Relative Strength Basket Trading System

To all active members and coders (and downloaders only too),

First, i tried hard to write this in english.. english is not my native language.So forgive me if i write a mistake or make you difficult to understand. OK, I start this thread to develop "a basket trading system" base on the relative strength of the currency. The idea was started from "Trading System using Relative Strength 1 & 2" threads.

After read & study the documentations about CCFp and play for a month with CCFp indicators, i realize that the relative strength is more accurate to show us the price movements early. And i have confidence with this because the strength is measured and compared with the others currency...

Basket Trading System is very popular now, we can found here there are a few thread that discuss and develop about this trading style. So, base on the relative strength, i plan to develop and open discussion about it. The idea is to open the trade of all pairs that related to the currency which have the highest and lowest index value at certain Time Frame.

After looking at the formula that is used by CCFp indicators i decided to use my own formula to measure the strength of each currency to give me more sensitive and accurate results.So all the indicators that we will use for observations is base on this formula, not the original one formula.

What is the goals?
1. We need to develop an ENTRY and EXIT rules.
2. We need to make an EA.

I have write several indicators that will help our observations. Actually, i'm not a coder but I try to make it to help our obeservations. Let me first explain all the indicators that we will use:

CCFp_Experiment.ex4

This is CCFp indicator that i have modified. I change the strength formula and use mine, but all lines looks like the original. We will not use this in our observations but I post it to show you how this formula works. you can check it and bactest. (+) Positive area is STRONG area and (-) Negative is WEAK area. So, if the currency index stay in negative area it's means
the currency is WEAK and if the currency stay at positive area it's mean the currency is STRONG. Crossing between two currency means the new trend is formed, and the direction of the pairs is following the biggest index.

KG TREND_MTF_MULTIPAIRS.ex4

These are the indicator that show us the direction of pairs movement which is divided by 8 groups (USD, GBP, EUR, CAD, CHF, JPY, NZD and AUD). The indicator will show us all the trend from TF M1 to MN. Lime means Strong Up, Dark Green means Weak Up, Red means Strong Up and Maroon means Weak Up. All trend is calculated using Relative Strength formula.

KG INDEX MTF.ex4

This indicator show us the index value of each currency from Time Frame M1 to MN. All index value is multiply by 10000. Green means the currency is in STRONG area and Red means the currency is in WEAK area. The value show us the index value.

Highest_Lowest_Index.ex4

This indicator tell us which currency have a highest and lowest index value in all TF.

Formula_2.ex4

This is the formula file, all indicators above need this file for calculations. For the coders you can use "iCustom" to use it with the output index 0=usd, 1=eur, 2=gbp, 3=chf, 4=jpy, 5=aud, 6=cad and 7=nzd.

CCFp Highest Lowest Observation.tpl

this the template that will we use for observations.

Just copy all ex4 files to your_metatrader/expert/indicators directory and copy tpl file to your_metatrader/templates and restart you metatrader, open a chart and click the template.

Hope, you all could participate to start the observation and develop the "Basket Trading System" base on this indicators.


KG


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DEAR ALL READERS
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All the indicator on the first page are the observation tools only. And we have already made the indicator for visual test and trade on this page http://www.forexfactory.com/showpost.php?p=2392993&postcount=1277 this is the first indicator that come from all the rest observations and testing. we still test this indicators to find the strategy and the lack of the indicator.


For the Multi_Purpose_Trade_Manager & JPY scripts you can download here http://www.forexfactory.com/showpost.php?p=2355117&postcount=297

The new scripts here: http://www.forexfactory.com/showpost...postcount=1109

The EA is here: http://www.forexfactory.com/showpost...postcount=1826

When you run the EA a common error said "unkown subwindow number -1 for object create function" maybe appears, just IGNORE it..

Here are the rest files:

KG

Thank you very much for your work mate.

B

Hi KG,
you have really done a great work. I want to try it.
Thank you.

Lubo

Basket trading is popular these times indeed. This is not without reason. Well balanced baskets can be good protection against high market volatility.

Hi KG, good work on the English translation

So with this idea we are going to pair up the Strong with the Strong and the Weak with the Weak and trade them? e.g EUR + and USD + = Buy EUR/USD
or do you still want to trade a Strong with a Weak? e.g EUR - and USD + = Sell EUR/USD

Matrixebiz,

We will open STRONG vs WEAK currency. Let's say EUR is + and JPY is - so we will open BUY EURJPY.

Thank you for coming and hope you will participate with your EA. Glad to see you here...

KG

Ok, so which Indicator do you want me to use of yours for the EA?
also, so the currencies that aren't the strongest or weakest will you just put an "=" instead of + or -?
so I can have the EA just monitor the + and -

Check your pm for detail. But in the first post i have explain about Formula_2.ex4 file that calculate the index.

KG

Thanks KG for the great work.. this looks great. Just for clarification

When the USD group is strong as indicated by the coding of the arrows.
When all pairs start with the USD first such as the (USDCAD,USDCHF,USDJPY) this is usd strong and the arrows point up with green and when the the USD symbol is on the end such as (GBPUSD, EURUSD... ETC) the coding should point the arrows in the opposite direction to show strong dollar. Do I have this correct? is this how it is coded? Thanks BB

OK, i'll start to report my observations results.

Index MTF indicator (on your template it's place on the bottom) show very sensitive about the currency strength. We can see all currency strength is changing periodically. I saw this is an opportunity, so i try to open a trade manually. When i saw one currency in all TF from M1 to H4 is green (means STRONG) immediatly i start to find the other currency which is all TF from M1 to H4 is Red (means WEAK) and open position with just small TP (10 to 15 pips) till now all hit my tp.

So far it's working fine. This is what i got so far from my observations. How about you traders ?

KG

Congratulation KangGun. Hopefully I will be able to learn more about trading using CCFP. Thanks for all your wonderful Idea.
Thanks again
Kris

Yes correct. OK.. let me explain it again. KG TREND_MTF_MULTIPAIRS indicators show us the trend of the pairs that i separate on the group. All trend that show by the arrows is calculated using the index currency.

Hope it's help

KG

KG,
Before I download, can you please tell me whether the indicators will work on IBFX mini accounts.Thanks

Kris, it's all starting by you. I'm just follow your step.
Thank's for coming....

KG

It's should working for ibfx... anyway could you test it first and let me know..

KG

Wow, lots of information in this template, KG. It's too big for my screen. Right now I see usd strong on all TF's and CAD week on all. So a long usdcad trade looks good.

But it is too much screenspace. Can I just have the index indicator on the screen or does everything have to be there?

Same problem here. Not enough space on the screen
Kris

Huahahahahahahahaha
I'm using 17 inch screen so no problem here... but anyway you can load the indicators manually... split them into two chart maybe could help. Sorry about that...

KG

I have 17 inch flat panel here, and does not fit. I see that I can load just index, but it positions itself still at the bottom -- half off screen. x/y axis adjustment would be nice to be able to position anywhere on screen.