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Trading system using relative strength

  • #321
  • Oct 10, 2008 10:15pm Oct 10, 2008 10:15pm
Quoting MrPip
I just finished modifying the indicator to use Close of last 2 bars to determine strength. I am not sure if this will work as well as the original.

I did find that the check for strength is all related to the USD. There is no check for cross pairs like GBPJPY or EURGBP, etc.

I do not know how this might reflect in a trade for GBPJPY.

I am attaching the first version of the indicator using the close of the last 2 bars. The formula used is the same as before, I only replaced the fast MA and slow MA values with the valuse for close 1 and close 2 for each pair.

I suggest someone contact the original author of the indicator to check his/her thoughts in this matter.
There is a link in the indicator.


Robert
I thought it did check the close of the previous two bars ??
How is it doing it now with the old indicator?
24 hours in a day – 24 bottles of beer in a case – Coincidence? I think not
  • #322
  • Oct 10, 2008 10:25pm Oct 10, 2008 10:25pm
I have the same data and considering below strengths as of Friday's close, I believe following currencies will be traded on Sunday night, 15 minutes after the market opens:

SELL: EURUSD, AUDUSD, EURGBP, EURNZD, AUDNZD

BUY : USDCHF, USDCAD, USDJPY, GBPCHF, GBPJPY, NZDJPY

The missing pairs are not available through Alpari.

Good luck everyone.
Regards.


Quoting kenshin
I just manually checked the data on the last 2 bars on 3 brokers, FXDD, Interbank, and Alpari.

USD +,+,+
EUR -,-,-
GBP +,+,+
CHF -,+,-
AUD -,-,-
CAD -,-,-
JPY -,-,+
NZD +,+,+
  • #323
  • Oct 10, 2008 10:29pm Oct 10, 2008 10:29pm
Quoting MrPip
I just finished modifying the indicator to use Close of last 2 bars to determine strength. I am not sure if this will work as well as the original.

I did find that the check for strength is all related to the USD. There is no check for cross pairs like GBPJPY or EURGBP, etc.

I do not know how this might reflect in a trade for GBPJPY.

I am attaching the first version of the indicator using the close of the last 2 bars. The formula used is the same as before, I only replaced the fast MA and slow MA values with the valuse for close 1 and close 2 for each pair.

I suggest someone contact the original author of the indicator to check his/her thoughts in this matter.
There is a link in the indicator.


Robert
So am I to understand that if the indicator shows EUR as weak(according to the last 2 completed 4 hr bars)that this means that EUR/USD is the only thing that determines that EUR is weak?

So if the last 2 4hr bars of EUR/USD were downcloses ( or MA differences) you should sell EUR/USD?

I understand the method completely, I just am a little confused now about how accurate the true strength measure of each individual currency may be.
I think this is a great idea for selecting the best pairs to trade for sure...I just want it to continue working once the world markets settle down and things possibly get "rangey".

Thanks to all who've contributed!
  • #324
  • Oct 10, 2008 10:43pm Oct 10, 2008 10:43pm
To select the best individual currencies, something similar to t101's strategy can be integrated into this one. But in t101's thread, if you remember, he said the most secure trades were the ones when positions were opened with all 14 pairs. Therefore, trading all possible pairs available through your broker with a smaller trade size can be the best option for ES's strategy, too. Because it also has diversification effect in the portfolio which can provide a smoother equity curve.


Quoting RickW00716
So am I to understand that if the indicator shows EUR as weak(according to the last 2 completed 4 hr bars)that this means that EUR/USD is the only thing that determines that EUR is weak?

So if the last 2 4hr bars of EUR/USD were downcloses ( or MA differences) you should sell EUR/USD?

I understand the method completely, I just am a little confused now about how accurate the true strength measure of each individual currency may be.
I think this is a great idea for selecting the best pairs to trade for sure...I just want it to continue working once the world markets settle down and things possibly get "rangey".

