GBP/USD Force Index System | Forex Factory

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GBP/USD Force Index System

  • #1
  • First Post: Edited 8:41pm Oct 6, 2007 8:22pm | Edited 8:41pm
I everyone, I just found about 3 weeks ago, something interesting in the force index applied to GBP/USD so I started back testing the data, the system is based in force index, stochastic, and support/resistance in ema 21 and ema 10, it gives an average 200 pips per month, I say this because some months it gives more than 300 pips, some give more than 200, others other a bit less than 200 pips, but never had a negative month, and Its already counting the spread, I have 2,5 pips in Oanda, If I see some people interested I may post the system, otherwise, I wont lose my time.

Best Regards Marco.
Logic will get you from A to B. Imagination will take you everywhere.
  • #2
  • Oct 6, 2007 8:28pm Oct 6, 2007 8:28pm
Quoting Masmp_FX
I everyone, I just found about 3 weeks ago, something interesting in the force index applied to GBP/USD so I started back testing the data, the system is based in force index, stochastic, and support/resistance in ema 21 and ema 10, it gives an average 200 pips per month, I say this because some months it gives more than 300 pips, some give more than 200, others other a bit less than 200 pips, but never had a negative month, and Its already counting the spread, I have 2,5 pips in Oanda, If I see some people interested I may post the system, otherwise, I wont lose my time.

Bests Regards Marco.

A profitable system mechanical system. If it truly is, then many would be interested.
  • #3
  • Oct 6, 2007 8:32pm Oct 6, 2007 8:32pm
This was a very good day
Attached Image (click to enlarge)
Click to Enlarge Name: force index, 30 january.gif Size: 22 KB
Logic will get you from A to B. Imagination will take you everywhere.
  • #4
  • Oct 6, 2007 8:33pm Oct 6, 2007 8:33pm
I would love to see your system. Please do share. Thanks!
Believe and Achieve!
  • #5
  • Edited 8:44pm Oct 6, 2007 8:39pm | Edited 8:44pm
Thanks for the interest Lepiricus, yes it is a 100% mechanical system.

Best Regards Marco.
Logic will get you from A to B. Imagination will take you everywhere.
  • #6
  • Oct 6, 2007 9:16pm Oct 6, 2007 9:16pm
Hi, I have also to say to the moderators of Forex Factory, that I have no intentions of selling the system, so please don’t throw this thread to the garbage.
One more thing, this system has losses, so don’t expect for any kind of "holly Grail", but the system has more winners than losers, and the winners are more powerful, than the losers (more pips).

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
  • #7
  • Oct 6, 2007 9:26pm Oct 6, 2007 9:26pm
Please share! Im always interested in new strategies and ways to implement them into my everyday trading. Knowledge is Power!

Henyloc
  • #8
  • Oct 6, 2007 9:38pm Oct 6, 2007 9:38pm
Can this trading model be used on Oandas 3hr charts?
  • #9
  • Oct 6, 2007 9:44pm Oct 6, 2007 9:44pm
Hi Henyloc, unfortunately oanda does not have force index in their platform, and I trade in the 30 min chart, never had time to test it on other TF, or other currencies.

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
  • #10
  • Oct 6, 2007 10:03pm Oct 6, 2007 10:03pm
Bummer, I use Oanda @ work since I am unable to use metatrader on my work computers. I do prefer metatrader over Oanda and I use it @ home. I would still be interested in your trading model so long as it can be used on long term TF. I will be able to look for oportunities when I get home from work.

Henyloc
  • #11
  • Oct 6, 2007 10:21pm Oct 6, 2007 10:21pm
Quoting henyloc
Bummer, I use Oanda @ work since I am unable to use metatrader on my work computers. I do prefer metatrader over Oanda and I use it @ home. I would still be interested in your trading model so long as it can be used on long term TF. I will be able to look for oportunities when I get home from work.

Henyloc
Try using logmein to log to your computer and access your metatrader or anything else the way you would if you were home.
  • #12
  • Oct 6, 2007 10:21pm Oct 6, 2007 10:21pm
The force index is calculated by subtracting the prior period's close from current period's close and multiplying the result by the current period's volume.

Since FX has no volume, this indicator has little/no relevance.

Your MT4 broker may be offering "volume" data, but it's usually a loose way of measuring the separate ticks per period, hardly indicative of whatever underlying volume there may be..

