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(binned per thread starter’s request) World Currency Unit

  • #1
  • First Post: Edited Jun 9, 2018 3:17pm Mar 16, 2018 7:59pm | Edited Jun 9, 2018 3:17pm
The Wocu™ (World Currency Unit) is a standardised, apolitical, basket currency derivative quotation based on the currency pairs of the world’s top 20 nations as determined by GDP.

It was introduced in September 2009

Whilst international trade is conducted in US dollars or Euros a sharp change in exchange rates causes huge differentials, vastly complicating risk management and forward planning. With the emergence of Russia, China and India into the world markets a less volatile world currency is needed. As the Wocu is a derivative of the exchange rates of the world's top 20 currencies as measured by GDP it substantially reduces the risk factors.

WDX Organisation, the company behind the Wocu, has weighted its algorithm in line with these GDPs, creating a demonstrably less volatile and totally apolitical currency unit.

The WOCU (World Currency Unt) is made up of a basket of the currencies of the world's strongest 20 economies as determined by IMF measures of GDP.
U.S., China, India, Russia, Mexico, Japan, South Korea, Canada, Australia, Poland, Great Britain, Switzerland, Brazil, Germany, France, Italy, Spain and the Netherlands.

The Euro is duplicated for Germany, France, Italy, Spain & Netherlands

Now, by mistake I came across the 'World Currency Unit on tradingview charts.

Included is the AUD/World Currency Unit daily chart.

Update to post in progress.. It takes time for perfection
Attached Image (click to enlarge)
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The most violent element in society is IGNORANCE
  • #2
  • Mar 17, 2018 1:41am Mar 17, 2018 1:41am
Hi there,
It is the basket of top 20 world currencies by GDP. Here is the wiki for it:
https://en.wikipedia.org/wiki/World_currency_unit
Still not too sure what can be gained from studying how it relates to each base currency as in your chart.

Best Regards, Tzamo
"Work hard, put in the effort, and follow your dreams..." -Me
  • #3
  • Mar 17, 2018 9:45am Mar 17, 2018 9:45am
Still not too sure what can be gained?

Currency Strength. That is one powerful currency strength. Not a basket of the usual EUR, GBP, JPY etc but a real basket of the 20 highest GDP currencies.

The AUD was very, very weak dropping against every currency including the Russian Rubble (RUB) and Polish Zloty (PLN)

If you look at a WCU/JPY chart, what do you see?. Extreme JPY strength against every currency.

Now open a AUD/JPY chart on MT4 and see how it has mega dropped in the last few days (15th - 16th March 2018)

More powerful then any useless indicator. No moving average, No RSI. Just strength and weakness against the worlds highest grossing countries currencies.

This post want get many replies. Why? Because it does not contain an indicator or an EA.

Ok, I'm out of here as there are gusts of 70mph winds outside with heavy snow. Yes, like indicators and EA's the British weather sucks.
The most violent element in society is IGNORANCE
  • #4
  • Jun 7, 2018 12:17pm Jun 7, 2018 12:17pm
Quoting neilgroom
Still not too sure what can be gained? Currency Strength. That is one powerful currency strength. Not a basket of the usual EUR, GBP, JPY etc but a real basket of the 20 highest GDP currencies. The AUD was very, very weak dropping against every currency including the Russian Rubble (RUB) and Polish Zloty (PLN) If you look at a WCU/JPY chart, what do you see?. Extreme JPY strength against every currency. Now open a AUD/JPY chart on MT4 and see how it has mega dropped in the last few days (15th - 16th March 2018) More powerful then any useless indicator....
Hello buddy I laughed after reading this...your so right! not one post showing any interest.

I assume you found out more but just in case here's the website...www.wocu.com/

Shame it's a paid subscription. I like strength meters & this one would have been very interesting but I refuse to pay for trading info...maybe one day when I become an awesome trader!

