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Currency index trading experience

  • #1
  • First Post: May 27, 2014 3:13am May 27, 2014 3:13am
Hi all,

there are several Currency INDEX calculations and indicators avaiable on FF. Im sure people who dig INDEXes played them around, perhaps also in an EA or something. Are you still developing this kind of ideas or have been doing this or is it working for you??

pls here share your experiance with CURRENCY INDEX trading.

Lets talk and share!!
OK..
______________________________________________

INDEX ISSUES

1. What were/is your strategy?
2. How do you use INDEXES?
3. What were your findings?
4. What were your main problems?
5. How did you implement the entries/exits/TFs?
6. How do you filter the trades?

This are general pointers...

Anyone who stumbled on currency index issues pls be free to post an opinion and his findings!

21vs7
  • #2
  • May 27, 2014 9:51am May 27, 2014 9:51am
Quoting 21vs7
perhaps also in an EA or something. Are you still developing this kind of ideas or have been doing this or is it working for you??
//----

hey j..... got your note.... the video you mentioned is a multi currency ea, but not written in a backtestable manner.... you can backtest multicurrency ea's in mq4 but it's a real pain..... the best deal is to just run the ea on all pairs being traded and manually combine the results.....

use mq5 for true multi currency ea's..... Nikolay Kositsin is probably the worlds best in that area......

my video just shows a multi currency 'modulized' ea running...... it can place trades if allowed to...... i build modules and then select which one i want displayed where on the chart at the particular time...... typically there will be four modules on the chart......

if by chance something 'extreme' price moving happens, the ea will automatically change the layout to suit what needs to be seen......

in the picture below is a slightly varied example, ie the modules are different than the ones seen in that video.....

i'll post here again later......h

//------
Attached Image (click to enlarge)
Click to Enlarge Name: modules.png Size: 77 KB
to trade and code, keep both simple... no call to impress....h
  • #3
  • May 27, 2014 11:31am May 27, 2014 11:31am
Quoting hayseed
{quote} //---- hey j..... got your note.... the video you mentioned is a multi currency ea, but not written in a backtestable manner.... you can backtest multicurrency ea's in mq4 but it's a real pain..... the best deal is to just run the ea on all pairs being traded and manually combine the results..... use mq5 for true multi currency ea's..... Nikolay Kositsin is probably the worlds best in that area...... my video just shows a multi currency 'modulized' ea running...... it can place trades...
Hey hayseed
thanks for reply and link

backtesting is a problem in a way yes.. Only forward testing atm for myself on 2 computers eating RAMz

Aha, ok I understand. I have similar overview done by a great friend/programer.

You are talking about scenarios..
How would you describe those 4 situations on the market..what do you look at?

You are saying extremezz...in INDEX values?

Do you look at INDEX values ONLY or you added some other knowledge?

What did you experience with EA testing?
which Tfs were relevant for you or perhaps which values of the index

Only questions

Concerning INDEXES - on which basis you did calculations? Im on MAs with different speeds and different TFs all around. Weight is the same on all and play 21 pairs. Then is all mixed up in some kind of a riddle
  • #4
  • May 28, 2014 5:17am May 28, 2014 5:17am
Quoting 21vs7
Then is all mixed up in some kind of a riddle
//----

hey j..... it's a riddle no matter what.....

You are saying extremezz...in INDEX values? ...... yes.... if extreme values or unusual movement occurs, the ea changes the display modules to focus on all the pairs in that group more specifically....

//-----
Do you look at INDEX values ONLY or you added some other knowledge? ...... i look at everything both fundamental and technical..... the ea's do the technical math...... fundamentals should be reflected in the price, but not always......

//-----
What did you experience with EA testing? ..... we are talkin years and years of testing 7 days a week..... way too much to even begin to mention..... one odd fact stands out though..... very often a signal on one currency pair is best traded on another..... as example, if a buy macd cross signal on the gbpusd occurs, buy the eurusd instead......

//-----
which Tfs were relevant for you....... my preference is for the four hour and up..... but I have been on the wrong side of the market for almost this entire year so my timeframes lately have been four hour and below...... that is beginning to change.....

