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Recent Strength indicator

  • #261
  • Edited 3:27pm Feb 21, 2011 12:32pm | Edited 3:27pm
Hi David,

I have well understood your previous post and here are conditions I want an alert to occur, review this idea and judge if it has universal appeal.

I have no programming skills therefore I thought to explain this graphically. See attached and notice how the indy is plotting, a common strong currency (CHF) appearing amongst the upper 3 currencies across all M5,M15,M30,H1,H4 timeflames and a week currency (USD) appearing among lower 3 currencies across all M5,M15,M30,H1,H4 timeflames.I consider CHF currency as “dominant” amongst upper 3 currencies & USD “dominant” amongst lower 3 currencies. A pair USDCHF is then identified for a possible Short trade and an alert issued.


I have tried to use different settings on Numpoints, SmoothingSMA & Weights parameters and have found changes made to these parameters does not affect how these dominat currencies are displayed by the strength indy.

Also I have done testes with different MT4 brokers i.e www.migfx.com whose MT4 provides ALL possible 28 pair combos involving the major currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD) and FXDD who have less combos pairs & the indy have displayed same results as above. This means alerts will make sense to majority of MT4 brokers users to my understanding.

These alerts will be used to detect significant information entering in the market therefore taking timely actions in relation to short term and long term trades.

Short term traders will have an edge to identify high probability trades and act accordingly in good time.


Happy Piping
Benji
Attached Image (click to enlarge)
Click to Enlarge Name: domi 2.JPG Size: 262 KB
Don't tell me the sky is the limit when there are footprints on the moon.
  • #262
  • Mar 1, 2011 3:53pm Mar 1, 2011 3:53pm
Truly beautiful programming Hanover, on this and all your other indi's.
I'm so glad also to have your Display Info indi - 'til now I had to go through the strategy tester to find the swaps.

Thanks so much for sharing

Michael
  • #263
  • Mar 1, 2011 4:08pm Mar 1, 2011 4:08pm
Quoting Ifmyante
Truly beautiful programming Hanover, on this and all your other indi's.
I'm so glad also to have your Display Info indi - 'til now I had to go through the strategy tester to find the swaps.

Thanks so much for sharing

Michael
Michael, many thanks for your feedback. Glad you find the indys useful.

May the FX gods smile favorably upon you
David
  • #264
  • Apr 6, 2011 4:55pm Apr 6, 2011 4:55pm
Hi David,

I have been following your thread on Resent Strength indy and discovered how the indy can be profitable on lower timeflames. I had already discussed these on my last post,on the conditions i would like alerts issued.

Am aware you may be working on numerous projects at the moment & am willing to stay on the Que & wait for my turn.

Kindly let me know how much this would cost.

Benji

Happy piping.
Don't tell me the sky is the limit when there are footprints on the moon.
  • #265
  • Apr 8, 2011 11:03am Apr 8, 2011 11:03am
Hi David,

Your PM reply received with many thanks.

Take heart for the huge task ahead of you.Forex god's are always looking to reward the strong hearted .

Happy Piping,

Benji.
Don't tell me the sky is the limit when there are footprints on the moon.
  • #266
  • May 4, 2011 12:34pm May 4, 2011 12:34pm
Hanover I am not sure what happened.. when I logged into MT4 today,,, I am only getting RS on the m1 thru H1.. higher TF's are all 0's and no chart is displayed.. I tried inserting the Indicator again to no avail, and restarting MT4 also.. but still get the same issue.. wonder if you have any ideas about this.

tnx..
  • #267
  • May 4, 2011 3:24pm May 4, 2011 3:24pm
Quoting Pooks
Hanover I am not sure what happened.. when I logged into MT4 today,,, I am only getting RS on the m1 thru H1.. higher TF's are all 0's and no chart is displayed.. I tried inserting the Indicator again to no avail, and restarting MT4 also.. but still get the same issue.. wonder if you have any ideas about this.

tnx..
I fixed it, by changing the timeframes on all the pairs, hmmm makes me wonder if there is a way to force MT4 to refresh all info on all pairs.. since the accuracy of Relative Strength indicator depends on the pairs data... one of the reasons I use FXCM data is cause it gives more pairs than FXDD data.. but now i worry about how much of that data is truly available... should I have all charts open for every pair, and refresh all Time Frame data on all of them?
  • #268
  • May 4, 2011 11:22pm May 4, 2011 11:22pm
Quoting Pooks
I fixed it, by changing the timeframes on all the pairs, hmmm makes me wonder if there is a way to force MT4 to refresh all info on all pairs.. since the accuracy of Relative Strength indicator depends on the pairs data... one of the reasons I use FXCM data is cause it gives more pairs than FXDD data.. but now i worry about how much of that data is truly available... should I have all charts open for every pair, and refresh all Time Frame data on all of them?
Pooks,

I'm not 100% sure what happens at the br0ker's end, but (at a guess) it sounds like there might have been a temporary data loss on one of his servers.

