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Trading system using relative strength

  • #341
  • Oct 11, 2008 6:35am Oct 11, 2008 6:35am
Guys

Since I dont have any other better Job to do I thought of doing a historical
study to see whether this is just on off affair due to the current situation
but it is not

Ecnomic factors very well influence the currency

2007 oil started to climb up like hell
Eu predicated to touch 1.6700 somethinglike that

I am attaching the Exel sheet showing the historical data of 13/09/2007
4 hour candle and the next candle and you can see sell us and buy CAD
and the sell process continued till like 13/11/2007 I have not checked after that

See today oil is 80 barel and see where is CAD

What want to assure you that it is not one off affair

Yesterdy Oil gone up
Today Bank crisis

and forex traders like us capitalise on this

CAD has lot of oil
  • #342
  • Oct 11, 2008 6:38am Oct 11, 2008 6:38am
Excel sheet attached

I checked the historical data with an indicator called ccp
and the excel sheet imported from chart. CCF has not gone that far
Attached File(s)
File Type: xls HARI CURRENCY PAIR SELECTION.xls   69 KB | 1,251 downloads
  • #343
  • Edited 7:08am Oct 11, 2008 6:44am | Edited 7:08am
So the original CCFp indicator is designed o calculate it's previous bars with moving averages and the new one by MrPIP with the close of the last two bars. Which one do I use if I want to stay with the original method? which one you think would be more accurate? What is the Period used by LWMA?
24 hours in a day – 24 bottles of beer in a case – Coincidence? I think not
  • #344
  • Edited 8:10am Oct 11, 2008 7:51am | Edited 8:10am
I have put together an automated pair selector in an Exel worksheet. Just enter + or - to the corresponding currency and it will make the right combination of pairs you can trade.
Attached Image
Attached File(s)
File Type: xls rStrength(+and-).xls   26 KB | 2,272 downloads
  • #345
  • Oct 11, 2008 7:57am Oct 11, 2008 7:57am
Quoting Pipo
I have put together an automated pair selector in an Exel worksheet. Just enter + or - to the corresponding currency and it will make the right combination of pairs you can trade.
Pipo, could you please tell me how to make red/green respond to +/- in excell same as yours? thank you
  • #346
  • Oct 11, 2008 8:11am Oct 11, 2008 8:11am
first in response to the pm's reguading the prior mentioned ea..... if someone posts a system on any forum and if it's within my abilities i'll write an ea for it..... not to prove or disprove, just for my courosity.... those ea's will never be posted.....

this is a very simple system and the ea can be written in minutes after the ccfp indicator is rewritten to an ea friendly manner..... surely someone will post an ea as soon as their work load permits.....



//---------------------differing numbers----------

the output of ccfp indicator is very data dependent... more so than is normal.... the reason being , it is dealing with multiple calculations on top of multiple calculations.....

anytime you start multipling and dividing small numbers later to be again multiplie and divided and then summed, those small almost meaningless differences in data get exagerated.....

so don't expect numbers to match from platform to platform or much less from data provider to data provider.....

the picture below is the exact same ccfp indicator on 3 live accounts with ibfx.....

does this mean we might not all get the buy signal on the same bar..... yes that's possible...

does this mean you might get a buy signal and i might get a sell signal on the same bar..... can't see that happening.....

but it's a given, the numbers simply must vary..... will it matter in the long haul, kinda doubt it......h
Attached Image (click to enlarge)
Click to Enlarge Name: robert.jpg Size: 256 KB
to trade and code, keep both simple... no call to impress....h
  • #347
  • Oct 11, 2008 8:21am Oct 11, 2008 8:21am
Quoting hayseed
first in response to the pm's reguading the prior mentioned ea..... if someone posts a system on any forum and if it's within my abilities i'll write an ea for it..... not to prove or disprove, just for my courosity.... those ea's will never be posted.....

this is a very simple system and the ea can be written in minutes after the ccfp indicator is rewritten to an ea friendly manner..... surely someone will post an ea as soon as their work load permits.....



