Range
Correlator
Simple and profitable - this is how the Forex correlation EA RANGE CORRELATOR works
A few words about what correlation is:
The strategy of this forex correlation EA is to trade on the correlation of related market assets. How does it work? We will try to explain this briefly and clearly. So, it’s no secret that the quotes of many market assets have similar dynamics. For example, AUD and NZD, or EUR and GBP, or EUR and CHF, and so on. In most cases, they move in the same direction, occasionally deviating from the General trajectory.
In case of such a deviation, we turn on the trading technology: a pair that has grown too much, we sell it. The second pair whose quotes have fallen – buy. Sooner or later, the quotes of both pairs begin to converge again, and the trader makes a profit (example in the picture below):
Now imagine that this trading method can be applied to a large number of correlated assets and on any time frame. Thus, you can create a widely diversified portfolio for trading with a small drawdown and good profitability from 100% per year.
The EA Range Correlator Forex automatic system will be a good addition to any portfolio of automated expert advisors. If the market is highly volatile, scalping expert advisors suffer losses, and if there is no trend in the market – trend robots get losses. While EA Range Correlator can work in any market condition, at any time of the day, on any timeframe and on almost any asset!
Here is an example of how this works in reality (test accuracy 99%):
Trading between the AUDCAD-AUDCHFÂ currency pairs on the H1 timeframe
Trading between the AUDUSD-NZDUSDÂ currency pairs on the H1 timeframe
Trading between the EURCAD-EURAUDÂ currency pairs on the H1 timeframe
Trading between the EURCAD-EURNZDÂ currency pairs on the H1 timeframe
Trading between the EURJPY-CHFJPYÂ currency pairs on the H1 timeframe
Trading between the EURUSD-EURJPYÂ currency pairs on the H1 timeframe
Trading between the EURUSD-GBPUSDÂ currency pairs on the H1 timeframe
Trading between the EURUSD-NZDUSDÂ currency pairs on the H1 timeframe
Trading between the GBPJPY-CADJPYÂ currency pairs on the H1 timeframe
Advantages of Range Correlator Forex EA:
Large portfolio
You can use almost any combination of currency pairs to trade on any timeframe
Stable profitability
You can earn more than 100% per year for the long years of your life
Easy to use
Even a child can set up our Expert Advisor for Forex correlation trading
Universal strategy
Our Forex correlation EA makes a profit regardless of the state of the market
What is Forex correlation?
Have you probably noticed that many assets seem to repeat the movement of each other? They show similar waves of growth and decline. And we can tell you with all responsibility that this is not an accident, but a pattern that has been monitored for many decades. Such similarity in the movement of quotations of different currency pairs is called forex correlation. Using this pattern, we have created an effective forex correlation strategy and an expert advisor that works on the basis of this market pattern. However, let’s start from the beginning and explain to you what correlation is.
So, forex correlation is a similarity in the movement of currency pairs. By the way, this similarity is observed not only in the Forex market. Very often, cryptocurrencies, market indices and commodities show similar dynamics of movement. So, correlation is observed in any segment of the financial market and you can make money on it everywhere.
In practice, it looks like this. Let’s consider this trend in the foreign exchange market and with the help of a special service we will find out which currency pairs’ movement is similar to the movement of the AUDCAD pair?!
According to current statistics, AUDUSD shows the most similar dynamics of movement, and EURAUD shows the least:
Positive correlation
AUDCAD chart
AUDUSD chart
Negative correlation
AUDCAD chart
EURAUD chart
Moreover, to assess the degree of similarity, the forex correlation index is used on a scale from -1 to 1. Where correlating assets are closer to 1 and assets whose quotes do not show similar dynamics at all are closer to 0 and assets that show mirror correlation are closer to -1.
OK, we have figured out that there are assets whose movement is very similar and this is called correlation. But, what to do with it and how to make money on it? To answer this question, let’s consider another pattern, namely the divergence and collapse of quotes of correlated assets.
So, we see that the movement of quotations of many currency pairs is very similar to each other. In order to more effectively assess the degree of such correlation and the moments of significant differences between the movement of paired assets, we will impose quotes of two currency pairs on each other. We will do this with the help of a special indicator:
As we can see, the forex correlation of these two quotation charts is quite large. However, there are times when the two charts of quotations diverge briefly. Quotes of one currency pair begin to rise up, and quotes of another currency pair fall down. A kind of window (space) is formed between the charts of these two currency pairs (on the same plane). At this point, the forex correlation index begins to decline significantly.
Now it remains only to make two deals:
- for a currency pair whose quotes are at the bottom – we make a BUY deal
- for a currency pair whose quotes are at the top – we make a SELL deal
Recall that Forex correlation makes these two currency pairs move very similarly. Accordingly, sooner or later there will come a time when currency quotes will converge back and the value of the correlation index will return to its average value.
At such a moment, both of our transactions or one of them will come out in a significant plus, and the trader will receive a profit.
Before your eyes, we have described the simplest forex correlation strategy, which is able to give you a profit.
Correlation of forex pairs - choosing the best!
To choose the most correlated currency pairs, you can use special services that show us the most similar quote charts (currency pairs with the most positive and negative correlation) or use special technical indicators that will help you overlay charts of two assets on the same plane. Or use the two algorithms described above simultaneously: with the help of the service, you will determine the best Correlation of forex pairs, and with the help of special indicators, you will overlay quotes of these correlating pairs on the same plane of the chart and catch the moments of their greatest sliding in different directions.
In this case, you will be able to create for yourself a whole portfolio of 5-10 different correlating assets and trade on forex correlation strategy.
Boris –
This is the most stable scalper in my entire collection! Doubled my deposit 3 times! Reliable software and I use it to the maximum!
Daniel OBrien –
Good Day Trading bot. I use it in combination with other experts on the same MT5 platform. Profitability is stable, drawdown is small.
Maximus –
I have been using this for 2 weeks. all strategies simultaneously on one account. +24% profit.