Anyone here trade correlations?

Discussion in 'Forex' started by Rapunzel, May 8, 2022.

  1. heispark

    heispark

    The following picture is /NG Jun-July spread. July is usually hotter than June and therefore July natural gas has usually higher demand. Of course, time to time this can change for various reasons. However, statistical point of view, you have a high odd to be correct. Stop loss is $0 which is the point where contango becomes backwardation. Professionals trade spreads and spreads are much more liquid than outright trading. That's not coincidence.

    2022-05-10_20-07-12.png
     
    #21     May 10, 2022
  2. Rapunzel

    Rapunzel

    How to predict future correlation between assets in a given time horizon.
     
    #22     May 12, 2022
  3. shine

    shine

    The inverse correlation works well for the EURUSD and USDCHF pairs. Therefore, when trading these pairs, I pay attention to this, when, for example, if EURUSD turns up, then there is a high probability that USDCHF will go down.
     
    #23     Oct 4, 2024