CoursesBLT | Bank Level Trading

Using Correlations for Entries & Trade Management I

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What this lesson covers

Correlation is well known and rarely taken seriously, which is the argument this lesson makes. The presenter is direct that correlation has both saved him from losses and produced profits, and that most traders acknowledge it without ever doing the work. That work is due diligence: finding out which markets actually correlate with the ones you personally trade, rather than assuming the standard relationships hold. The lesson covers how to establish those relationships and then how to use them, both for confirming an entry when two related markets agree and for avoiding a trade when they do not. It also covers the risk of taking several positions that are, in practice, the same position.