//---------------------differing numbers----------

the output of ccfp indicator is very data dependent... more so than is normal.... the reason being , it is dealing with multiple calculations on top of multiple calculations.....

anytime you start multipling and dividing small numbers later to be again multiplie and divided and then summed, those small almost meaningless differences in data get exagerated.....

so don't expect numbers to match from platform to platform or much less from data provider to data provider.....

the picture below is the exact same ccfp indicator on 3 live accounts with ibfx.....

does this mean we might not all get the buy signal on the same bar..... yes that's possible...

does this mean you might get a buy signal and i might get a sell signal on the same bar..... can't see that happening.....

but it's a given, the numbers simply must vary..... will it matter in the long haul, kinda doubt it......h
Do you believe the indicator in its current form gives a true view of a currencies strength?
For example: the indicator shows EUR as getting stronger the last 2 closed 4hr bars...if the indicator only compares EUR to USD for its strength assessment...is this enough? Or should EUR be compared to other currencies to test its overall strength?

Thank you
  • #348
  • Oct 11, 2008 8:46am Oct 11, 2008 8:46am
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.
Good Morning,
I have no idea what you are talking about. I am STRICTLY following everything that I said in Post1.
Some people seem to have made this such a simple system into a major Einsteins theoty. Woh!

READ < READ <READ the first post. It is very simple system.No fancy stuff. You dont need any Fancy EA , indicator except for ccfp. It takes just 5-10 mintes to get the data from data window, determine which currency is strong/weak and double click on all currency pairs offered by your broker on Market Watch window and send in your order.
Thats it
Kris
  • #349
  • Oct 11, 2008 8:51am Oct 11, 2008 8:51am
Quoting ES Trader
Good Morning,
I have no idea what you are talking about. I am STRICTLY following everything that I said in Post1.
Some people seem to have made this such a simple system into a major Einsteins theoty. Woh!

READ < READ <READ the first post. It is very simple system.No fancy stuff. You dont need any Fancy EA , indicator except for ccfp. It takes just 5-10 mintes to get the data from data window, determine which currency is strong/weak and double click on all currency pairs offered by your broker on Market Watch window and send in your order.
Thats it
Kris
ES Trader, thank you for your great method. Do you also trade currency that has very wide spread (for example AUDCAD, AUDNZD, etc)?
  • #350
  • Oct 11, 2008 8:55am Oct 11, 2008 8:55am
Quoting harigp
Guys

Since I dont have any other better Job to do I thought of doing a historical
study to see whether this is just on off affair due to the current situation
but it is not

Ecnomic factors very well influence the currency

2007 oil started to climb up like hell
Eu predicated to touch 1.6700 somethinglike that

I am attaching the Exel sheet showing the historical data of 13/09/2007
4 hour candle and the next candle and you can see sell us and buy CAD
and the sell process continued till like 13/11/2007 I have not checked after that

See today oil is 80 barel and see where is CAD

What want to assure you that it is not one off affair

Yesterdy Oil gone up
Today Bank crisis

and forex traders like us capitalise on this

CAD has lot of oil
THANKS HARIGP.
Nice to know this system is consistant in making profit. Not just one time fluke.
Thanks for doing some back testing. Appreciate.
Kris
  • #351
  • Oct 11, 2008 9:00am Oct 11, 2008 9:00am
Quoting Pipo
I have put together an automated pair selector in an Exel worksheet. Just enter + or - to the corresponding currency and it will make the right combination of pairs you can trade.
Pipo,
GREAT. YOU ARE GENIUS OR WHAT. !!
Thanks
Kris
  • #352
  • Oct 11, 2008 9:04am Oct 11, 2008 9:04am
ES,

I haven't really seen you mention anything about a potential catastrophic stop. At what point would you consider the trades are not going in a favorable direction and cut losses? It seems like all our entries so far have eventually been winners. What's the largest drawdown you have seen?
  • #353
  • Oct 11, 2008 9:08am Oct 11, 2008 9:08am
Wow, Pipo-- great. So with this one, we don't have to cut and paste the info in like the last spreadsheet -- just enter the plus and minuses from the indi.

Quoting Pipo
I have put together an automated pair selector in an Exel worksheet. Just enter + or - to the corresponding currency and it will make the right combination of pairs you can trade.
  • #354
  • Oct 11, 2008 9:08am Oct 11, 2008 9:08am
Quoting Jack2000
ES Trader, thank you for your great method. Do you also trade currency that has very wide spread (for example AUDCAD, AUDNZD, etc)?
Yes, BUT not EXOTICS like south african rand etc( spread is 200 pips). I tried to stay with currencies of countries mostly G7.
  • #355
  • Oct 11, 2008 9:12am Oct 11, 2008 9:12am
Quoting hayseed
first in response to the pm's reguading the prior mentioned ea..... if someone posts a system on any forum and if it's within my abilities i'll write an ea for it..... not to prove or disprove, just for my courosity.... those ea's will never be posted.....

this is a very simple system and the ea can be written in minutes after the ccfp indicator is rewritten to an ea friendly manner..... surely someone will post an ea as soon as their work load permits.....