However, negating this theory, MT4 also seems to load data from the servers periodically (you can see the KB upload/download counters, at the bottom right of the window, increasing) into files in a folder underneath ..../MT4/history. Hence I'd assume that it gathers this data locally, as its first choice, to populate your charts.

You're absolutely correct in saying that RS ideally needs data from every possible pair, in order to build an optimally comprehensive picture. Hence a br0ker offering the highest number of the 28 key pairs is the best option.

Like you, I'd like to find an automated way of forcing MT4 to gather all data for all pairs and all timeframes. I've tried running scripts like the attached one; however, the most bulletproof way to do it, at least that I know of, is to manually go to each pair, and each timeframe, and hold down the PageUp key to force the data to be gathered and plotted.

Anyway, I'm glad that you've got it sorted now.

David
Attached File(s)
File Type: mq4 Setup Recent Strength.mq4   74 KB | 1,186 downloads
  • #269
  • May 5, 2011 5:29pm May 5, 2011 5:29pm
Quoting hanover
However, negating this theory, MT4 also seems to load data from the servers periodically (you can see the KB upload/download counters, at the bottom right of the window, increasing) into files in a folder underneath ..../MT4/history. Hence I'd assume that it gathers this data locally, as its first choice, to populate your charts.
This strength indicator is very data intensive as explained on previous posts & relies heavily on broker's data for accurate plots. I have found MIGbank MT4 broker to have the most accurate data, to accurately plot from 1 minute TF to Monthly TF. (This can be tested by anyone wishing to confirm this claim).

I would appreciate Hanover to comment on the above claim,i stand to be corrected .

I usually run this indy on VPS, on one chat and on one timeflame at least for 24Hrs,to be sure i have accurate information worth being relied upon.

N/B I have noticed it’s possible to manually confirm strength of the plots simple by flipping through the charts, just to be sure everything is working Ok.

Happy Piping,

Benji.
Don't tell me the sky is the limit when there are footprints on the moon.
  • #270
  • May 6, 2011 5:54am May 6, 2011 5:54am
Quoting kibed83
This strength indicator is very data intensive as explained on previous posts & relies heavily on broker's data for accurate plots. I have found MIGbank MT4 broker to have the most accurate data, to accurately plot from 1 minute TF to Monthly TF. (This can be tested by anyone wishing to confirm this claim).

I would appreciate Hanover to comment on the above claim,i stand to be corrected .
Benji,

Yes, you are correct; the more pairs the br0ker offers, the better the result. I haven't studied the accuracy of the MIG data, so I can't comment further. With many MT4 br0kers, the quality of their demo data is often poorer than the data on their live servers.

David
  • #271
  • May 8, 2011 5:38pm May 8, 2011 5:38pm
Thank You, David! much appreciated! I am going to keep playing with your indicators, as they seem to always lead me to where the "ACTION" is!.
  • #272
  • Jul 3, 2011 8:17am Jul 3, 2011 8:17am
Hi David,

I have paid close attention to what was discussed on post # 260 regarding indicator subjectivity. Now I believe I have come up with an idea that could assist to have meaningful alerts which have universal appeal.

This can be achieved by creating a separate EA which will monitor the indy & issue alerts. The main reason behind this is that; no matter what parameters are used by the user, the indy will display line-based plot of weighted average of currency (as opposed to pair) strength. And to be able to maximize profits from these plots there is need for alerts.

Reasons & benefits of having a separate EA for alerts only.

To the developer:

 

  1. Maintaining the same version of the indicator, thus limiting the level of complexity.

To users:

 

  1. Ability to make timely decisions to profit without the need to subject yourself to many hrs of sitting to watch the indy match certain conditions.

  1. Alerts will encourage more ideas to be discovered on how to profit with this indy.


Its it possible to have a universal Separate EA which can monitor indy plots & issue alerts based on different user parameter settings.

Attached are trades screen shots showing how useful alerts can be. These plots are as a result of subjective parameters used to profit from the market.

Happy Piping,

Benji.

