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Basket Indicator Trading

  • #1
  • First Post: Edited Jan 14, 2020 4:06am Dec 13, 2019 3:02am | Edited Jan 14, 2020 4:06am
Hello FF trader's.
This thread is born out of what I have been following on the thread by Tylamai on basket trading.
They blew my mind on how they came up with their virtual currency chart. Which is that it takes open of a candle from each currency pair adds it together
EurUsd Candle Open = 1.1000
GBPUsd CAndle Open = 1.2000
UsdJpy Candle Open = 108.100
UsdCad Candle Open = 1.2900
1.1 + 1.2 + 108.1+1.29 =111.69
111.69/ 5 = 22.338 this result will be used as the open price of a candle . This same exercise is done for the low high and close price
So basically the four currencies have compressed in to one. We now have a virtual currency to trade.
Note this is a very basic understanding of the virtual currency. The mathematics is a bit more complex.

When i expressed the above in the basket knight thread, i was further educated as to how the virtual currency is brought about. Ty was wondering if it could be made more efficient. This thread will try experiment with that.

An area of probable improving comes about with the question of weighting that has to be done when carrying out the mathematical exercise. This can be subjective .
If you see in above simple maths i did UsdJpy totally threw out the price or is dominating the result. That it the candle will react more to UsdJpy movement than other pairs.
Attached Image (click to enlarge)
Click to Enlarge Name: 009f. _TyC5_05M15.png Size: 45 KB
Attached Image (click to enlarge)
Click to Enlarge Name: 007c. _TyC5_05H1_PriceTarget.png Size: 59 KB
Attached File(s)
File Type: mq4 _Channel_25.mq4   1.4 MB | 353 downloads | Uploaded Jan 7, 2020 7:15am
File Type: mq4 Tidane_EA_v03.mq4   1.3 MB | 345 downloads | Uploaded Jan 14, 2020 4:06am
  • #2
  • Dec 13, 2019 3:09am Dec 13, 2019 3:09am
One way I have thought the issue can be gotten around is if each pair was indexed on a scale of 0 to 100. Then I realised that indicators do that.
Next I took various indicators and put them on the virtual currency C5 traded on basket knights. I found the RSI with period 14 almost mirrors the tidane trend indicator used an that thread.

So now what I will do is get GbpUsd Rsi NzdUsd Rsi AudJpy Rsi EurJpy Rsi and GbpJpy Rsi. I will sum up each currencies Rsi and divide by five. I believe the indicator has dealt with the weighting problem.

Then when the combined Rsi is 50 Up trend and below 50 down trend
  • #3
  • Dec 13, 2019 12:43pm Dec 13, 2019 12:43pm
Exciting times here. This latest form of coding is exceptional. It is able to trade all pairs just by putting the EA on one chart.

I have just been testing its ability to do so. Now to continue with what I have been mentioning above.

Like I said I found the RSI mirrors the buy and sell signals from the tidane trend indicator. RSI above 50 buy RSI below 50 sell.

Now as Ty says wait for the price to discount. Now he does it using his eye. I will use stochastic. The stochastic is a combination of the pairs.
The input details I will use is K = 9 D = 4 and slowing =4.
I will give buy example RSI is above 50
When the main value of the stochastic goes below 80 but is above 50, this will be the area for first level pending's to be sent.
When the main value of the stochastic goes below 50 but above 20 this will be the area for second level pending's to sent.
The third level pending's will be sent when the main value is below 20.

Please note your input is welcome. and much sort after.
  • #4
  • Dec 13, 2019 6:58pm Dec 13, 2019 6:58pm
Quoting candyman752
Exciting times here. This latest form of coding is exceptional. It is able to trade all pairs just by putting the EA on one chart. I have just been testing its ability to do so. Now to continue with what I have been mentioning above. Like I said I found the RSI mirrors the buy and sell signals from the tidane trend indicator. RSI above 50 buy RSI below 50 sell. Now as Ty says wait for the price to discount. Now he does it using his eye. I will use stochastic. The stochastic is a combination of the pairs. The input details I will use is K = 9 D =...
I like what your doing here! I'm busy with family for a few days but I'll be checking in
  • #5
  • Dec 14, 2019 12:30am Dec 14, 2019 12:30am
Here is a screen shot of the offline basket c5 chart. I attached the RSI indicator to it.
Attached Image (click to enlarge)
Click to Enlarge Name: #TyC5#05H4.png Size: 32 KB

this is to give you a pictorial view of what I am talking about. From the image I see that when the Tidane is green RSI is above 50.
When Tidane is red the RSI is below 50 . What do you see?
If we look closer the tidane can be red but at times the RSI can go over just above 50. It might be that maybe the filter can be 60 to 40
That is Up trend is when RSI is above 60 and down trend is when RSI is below 40. This can be discussed.

