Post
Topic
Board Speculation
Re: BTC/USD versus EUR/USD do they correlate?
by
thExit
on 19/09/2014, 12:44:05 UTC
I see you are digging into this... it is very interesting.

Thank you. I believe there is much digging or mining;) to be done. I'd need to threat this as a side project, besides the stuff I'm already involved in, so the amount of time I can contribute is rather low, but I'll do my best. If I can use my FX knowledge to spot any regularities, I'll give you a shout here. The more informed a trader is, the better. On the other the amount of information can be overwhelming, so every time you come across a new piece of info (or a source/stream of info), you need to judge its accuracy and relevance with regard to your particular trading style/or simply your needs. Such judgement comes over time/with experience. Please always remember to be sceptical about every opinion, advice, method you hear about. Do your own judgement, don't trust blindly, even if the info comes from so-called experts. Opinions can have no relevance with regard to what the market will do, though there are a bunch of people (in the FX world), that have the right view most of the time. I guess it will be the same in the crypto-currency world.

Digging into this topic would require insider knowledge, knowledge directly from the forces (funds, investors) that drive the price. I doubt if this knowledge is obtainable. One thing we can observe are the regularities, not the cause of them. The result is that we are too late to grab the move, this is why I'm saying it's only for the informative purpose. You can't ride the move, but at least you may have an idea of what's happening on the market, and having this idea you can judge if your original trading method can be put to your advanage, or is it better to step aside for a while.

I'll try to come up with a methodologic approach to judging the correlation on different time frames, some indicators will need recodingto be used on BTC pairs, but I guess it's doable.

Kind regards,
Piotr