Attached File(s)
File Type: doc GBPCAD trade setup example.doc   853 KB | 693 downloads
File Type: doc EURUSD trade setup example.doc   1.3 MB | 1,490 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #273
  • Edited 6:59pm Jul 3, 2011 6:43pm | Edited 6:59pm
Quoting kibed83
Hi David, ..........
Hi Benji,

I think having the alerts as a separate indy/EA is an excellent idea. This would allow different alert indys/EAs for different users, i.e. some level of subjective customization, while still keeping the 'backbone' code of the strength indy intact.

Even better, the strength indy already has a parameter OutputFile. If you set this to a non-blank value, values are output to a file of this name (in the ..../experts/files folder) every RefreshEveryXMins minutes. These values could be read by an indy/EA that could generate alerts, trading signals, or even execute an automated trading strategy. (That was why this export facility was included in the first place.)

Here is a sample output from the export file:

Inserted Code
    #,TF ,Time            ,      AUD,      CAD,      CHF,      EUR,      GBP,      JPY,      NZD,      USD
    0,MN ,2011.07.01 00:00, 40.45052, 39.42603, 38.37129, 40.33401, 44.48566, 39.66501, 38.56508, 40.46597
    1,MN ,2011.06.01 00:00, 39.96341, 39.81894, 34.70257, 40.89305, 46.40624, 40.35219, 34.89593, 43.04121
    2,MN ,2011.05.01 00:00, 39.14679, 40.70257, 29.94882, 40.18579, 49.63884, 42.43872, 30.83619, 45.85491
    3,MN ,2011.04.01 00:00, 37.56182, 40.91054, 25.75823, 39.75043, 50.70428, 45.31630, 28.89816, 49.06923
    4,MN ,2011.03.01 00:00, 36.26930, 41.24356, 24.03754, 36.18163, 49.61497, 49.13616, 29.29961, 52.80151
    5,MN ,2011.02.01 00:00, 34.32159, 40.84885, 21.28334, 33.28772, 51.10384, 52.13503, 30.40924, 56.36377
    6,MN ,2011.01.01 00:00, 32.84634, 38.55563, 18.35257, 34.96732, 51.45272, 54.18647, 31.62340, 57.40270
    7,MN ,2010.12.01 00:00, 32.35139, 37.67782, 16.86543, 36.40102, 51.59068, 54.69923, 29.35710, 59.29348
    8,MN ,2010.11.01 00:00, 27.37261, 36.92948, 15.03232, 37.23181, 54.71589, 56.76462, 26.31868, 64.25358
    9,MN ,2010.10.01 00:00, 24.66645, 37.48793, 13.91136, 38.88142, 56.71654, 55.83376, 26.28756, 65.70297
   10,MN ,2010.09.01 00:00, 20.21616, 40.62166, 13.96603, 35.98521, 57.94845, 55.87718, 25.54981, 72.76638
   11,MN ,2010.08.01 00:00, 17.03709, 44.92353,  9.68858, 34.69145, 58.52298, 56.28769, 26.10914, 79.47782
   12,MN ,2010.07.01 00:00, 19.47621, 46.46941,  6.66823, 38.09122, 58.69645, 48.78469, 28.75000, 79.59009
   13,MN ,2010.06.01 00:00, 21.09142, 47.03251,  6.65037, 41.34160, 56.83699, 44.07631, 27.94810, 80.40135
   14,MN ,2010.05.01 00:00, 23.44487, 44.52681,  4.70298, 47.03765, 56.13943, 41.37580, 26.52568, 78.13349
   15,MN ,2010.04.01 00:00, 23.31172, 38.90611,  6.35768, 52.41194, 59.81447, 38.00012, 25.63951, 74.40560
   16,MN ,2010.03.01 00:00, 20.42582, 35.35580,  7.39234, 56.99481, 62.99720, 37.23849, 24.57238, 73.36538
   17,MN ,2010.02.01 00:00, 18.11225, 30.23134,  7.15336, 62.45372, 66.26277, 39.70194, 22.37871, 70.69821
   18,MN ,2010.01.01 00:00, 16.88690, 26.33999,  8.15988, 66.66892, 70.37111, 36.54470, 22.98594, 68.85242
   19,MN ,2009.12.01 00:00, 15.87041, 25.55810,  8.82880, 69.77163, 69.53459, 35.80520, 23.92818, 67.72148
   20,MN ,2009.11.01 00:00, 13.36524, 24.20966,  8.28845, 71.62181, 71.61443, 37.25495, 21.78757, 69.51000
   21,MN ,2009.10.01 00:00, 11.89678, 27.08616,  7.54304, 71.51753, 74.67487, 34.57925, 20.80044, 73.46127
   22,MN ,2009.09.01 00:00,  9.93577, 27.41031,  7.11058, 72.56703, 76.21636, 33.97067, 18.18858, 78.38046
   23,MN ,2009.08.01 00:00,  7.76000, 30.08526,  7.68239, 73.65307, 77.41092, 33.29535, 14.17979, 82.20029
   24,MN ,2009.07.01 00:00,  5.31438, 31.49293,  8.07655, 75.02165, 72.35066, 36.27900,  7.82856, 90.46389
   29,W1 ,2011.07.03 00:00, 50.17228, 49.61169, 59.52347, 49.03583, 57.31851, 60.04039, 50.65772, 58.15196
   30,W1 ,2011.06.26 00:00, 47.11129, 47.25775, 61.04640, 47.18315, 60.26975, 61.94685, 50.64248, 59.33682
   31,W1 ,2011.06.19 00:00, 45.95267, 43.16102, 62.62168, 48.24953, 63.62167, 62.42893, 47.97478, 59.04546
   32,W1 ,2011.06.12 00:00, 48.25810, 42.90817, 57.48738, 48.37738, 68.67445, 60.29891, 48.45347, 57.58505
   33,W1 ,2011.06.05 00:00, 50.65338, 44.12977, 52.66693, 48.19601, 70.69478, 58.49883, 46.19201, 59.37609
   34,W1 ,2011.05.29 00:00, 53.85185, 46.80491, 44.18856, 47.83400, 72.00755, 60.71451, 39.96103, 61.98245
........

