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Recent Strength indicator

  • #281
  • Edited Jul 7, 2011 1:35am Jul 6, 2011 7:18pm | Edited Jul 7, 2011 1:35am
Quoting hanover
Benji,

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

David
Hi David,

Its hats Off from me really appreciated.

I had to make sure i had captured trades which happened today during London session, before i could send this strategy your way.

Am a visual person and most description are in graphics.Am willing to be taught, so let me know if those descriptions makes sense.
At the moment the new alerts indy is dancing on my platform, am currently studying it's operations .

Benji
Attached File(s)
File Type: rar Strategy Discription and Tools.rar   3.1 MB | 5,292 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #282
  • Jul 7, 2011 7:14am Jul 7, 2011 7:14am
After carefully examining Section 3,the first figure: under trades examples taken today july,7, 2011 during London session. You will notice I traded a wrong pair, EURCAD . Both of these currencies were identified as weak. This was a serious newbie mistake, which can happen when you have a number of currencies to pair .These amongst others are some of the mistakes forex gods will punish. (maybe they were asleep J). These “common human errors”can be avoided througth automation.

However, what to learn from those 2 EURCAD screenshots is behaviors’ of currencies which are close together in strength, they are most likely to be characterized by long wicks & unpredictable price movements.

Happy Piping,

Benji
Don't tell me the sky is the limit when there are footprints on the moon.
  • #283
  • Jul 11, 2011 10:32am Jul 11, 2011 10:32am
Attached is a document with information on EURJPY & EURCHF trades setups, that occurred today during london session. Within those screenshots i have included some more strategy explanations. Hope this will shed some more light.
Attached File(s)
File Type: doc EURJPY & EURCHF trades setup.doc   357 KB | 618 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #284
  • Jul 11, 2011 2:34pm Jul 11, 2011 2:34pm
Many many thanks also from Finland for your great work, hanover! :=)

Just one question; I know that it is possible to use this indi on an EA, but is it anyhow possible to do backtesting for such EA on MT's strategy tester?? I think that it's not possible since this EA uses multiple currency pairs and there are limitations for such EA's in MT, but are there any possible ways to go around these limitations?
  • #285
  • Jul 11, 2011 5:46pm Jul 11, 2011 5:46pm
Quoting AlliumPorrum
Many many thanks also from Finland for your great work, hanover! :=)

Just one question; I know that it is possible to use this indi on an EA, but is it anyhow possible to do backtesting for such EA on MT's strategy tester?? I think that it's not possible since this EA uses multiple currency pairs and there are limitations for such EA's in MT, but are there any possible ways to go around these limitations?
Hi,

Thanks for your kind comments.

I'm sorry, I've never used MT4's Strategy Tester. Perhaps somebody else could comment about using multiple pairs in Strategy Tester?

The best way to include the RS values in an EA is explained in post #273. The LoadRSvalues() function in Strength Alerts demo.mq4 (downloadable from post #1) builds an array RSvalue[currency][timeframe][datapoint#] from the file exported by the RS indy (Recent Strength.ex4). You could copy this code into an EA, and then use the values in the array in your EA's trading strategy.

[EDIT] I'm guessing, but I just realized this probably wouldn't work in Strategy Tester, as only real time (current) values are output to the file. Instead, you could try using iCustom(), but the RS indy takes more than 50 input parameters, which would make this unwieldy, and it also brings us back to your original question as to whether other pairs can be used in Strategy Tester.

Sorry that I can't be more help. Perhaps you could try other strength indys that have been posted on the forum. From what I've read, CCFp is widely used; you could try this thread as a starting point. There's also good (and more recent) discussion about a strength indy here.

David
  • #286
  • Jul 11, 2011 6:11pm Jul 11, 2011 6:11pm
Quoting kibed83
Attached is a document with information on EURJPY & EURCHF trades setups, that occurred today during london session. Within those screenshots i have included some more strategy explanations. Hope this will shed some more light.
Benji,

Just to let you know that I'm reading all of your documents, and following your trades, with great interest. I note the way that you're using daily range as a filter, and also the pivot lines as S/R in setting your targets.

