Indicators development for T101's not very simple method

Agreed it does seem fundamentally flawed to trade 14 pair or not trade 14 pair based upon 1 cross pair.

I was writing an idea that maybe what should be analysed is the change in the rate of change of each currency.

1) Rate of change in quotes in every pair since week / month beginning is measured.
2) Rate of change in quotes in every pair since beginning of day is measured.

The difference in this change is then compared for strongest and weakest currencies, of which these 2 currencies (that single pair) are then considered as the dominant pair.
So a pair that goes strongly long to strongly short or vice versa is likely to produce a dominant result.... OR
The pair that continues strongly long may be the dominant result.

What this may result in is... The pair that may be zero movement over the weak is actually the pair that is going through the biggest turn around and is then easily identified.


This indicator link from Hanover does ALMOST exactly that (points 1 and 2 above) and is known as Relative Strength.ex4. However instead of having a fixed point of time to start the Relative Strength.ex4 indicator has a fixed timeframe. Maybe if Hanover could allow his code to be given to other coders than we could get somewhere with a fixed starting point instead of timeframe. We would have to ask very nicely as he is a commercial member.



Same... Congrats guys, i have tried coding and find it extremely difficult.
OR a whole lot of effort...

As I asked a few pages back, would it not make sense to try out the rules on a single pair to see if they are effective in following a trend? If the rules pass the test, they can then be generalized to a larger basket.

I have tried attaching Hanover's indicator to a chart and they don't draw. A few pages back I referred to the cluster indicators, which are open source code and do much of what Hanover's does.

I already told people not to code an EA for 14 pairs based on 1....trust me, there will be that week or 2 or month we you'll get burned by doing so. you need overall movement. that's why i told you all to follow the instructions to make the basket charts work like I have. and don't use them on MBT!

that's my last warning on that

@ don...not sure why buysvssells wont"t work on there, but obviously, I'm not a coder

In basket trading, rules are dependent upon multiple pairs, and generalisation is that if JPY is strong then sell all the xxxJPY pairs cause we are not trying to pin point a particular pair, because any 1 particular xxxJPY pair may have already done its run but it is unlikely that all pairs have.

So would your care to explain your comment further.


Below it Hanover's indicator in full flight. It most definitely draws well, so maybe your platform or something else is not up to scratch.


The M30 pics on the left are 48 base points (48*M30=1day) smoothed with a factor of 2 points. Hence it measures the comparative change in currencies exactly 1 day back.

The H1 pics on the right are 119 base points (119*H1=5days) as my broker has 5 full days minus 1 hour of trading data. Hence it measures the comparative change in currencies exactly 1 trading week back.

The difference between the top and bottom is that u can elminate currencies. In addition to this a pair like the AUDNZD or AUDCAD can be used in determining the strength / weakness of the AUD currency. So it goes well beyond the 14 pair basket that we have been looking at in this thread.

So last week the AUD and CAD were the weakest currencies.... and the JPY and GBP were the strongest (looking at top right chart).
However in the last 24 hours (left hand charts) the AUD has been one of the strongest currencies and the JPY one of the weakest. Hence the AUDJPY would have been the pair to buy in the last 24 hours.

So here is the link again. Hanover's Indicator.

The power of hanover's indicator is that instead of having M30 with 48 base points (48*M30=1day) to measure the change over the 24 hours, I could have M5 with 288 base points (288*M5=1day) to measure the change over the 24 hours more precisely.

So here is the link again. Hanover's Indicator.

i agree on the hannover indi.

it gives the best example of how the market is behaving in 1 closeup.

for example this morning we can see NZD is weak vs CHF.

the only thing is when to jump in? at what kind of timeframes should we look at?

Here is somthing that may be off assistance

hope you like it

from brian

Looking at the two charts below.

Hanover indicator - Timeframe=M5, NumPoints=288, BasePoint=288, SmoothingSMA=12,





With the Hanover indicator above you can see that 36 points back (which is 36 bars on the M5 chart cause of the settings I used) you can see that the CAD currency crossed steeply over the EUR currency.

This meant that CAD was getting stronger while at the same time EUR was getting weaker. Therefore the EURCAD should be a good short movement towards CAD strength and EUR weakness.





On the EURCAD chart above you see that 36 bars back the EURCAD has moved in the short direction to the tune of a little more than 40pips minus spread.

Looking at the Hanover indicator again....

the GBP and CHF currencies went through a very similar movement except approximately 50 bars back. I'm betting that with the CHF getting stronger and GBP getting weaker at that time, that the GBPCHF would have also been a decent short.... Have not tested it yet.

