Dollar Sentiment Indicator (DSI)

Hi everyone!

First of all thank you all for kind emails to my last threads. I have been receiving many questions about my current work so I have made the decision to maintain the new thread "Dollar Sentiment Indicator and other ones" (DSI) for a week. DSI was not conceived for a trading but as a filter to make trading decisions only. DSI is calculated on the basis of a multy-currency model determining Dollar Sentiment on the FOREX market with the 3/5-day forecast depth and is an indicator of expectation of the FOREX market for the noted horizon. I offer to watch how it works.

Regards, Aleksey

How it has been noted above DSI is not an trading indicator. However there is the simple way to use it in a trading - to trade EURUSD with the volume proportional to the value of the DSI - if our base volume is 100 000 and DSI=-25 (on a closing of a day) then we will have to trade (to buy) 25 000 EURUSD for next day. Here is the backtesting result for EURUSD from 01.10.08 to 14.10.08 made by this way (grey line - equity, starting base volume=100 000).

Very interesting indicator. Looking forward to more details as how to use it. Thanks

hi aleksey

very intresting please post more info.....

regards

lodol

Dollar has gotten stronger to the closing of the day...

hi Alexsey.

first thanks for sharing your analisys here.

i was reading your other thread and you said that you were about to share your two indicators. Do you still with this idea?

my other question is about Trader101 basket strategy. Have you had a look at his strategy?

http://www.forexfactory.com/showthread.php?t=107119

if i wanna to test your principles with his strtaegy do you think is possible or they are incompatible? For example, for the JPY group what group i should enter?

thanks in advance. And sorry for my bad English.

Hi giraia_br,

Concerning indicators... A simplified model (TD method) and a code for TS will be published for next year. I am still working at it.

I have looked at the link. Main principle of the hybrid method is simple - to minimize risk. It is universal and can be used in any strategy. I prefer USDJPY, EURJPY, CHFJPY only.

the same lots for all or need to ajust based in volatility?

many thanks for look at the link and reply.

In accordance with the volatility if we talk about the hybrid method...

the numbers i got to EURJPY are these:

100K * 33 /(56* 10.32)= 560k


are correct? Sorry, school drop out here, LOL.

EDIT: i will edit this message to save space in the thread. Do you think this hybrid method can work even with trades that last only a few minutes?

many thanks again.

Right is 100K * 33 /(56* 1.032)= 57K. Time frame do not matter.

thanks

no changes...

Dollar is number one agen...

Dear Aleksey, is good to see you again posting useful information!
I dont know why i cant send you a PM so, can you please send me by PM a contact to ask you some question? Thanks.

...

Dear Aleksey, I have received your PM but i cant replied you because that option is turned off and I dont know why. Do you have some email or instant messenger to contact you? If yes, can you send them to me, please?
Regards. And thanks for your quickly answer!

There is a more perfect way to use the Sentiment Indicator in a trading. If we calculate say ESI - same indicator for Euro and plot EvDSI=(ESI-DSI)/2 then we get the Euro vs Dollar Sentiment Indicator. Further we should Buy the EURUSD pair if EvDSI>40 (blue points) and Sell if EvDSI<-40 (red points). It should be noted that number 40 corresponds to the minimal coherent state of the model here. Here are four trading solutions obtained by using this algorithm from 01.10.08 to 21.11.08:
1. 01.10.08, sell=1.4114, sl=1.4346 - 08.10.08,close=1.3626, profit=488 pips;
2. 16.10.08, sell=1.3461, sl=1.3833 - 28.10.08,close=1.2768, profit=693 pips;
3. 04.11.08, buy=1.2642, sl=1.2228 - 06.11.08,close=1.2714, profit=72 pips;
4. 17.11.08, buy=1.2605, sl=1.2174 - 19.11.08,close=1.2503, profit=-102 pips; total profit=11.5 handles.

It can be calculated for other pairs too, PvDSI for GBPUSD, DvYSI for USDJPY e.t.c. Here are some calculations for DvYSI:
1. 01.10.08, sell=105.98, sl=108.47 - 28.10.08,close=98.66, profit=732 pips;
2. 03.11.08, buy=98.41, sl=94.73 - 05.11.08,close=98.30, profit=-11 pips;
3. 18.11.08, buy=96.40, sl=92.24 - 19.11.08,close=95.86, profit=-54 pips; total profit=6.7 handles.

I am still working at the model and am going to publish it for next year. That is all for now. Good luck

are you going to post the numbers of the EvDSI at the end of the day?

thanks in advance.