//------
on which basis you did calculations ....... everything imaginable.... we all start with ma's, then slowly go thru every indicator...... zigzag is my favorite method.....

but again, it's a riddle no matter what.....h

//----
Attached Image (click to enlarge)
Click to Enlarge Name: change.png Size: 29 KB
to trade and code, keep both simple... no call to impress....h
  • #5
  • May 28, 2014 5:50am May 28, 2014 5:50am
Quoting hayseed
{quote} //---- hey j..... it's a riddle no matter what..... You are saying extremezz...in INDEX values? ...... yes.... if extreme values or unusual movement occurs, the ea changes the display modules to focus on all the pairs in that group more specifically.... //----- Do you look at INDEX values ONLY or you added some other knowledge? ...... i look at everything both fundamental and technical..... the ea's do the technical math...... fundamentals should be reflected in the price, but not always...... //----- What did you experience with EA testing?...
Hey hayseed,

1
It depend how your index values are done. Are they limited to 100/-100 or 1/-1 or whatever. If they are not free floaters you could have loots of signals ..

If one has free floater, then you could avereged out the extremeez. Picking x65k of old values and try to get some statistical extreme. This is where my part is..
combined with other currency indexes of course

2
Fundamentals are hard to predict. At least for me they were.

3
testing for years myself

4
TFs
im 4h down
but adding some other stuff from 1m/1w

5
MAs and otherz...
Well, hard to say whats best yes. Never played ZigZag.
MAs lag. That is all.
MAs with right filtering could add to an edge. But one needs to be picky!

J
  • #6
  • May 29, 2014 3:36pm May 29, 2014 3:36pm
I've been trying to find an advantage to using individual currency strength for a couple years now, using everything from CCFp to 'strength meters' to SIG Trader indices. I've settled on CCFp and SIG, mainly because of their visual simplicity and relative clarity. Here are some screenshots of stuff I'm playing with (as you may know, JPY is inverted on these SIG platforms). The Yen seems to drag everything along with it and looks like the easiest currency to trade, either as a basket or individual pairs. Trendlines and pinbars define direction changes pretty well, and you can take a look at the individual currency indices for further comparison.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: yen index 1.png Size: 73 KB
Click to Enlarge Name: yen index 2.png Size: 72 KB
Click to Enlarge Name: h4 index.png Size: 77 KB
  • #7
  • Edited 3:12am May 30, 2014 12:27am | Edited 3:12am
Quoting Pinhead
I've been trying to find an advantage to using individual currency strength for a couple years now, using everything from CCFp to 'strength meters' to SIG Trader indices. I've settled on CCFp and SIG, mainly because of their visual simplicity and relative clarity. Here are some screenshots of stuff I'm playing with (as you may know, JPY is inverted on these SIG platforms). The Yen seems to drag everything along with it and looks like the easiest currency to trade, either as a basket or individual pairs. Trendlines and pinbars define direction changes...
Hey Pinhead,

are you familiar with the weights on SIG indexes? Proportion of lets say EUR index. Is it the same ratio from all currencies?

I was sceptical from the beginning looking at USD index. It was commulated from (lets say 50% - EUR, 15% GBP, 15% JPY, etc)
So in a way considered this as not mathematical way to figure out the math behind this ratios.

EDIT:
Trendlines and pinbars.
all on 4h?
You want index to change color first or the pair?
Tell me, how do you use TDI with this? Values inside TDI also.
Have you seen some relatively good strenght this combined

thanks
  • #8
  • May 30, 2014 2:27am May 30, 2014 2:27am
Let me explain my view on the currency market as I see it and where one could try to see the added edge.


Mathematical interdependence

If one looks only at 21 pairs.
And takes out of this 21 pairs all of pair relationships, one get 7 currencies.
If one treats them equally (ratio of currency index is the same from all pairs: 1 pair has a weight of 16,66%), then we get a mathematical relationship.

How to play this mathematical relationship?

Well thats the idea but it aint so simple as im not a strong mathematician.
Still..
With this information one could really take advantage of some trading scenarios/ideas.

I try to develop something in this direction. Testing a lot.

Been able to test different permutations of:
index TFs
index speeds
index conditions

After almost a year of studiing forward tests I found out that I had months of very good %winings. Over 80% on 1:1. Had 500+ deals in this statistics. But sudenly, the system stopped working. Well, it played it lousy.
Overall stat fell around 55% level, which does not suits me.

Now I am at the stage of contenplating the issue. I know and see some very good progress inside this system, but as one of my friend says it: The system needs an off/on switch.

I am dealing with filtering the deals lately. Doing all kind of heavy lifting stuff. But atm dont know really how to filter them weed.
Thats why I established this thread to see where other landed.
  • #9
  • May 30, 2014 2:36am May 30, 2014 2:36am
Chart AUDCAD.
I have an 4h index on it.