Anyway good luck.
who dares wins
  • #5
  • Jun 7, 2018 3:56pm Jun 7, 2018 3:56pm
No need to pay - You can get them on tradingview charts. People want the easy life with their indicators etc and wonder why they never make it.

Thanks for the link... I did check it out before then totally forgot about this thread.
Attached Image (click to enlarge)
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The most violent element in society is IGNORANCE
  • #6
  • Jun 7, 2018 10:33pm Jun 7, 2018 10:33pm
Quoting neilsdigest
Still not too sure what can be gained? Currency Strength. That is one powerful currency strength. Not a basket of the usual EUR, GBP, JPY etc but a real basket of the 20 highest GDP currencies. The AUD was very, very weak dropping against every currency including the Russian Rubble (RUB) and Polish Zloty (PLN) If you look at a WCU/JPY chart, what do you see?. Extreme JPY strength against every currency. Now open a AUD/JPY chart on MT4 and see how it has mega dropped in the last few days (15th - 16th March 2018) More powerful then any useless indicator....
Hi,
I just opened a USD/JPY chart instead of looking at the WCU/JPY. I see very little difference, other than the WCU is lagging, it mirrors the UJ very closely, if you overlay a transparent chart over the sections and account for the lagging. See what I mean Below:
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 110 KB


Now you account for the lag in drop and re align...
Attached Image (click to enlarge)
Click to Enlarge Name: Image2.png Size: 112 KB


The thing almost copies UJ, but lags as bad as some indicators. Maybe something like CM currency strength indicator would be much more useful than than WCU as it lags less? If I am mistaken, can you please forgive my ignorance regarding this WCU, I still do not see a useful application for it as I am sure other traders that may have found this thread. Simple correlation, and currency str via indi works well enough for me. Anyways, just trying to understand this WCU, and this is only my opinion. Right or wrong doesn't matter

Kind Regards,
Tzamo
"Work hard, put in the effort, and follow your dreams..." -Me
  • #7
  • Edited 1:19am Jun 8, 2018 12:06am | Edited 1:19am
Quoting tzamo
{quote} Hi, I just opened a USD/JPY chart instead of looking at the WCU/JPY. I see very little difference, other than the WCU is lagging, it mirrors the UJ very closely, if you overlay a transparent chart over the sections and account for the lagging. See what I mean Below: {image} Now you account for the lag in drop and re align... {image} The thing almost copies UJ, but lags as bad as some indicators. Maybe something like CM currency strength indicator would be much more useful than than WCU as it lags less? If I am mistaken, can you please forgive...
Sad that this thread did not catch the attention of forum members.... it just proves how clueless retail traders are in fully understanding the fundamentals of currency markets. I am a huge fan of currency strength but NOT currency strength "METERS". They all lag and cannot be used as a trigger for any trade decision. because they lack the "speed" or "force" behavioral element by design. A calculation on bunch of variables(pair strength) will always result in a more complex organism behind a up/down single number generating formula.

However, as the OP said, strength is how global foreign exchange markets function in a fundamental manner. They can be a fantastic ally towards portfolio or strategy diversification as part of the overall approach to not just risk but exposure management (Both are completely different beasts!)

It regards to observation of lag it is a worthwhile observation but don't just leave it at that bro.. INVESTIGATE and GET TO THE BOTTOM OF IT so others can benefit from it.

VeeFX: The Role of USDJPY

Here's some things to look into:
Could you please enlighten us the fundamental importance of the use of mighty pair USDJPY and it's use in the global economy and more importantly, why it mimics the WOCU? There is a foundational reason if we can understand the macro-economic structure of how money flows from one economy to another, one asset class to another, one financial market to another, one industry and to their incredibly complex and intertwined global army of suppliers (think auto or aerospace). Literally everything flows thru this pair around the globe and is the fundamental reason why it is the most accurate instrument of Risk On Risk Off "Global Sentiment". The implications of JPY as a "funding" currency are huge!

