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  1. #1
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    Correlation Forex Trading without StopLoss

    Hi everyone, everything fine?

    I am doing some studies on this operational method of operating without stop loss, making the dynamic balance of the portfolio. However, I need to know if my research is correct, as I am interested in the correlations of longer terms such as one year on:

    Negative correlation between: USD/JPY and Gold

    Positive Correlation:AUD/USD and Gold

    Negative Correlation: USD/CHF and Gold

    Negative Correlation: USD/CAD and Crude Oil

    if you can suggest me how to make this correlation in terms longer than a month.

    thanks in advance.

  2. #2
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    If you can do it for a month, what are the issues that prevent you from doing it for longer than a month. Just curious.

  3. #3
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    Iqbal, how are you? As I operate without stop loss and rebalance operations over time, I would like to use the correlations to have a historical basis. Example: if I know that AUD has a positive correlation with Gold, it seems clearer to give preference to operations in this currency / commodities. but i am still searching to learn more.

  4. #4
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    I can only guess what you plan to do but here is my two cents.

    Probably you might want to consider utilizing the volatility index such as the GVZ. Current market risk sentiment is also an important consideration. Also have you considered using multi-correlation, instead of single-correlation?
    Last edited by Iqbal; 04-24-2020 at 08:17 AM.

  5. #5
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    For sure, iqbal. I thought, even I want to combine as many coins as possible. I saw in another forum something about Grid Correlation, the example mentioned was in GBP / USD, GBP / JPY and USD / JPY. I noticed the correlation between CAD and oil, AUD and gold, etc.

  6. #6
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    However, you may sometimes hear about traders who trade Forex profitably without a stop-loss. In fact, some traders are opposed to using stop-losses at all. These traders rely on Forex no stop-loss strategy to bring them profit. Some of them do succeed, but the majority don't.

  7. #7
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    my idea is to balance the lots and the margin level in a balanced way, i've been training this on a demo account.

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    Carefull with trading without Stop loss and only on coloration since coloration is relative to lookback period...

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