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Trading system using relative strength

  • #2,081
  • Jun 23, 2011 12:20pm Jun 23, 2011 12:20pm
I love it! You guys are finally starting to see the full potential of this indi! Keep it going!...
To improve is to change. To perfect, is to change often.
  • #2,082
  • Jun 23, 2011 8:33pm Jun 23, 2011 8:33pm
Quoting cocoth
What settings and T/F are your using as a setup ?

Cocoath if u see in my chart i am start with the old indicator and the time frame 4H as indicated in the post #1 with ES.

Umesh Patel
  • #2,083
  • Jun 23, 2011 9:42pm Jun 23, 2011 9:42pm
Quoting davelansing
From Lenoxer:

[b]You're never going to find the best exact settings for this indi---or any other for that matter---since the market is too dynamic for exacting optimization, which is generally what you all are searching for, it seems, unless I'm missing something. ....And whatever settings work today may not work well tomorrow but can, in the long term, be broadly profitable. So, the question is how to get into the long term? And isn't that always the question in trading and managing money? .... It is the self-control to trade consistently through...
The best parameter settings that would have worked in a backtest of the last year would probably be different than the best for the last five years - or the best for the next two years. "Exact optimization" (whatever that may be) is indeed somewhat useless: it would be better to find a range of good parameter values, and to choose a representative value from that range (some kind of weighted average). That way, while you won't squeeze all of the possible juice from the system, there is a good chance you'll still be profitable.

Of course, this is much more easily said than done - especially in a system like this which is not fully automated. As was mentioned above, this kind of advice is not specific to this system, but I hope it would benefit the discussion here.

Unfortunately, MetaTrader and most other retail trading/backtesting/optimization platforms are not build for that kind of optimization...
  • #2,084
  • Jun 24, 2011 8:28pm Jun 24, 2011 8:28pm
Dear all,

I have seen my last week baskets going to the wrong direction as indicated by the indi. Actually, it was the first time the whole basket was going completely wrong; normally, there are always some good trades to compensate the bad ones. (I made 2 baskets last week and both were wrong)

It seems these indicators (like the others), need a minimum of volatility or volume to bring the trades to the said direction.

We can try to modify the basic settings and try to filter more the given trades, but this will probably not help having good results in the future.

My concern is to find when the volume is not good enough to avoid trading, this could be the solution
  • #2,085
  • Jun 24, 2011 8:42pm Jun 24, 2011 8:42pm
No system is foolproof. And if there was such an animal, the creator would be a fool to discuss it in public. The best we can do is watch our MM and trade within our means, so that we can take the losses with the same attitude as we do our wins, and live to fight another day.
To improve is to change. To perfect, is to change often.
  • #2,086
  • Jun 25, 2011 3:25am Jun 25, 2011 3:25am
I have been following this thread and I have to say I have lost a lot of money using this system. It's a pity but it's true, I think relative strenght it's not the way to earn money.
  • #2,087
  • Jun 25, 2011 9:41am Jun 25, 2011 9:41am
Quoting FXing
I have been following this thread and I have to say I have lost a lot of money using this system. It's a pity but it's true, I think relative strenght it's not the way to earn money.
This is your first post in this thread. You've never asked for help, or contributed to the over-all discussion in any way. Why start now, and with this statement? What's the purpose?

As for trading in general, maybe you just suck at it. Most people do. Most people are not willing to study for 2 years before risking real money. Most people seem to think they can read a few posts and throw on a few indicators and start to print their own money and become instant millionaires. Most people never trade with pennies, because they think they are better than that, and that they deserve so much more than just $3 or $5 wins, like it is owed to them, not like they have to work very hard to earn it with blood, sweat and tears.

And that's why most people lose their money. It has nothing to do with the system they are using; it has to do with the system between their ears. Change that system and maybe you can become a successful trader. With patience, time, perserverence, dedication, and realistic expectations. Maybe.
To improve is to change. To perfect, is to change often.
  • #2,088
  • Jun 25, 2011 10:59am Jun 25, 2011 10:59am
Quoting forexhard
This is your first post in this thread. You've never asked for help, or contributed to the over-all discussion in any way. Why start now, and with this statement? What's the purpose?

As for trading in general, maybe you just suck at it. Most people do. Most people are not willing to study for 2 years before risking real money. Most people seem to think they can read a few posts and throw on a few indicators and start to print their own money and become instant millionaires. Most people never trade with pennies, because they think they are [i]better...
Sorry Forexhard, it was not my idea to disturb you. It's only my real case using this system. No offense.
  • #2,089
  • Jun 25, 2011 11:33am Jun 25, 2011 11:33am
I just gave you the best trading tip you will ever receive so long as you live and this is all you can say? Why am I not surprised?
To improve is to change. To perfect, is to change often.
  • #2,090
  • Jun 25, 2011 12:20pm Jun 25, 2011 12:20pm
Quoting FXing
I have been following this thread and I have to say I have lost a lot of money using this system. It's a pity but it's true, I think relative strenght it's not the way to earn money.

If you are new to forex you should start trading with one currencey pair and you have to understand the following

market to market I mean japan,UK and USA

You have to read and understand the general news for the up coming week or as it happens during the week

You have to learn and understand the volume in the market in a week and it happens mostly on wens,thurs

Last but not the least support and resistence in your chart.