I looked at your attached documents. The only thing I would suggest changing is that the slope of the line (in any timeframe) is more important than the static end value (as explained in point 2 in post #260). The slope is easily enough calculated by taking the difference between any two of the values. Or you could average (or weight) the difference between different pairs of values, to get a composite slope.

Perhaps an even better idea would be entering on pullbacks in uptrends or downtrends in a given TF, if this was supported by the same strength/weakness in a longer TF. For example, if EUR is rising, then dips, then starts to rise again in the M30, and this is also backed by a rising trend on (say) H4 and D1, then EUR would be your strong currency. Then you'd need to find a currency that's doing something close to the mirror opposite as your weak currency, and pair the two together. My gut feeling is that this could form the basis for a very profitable entry strategy.

[EDIT] Attached is an example of what I mean. The first screenshot, taken at MT4 time 1:05, shows EUR (salmon pink line) starting to rise following a dip that formed a higher low, and JPY (the purple line) starting to fall following a rally that formed a lower high. Hence, everything else being equal EURJPY is probably a good buy at this point.

The second screenshot, taken about 45 mins later shows that EUR rose, and JPY fell, but EUR has lost upward momentum. So what would have happened if we'd gone long EJ at 1:05, and exited at 1:50? We would have banked about 11 pips, less a 2 pip spread. Not a bad scalp, considering the TF is 5 minute, and we're in the Asian session, where there's no so much volatility.

David
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2011-07-04_1149.png Size: 32 KB
Click to Enlarge Name: 2011-07-04_1158.png Size: 28 KB
  • #274
  • Jul 4, 2011 5:29pm Jul 4, 2011 5:29pm
Hi David,

Your reply received with many thanks.

I understand the Strength indy is very subjective in its interpretation and use which may result to different alert indys/EAs for different users.

I have to confess I have no clue how this static end values can be interpreted to slopes calculations. However when these conditions as shown on the attached document line up, many odds are on my side for a high probability trade.

I thought this could be a starting point to creating an indy /EA for users who rely heavily on static end values.Am eagerly waiting for your informed perspective on this,am less skilled in this area .


Happy piping,

Benji.
Attached File(s)
File Type: doc Alerts Conditions.doc   2.1 MB | 1,653 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #275
  • Jul 4, 2011 6:58pm Jul 4, 2011 6:58pm
Quoting kibed83
Hi David,

Your reply received with many thanks.

I understand the Strength indy is very subjective in its interpretation and use which may result to different alert indys/EAs for different users. .......
Hi Benji,

Sorry, I rather got off the original topic and started rambling.