1. quick index
2. slow index

Im betting longz and buying dips td.

This weeks numbers said to me CAD is a winner. And it was.
But out of all CAD crosses AUDCAD is a survival. That makes a strong currency AUD.

I already saw a cross on both indexes (note that green line is over red - that means long and vice versa, its a bit inverted)
I just need to push CAD index into a positive territory. That means weak CAD.

1.03 is a play td/next week imo
Attached Image (click to enlarge)
Click to Enlarge Name: audcadh4.png Size: 66 KB
  • #10
  • Edited 9:48am May 30, 2014 9:20am | Edited 9:48am
Quoting 21vs7
{quote} Hey Pinhead, are you familiar with the weights on SIG indexes? Proportion of lets say EUR index. Is it the same ratio from all currencies? I was sceptical from the beginning looking at USD index. It was commulated from (lets say 50% - EUR, 15% GBP, 15% JPY, etc) So in a way considered this as not mathematical way to figure out the math behind this ratios. EDIT: Trendlines and pinbars. all on 4h? You want index to change color first or the pair? Tell me, how do you use TDI with this? Values inside TDI also. Have you seen some relatively good...
LiteForex uses their own unique way of calculating the indices.
http://www.liteforex.com/trading/tra...ments/indices/
I can't say if it's the best way to do it or even if there is a best way. All I know is that I like the way it's displayed, ie in bar chart form, which just makes things much easier to comprehend for a mental midget like me. I'm not too sure it adds much of an edge, but its simplicity appeals to my aversion to chaos and confusion.

I prefer trading on the M5 TF, so I'll post the SIG setup that I use for finding entries, which is where the CCFp comes in. Obviously, it'll give some very clear signals, but also some subtle ones, and I'm still learning how to read it.

I like the TDI mainly for divergence, but it also has a way of showing increasing/decreasing strength when the chart movement is very subtle and hard to discern. I've attached it so you can look at its values.

Anyway, that's the current setup. I'm pretty satisfied with what it offers, as the signals are very clear-cut and it gives me a good overview of things. H1 and M15 higher lows/lower highs are the triggers, with H4 giving overall direction (but nothing is carved in stone, of course). Just basic stuff, with the index giving me some 'confirmation', really.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ga index.png Size: 82 KB
Click to Enlarge Name: ga.png Size: 79 KB
Attached File(s)
File Type: mq4 TDI.mq4   9 KB | 729 downloads
  • #11
  • Jun 2, 2014 2:42pm Jun 2, 2014 2:42pm
Another way to set it up.
Attached Image (click to enlarge)
Click to Enlarge Name: ea ga 3-way.png Size: 75 KB
  • #12
  • Edited 4:10am Jun 3, 2014 2:12am | Edited 4:10am
Quoting 21vs7
Chart AUDCAD. I have an 4h index on it. 1. quick index 2. slow index Im betting longz and buying dips td. This weeks numbers said to me CAD is a winner. And it was. But out of all CAD crosses AUDCAD is a survival. That makes a strong currency AUD. I already saw a cross on both indexes (note that green line is over red - that means long and vice versa, its a bit inverted) I just need to push CAD index into a positive territory. That means weak CAD. 1.03 is a play td/next weeks imo {image}
update
buying dips payz

1.013x covering some, letting run on the others
1,01 should be support from now on
1,0075 re add strong ifff

Indexes crossed again, now all in +/- territory, which is nice. We could lend on some strong medium trend on 4h
Attached Image (click to enlarge)
Click to Enlarge Name: audcadh4_1.png Size: 68 KB
  • #13
  • Jun 3, 2014 2:31am Jun 3, 2014 2:31am
Quoting Pinhead
{quote} LiteForex uses their own unique way of calculating the indices. http://www.liteforex.com/trading/tra...ments/indices/ I can't say if it's the best way to do it or even if there is a best way. All I know is that I like the way it's displayed, ie in bar chart form, which just makes things much easier to comprehend for a mental midget like me. I'm not too sure it adds much of an edge, but its simplicity appeals to my aversion to chaos and confusion. I prefer trading on the M5 TF, so I'll post the SIG setup that I use for...
thanks Pin
Im thinking what would be the trigger here?
higher Tfs alligned with indexes and direction plus trendlines and supports.
then 5m strenght?
Whats your direct trigger when other attributes are alligned.

