then the uptake of the MT5 platform will occur more quickly.

Here is the official announcement about MQ4 and MQ5 compatibility:

“From the beginning of Metatrader 5 development we thought that we will be able to save the compatibility. And we said about it many times. But the numerous traders/developers requests made us change our mind. We’ve understood that just can’t make a new language compatible. At the same time we have made MQL5 more powerful and in this way we gave you, traders and developers, more abilities – that was our main goal in developing of MQL5 IDE. From one side, new language with the new abilities, and from the other side – MQL4 and MQL5 compatibility. Unfortunately, these two aims can’t be reached at the same time.” Interview with Metrader5 lead developer

The complaint often heard about MT4 is that it was built by programmers not traders. Certainly it was built with a focus on the front end and “client side” rather than the brokers back office side. The platform itself evolved from a price and data delivery terminal that became very popular with traders. Users then started to ask whether trading functions could be built into it. Metaquotes used the same architecture and added trading functionality to it, leading some to call MT4 a Frankenstein creation.

No Hedging and Compliance With the New NFA Rules.

Some may feel that the NFA regulated Forex brokers are driving the MT5 development. Others are saying the MT5 position/order management is to the benefit of the brokers not the traders. Afterall, it is the brokers who pay for the Metatrader platform.

To meet Forex industry standards, MT5 changes the entire core of position handling. From now on MT5 traders will be able to keep only one position of any single trading instrument/currency pair. This reflection of orders aligns with the new FIFO (first-in, first-out) rule implemented by NFA as an industry standard in summer 2009.

Hedging at this point is eliminated and so is the separate management of two different in time orders on the same currency pair. Buying and Selling the same pair (hedging strategy) will result in zero positions being open.

For example: 9:00am Long GBP/USD 1 lot @ 1.3000, and later added 12:00pm Long GBP/USD 2 lots @1.3500, will be seen on Metatrader 5 account as one position “Long GBP/USD 3 lots”.

The first order to close is always the order that was initiated first, so it’ll always be the 8:00am Long position to close in our example above.

Is the FIFO and No Hedging a  Show Stopper?

No individual orders listed, NO Hedging, and INCOMPATIBLE with anything MT4. Is this a step BACKWARDS?

If you like the way MT4 works for you now and or have made the move to a non NFA regulated broker then MT5 doesn’t look a very attractive prospect.

However there will be  other instruments and charts accessible beyond forex. Such as futures (cfd-versions) along with lots of option classes. Lots of opportunities for real-world hedging, (i.e. where the two instruments are NOT identical) and for trading styles that are currently impossible. Such as buying options on signals, instead of just going long or short the currency pair. Or constructing forex grids with options.

Some traders have said that FIFO (first order in first order out) prevents counter trend trading or engaging in a quick scalp in the opposite direction when you already have an open position. It doesn’t affect your net position but it does affect the way you must manage your trades.

Correlation strategies are also an obvious alternative way to hedge. Hedging a position  can be achieved by taking position in more than one correlated currency pair. And in MT5 this could be expanded to forex options and their  underlying currencies or forex futures and their own options. In fact if you are trading on more than one currency pair then currency correlations and their impact leverage and risk is something that needs to be well understood.

For more on currency correlation and how to apply it to your trading system, see Correlation Trading system

Here are a few Forex brokers offering the MT5 platform download and testing

• Broco
• Tadawul FX
• Tradeview Forex
• ODL Markets

Technorati Tags: CFD markets, correlation code, correlation trading, currency hedging, custom indicators, EA, expert advisors, FIFO, Forex markets, forex robot, metatrader5, mt4, MT4 MT5 compatibility, MT5 brokers, MT5 metatrader 4, MT5 platform, NFA rules, no hedging compliance, quick scalp, swing trading

The Thunderbolt EA which is part of the Forex Bling suite of Forex robots, resumes its upwards march regaining almost all of the lost ground from the previous month. From a starting balance of $10,000 now looking set to break $23,300.

It is good to see more and more Forex robot creators publishing live results rather than a set of back tests or screen shots. It was FapTurbo at the end of last year who broke new ground with their live results published directly on their sales page. In fact much of Fap Turbo’s claim to fame was that they were the first robot publishers to do so. Raising the bar for all Forex robots.

While it is great to have forex EA creators publish their own live results it still not so easy to compare one set of results to another. Which is why I am returning to my project to compare all the top forex robots in both live and back tests. This is going to be a major project and for this purpose I will be setting up a dedicated website at LiveMT4.com

2010 looks likely to be a roller-coaster year for the currency markets with plenty of FUD (Fear Uncertainty and Doubt) to fuel big currency movements. This is going to suit some trading methods better than others.