Thanks to all who've contributed!
  • #325
  • Edited Oct 11, 2008 9:29am Oct 10, 2008 10:45pm | Edited Oct 11, 2008 9:29am
Here is how I compare the data.
Set up your chart with only the CCFp. Right click data window select show and remove all ticks except the date.
When new 4hour bar has opened just place cursor under 3rd last bar and press ctrl c and paste (ctrl v) it into Exel
do the same with 2nd last bar and paste it next to it takes10 sec to do.
Just pair the green with the reds and buy or the red with green and sell.
Attached Image
  • #326
  • Oct 10, 2008 11:06pm Oct 10, 2008 11:06pm
Thanks pipo

This is what I was trying to do copy paste in excel but I was not able to do it. Now I learned from you
  • #327
  • Edited 11:31pm Oct 10, 2008 11:19pm | Edited 11:31pm
Quoting harigp
Thanks pipo

This is what I was trying to do copy paste in excel but I was not able to do it. Now I learned from you
No prob Bro
Just uploaded the Exel in post #325 if anyone likes to use it. As long as you paste the data from 3rd last bar in cell A1 and the data from the 2nd last bar into cell D2 then the formula and color format in Column G should work.
  • #328
  • Edited 12:48am Oct 11, 2008 12:05am | Edited 12:48am
For all the new guys who have not understood the system

Check the table of pipo in excel which is imported from the chart
Comparing the last two candles before the us close candle

Compare candle 1
Compare candle 2
last close candle is the candle we use for trade

Monday opening
We will compare the us last close candle with the first four hour candle
of monday open which will be Asia session

Now as per the table chf - us$ + ( see the excel sheet of pipo)

You will open the chart of us$/chf

The trade window shows us$ chf (sell or buy)

You will click buy( why)

Rule no 1

Buy strong currency
Sell weak currency

In the ex above us+ is strong and CHF- is weak

Buy clicking buy you are buying the us$ and selling the chf

Word of warning

In the trade window it shows as us$chf

Do not click the sell button as per the above ex if you did this

You wil be selling the US$ and buying chf

Firt study the windows of all currency pair and list out all the pairs in excel
sheet

All the currency with - you will be selling with the corresponding currency.
The corresponding currency should be +

If you go back to the excel sheet above of pipo

CHF will be sold and you will buy us$,EU,GBP,AD,nzd ( CHF - all others +)

You will not touch JPY and CAD because they are Minus

Minus Minus do not touch

Plus minus OK


You will not touch two plus currency say EU and US$

For trade you can use

The Data window or

The Indicator modified by Mr pip

By reading the post you dont have to worry about the coding issues
or other programming details

Correction

US closed candle with first four hour candle(closed) of Asia session for
Monday

There is correction i overlooked the sign for EU

The EU - as per pip table

You can Sell EU and buy US$

My apology

The above EX use JPY and not CHF
becasue CHF as per pipo table is + I got mixed up with my table and pipo
table

There is always slight diff in sign between brokers

But
  • #329
  • Oct 11, 2008 12:14am Oct 11, 2008 12:14am
MrPip said earlier to make it easier to read the numbers use a multiplier. For example, notice how your data readings are +29 and -26 -- well, multiply those by 10,000 and your .029 becomes +290 and -.026 is -260. There's some slight differences with roundings, but you get the idea.

Quoting ozziedave
I'm still a bit confused about what numbers are being evaluated before a trade is entered. For example, I have the 4hr USDCHF chart attached.

The values of the data window for the candle with the yellow arrow are USD = 0.0560 and CHF = 0.0575 and the magenta arrow are USD = 0.589 CHF = 0.0549. Now the indicator shows USD at +289.39 and CHF at -257.55. So what is the connection from the numbers in the data window to the numbers in the indicator? I can see the numbers in the data window show USD getting stronger (+29), CHF getting weaker (-26) and I can see the numbers in the indicator window showing USD strength and CHF weakness but the differences in the two sets of numbers don't make any sense to me. Which set of numbers are you basing your trades on???

Maybe I'm just being a little slow on the up take here so any help on understanding this would be appreciated.

*Note on my chart I have go short..this would actually be a long signal for USD strength.
  • #330
  • Oct 11, 2008 12:20am Oct 11, 2008 12:20am
Makes you wonder about what? All it could mean is that he's tired of answering the same questions over and over.