If it's entirely mechanical, why not backtest it?
  • #13
  • Oct 6, 2007 11:25pm Oct 6, 2007 11:25pm
Hi, first thanks for the reply Trader KGB, yes I Know that forex doesn’t have volume, but I also think its strange that it works, but the indicator doesn’t work only on the volume, it confirms my setups and exits pretty well, I combined it with a 10 ema.
For a few days I will be a little busy but maybe next Tuesday, I will post the system and the rules, and my template with all my back tests, Thanks again for all the replies, see you guys Tuesday

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
  • #14
  • Oct 7, 2007 5:02am Oct 7, 2007 5:02am
Quoting Masmp_FX
Hi, first thanks for the reply Trader KGB, yes I Know that forex doesn’t have volume, but I also think its strange that it works, but the indicator doesn’t work only on the volume, it confirms my setups and exits pretty well, I combined it with a 10 ema.
For a few days I will be a little busy but maybe next Tuesday, I will post the system and the rules, and my template with all my back tests, Thanks again for all the replies, see you guys Tuesday

Regards Marco
Very much look forward to it.... wish you continued success!
  • #15
  • Oct 7, 2007 11:06am Oct 7, 2007 11:06am
Well Trader KGB, said to me that force index is useless in forex, so I tested my template in another mt4 broker, and he was right the data from the force index, was different, the entry and exits didn’t match, but because I’ve made a lot of pips in my back test with force index, I tried switching force index for the Momentum indicator, the data is very similar, I have just back tested January data, and it gave an amazing 612 pips without spread commission, in 45 trades, I will back test more data, because a month profiting is not enough, but soon I have it ready I Will share it,

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
  • #16
  • Oct 7, 2007 11:21am Oct 7, 2007 11:21am
Hello Marco,

can you share ur template so we can also help in backtest ?
  • #17
  • Oct 7, 2007 2:31pm Oct 7, 2007 2:31pm
Quoting Masmp_FX
and it gave an amazing 612 pips without spread commission, in 45 trades, I will back test more data, because a month profiting is not enough, but soon I have it ready I Will share it,

Regards Marco
Of course, pips gained mean nothing, when taken out of the context of how much you risked. If you risked only 200 pips to gain that 612, then I'd be very impressed. But if you risked 1000, then not. Of course I'm sure your testing will include all that information, which I'm looking forward to seeing.
  • #18
  • Edited 11:20am Oct 8, 2007 8:16am | Edited 11:20am
Quoting JoshDance
Of course, pips gained mean nothing, when taken out of the context of how much you risked. If you risked only 200 pips to gain that 612, then I'd be very impressed. But if you risked 1000, then not. Of course I'm sure your testing will include all that information, which I'm looking forward to seeing.

Hi JoshDance, in my money management, I risk 35 pips per trade, but in entire January my 35 pip stop loss was hit only twice, in my previous post, I said it make 612 pips in January, well I was wrong, I reviewed everything and it was 700 pips without spread commission, in 45 trades, in January I did +919 pips - 219 pips that gives a total 700 pips profit, I will post the template and indicator, and the rules today, and I ask to, for the experienced traders, to give a look at the system, and give-me your opinion about it, I will wait four your replies

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
  • #19
  • Edited 11:54am Oct 8, 2007 8:25am | Edited 11:54am
Here are attached the indicators and templates, and also a January statement about the system.

Regards Marco
Attached File(s)
File Type: zip 30 min momentum stoch.zip   8 KB | 1,429 downloads
Logic will get you from A to B. Imagination will take you everywhere.
  • #20
  • Oct 8, 2007 8:48am Oct 8, 2007 8:48am
In this post I will explain the rules,

First you start downloading the WinZip file, which has the indicators and template, all January back testing is on the template,

So the rules are


Buy - When you have momentum above 0 and above moving average 10, stochastic passed level 40 up(if setup is when stoch is already at level above 90, DONT TAKE THE TRADE), price break true resistance level 21 ema, you will only enter at the close of the candle,

Sell - When you have momentum below 0 and below moving average 10, stochastic passed level 60 down(if setup is when stoch is already at level below 10, DONT TAKE THE TRADE), , price break true support level 21 ema, enter only at the close of the candle

Exit at 40 pips take profit, 35 pips stop loss, if either take profit or stop loss is not hit exit when momentum crosses the 10 ema(CROSSES, not touches, exit only when it crosses)

I chose 40 pips take profit, and stop loss 35 pips, the best money management for this system, and I’ve spend months studying stochastic movements.

Only trade from 6.30 GMT to 19.30 GMT any setup later or sooner than that has 85% chance of being a loser trade.

My excel file is at GMT time

Any doubts just ask.

Regards Marco
Logic will get you from A to B. Imagination will take you everywhere.
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