//---------------------differing numbers----------

the output of ccfp indicator is very data dependent... more so than is normal.... the reason being , it is dealing with multiple calculations on top of multiple calculations.....

anytime you start multipling and dividing small numbers later to be again multiplie and divided and then summed, those small almost meaningless differences in data get exagerated.....

so don't expect numbers to match from platform to platform or much less from data provider to data provider.....

the picture below is the exact same ccfp indicator on 3 live accounts with ibfx.....

does this mean we might not all get the buy signal on the same bar..... yes that's possible...

does this mean you might get a buy signal and i might get a sell signal on the same bar..... can't see that happening.....

but it's a given, the numbers simply must vary..... will it matter in the long haul, kinda doubt it......h
Hello, since you know how the the indicator works do you think the original one and calculates its output VIA LWMA is better than the new one MrPip posted that uses the close of the previous bars?
24 hours in a day – 24 bottles of beer in a case – Coincidence? I think not
  • #356
  • Oct 11, 2008 9:14am Oct 11, 2008 9:14am
Quoting BenQ
ES,

I haven't really seen you mention anything about a potential catastrophic stop. At what point would you consider the trades are not going in a favorable direction and cut losses? It seems like all our entries so far have eventually been winners. What's the largest drawdown you have seen?
Benq,
That is a Million Dollar question. I have not been able to really find out where to put stop loss, because almost all trades went into positive within few mintes.
BUT i did have couple of trades that went down close to 800 pips in negative but turned around and went positive 1000 pips.!!

I am guessing it may be safe to probably put SL at 2-3% of your TOTAL account Balance.
May be some one here have a different take on this.

Thanks
Kris
  • #357
  • Oct 11, 2008 9:20am Oct 11, 2008 9:20am
Quoting matrixebiz
Hello, since you know how the the indicator works do you think the original one and calculates its output VIA LWMA is better than the new one MrPip posted that uses the close of the previous bars?
Hayseed and others ,
I would like to know whether we can create an EA or indicator or whatever, keeping strictly the ORIGINAL CCFP and not using LWMA etc.

Infcat read the following article if one is interested in learning more about currency correlation and relative strength.
thanks
Kris
http://articles.mql4.com/484
  • #358
  • Oct 11, 2008 9:23am Oct 11, 2008 9:23am
Quoting Pipo
I have put together an automated pair selector in an Exel worksheet. Just enter + or - to the corresponding currency and it will make the right combination of pairs you can trade.
Thanks Pipo for the EXCEL sheet. Will be a great tool to speed up things.

I had suggested in my earlier post( http://www.forexfactory.com/showpost...&postcount=248 )some sort of mt4 script to do the above.

MT4 script or something in line with above and to place the trades through the script will be wonderful.

TF
  • #359
  • Oct 11, 2008 9:38am Oct 11, 2008 9:38am
Quoting ES Trader
Hayseed and others ,
I would like to know whether we can create an EA or indicator or whatever, keeping strictly the ORIGINAL CCFP and not using LWMA etc.

Infcat read the following article if one is interested in learning more about currency correlation and relative strength.
thanks
Kris
http://articles.mql4.com/484

ES trader...
Nice thread I must say,...
lotsa correlated pairs methods popping out these days... I find it cool and profitable..
Btw..What is the latest ccpf indi that u guys..using and where can I find it??


Pipo... Thx for the excel sheet buddy...

Sonic
  • #360
  • Oct 11, 2008 9:40am Oct 11, 2008 9:40am
hey matrixebiz.... for your second question, i'd have to agree with robert in post 320 where he says of the indicator, ""I am not sure if this will work as well as the original.""

//----------------

for your first question..... the original indicator is deciding the overall strength of the currency as compared to other currencys..... in doing this we must remember that the usd might be truely weak as compared to 4 other currencys but truely strong compared against a 5th.....

this is often due to the fact that the 5th currency is even weaker overall than the usd.... so of the 2 weak currencys the usd appears stronger..... and there can be other reasons.....

this is overcome by the basket trading technique.... overall, the ccfp will closely approximate strength, or at least within the limitations , ie lag, of moving averages..... this can be readily seen in the plot.....

do you remember the picture i've since removed, that was the ccfp indicator....... it appeared accurate, within reason...... h
to trade and code, keep both simple... no call to impress....h
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