Composite charts?

Is there a way to produce a single chart from a group of currency pairs? For example if I wanted to trade all the majors against the comdolls and see that output as a single chart? I'm not even sure what you call this but I'm saying 'composite chart' for now.

I know one great tool — Portfolio Modeller & Manager. I'm not sure I can add the link here, but you can find it yourself.

It's called synthetic instruments. You define a formula which describes the components and their allocation and use that formula to calculate the value of the instrument. It can be a basket of other instruments (NewSymbol = SymbolA + SymbolB + ...), a spread (NewSymbol = SymbolA - SymbolB), or any other mathematical relation, e.g. a correlation between components.

The challenge with synthetic instruments is not the just-in-time calculation (any programmable trading platform will do, e.g. MetaTrader 5 has built-in functionality for that). The real challenge is the initial calculation and the continious update of the history. A synthetic chart will only be useful if there is enough history and if this history is correct.

The USDLFX is such a synthetic instrument with the following formula:



An example of calculating history is here: USDLFX Offline Chart Creator. There are other ways to do it in MetaTrader4. For example in my framework on Github (see my profile) I use a method to create real-time updating synthetic charts but that approach is quite advanced and can't be recommended for beginners. Try to repeat what the above linked thread does. If you understand that and can make it work, then you may dig deeper.

As for MetaTrader5: While there is an option to create custom symbols (essentially another name for "synthetic instrument") MetaTrader5 sucks with the second task, calculation of history. A synthetic chart is only as good as the quality of the underlying price history and there is no way to control that with MT5. But for a first start you may give it a try, until you hit the limitations.

PS: A screenshot of what it looks like on my platform is here: https://www.forexfactory.com/showthr...39#post8644939

Do you mean this link http://https://www.mql5.com/ru/code/11859

[quote=samkar97;11806602]{quote} Do you mean this link https://www.mql5.com/ru/code/11859/quote]

Thank you for the link. I didn't know it.

Yes, thanks

Thanks for the info - very helpful. That thread you linked is also a good start. I'm curious if you or anyone else has tried using Tradingview's synth chart functionality and is it mathematically sound?

Currently I'm working on implementing custom synthetic symbols similar to Tradingview, as I have the same concern as you: How sound are their formulas? But I also have a day job and not enough time for it as I would like to:

https://github.com/rosasurfer/mt4-to.../lib/synthetic

Yes, I have a pro + account with Tradingview. A free account will enable you to use Synthetic daily and weekly charts. A pro account will give you access to intraday charts (H12, H8, etc..). A pro plus will enable you to use renko and price charts on intraday.
You can never go wrong with Trading View for charting purpose.

Actually, I was going to open two threads and discuss the matter further.

One thread will be for "Best formula". In my observations, simply adding pairs for each currency is the way I use for the time being. ex: 1- EURUSD + 1- GBPUSD + 1- etccc for USD strength. Same for EUR, CAD, and other currencies.

There are many formulas that people use. They, for example, multiply or divide each pair in the above equation by the exchange rate of the pair. Ex EURUSD (*) or (/) its exchange rate (let it be 1.3xxx) + 1- GBPUSD (*) or (/) its exchange rate and so on.

I personally found no difference when multiplying or dividing. and I am using simple additions.

Other traders would divide any Yen pair by 100. I do not know why?

I am still delving in the matter and want to understand more about the mathematics logic used in each formula.

The second thread/Journal I intend to open will be allocated for basket trading based on individual charts (by simply adding pairs). Here is an example of a trade I took yesterday night on GBP: and I executed on MT4. I sold all pairs against GBP and profit fluctuated between 200 and 300 pips before it hits the Blue Support Line.


Please understand that I am a trading PA on MTFs and using patterns, divergences, etc.. So I am doing MTF technical analysis on currencies. I can instantly see the potentials but there are still issues with money management (should the stop loss be placed on the synthetic pair for mental reference only or placed on each pair on the trading platform or should it be a big number in dollars, etc..). Also, you can trade a trending currency against other selected pairs so not necessarily trading all of the pairs and that will be based on your analysis on other individual synthetic charts. Or you decide to give it a go with the whole basket. You need to try both methods.

Anyway, do not be confused with the formula trading view is using for calculating Currency Index. For ex: BXY, DXY, etc.. or be confused with Lite Forex broker indices. For EX: USDLFX, EURLFX, etc.. The latter uses a formula of multiplying the pairs for each currency (bear in mind the inverted pairs) and (n) square rooting them.
Feel free to choose what suits you more and give you early bias for direction. Or you can confirm the two methods/charts to confirm your bias.

So, in short, I am still finding the best formula that is the most responsive for predicting direction. I am still to learn the maths involved in each logic. There is nothing absolutely right or absolutely wrong. It is just different "Logics" which I need to understand.

And...Give it a go with tradingview. The damage for you will be a couple of bucks for a month or two and then cancel if you wish.

Have you looked at the USD index? On my platform its listed as USDX. I think the official ticket symbol is DXY

maybe this helps: http://fxcodebase.com/code/viewtopic.php?f=38&t=68601

A good find...they code their strategies in lua and have a complete developing system:
http://fxcodebase.com/wiki/index.php...n_the_Debugger
http://fxcodebase.com/code/viewforum.php?f=31