Edit: Here's my simplistic view of Currency Markets driven by Currency Strengths:

Long-Only Strategies work great when there are more pairs on the Left. Short-Only Strategies work great where there are more pairs on the right.... regardless of timeframe! The key is the gauge the speed/force/momentum/thrust that takes place across correlated pairs to truly understand the meaning of a fundamental strength based move... and more important to rule out any single pair price manipulation done by your broker or LP or the "Big Boys".
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Staying in my lane...
  • #8
  • Jun 8, 2018 12:26am Jun 8, 2018 12:26am
Quoting VEEFX
{quote} Sad that this thread did not catch the attention of forum members.... it just proves how clueless retail traders are in fully understanding the fundamentals of currency markets. I am a huge fan of currency strength but NOT currency strength "METERS". They all lag and cannot be used as a trigger for any trade decision. because they lack the "speed" or "force" behavioral element by design. A calculation on bunch of variables(pair strength) will always result in a more complex organism behind a up/down single number generating formula. However,...
VEE,

when you get time, could you post the useful links you were talking about. To get value of your posts, i feel there is a need to have some basics covered. Hoping that the links will point in the right direction...

Thanks
  • #9
  • Edited 1:07am Jun 8, 2018 12:51am | Edited 1:07am
Quoting aaven
{quote} VEE, when you get time, could you post the useful links you were talking about. To get value of your posts, i feel there is a need to have some basics covered. Hoping that the links will point in the right direction... Thanks
The search feature should do the trick. There is a reason why I am adding a tag line to my post...and putting shoutouts on my profile.

Plus:
Evidence that my VeeFX: Universal Time Action Strategy is completely UNIQUE and NOT yet available on Google. This only proves my research and strategy will truly be the

"VeeFX: Testament of Time"
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Staying in my lane...
  • #10
  • Jun 8, 2018 2:00am Jun 8, 2018 2:00am
Quoting VEEFX
{quote} The search feature should do the trick. There is a reason why I am adding a tag line to my post...and putting shoutouts on my profile. Plus: Evidence that my VeeFX: Universal Time Action Strategy is completely UNIQUE and NOT yet available on Google. This only proves my research and strategy will truly be the "VeeFX: Testament of Time" {image} {image}
Thanks VEE...

One follow up question: you mentioned you did not read any books during your research. What was the supporting material you relied on: Academic Papers/Trading Journal Publications?

Thanks
  • #12
  • Edited 6:46am Jun 8, 2018 6:33am | Edited 6:46am
Massive thanks VEE... Yes, at last someone gets it... I mega annoys me when people say things like it lags or its rubbish...

I was looking through your threads/comments the other day. When the market closes later today I'll take a proper look.

Retail traders will never learn.. They like it simple. Any way thanks for an amazing post and for actually seeing for what it is.

With all my analysis last night going into the Asian session I new with a 80% chance that the CAD/JPY would go down.... How I enjoy PROPER analysis.
That worked to perfection..

Have a great day and I'll be in the thread later.

Neil
The most violent element in society is IGNORANCE
  • #13
  • Edited 9:16am Jun 8, 2018 8:52am | Edited 9:16am
Sorry if you can't post in this thread but it's blocked to most of you :-)

Just a quick analysis of the NZD V WCU (Basket of the 20 highest GDP currencies)

