Made own chart in MetaTrader 4 (on Adroid) to compare N pairs, CFDs, etc. and showing a sum of them example
x * (long) CFD 1 - y * (short) CFD 2 = line 3
Is it good idea to invest in correlation between different markets and if, how would you setup conditions - entry frequency or limits on value kept, entry & exit criteria, ev. TP/SL (hard to set for 2 different instruments).
In theory DCA could help, but when you I have also average line and can see how they perform comparing to average of the sum, maybe would not be better to account relation of watched line to its average too ? Here chart mentioned: long CFD(blue) - short CFD(orange), white is sum of that, black its average, ratio should not be exact, also real spreads change the chart a bit, taken for 1Q:
As you can see aprox. from 2015 there is negative correlation