While many Forex robots can and do trade profitably most of the time. Automated trading is not for everyone. When real money is on the line, many people prefer to pull the trigger themselves but you have to know what you are doing.

Correlation Trading

My personal pick for best trading system for the year ahead would be Jason Fielder’s Correlation Code. Why? When the big swings occur, and they will, this is the best set of proprietary tools and methods I’ve seen for analyzing and trading on breaks in currency correlations. Knowing when and in which direction to trade and when not to trade is the difference between making good gains or wiping out your account.

Technorati Tags: correlation code, correlation trading, forex bling, forex hope, forex robot results, forex trading ea, jason fielder, live traind results, Thunderbolt ea results, thunderbolt robot

Jason Fielder has stated that the Quad Charting Pack will never again be offered as a bonus and will in the near future be launched as a separate product.

Why is Forex Impact giving away the Quad Charting Pack valued at $5000 as FREE Bonus with the Correlation Code?

Well if you attended the final webinar you would have heard Jason say that the Quad Charting software was still in beta release and the final release will be sometime in the near future. He went on to say that the Quad Charting pack was fully functional and the full final release version will be available free of charge to Correlation Code buyers as soon as the final release is ready.

Well it is pretty clear that correlating currency pairs and finding “cracks” in the code is a very powerful trading strategy. And the Quad Charting pack takes this one step further to create synthetic correlated pairs on a brand new Metatrader 4 chart.

What would be better than trading cracks and fundamental laws of correlated currency pairs?

Enter Metatrader 5 and the ability to chart commodity, futures, options and stock indicies all on the same platform. Now correlation trading takes on a whole new meaning. And the touted $5000 price tag of the Quad Charting Pack and strategies starts to look very reasonable if not an absolute steal. The first traders in the market using these tools are going to make an absolute killing before the hoards arrive.

Now I don’t know that the Quad Charting Pack is being developed to exploit Metatrader 5 which is in beta release right now. Just joining the dots. What is certain is by mid 2010 correlation trading across multiple currencies and indices is going to be massive. And the first tools to take advantage of the new Metatrader5 platform are going to cost an arm and a leg. Unless of course you get in early as a “beta” tester.

Here is what Forex Impact have to say about the Quad Charting Pack

“Quad Charting Pack: Value: $5000!”

“Our soon to be release software platform that “auto creates” synthetic correlated pairs (like the EUR/USD & GBP/USD ) and turns them into ONE chart to trade.”

“Instead of charting using two currencies (industry standard in Forex), we found a way to use FOUR currencies, which creates our own “synthetic pairs”, gives us a brand
new chart, and a brand new way to look at the market that NOBODY without this software is able to trade!!”

“This also includes it’s own complete strategy, and you can even run any
of your own strategies on it as well!”

“(This will released separately in the future and never again offered for free) and will revolutionize trading much like candles did when they were released.”

The doors have almost shut on the Correlation Code and there are literally only a handful left. While the Correlation Code may become available again sometime in the future, the Quad Charting Pack won’t be part of the deal. Sorry I didn’t figure this out sooner to let my regular readers know but better late than never.

Technorati Tags: commodities trading, correlation code, correlation trading, forex trading, futures, futures correlation trading, market correlations, metatrader 5, metatrader5, mt5, options trading, price correlations, Quad Charting Pack, quad charting software

It has been claimed that the Correlation Code is a strong foreign exchange trading system that permits the trading of artificial currency pairs, identifies entry signals from deviations in currency correlations ‘CRACKS’ in the CODE, this the Correlation Code

The Correlation Code Features Include:

* A trading technique that exploits variations in correlation between two closely associated currency pairs.
* 8 correlation trading methods. These were selected from more than eighty initial correlation strategies to form The Correlation Code.
* Correlation Code secrets provide a higher than normal winning accuracy compared to using technical indicators or price action
* Finding setups is straightforward and easy and needs no complicated indicators to trade.
* Harder to make wrong interpretation as all setups require at least 2 currencies for confirmation
* Trading methods derive from ardent observation and are not found in any conventional foreign exchange trading books.
* Correlation Code is considered as a price-leading action trading.
* you’ll be able to find tons of occasions to trade whether its swing or scalping technique you seek
* Correlation Trading gives us the PREDICTABLE VOLATILITY we need to trade confidently and accuracy.

What Makes relationship Trading Different?

* You trade two charts not just one. Permits us to see the ‘cracks’ in the correlation. Gives us entry/exit signals. You see what no other traders are seeing.
* Trades are backed by Universal fundamental laws in the market.
* Your trades are based mostly on what the market MUST do and are as predicted as the sunrise.
You can read more about the Forex Correlation Code platform here the Forex Correlation Code System Official Site

How Does relationship Gives Us and Edge?