Lets take a look at how the NZD has performed over the last few months against the top 20 GDP currencies... Using the ADX2 to measure its strength when it was weak and strong. Pretty stable at the minute. OK, I will leave the NZD alone. Quick,simple analysis that takes seconds.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: NZDUSDWCU.png Size: 61 KB
The most violent element in society is IGNORANCE
  • #14
  • Jun 8, 2018 10:23am Jun 8, 2018 10:23am
Quoting neilsdigest
I use tradingview.com a lot for my charts. Eg. XAUJPY - XAUAUD etc.. If a currency is stronger/weaker then Gold etc. Works well. Another example is the currency index of each currency. Now, by mistake I just came across the 'World Currency Unit. Now of all the months on tradingview I have never come across this chart and didn't even know a World Currency unit existed. If any knows more about it, I'd love to know. Not sure if its a index of all the world currencies. I have included a pic. Included is the AUD/World Currency Unit daily chart. {image}...
Thanks Neil for taking the time in sharing the info... Learned something new...
  • #15
  • Jun 8, 2018 10:48am Jun 8, 2018 10:48am
Quoting aaven
{quote} Thanks VEE... One follow up question: you mentioned you did not read any books during your research. What was the supporting material you relied on: Academic Papers/Trading Journal Publications? Thanks
At one point, I had a folder of some 1000+ collection of pdf files.. I never got to read all of them. Some were decent especially on human element and psychology but if you are looking for a list of books to read, I got only one practical book linked in my profile.

Mine is based on own experience and learning from my own struggles, what mistakes I have made in my own journey, what I believed in and how I systematically approached each one of the fallacies one by one via process of elimination. I should have taken a scientific approach to trading a long time ago but I was too thick-headed (possibly hypnotized by gurus out here!) to trade manually and listening to their fake performance and glorified success. Based on what I know now, trading manually (even with a robust trading plan) is going to be a uphill battle for anyone in leveraged retail environment where algos rule the world. It is just not possible (atleast not by me knowing what I know now about algos and tools available to brokers and LPs and Market makers).... our only best defense to be like them and trade like them.... with the market and not against them. Recency is very important when it comes to leveraged FX due to Decay but I have shared enough bro. You got to do your own research. Asking questions is fine but you will never get the right answers you need on forums. Even if you know everything, there will be no substitute for hard work and focus because success in any endeavor requires immense focus on "execution" which is the only ingredient one needs.
Staying in my lane...
  • #16
  • Jun 8, 2018 12:45pm Jun 8, 2018 12:45pm
Quoting VEEFX
{quote} At one point, I had a folder of some 1000+ collection of pdf files.. I never got to read all of them. Some were decent especially on human element and psychology but if you are looking for a list of books to read, I got only one practical book linked in my profile. Mine is based on own experience and learning from my own struggles, what mistakes I have made in my own journey, what I believed in and how I systematically approached each one of the fallacies one by one via process of elimination. I should have taken a scientific approach to...
Thanks VEE for the candor advice... Your guidance is tremendously appreciated. More than your insights on trading, i will remember you as an example of what one can achieve if we pushes through our limits...
  • #17
  • Jun 8, 2018 1:05pm Jun 8, 2018 1:05pm
Quoting aaven
{quote} Thanks VEE for the candor advice... Your guidance is tremendously appreciated. More than your insights on trading, i will remember you as an example of what one can achieve if we pushes through our limits...
Thanks man. That is my only intent...so others can learn from my journey and avoid wasting years chatting with idiots on forums. You will learn nothing and whatever accomplishments you will have, they will make sure you doubt yourself repeatedly affecting your growth. Listen to no one but your account performance and rely on your own abilities to learn and succeed
You do not need a High IQ to succeed...simple common sense and logical/sensible thinking is all it takes to start building the blocks of foundation.

If folks call me a loser, I am certainly okay with it. I have no ego but if anyone challenges my research, they better come fully prepared and backed with hard facts and data to support or contradict my theories. There is a reason why I have left bread crumbs across the board at the Factory just to get a balanced view of my theories with what others have said. I could have easy taken the route of Journal like CP and attract 100s of followers to one thread. That would only defeat the main purpose of sharing what I know and feel :-)

Good Luck man. I know you have read all my posts but do not rely on them.

