Sorry to display this spreadsheet in such small format but this seemed like the best way to show the correlation between the trade trigger dates generated by the z-score band reversals.
Double-click to zoom up and you'll see the trade dates for each of the seven FXY pairs.
Obviously, the UUP is the real chatterbox here, although we can easily adjust (reduce) the trade frequency by ratcheting up on the width of the Z-score band.
The whole argument behind using a basket of ETF/stock pairs to trade a single ETF (in this case FXY), is that the more high correlation pairs fire a confirming signal, the lower the risk of a losing trade. There's been some confusion in recent emails between the terms "correlation" and "convergent". These are 2 different concepts. ETFs/stocks can be convergence or divergent . . they typically can move together or move contrary to one another. . these are directional vectors. Correlation is a measure of how closely the ETFs/stocks move in relationship to one another . . this is a scalar.
We've clearly got some strong trade confirmation signals here and tomorrow I'll line up the PDQ signals with the FXY price chart.