In a bull market, commodities like oil and gold often move together. But sometimes those relationships break down. For long term investors with an aggressive stance, watching these shifting correlations can be tough. You can use a core idea from high frequency trading to handle this. It’s about speed of observation, not speed of execution. (1/6)

High frequency trading wins by acting on tiny price changes faster than anyone else. You won’t do that. But you can borrow the mindset. The principle is to monitor key relationships constantly so you spot a divergence the moment it happens. On a four hour chart, this means setting clear alerts for when correlated assets start to move independently. This early warning gives you an edge to adjust your long term holdings before a major shift occurs.

Here’s how to do it: (2/6)

Pick two correlated commodities. For a bull market, look at crude oil and copper. Both often rise with economic optimism. Chart their four hour prices side by side.

Note the normal spread. See how many dollars or percentage points usually separate their moves. If oil rises two percent, copper might typically rise one percent. This is your baseline. (3/6)

Set a wide alert for a divergence. Because your risk profile is very aggressive, your trigger can be large. If the normal spread between their movements doubles, that is your signal.

When the alert hits, decide fast. This divergence means one asset is weakening. For your long term investing style, it might be a sign to take some profit on the weaker performer or add to the stronger one. Do not overthink it. Just act on the signal. (4/6)

This approach can lead to overtrading if your alerts are too sensitive. Your very aggressive risk profile means you can handle bigger swings, so keep those alerts wide. The main risk is acting on every little blip. Stick to your predefined, larger triggers.

This method turns correlation management from a guessing game into a simple process. It lets you protect your aggressive investments with clarity. (5/6)