2. Using the Correlation Trader
2.1 Price charts
The Correlation Trader shows recent price charts for two symbols side by side (and can be used simply as a way of displaying two linked price charts):
The bar in the middle lets you change the timeframe for the charts. It also shows the following:
- Recent correlation between the two symbols over the selected timeframe.
- Any open position in each symbol, and its profitability
2.2.1 Correlation values
The gauge shows the correlation on scale of 0 to ± 100. It makes little difference whether values are positive or negative (e.g. +90 or -90), and the meaning depends on whether you are long or short each symbol. For example:
- +90. If you are long both symbols, or short both symbols, then you will tend to seeidentical profits or losses on both positions. If you are long one symbol and short the other, then you will tend to have a matching profit and loss.
- -90. If you are long both symbols, or short both symbols, then you will tend to have a matching profit and loss. If you are long one symbol and short the other, then you will tend to see identical profits or losses on both positions.
2.2.2 Correlation colors
The color of the gauge depends on the strength of the correlation:
2.3 Changing the symbol selection
You can change a symbols by clicking on its name. The label is replaced with an editable box where you can type in a new symbol name, with auto-complete.
2.4 Opening and closing positions
[Please note: the order tab is not available on the tradable platform]
You can use the New Order to carry out simple trading actions such as closing an open position or opening a new one.
The top of the trading form shows any open position in the selected symbol, with a button for closing the position. Below that is a simple form for placing a new buy or sell market order.