VeeFX:Trust but Verify is Key to positive progress and self development!
Staying in my lane...
  • #18
  • Edited 2:26pm Jun 8, 2018 1:54pm | Edited 2:26pm
Quoting neilsdigest
Still not too sure what can be gained? Currency Strength. That is one powerful currency strength. Not a basket of the usual EUR, GBP, JPY etc but a real basket of the 20 highest GDP currencies. The AUD was very, very weak dropping against every currency including the Russian Rubble (RUB) and Polish Zloty (PLN) If you look at a WCU/JPY chart, what do you see?. Extreme JPY strength against every currency. Now open a AUD/JPY chart on MT4 and see how it has mega dropped in the last few days (15th - 16th March 2018) More powerful then any useless indicator....
NICE. Easy to make real strength indicators from one would imagine. Certainly would be convenient. Easily trade divergences from or convergences to the index. Can envision how that can be made into a gold mine.

see the picture in this post by rancor>>>
https://www.forexfactory.com/showthread.php?p=8376618#post8376618

such a simple concept.... do we now we have the world currency unit to measure each currency pair against.? the WCU would be the "mean" and the pair would diverge or converge according to whatever indicator is created. perhaps the need to be correlated with that way of doing things, would be less of an issue or even a non factor.

https://www.forexfactory.com/showthread.php?p=8376599#post8376599

that Profit statement should be enough to motivate someone to make us an EA or indicator.

i think i see the trouble with ranacors charts are there isn't any "mean" to measure against, although his chart says there is a "mean". (look carefully at his gifs) He is using the extremely highly correlated pairs of eu and uchf in his examples..... anyway that is something that potentially could solve the issue and make correlated mean reversion trading a reality, rather than just a fantastic idea.

TY neal. very simple concept that could be a very powerful tool. Been looking for something like that for a long while. Great stuff. Hope someone sees the potential and takes the ball and runs with it and posts whatever tools are created here, free for all to use with source code included.

Cheers.
  • #19
  • Jun 8, 2018 2:20pm Jun 8, 2018 2:20pm
Quoting neilsdigest
Sorry if you can't post in this thread but it's blocked to most of you :-) Just a quick analysis of the NZD V WCU (Basket of the 20 highest GDP currencies) Lets take a look at how the NZD has performed over the last few months against the top 20 GDP currencies... Using the ADX2 to measure its strength when it was weak and strong. Pretty stable at the minute. OK, I will leave the NZD alone. Quick,simple analysis that takes seconds. {image} {image}

nice example neal TY. At the very least an overlay chart would make it much more visually easy to see for us.

https://www.forexfactory.com/showthread.php?p=8376611#post8376611
  • #20
  • Edited 3:22pm Jun 8, 2018 2:32pm | Edited 3:22pm
Quoting tzamo
{quote} Hi, I just opened a USD/JPY chart instead of looking at the WCU/JPY. I see very little difference, other than the WCU is lagging, it mirrors the UJ very closely, if you overlay a transparent chart over the sections and account for the lagging. See what I mean Below: {image} Now you account for the lag in drop and re align... {image} The thing almost copies UJ, but lags as bad as some indicators. Maybe something like CM currency strength indicator would be much more useful than than WCU as it lags less? If I am mistaken, can you please forgive...
hey man. the way i see it, the lagging is exactly what is useful about it... forex pairs are all related. each one affects the others to a certain extent. so it is a game of follow the leader. if you know what one is going to do and that the others are going to follow it. you have a path or road map of what one or more currencies are going to do. In theory it works perfectly (for highly correlated pairs, either positively or negatively). the issue has been that the so called correlation indicators don't actually work, for some unknown reason. The WCU seems like it may be a better solution to me on first blush.

for example... try putting a bollinger bands indicator (or any other mean reversion type indicator, with standard deviation visuals) on both the uj and the WCU for the time you were looking at, and compare what you see on different timeframes for both. post it here if you can. i would expect to see some pretty great signals with a positive correlation that high. Then again it is all theory until proven with reality. Would be helpful if you could post some pics of those same chart with bollinger bands applied and what the lower timeframes look like as well.

2 cents

PS subin this thread & will follow with interest to see if anyone cares to develop what could be a truly powerful tool
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