Now that RSI indicator is basing its calculation on the offline chart. Now here is the code of what I am doing. In the EA I am putting together for basket trading
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
double CalculateRSI()
{ double calculatersi = 0;
double gbpjpyrsi =iRSI("GBPJPY",PERIOD_H4,14,PRICE_WEIGHTED,0); this is GBPJPY rsi
double eurjpyrsi =iRSI("EURJPY",PERIOD_H4,14,PRICE_WEIGHTED,0); this is EURJPY rsi
double gbpusdrsi =iRSI("GBPUSD",PERIOD_H4,14,PRICE_WEIGHTED,0);this GBPUSD rsi
double nzdusdrsi =iRSI("NZDUSD",PERIOD_H4,14,PRICE_WEIGHTED,0);this is NZDUSD rsi
double audjpyrsi =iRSI("AUDJPY",PERIOD_H4,14,PRICE_WEIGHTED,0);this is AUDJPY rsi

calculatersi = ( gbpjpyrsi + eurjpyrsi + gbpusdrsi + nzdusdrsi + audjpyrsi ) / 5; I then sum them up and divide by 5
return(calculatersi);
}//double CalculateRSI()

I hope you get a clear picture of what I am trying to experiment with here
  • #6
  • Dec 14, 2019 12:39am Dec 14, 2019 12:39am
Quoting Telac
{quote} I like what your doing here! I'm busy with family for a few days but I'll be checking in
Thank you for the encouragement.
  • #7
  • Dec 14, 2019 3:33am Dec 14, 2019 3:33am
Once the trend has been established the next thing to establish is the discount area.(Also known as pull back or retrace)
I am going to use stochastics. This stochastics will be a summation of the pairs being considered in the basket.
Attached Image (click to enlarge)
Click to Enlarge Name: #TyC5#05H4.png Size: 37 KB

The screen shot shows the chart for a basket of 5 currency pairs. On it I have a stochastic of 9,4,4.
Taking a buy as an example if the main value goes below the signal line on the stochastic and the main value is below 80. We have the condition now called discount.

Remember first we have to get a discount. Once we have a discount we then need to have confirmation that the buy trend we are in is going to continue.

So I ask you how do you confirm that. My next post will be my suggestion
  • #8
  • Dec 14, 2019 3:41am Dec 14, 2019 3:41am
I suggest that once we have confirmed trend and then confirmed discount to now confirm trend continuation that we go in to individual pair.
On each individual pair there should be a price channel. SMA High && Low PERIOD 5 Hr4. This is equivalent to the 20 PERIOD on a Hr1 chart.
Which would be similar to the Tidane 20/2 on Hr1 chart.
in a buy scenario ;
Price should be pulling back below the SMA Low channel. Then when we have a bullish engulfing candle, buy pending orders should be sent.

That's what I am coding.
  • #9
  • Dec 14, 2019 3:57am Dec 14, 2019 3:57am
Quoting candyman752
...Once we have a discount we then need to have confirmation that the buy trend we are in is going to continue. So I ask you how do you confirm that...
I suggest you try using Heiken Ashi Smoothed with a tighter setting. It's proven to be very reliable (both in back/forward testing).

Great work you have began here. I wish you luck!

Regards and Stay fluid,

Ty
My job: I speculate and manage risk.
  • #10
  • Dec 14, 2019 4:51am Dec 14, 2019 4:51am
With all I have explained above here is the first basket EA trading the C5 .
Attached File(s)
File Type: mq4 BasketC5Trading_EA.mq4   319 KB | 348 downloads

Unfortunately it can not be back tested because of it using On Timer in the code to initiate it. So can only do forward testing at the moment.

Last night I had done a little test placing it on GBPUSD and then saw it open a trade. What will be a first for me is for it to spit out Pendings for the various pairs by just having placed it on one pair. If that succeeds it will be major milestone achieved. Cpu usage is low and imagine that one chart trading all the pairs you want to trade.

Once that is observed to taking place, Next will be to see that it is following the rules set up above.

Thereafter it will be how best to improve entries like what values to put for trailing settings when to best put power pending orders

NOTE; in the input section you are able to say true or false whether you want a pair traded. This is important because sometimes fundamentals do not line up with technical for certain pairs at certain times. SO when you decide that pair is whack you tell the EA not to trade that pair
  • #11
  • Dec 14, 2019 5:06am Dec 14, 2019 5:06am
Quoting TyLamai
{quote} I suggest you try using Heiken Ashi Smoothed with a tighter setting. It's proven to be very reliable (both in back/forward testing). Great work you have began here. I wish you luck! Regards and Stay fluid, Ty
Thanks you so much.