When interrelated pairs fall out of correlation ‘crack’, they MUST come back to parity as those correlations are backed by universal fundamentals in the market. This return to correlation creates the predicted volatility traders like us need to profit!

The Correlation Code is not just trading theory or a black box system. Correlation is also not and over optimized system that works but no one can tell you why.

Correlation Code trades are based totally on what the market must do and not on what it has done during the past or what we hope it’ll do in the future.

How Does correlation Trading Work?

As a correlation trader you are taking only the highest chance trades, based primarily on elemental law of what has to occur in the market. A crack appears, we jump in until the market seals it.

The cracks in the correlation only signal a trading opportunity. Correlation alone doesn’t tell us the best way to act on this opportunity. The Correlation Code was built to cross the gap between know when we should act and knowing how we need to act.

The Power of The Correlation Code

* When you learn it, you trade it anywhere, on any PC and never pay any upgrades.
* You set your trades up at the same time each day.
* Day trade, swing trade or take long term plays. Correlation trades all market conditions and all timeframes.
* Gone are early mornings, late nights, and horribly dull hours waiting for trades.
* As a correlation trader you’re looking at the market from a very different perspective, so you are playing in the uncrowded waters and not fighting an upstream battle.
* Each part of the CODE is explained in explicit detail within the members area
* All the buy and sell signals are also provided to all new owners while they’re getting a grip on the system.
* Full ongoing support.
You can see more about Correlation Code system at Forex Correlation Code Official Site

What You Get With the Correlation Code

* A system so powerful that most traders who start utilizing it, never trade how they used to again.
* A method so unique, that you’ll be seeing and taking trades that simply don’t exist to other traders.
* A system that has authorized Jason and many others to trade full time.
* A system that trades all market conditions with less stress, much more confidence, far higher accuracy, all while spending minimal time a day doing it.
* Quick access to the owners club and full support.
* Continuing coaching at your pace.
* Multiple training videos, live webinars, special shows.
* 8 seperate strategies to make a choice from.
* Swing trading, Day trading, all market conditions

Here are the trading systems that you’re going to master with the Correlation Code:

* Follow the Leader Correlation System
* Euro/London Scalping System
* Pivot Reversal Scalping Methodology
* Price Action Channel Technique
* CorrGap Trade Strategy, correlation gap trading system
* CorrTrend Strategy, correlation trend trading system
* CorrSnapBack Strategy, correlation snap back trading system
* CorrDecay Strategy, correlation decay trading strategy
For more on Correlation Code platform at Forex Correlation Code Platform Download Page

In addition to the Core Modules, as a Correlation Code student, you will have access to the Members Club Website where you can engage with other members and support including special bonus videos from Jason.

Correlation Code Bonuses

Jason has lined up some superb bonuses that he is freely giving free with the Course, including a quad charting pack which is his proprietary software platform that auto creates synthetic correlated pairs.

Bonus 1: Quad Charting Pack : worth $5000. Software platform that auto creates correlated pairs for you to trade and includes it’s own complete method using Forex Impact’s proprietary indicators. This is a who new method for charting and trading which will revolutionize trading very like candles did.
Bonus 2: forty five days access to the Forex Impact trading club including weekly live coaching.
Week 1. Using Correlation in trending markets & Scalping.
Week 2. Using Correlation in counter-trend markets & Swing Trading.
Week three. Using Correlation in markets that are breaking out & long term trading.
Week 4. Correlation Code money management.
Full list of bonuses can be found here: Correlation Code Bonus Package

Jason Fielder is so confident in the Correlation Code system that he is including a forty five Day Trial Guarantee. He’ll give you a full forty five days from the day you order to use the materials in your house and prove to oneself that it is the right forex trading strategy for you. After studying The Correlation Code, if you’re not 100% satisfied, just send it back within forty five days of your purchase date and he’ll refund 100% of your price. No questions asked, no hard feelings. It is as simple as that.

125% ROI Guarantee: Jason knows that if you’re actually devoted to improving your currency trading, then the The Correlation Code has the potential to significantly enhance your profits.

So he’s going to’put my money where my mouth is’ with part two of his ‘double guarantee’…

If you do not make at least twice your price within your first three months of trading with the The Correlation Code, he’ll give you a complete refund, plus a further $500. Just email Jason after your first 3 months, show him your trades ( you want to take all the signals to qualify ) and let him know how it’s going. If you haven’t made at least double your price, just show him your trades in a live or even a demo account, and you get an additional $500 only for testing out the system!

CLAIM YOUR COPY NOW

For more on the Forex Correlation Code secret here the Forex Correlation Code Platform

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