The Correlation Matrix shows the correlation between a grid of selected symbols and can be configured over various timeframes and number of periods (ie the last 100 hourly periods).
Click the play button on the video below for a short introduction to the Sentiment Trader and how it is used on MetaTrader 4.
Welcome to the Go Markets MT4 Genesis Tutorial. MT4 Genesis provides a suite of tools to help you optimise your trading experience in MT4.
In today's video we are going to show you how to use the correlation matrix.
To get started head down to the navigator window where you will see the expert advisors tab. To apply one of the EAs, either double left click on it or click and drag it on to the chart.
Click ok to apply it and the correlation matrix window will pop up.
Now The Correlation Matrix shows the correlation between symbols over a configurable timeframe and number of bars, for example the last 200 hourly bars.
Correlation is measured on a scale from -100 to +100 with a high positive number meaning the prices will move identically to each other and a high negative number means they move in opposite directions. A reading of 0 means they are moving independently.
As a general rule it is best to minimise the correlation between your open positions. Otherwise, you are either trading the same price action twice over, or you have two positions which are effectively cancelling each other out.
So that's how we use the correlation matrix. We look forward to seeing you in the next tutorial.
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