Correlation Trader

Correlation
Trader

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Inspect Historic Correlation

Watch for Emerging Differences

Choose Any Timeframe

Simple Deal Ticket

The Correlation Trader takes the valuable information in the Correlation Matrix and extends it so that you can trade real-time differences in correlation between two markets of your choice. The Correlation Trader shows not only the current correlation between the two chosen symbols, but also the recent price activity helping you to make better-informed decisions.

Main purposes

  • Inspect historic correlation between symbols in more detail
  • Watch for, and trade, emerging differences in that correlation

You can choose any timeframe for the historic charts – including periods such as M3 or H8 which are not always supported by the underlying platform – and you can then use your judgement, in combination with the current correlation, to watch for tradeable differences in the relationship between symbols.

The Correlation Trader includes a simple deal ticket for placing orders directly from the tool, without needing to go back to the underlying platform.

The tool can be also used just as a simple way of displaying two price charts next to each other, along with the current open position and profit for each symbol.


Download User Manual

About correlation: Correlation can have a major effect on trading risk. For example, if EURUSD and USDCHF have been strongly correlated, then a trader who had open positions in both would have seen very similar profits on each position. In effect, the trader did not have two positions; they only really had one position. (They will either have seen similar profits or losses on each position, or they will have seen matching profits and losses which largely cancelled each other out.)

Data source: FX Blue Labs

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, investment advice or investment recommendation or solicitation for the purpose of buying or selling of any financial instrument. All information provided is not a guarantee or reliable indicator of future performance.