Once you grasp the above you will be able to use RS in buying and selling the currencey pairs I mean moe than one provided you have the right capital .
  • #2,091
  • Jun 25, 2011 2:41pm Jun 25, 2011 2:41pm
Quoting harigp
If you are new to forex you should start trading with one currencey pair and you have to understand the following

market to market I mean japan,UK and USA

You have to read and understand the general news for the up coming week or as it happens during the week

You have to learn and understand the volume in the market in a week and it happens mostly on wens,thurs

Last but not the least support and resistence in your chart.

Once you grasp the above you will be able to use RS in buying and selling the currencey pairs I mean moe than one provided...
Thank you for your words. But if I will be able to know how the up coming news will affect the currencies, and perfectly understand volume in the market and the use of support and resistance as you say, then I will not need RS, do I?.
  • #2,092
  • Jun 25, 2011 5:28pm Jun 25, 2011 5:28pm
Quoting FXing
Thank you for your words. But if I will be able to know how the up coming news will affect the currencies, and perfectly understand volume in the market and the use of support and resistance as you say, then I will not need RS, do I?.
FXing,

Did you understand what was said? If so then what do you mean by "then I will not need RS, do I?"? Do you know what RS is?
  • #2,093
  • Jun 25, 2011 5:38pm Jun 25, 2011 5:38pm
RS = Relative Strength
  • #2,094
  • Jun 25, 2011 9:39pm Jun 25, 2011 9:39pm
where can i find the EA by RR thatEsquire mentioned???
thnx much, Ron
  • #2,095
  • Jun 26, 2011 3:55am Jun 26, 2011 3:55am
Dear Thread,

Have been rereading previous RS basket trading threads as well as Trader101's basket method. Has anyone thought about the pros and cons of RS basket trading vs. Trader101 basket trading?

My best,

Lenoxer
  • #2,096
  • Jun 26, 2011 9:16am Jun 26, 2011 9:16am
Quoting FXing
Thank you for your words. But if I will be able to know how the up coming news will affect the currencies, and perfectly understand volume in the market and the use of support and resistance as you say, then I will not need RS, do I?.
The concept of RS Trading as far a I know is to create of basket of currencey to trade . say 10 currencey pair and say three currencey pair goes into loss for what ever the reason but the other 7 pair is in green pip you can come out with an overall profit.By RS Trading you are trying to get the maximum from the market (good capital is reuired). The indicators are only the guildlines but still you have to monitor one or two currencey pair charts to make the final call. Say for Eg if EU is in up trend you buy EU, GU, EJ and sell us canada like that you can creat your own basket.

Whether it is RS or anyother system the maket runs on as i said before
News events ( basically expectation). S/R . Interest in a day for the big boys to buy or sell because they may be looking for the events which is going to happen after say two days and also you can see buying or selling two days prior to the event with thin volume but there will be
consistencey in those buys or sell over that period
  • #2,097
  • Jun 27, 2011 4:51am Jun 27, 2011 4:51am
Looking at recent unsuccessful baskets, I realize that the trades were entered in the right direction, i.e., with the trend, but when the market was overbought in the case of buys and oversold in the case of sells.

We need some way to determine where we are in the move. If we have to analyze each chart, it seems to me, we're no longer basket trading, but trading price action with multiple currencies.

I suggest a simple addition to the indicator for each pair, such as a number from 0 to 100, where 0 is very oversold and 100 is very overbought. I don't think it would matter if this number was based on CCI, Stochastics, etc. We just need to know if we are early or late in the move.

Anyone else have any thoughts on this?
  • #2,098
  • Jun 27, 2011 5:07am Jun 27, 2011 5:07am
Hi,

This is quite interesting idea; I think Stochastic is better where we can identify the Correlation between two pairs by insert an custom Stochastic indicator. There are one Thread in FF which might be useful for Stochastic and Correlations of pairs.

Link here http://www.forexfactory.com/showthread.php?t=160912

We might be able to come up some idea by combining it with RS and Correlations. But the questions are how we going to apply in a simple display on the Charts with multiple timeframe and pairs.

Looking forward for some great idea to come.
  • #2,099
  • Jun 27, 2011 5:20am Jun 27, 2011 5:20am
Quoting thermalboyz
Hi,

This is quite interesting idea; I think Stochastic is better where we can identify the Correlation between two pairs by insert an custom Stochastic indicator. There are one Thread in FF which might be useful for Stochastic and Correlations of pairs.

Link here http://www.forexfactory.com/showthread.php?t=160912

[font=Arial]We might be able to come up some idea by combining it with RS and Correlations. But...
What I had in mind was something simple added to the indicator we're using. For example, on the MTF indicator, let's say you're using the H1 and H4 and the display said EURUSD>buy. It would now say EURUSD>buy>80/60. This would indicate that the Stochastic is at 80 on the H1 and 60 on the H4.

In the meantime, I'll read the thread you posted a link to. Maybe the answer is already there.
  • #2,100
  • Jun 27, 2011 6:40am Jun 27, 2011 6:40am
Hi Gilab,

That was good and simple to understand, in my opinion it will be so complicated for some others people where different traders used different settings and timeframe (For ex: Level 1, 2, 3, TF M30, H1, H4, D1, Moving Average : TRUE/ FALSE)

It looks easy but there are too many variables to consider. For me i think the Stochastic method can be apply for lower TF to confirm Entry / Exit. Such as M5 and M15.

That is my opinion on this anyway. Thanks for sharing ideas
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