Unfortunately my coding skill at the moment is only able to handle inbuilt MT4 indicators. Hopefully the forward testing will be successful and will eventually attract some skilled coder who can then do the needful.
  • #12
  • Dec 14, 2019 5:14am Dec 14, 2019 5:14am
Quoting candyman752
Hello FF trader's. This thread is born out of what I have been following on the thread by Tylamai on basket trading. They blew my mind on how they came up with their virtual currency chart. Which is that it takes open of a candle from each currency pair adds it together EurUsd Candle Open = 1.1000 GBPUsd CAndle Open = 1.2000 UsdJpy Candle Open = 108.100 UsdCad Candle Open = 1.2900 1.1 + 1.2 + 108.1+1.29 =111.69 111.69/ 5 = 22.338 this result will be used as the open price of a candle . This same exercise is done for the low high and close price...
Good Luck on the thread Candyman...
  • #13
  • Dec 14, 2019 6:32pm Dec 14, 2019 6:32pm
Quoting aaven
{quote} Good Luck on the thread Candyman...
thank you
  • #14
  • Dec 15, 2019 11:22am Dec 15, 2019 11:22am
Been working on the c14 basket. Interesting observation. if I have EurUsd Rsi is 65 GbpUsd Rsi is 72 and UsdChf rsi is 32.
To align the UsdChf rsi I would say 100 - 32 = 68. So in combining the three pairs I would add 65 + 72 + 68

Also been going through Ty's posts. The c14 can be in buy signal but some pairs have straggled. He then takes those pairs that have straggled and forms a basket for them.

This is all food for my creative juices to chew on
  • #15
  • Edited 1:47am Dec 16, 2019 1:37am | Edited 1:47am
The EA is working well in terms of being able to send pending orders for different currencies while just having one pair have the EA(bot) placed on it.
  • #16
  • Dec 16, 2019 5:04am Dec 16, 2019 5:04am
Quoting candyman752
...Now as Ty says wait for the price to discount. Now he does it using his eye...
Don't forget Fundamentals - while that cannot be coded, I do use/consider it a lot when in the DC zone.

Regards and Stay fluid,

Ty
My job: I speculate and manage risk.
  • #17
  • Edited 1:09am Dec 17, 2019 12:38am | Edited 1:09am
This morning the bot opened GBPJPY. It opened two buy pending at 146.000. Instead of 145.528 and 145.678. Kind of freezing problem the bot has when first initiating trade. I will trouble shoot.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYH4.png Size: 41 KB


Then looking at the technical. GBPJPY had a nice discount. C5 C12 and C14 are bullish. But the individual pair itself, on Hr4 chart, the tidane trend was red. Is this suppose to disqualify the trade? Is this what is called out of alignment?

EDIT; I just noticed that the Tidane settings was 5.2 and not 20.2 On 20.2 the Tidane is green
  • #18
  • Dec 17, 2019 1:13am Dec 17, 2019 1:13am
Quoting TyLamai
{quote} Don't forget Fundamentals - while that cannot be coded, I do use/consider it a lot when in the DC zone. Regards and Stay fluid, Ty
Point Noted.
Just because the bot notices a discount and then opens some pending orders. bot users should consider fundies and decide whether the to close the pending orders or not.
  • #19
  • Dec 17, 2019 1:20am Dec 17, 2019 1:20am
Quoting candyman752
Been working on the c14 basket. Interesting observation. if I have EurUsd Rsi is 65 GbpUsd Rsi is 72 and UsdChf rsi is 32. To align the UsdChf rsi I would say 100 - 32 = 68. So in combining the three pairs I would add 65 + 72 + 68 Also been going through Ty's posts. The c14 can be in buy signal but some pairs have straggled. He then takes those pairs that have straggled and forms a basket for them. This is all food for my creative juices to chew on
It's possible to allow users to input straggler pairs into a basket. My coding skill is not there yet, but will get there.

For now I do something else. I went to check what the technicals look like when a pair is a straggler. If we have say for example bullish C5 and EurJpy is straggling. The technical on EurJpy is Hr4 Tidane is red. So what I will do is if C5 is still bullish and Tidane flips from red to green then the bot should immediately open buy pending orders.
  • #20
  • Dec 17, 2019 11:17pm Dec 17, 2019 11:17pm
You are really doing a great work as usual! Keep it up, your efforts will surely be rewarded!

Kudos!!!
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