and, how do you monitor your trade?
What are your initial TP/SL levels, and how do you calculate this?

thanks
  • #14
  • Jun 3, 2014 11:20am Jun 3, 2014 11:20am
Quoting 21vs7
{quote} thanks Pin Im thinking what would be the trigger here? higher Tfs alligned with indexes and direction plus trendlines and supports. then 5m strenght? Whats your direct trigger when other attributes are alligned. and, how do you monitor your trade? What are your initial TP/SL levels, and how do you calculate this? thanks
Higher lows/Lower highs on M5 are the final trigger after a trendline break, with a corresponding candle type (pinbar, engulfing bar, etc.), with SL a few pips behind the prev. swing. Move to BE pretty quickly, staying in until TL break in opposite direction.
  • #15
  • Jun 6, 2014 6:18am Jun 6, 2014 6:18am
Quoting 21vs7
{quote} update buying dips payz 1.013x covering some, letting run on the others 1,01 should be support from now on 1,0075 re add strong ifff Indexes crossed again, now all in +/- territory, which is nice. We could lend on some strong medium trend on 4h {image}
Update
Leftovers at 1,024x/5x even 1,027x

Trailing rest.

________________________________________________
Hope next week we can discuss more on this currency index issues..

Laterzz
  • #16
  • Jun 24, 2014 6:41am Jun 24, 2014 6:41am
Hey 21vs7.

You found me and I found you Isn't it interesting that you had this idea and I just posted something on another forum and within 10 minutes you read the posting and found me. Then I looked for you too and found this thread!!!

I am off for a snooze now but will be back later and we can share/exchange experience & ideas. I will post the request I posted on the other forum in case we have any of our great and benevolent coders that can help with the conversion and programming.

Cheers
Low Risk Low Stress High Reward High Probability Trades
  • #17
  • Jun 24, 2014 6:46am Jun 24, 2014 6:46am
I have an idea that I think will greatly benefit the community if it is something that will interest you in working with me. I want to convert a linear currency strength meter to a MTF histogram that will show the strength or weakness of the 8 major currencies from M1 to probably D1 with an optional alert. The advantage is that it gives a quick bird's eye view of momentum and ultimately the best currencies to match. It also shows the (daily) trend and when the currencies are in retracement, and traders can position themselves for trend continuation. Attached is the sample LCSM with an insert of the histogram with possible chart results of the last few hours of trading. It is not a standalone system but a tool to ease and aid decision making for traders.

I am on the PST in NA and will be going for a snooze but will be back later. If it is a project you think you can undertake, I will load the indicator here or just reference a link to where I posted it last year on the forum.

Thanks in advance
Attached Image(s) (click to enlarge)
Click to Enlarge Name: MTF Currency Strength Histogram.gif Size: 70 KB
Click to Enlarge Name: MTF CSH Testing - Charts.gif Size: 180 KB
Click to Enlarge Name: NCH Trade1a - 6242014.gif Size: 60 KB
Low Risk Low Stress High Reward High Probability Trades
  • #18
  • Jun 24, 2014 6:51am Jun 24, 2014 6:51am
And here is the indicator - I tried messing around with the original copy which can be found here.
Attached File(s)
File Type: mq4 Gilead Linear CSM 2.0.mq4   25 KB | 983 downloads
Low Risk Low Stress High Reward High Probability Trades
  • #19
  • Jun 24, 2014 7:49am Jun 24, 2014 7:49am
Quoting 919gilead
Hey 21vs7. You found me and I found you Isn't it interesting that you had this idea and I just posted something on another forum and within 10 minutes you read the posting and found me. Then I looked for you too and found this thread!!! I am off for a snooze now but will be back later and we can share/exchange experience & ideas. I will post the request I posted on the other forum in case we have any of our great and benevolent coders that can help with the conversion and programming. Cheers
Yes it is

Ok, cool we will be in touch!

laterz

edit:
considering the extra work on programming level, I am calling to all the programmers which are up for making this a closed group event and we try to build something together.
  • #20
  • Edited 1:03pm Jun 24, 2014 8:02am | Edited 1:03pm
you meant something like this rite?

the solutions and ideas are big as an ocean..there could be several strategies which should be run forward and later filtered in any situations. I am working solely on getting the right levels for entry and exit. I hope my friend the programmer who done this piece of work also will be on this issue as soon as possible.

But would really like to make a group effort, as I have limited mind.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpchfh1.png Size: 49 KB
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