Anyone here trade correlations?

My model doesn't have anything to do with the positions I take other than to inform me of probable outcomes . My risk reward ratio is like 0.02 or so usually, whatever that's worth

 

Almost every day.

NQ + ES + DOW

Crude OIL + GOLD

 

Futures calendar spread trading is very lucrative.

 

Not solely but I always compare EURUSD to DXY and look for discrepancies as they tend to try and pull back in line when they diverge.

 

i will trade major pairs and gold. Their correlation is negative so if the USD is doing poorly then it is better to start investing in gold and vice versa

 

Non linear relationship so maybe correlation not the most appropriate figure.

EDIT except for short time frames then obviously linear approximation is fine

GAT

 

Yes, the model actually has 6 parameters it's not a linear effect , it fits short and term term maturities

 

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YES something like that, except not much very short term trading on that.
It's something like the profitable Dow derivatives trader noted ''Dow is correlated to itself.''
NOT really an ad for the DOW, but still a wise correlation statement.
Besides even some past hi correlations can easy diverge way off\oil has no earnings so that would not surprise me @ all.....

 

A futures calendar spread is like any other instrument. It goes up and down! How is it more lucrative than any other instrument?