The Correlated Trigger Points (CTP) methodology, conceptualized by Dr. Levy in 2023, represents a paradigm shift in correlation trading by transcending traditional statistical correlation analysis. Instead of merely quantifying the correlation between price movements over time, the CTP methodology focuses on the synchronous reactions of two assets to key levels.

In this innovative approach, correlation trading is redefined as the analysis of real-time market responses of correlated assets at significant price zones. The underlying principle is to observe how different assets behave when they simultaneously reach key levels, thereby identifying assets that tend to exhibit concurrent or opposing movements. This insight grants traders a strategic advantage by recognizing potential trading opportunities rooted in the immediate interplay between assets.

During her research, Dr. Levy developed the E.G. CTP Toolkit, which leverages this methodology; it utilizes the E.G. Trigger Point levels and continuously monitors the synchronous reactions of multiple assets to those levels. Unlike traditional correlation measures that are inherently lagging, the CTP methodology provides you with concrete, actionable insights in real-time.

In fact, the CTP methodology allows traders to capture the real-time interplay between correlated assets, thus enabling them to make more informed decisions grounded in current market dynamics rather than retrospective correlations.