Example Q3: Correlation coefficient between two symbols (EURUSD and USDCHF)
This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.
Description
This example calculates correlation coefficients between EURUSD and USDCHF over 50 periods. The correlation indicator quantifies relationship strength between symbols, generating signals based on correlation changes. This mathematical approach removes subjective interpretation of inter-market relationships.
Correlation values range from -1 to +1, with negative values indicating inverse relationships. EURUSD and USDCHF typically show negative correlation due to USD's opposite position in each pair. Trading correlation changes can identify relationship breakdowns offering opportunities.
The visual correlation display helps traders understand dynamic relationships between markets. This quantitative approach provides objective measurement of subjective concepts like "correlation" or "divergence."
Recommended to use EURUSD M15, M1 run in both symbols required.
Recreate the Example
You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:
Trade Basics
- Operation type = Long signals only drawn
- General signal visualization = Off
Signal Generation - Indicators - COR
- Signal in use = On
- Signal used for = Entry
- Selected indicator = COR
- Period = 50
- Symbol for comparison = USDCHF
- Symbol = Current
- Draw in chart = On
- Drawing slot = 1
Screenshots