Just to clarify, I found a way of using the RS indy in a way that it helped with my overall strategy, hence I tend to have a personal 'bias' toward that approach. What you were proposing (using a single value as opposed to slope) might have even more merit profit-wise; I can not say because I haven't tested anything like it across a suitably large sample. However, please note that changing the RS indy's parameters can result in very different values, crossover points between the lines, etc - the slopes of the lines, relative to each other, is the only consistent factor, IMO.

Anyway, none of this detracts from your excellent idea of coding/testing different alert systems, external to the RS indicator itself. The export file is ideal for that purpose. I don't have time to get too heavily involved in such a project, but any competent MQL4 programmer could easily read the export file and code alerts to support a given strategy.

David
  • #276
  • Jul 5, 2011 5:43am Jul 5, 2011 5:43am
Hi David,

Yes, you are right about this project.

I have spent many months to figure out this profitable tradable conditions, & I can confidently say this indy has put me among the consistent & profitable traders.

Am looking forward to get any competent MQL4 programmer to sort this alerts issues & incorporate those to the strategy. Wish me luck.

Happy Piping,

Benji.
Don't tell me the sky is the limit when there are footprints on the moon.
  • #277
  • Jul 5, 2011 11:13am Jul 5, 2011 11:13am
Quoting kibed83
Hi David,

Yes, you are right about this project.

I have spent many months to figure out this profitable tradable conditions, & I can confidently say this indy has put me among the consistent & profitable traders...
Hi

Do you trade it the way David advises (i.e. compare the angles of the slopes) or do you trade the high against low. I would be most grateful if you could give us a brief description.

Kind Regards
  • #278
  • Jul 5, 2011 11:45am Jul 5, 2011 11:45am
Hi,
i use this indicator for more than a year now.
Mainly to spot weak and strong currencies and spot pullbacks.

i always have my fundamental bias and try to find opprtunites to enter on pullbacks, to spot tops/cycles i use a cycle indicator and parabolic sar.

However, the recent strenth indi lets me react in no time without watching a bunch of charts.
  • #279
  • Jul 5, 2011 1:36pm Jul 5, 2011 1:36pm
Quoting astral77
Hi

Do you trade it the way David advises (i.e. compare the angles of the slopes) or do you trade the high against low. I would be most grateful if you could give us a brief description.
i have made it simple to understand graphically on post # 272.And I must say this indy has some level of subjective customization and can be used in many different ways using different strategies. On post # 275,David has identified my approach.

David has a personal bias to his approach that is profitable . I guess I just happened to be a good student to this indy until its has chosen to speaks to me in a language I can understand & profit .

Happy Piping.

Benji
Don't tell me the sky is the limit when there are footprints on the moon.
  • #280
  • Edited Jul 6, 2011 4:28am Jul 5, 2011 10:51pm | Edited Jul 6, 2011 4:28am
Quoting kibed83
......... Its it possible to have a universal Separate EA which can monitor indy plots & issue alerts based on different user parameter settings.........
Benji,

I've attached a configurable strength alerts indy to post #1 ("Strength Alerts demo.mq4").

The way it's currently configured, it will give an "alert strong" message immediately any currency whose current strength values on ALL timeframes between M5 and D1 inclusive become > 50; and an "alert weak" message immediately any currency whose current strength values on ALL timeframes between M5 and D1 inclusive become < 50.

How often it checks for these alerts is determined by which timeframe the indy is attached to. e.g. if it's attached to a M5 chart, then it will check for alerts every time a new M5 candle starts to form.

For all of this to work, the Recent Strength indy must already be running, and exporting data to an OutputFile whose name is the same as that specified in the FileName parameter in the Strength Alerts demo indy, and across all of the TFs that the latter needs to test. Obviously the RefreshEveryXMins parameter in the former must be set to an equal or shorter TF to the TF on which the latter is attached, e.g. if Strength Alerts demo is checking for alerts every 5 minutes then Recent Strength must be outputting the file every 5 minutes (or preferably less, i.e. 1 minute).

The Strength Alerts demo indy doesn't plot anything on your chart. Hence, just because no output occurs, doesn't mean that it's running incorrectly. Depending on how price moves, and hence strength is distributed across the currencies, you might have to wait several minutes, or even several days, for an alert to occur.

Anyway, hopefully this provides a starting point. The indy can be configured to look at basic slopes as well as static values, if need be. I won't go into a detailed description of all of its settings, as they are complex. It's probably better if you describe a strategy here (as clearly and comprehensively as possible, please), and I will attempt to configure the indy to suit. However, please note that there are limitations as to what it can or can't do.

David
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