Quoting FOURX
different data readings will get you into different trades , 3 times i have asked what ES would suggest ,regarding this , and got no answer.

why no response? makes you wonder!
  • #331
  • Oct 11, 2008 12:28am Oct 11, 2008 12:28am
Mr. Pip,
So if I understand you correctly, the indicator does not follow ES's rules at all. The indicator compares everything to the USD for the + or - and ES uses the data window for the difference between previous bar 2 and previous bar 3 to get his + and - and could care less how the USD relates to the other currencies, but just whether it gained or lost compared to itself.
I guess I'm trying to figure out the best way to trade this system and if the indicator is not following the rules of the thread, we need to create one that does. Thanks for bringing this to my attention.
  • #332
  • Oct 11, 2008 2:03am Oct 11, 2008 2:03am
Import the data and bar chart of candle 1 and candle 2
Attached File(s)
File Type: xls rStrength.xls   64 KB | 1,207 downloads
  • #333
  • Oct 11, 2008 3:28am Oct 11, 2008 3:28am
Here are two indicators I found that show relative strength in a different way.
Version 2 has more pairs checked.
They can both be placed on the same chart.
Version 3 can be placed in any corner while version 2 is in lower right corner.
If using both put version 3 in a different corner.
Note that the strength might not be the same in both versions because of additional pairs checked.

Robert
Attached File(s)
File Type: mq4 xMeter Indicator2.mq4   11 KB | 1,697 downloads
File Type: mq4 xMeter Indicator3.mq4   12 KB | 1,910 downloads
  • #334
  • Oct 11, 2008 3:35am Oct 11, 2008 3:35am
Quoting tfrench
Mr. Pip,
So if I understand you correctly, the indicator does not follow ES's rules at all. The indicator compares everything to the USD for the + or - and ES uses the data window for the difference between previous bar 2 and previous bar 3 to get his + and - and could care less how the USD relates to the other currencies, but just whether it gained or lost compared to itself.
I guess I'm trying to figure out the best way to trade this system and if the indicator is not following the rules of the thread, we need to create one that does. Thanks for bringing this to my attention.
I looked at the code again and it does match what ES's rules are.
He is checking the last 2 closed bars for a difference in a currency and so does the indicator. The numbers are multiplied by a factor for display and the extra digits are there because of precision of calculation.

The values for each currency in the data window comes from the indicator.

The version using Close of Bars for trend indication will have different values but still need to see if it will help.

Robert
  • #335
  • Oct 11, 2008 3:59am Oct 11, 2008 3:59am
Hi, hope this will help to know which pair to buy/sell. False means "No trade". Btw, this is for pairs in IBFX.
Attached File(s)
File Type: xls rStrength.V.01.xls   22 KB | 1,475 downloads
  • #336
  • Oct 11, 2008 4:21am Oct 11, 2008 4:21am
Thank you jack 2000

I was about to use my key board to ask the question whether any one knows
macro in excel in selecting the currency

Here comes from jack 2000 with the answer

I love this forex factorey
  • #337
  • Oct 11, 2008 5:40am Oct 11, 2008 5:40am
I loaded the indicator on both IBFX and Alpari and I saw there's a difference too between the brokers. I think I might have a answer why their different. Alpari is GMT +2 and IBFX is GMT so for example if Alpari already has two closed bars from 00:00 hour to 8:00 hour that means IBFX only have 1 bar closed and the second bar is just in the middle of it since it's 2 hours behind. Hopefully anybody reading this knows what I'm talking about.
  • #338
  • Oct 11, 2008 6:13am Oct 11, 2008 6:13am
I'll attempt to make it clearer.

The two bars you compare must be closed and the current bar must have just opened. So, you got the 3 rightmost bars on your screen...1,2,3 in that order. You're comparing bars 1 and 2 for your calculations, and bar 3 must have just opened less than 15 mins ago. Regardless of broker, the two bars you compare must be closed. The difference between broker bar closing time's is what causes the slight difference between signals from different brokers you are seeing.

Hope that helps.
  • #339
  • Oct 11, 2008 6:28am Oct 11, 2008 6:28am
Quoting kenshin
I'll attempt to make it clearer.

The two bars you compare must be closed and the current bar must have just opened. So, you got the 3 rightmost bars on your screen...1,2,3 in that order. You're comparing bars 1 and 2 for your calculations, and bar 3 must have just opened less than 15 mins ago. Regardless of broker, the two bars you compare must be closed. The difference between broker bar closing time's is what causes the slight difference between signals from different brokers you are seeing.

Hope that helps.
It's not that hard and complicated.
Attached Image
  • #340
  • Oct 11, 2008 6:28am Oct 11, 2008 6:28am
Quoting BenQ
Makes you wonder about what? All it could mean is that he's tired of answering the same questions over and over.
show me a post where the question had been asked.

oh! and by the way if you have read all before you posted, you would see that Kris did respond,(i was a little impatient)
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