The Giant Flaw In Correlation Trading (UPDATE)

Last week Jason Fielder gave us some general insight on correlation trading, but today he pulls out ALL the stops and dives deep into a proven method for successful correlation trading! Jason said the only way he would teach this much is if I mentioned his free webinar that focuses on correlation trading! (Please see Ed note below)

Ed Note: The webinar has passed and Jason is now making live his Correlation Code, please check it out.

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I have some unfortunate news for you Trader's Blog readers, correlation trading does have one GIANT FLAW.

While correlations will tell you that a move is about to occur, correlation alone doesn’t tell you which pair is moving or the direction it will be moving in.

In other words, you know you need to put on a trade, but you don’t know which pair to trade or whether you need to buy or sell short. This massive limitation in correlation trading has stifled traders for years, which is why so few traders use correlations despite its obvious benefits.

Of the handful of traders who did trade with correlations, most just used it as a filter to increase the accuracy of an already-profitable system.

Well I for one wasn’t willing to stop there...

Continue reading "The Giant Flaw In Correlation Trading (UPDATE)"

What Is Correlation Trading And Why Is It So Powerful?

We've spoke and taught about correlation trading before here on the Trader's Blog, but today I've asked Jason Fielder (a multi-time guest blogger) to give us his insight on correlation trading. The below article is an excellent read and I HIGHLY recommend taking a few notes so you don't miss anything. Jason has told me that he will be responding to all comments and questions you post below. Also he wanted me to give you a heads up about his new Correlation Cheat Sheets...so check that out if you have some time...but read the article first!

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Correlation Trading is a style of trading that is gaining momentum between traders “In the know”. In fact, the momentum is so strong, Correlation Trading is the cover of this months Futures Magazine!

As soon as you understand this methodology, not only you will understand WHY it's so powerful, you'll immediately want to get your hands on a few correlation strategies. Correlation trading is all about discovering a way to see what I call see “cracks” in the market.

Now for the really interesting part...

Continue reading "What Is Correlation Trading And Why Is It So Powerful?"