How Does TradeGoose work?

Trade Goose uses a hedging strategy that enters trades based on the correlation of two positively correlated pairs. Positive correlation indicates that both currency pairs generally move in the same direction. If these pairs are ideally correlated, then Trade Goose identifies that "Current Correlation" value at or near 0. (Zero) When correlation becomes misaligned, the Current Correlation value gets further from zero. (either positive or negative) The greater the misalignment, the greater the increase in Current Correlation value. Trade Goose constantly monitors Current Correlation and initiates trading accordingly. In order to balance high misalignment we also add the third pair.

For example, imagine a rubber band hung loosely around your finger. In that state, consider it's Current Correlation value at zero. As you pull that rubber band toward you or away from you, it's Current Correlation value increases, either positively or negatively.

Like the rubber band, correlated currency pairs want to get back to zero correlation and will eventually do so. As that happens, profit opportunities are created.

In summary, Trade Goose is a short term, hedging strategy which profits from misalignment in the correlation of two positively correlated currency pairs, and for more safety we add the third pair to make the hedge more neutral. This prevents from having heavy drawdowns.