Hi Orest,
It's great to see the tools n technics of T101 carryon.
Nothing has brought so much knowledge and so much controversy.
Good to know that the pioneer of this strategy has moved on to better things.
I myself have been inspired to think outside the box and be innovative.
i have comeup with a twist on the BTS(please see attachment)
If you find it worthwhile kindly make indicators to the system.

Below are the KEY POINTS
to my trading strategy which are attached.

1)I will like an indicator that can open muiltipe trade positions(microlots 0.01 lotsize) all at once.
USDJPY buy
USDJPY sell
USDCAD buy
USDCAD sell
USDCHF buy
USDCHF sell
AUDUSD buy
AUDUSD sell
GBPUSD buy
GBPUSD sell
EURUSD buy
EURUSD sell
NZDUSD buy
NZDUSD sell


2)This one is a bit corky, I want an indicator that will give me pip counts from the 1minchart 5mchart 15mchart 30mchart 1hchart 4hchart dailychart 1wkchart 2wkchart 1monthchart.
I will like this indicator to behave the same way the 1st indicator above would behave without necessarily openning trade positions but will give me pips count.(please see attachment for visuals.
Try to incorporate the displayed colours and follow the pattern I have attached, incase of any questions give me a buzz and i will reply.
Once you are done let me know.

Thank you.
dutse f.

Its not the crossing of the two currencies that makes it a good trade. It is the opposing steepness of the currencies graphs.

I just realised with the Hanover indicator, that every bar will produce a new base point. Which means that every bar will produce different calculations producing a different line for every currency.

Hence what was intersecting on the graph right now might not intersect on the graph next bar.

However, although the lines might change their relative steepness compared to each other on any given point in time will remain the same.


THEREFORE my analysis in the previous post was only right because of the steepness of the lines it had nothing to do with the crossing.

Over the last 288 M5 bars (which is one 24 hr period) the USD and JPY have been the weaker currencies. This is determined by where their lines are ending on the 0 to 100 scale right side of graph.

However, in the immediate the EUR is angled downwards the most and the AUD is sloped upwards the most. Hence the EURAUD should be one of the better sells in the last 20 bars according to the charts.

LOL as I am typing this the AUD turned downwards and the EUR pointed upwards. So EURAUD could be changing right now in favour of the EUR... BUY maybe

Aquaart,

thankyou for replying.

just 1 more question. what would you consider a good exit strategy?

I was just analysing the Hanover's indicator's graphs for people, maybe my last 2 posts could give a reasonable entry strategy....

It would stand to reason that a possible exit would be the 1st bar that one or both currency graphs start turning in the opposing directions.

Or maybe when your trade first hits an opposing S/R line.

At the moment selling the EUR and buying the CHF look like a good thing....

So BUY CHFJPY, sell EURCHF and USDCHF... are possible trades according to the chart...

LOL


I stood on the sidelines when I made that call of the 3 pairs above....

Would be truly in profit by 15 pips for each of them...

actually i am trading at the moment

EURUSD
EURGBP
EURAUD
EURCHF
EURJPY
EURNZD
EURCAD

AUDYEN
CADYEN
AUSYEN

and i am at the moment +100 pips

i used the hanover indi for the EUR pairs and the other ones i traded as your described.

seems all to be very good indications so far.

i will check for the exit strategy as you described it and see how that will go

thanks

It is hard to find an exit strategy for the EUR at the moment if using support and resistance.
Because its value has been hitting new lows against so many currencies.

But i take that u are selling those xxxJPY pairs. Guess what the Hanover's indicator says that it should be good.

I would also pull out of the CHFJPY buy.... as it is the CHF and JPY that are the recent strong currencies.

at the moment +110 pips.

yes it is as you said the euro pairs i have on sell

others as sell as well.

check pic below of my new demo account i use for this strategy

Aq, Thanks for your comments and clarifications. With regard to single pair testing, this was in reference to earlier expressions of despair about the validity of indicators to gauge the overall market. Since the indicators used (e.g., MACD) are not designed to follow the entire spectrum of pairs, I suggested that there might be some benefit in testing on a single pair to see if the indicator signals actually correspond to a trend. The concept of basket trading was not questioned.

I have not been able to get recent strength working on a new installation of MT4, and I agree that it appears to be a useful tool. However, one advantage of clusters over this indicator is that the code is open source, and can be modified at will to achieve a desired result. Clusters also appear to afford insight into overall market movement. Perhaps both types of indicator should be investigated in more detail for possible application to basket trading.

Nobody here seems to be trading the original system.
Why is that, doesn't it work? If that is the case, why would
any of these variants with dodgy indis work? Just a thought!

well banana and kos seems to have it down with "dodgy" indicators and make money week after week. have you read all ail it? just a thought! it's the EA's that don't work!

this all has to do with timing. if the timing if off, then trades wont work. and it wont matter what style you trade. that goes for any entry setup in any forum.