Correlation trading - no charts required

Correlation trading - no charts required

This is a correlation trading system that assumes we don’t know where price is going. It uses two currency pairs (EUR/USD and USD/CHF) that only trades long positions (no shorts). The system doesn’t use Technical Analysis. It's all about money management and collecting swap interest.

Rules:

1) Use small equal position size dependent on your personal risk (currently testing a $5000 trading account using .1 lot for each position taken).

2) Enter a long for both pairs.

3) Enter a 100 pip take profit for both pairs based on rule #2.

4) Enter buy stop for both pairs at the take profit level based on rule #3 with a 100 pip take profit.

5) For the losing pair, position average (based on all open positions) using buy limits every 200 pips with a take profit set to break even for all averaged positions. Reset buy stop at this price level with a 100 pip stop loss.

by PIP_CHASER