EURCHF and EURJPY are trending like crazy at the moment. It always puzzles me why 'experts' say that they focus on only 2-3 major pairs (even when their component currencies are positively correlated = the pair moves sideways).

I hope that you're finding the alerts useful; let me know if you'd like the parameters changed (allowing you to try different combinations).

David
  • #287
  • Jul 12, 2011 3:50am Jul 12, 2011 3:50am
Quoting hanover
[EDIT] I'm guessing, but I just realized this probably wouldn't work in Strategy Tester, as only real time (current) values are output to the file. Instead, you could try using iCustom(), but the RS indy takes more than 50 input parameters, which would make this unwieldy, and it also brings us back to your original question as to whether other pairs can be used in Strategy Tester.
Do you mean that the values get written to the output file starting from the point when you attached the EA to the chart?? There isn't any way to get for example D1 history values from years 2005-2010 to that file?

I'm sure there isn't any way to backtest a EA with multiple currency pairs, but that wouldn't be an issue for me. I don't see any problem running the tests for most common pairs one at a time, if I just could get the values from somewhere.
  • #288
  • Jul 12, 2011 6:02am Jul 12, 2011 6:02am
Quoting AlliumPorrum
Do you mean that the values get written to the output file starting from the point when you attached the EA to the chart?? There isn't any way to get for example D1 history values from years 2005-2010 to that file?

I'm sure there isn't any way to backtest a EA with multiple currency pairs, but that wouldn't be an issue for me. I don't see any problem running the tests for most common pairs one at a time, if I just could get the values from somewhere.
Hi,

Values get written to the output file every RefreshEveryXMins minutes. Hence if you set RefreshEveryXMins to 1, the plot on the MT4 chart updates itself, and the output file gets completely overwritten, each time a new M1 candle starts to form.

The number of data points written to the file is the same as the number displayed (on each timeframe) shown by the indy, i.e. is set by the NumPoints parameter. As time moves forward, the oldest points are lost to make way for the newest ones.

Hence it follows that no history is maintained along the lines that you're seeking, e.g. D1 values back to 2005. Alas, I never envisaged anybody wanting to use the indy for this kind of backtesting. However, assuming it's possible to get clean D1 history data back several years, there's no reason why a weighted strength calculation across multiple pairs couldn't be performed within an EA (given that you can get closing price values using MQL4's iClose("pair",timeframe,datapoint#) etc), exactly the same as is being done by the indy.

David
  • #289
  • Jul 12, 2011 6:35am Jul 12, 2011 6:35am
Quoting hanover
The number of data points written to the file is the same as the number displayed (on each timeframe) shown by the indy, i.e. is set by the NumPoints parameter. As time moves forward, the oldest points are lost to make way for the newest ones.
Ok, so if I understood correctly, I could solve the problem like this:
- set the NumPoints big enough, like 2000 to get about 10 years D1 data to the outout file
- copy the default output file to a new file; myData.txt
- now from my EA, use the LoadRSvalues()- method for reading the values from this static myData.txt- file

This way I wouldn't need to use your indi at all during my tests, and that would surely be a good thing from the performance point of view also. Of course, if I want to change the settings for your indi I would have to create the myData.txt again, but that is not a big issue anyway.

Do you see any faults in this idea?
  • #290
  • Jul 12, 2011 10:03am Jul 12, 2011 10:03am
Quoting AlliumPorrum
- set the NumPoints big enough, like 2000 to get about 10 years D1 data to the outout file

Do you see any faults in this idea?
The total of the NumPoints and SmoothingSMA values may not exceed 500.

I don't believe that this indy is suitable for what you're asking, in any case. The most efficient way would be to code your own currency strength algorithm into your EA.
  • #291
  • Jul 12, 2011 10:46am Jul 12, 2011 10:46am
Quoting hanover
Benji,

I hope that you're finding the alerts useful; let me know if you'd like the parameters changed (allowing you to try different combinations).

David
David,

I have not been able to receive alerts despite seeing currencies with less than <50 or >50 values displayed by the strength indy.I have configured these indy's as follows;

I have attached Resent Strength indy with default settings on one chart and only on the monthly timeflame.The Strength Alerts Demo indy is attached with default settings on one chart and only on the 1 Min timeflame.

On the Resent strength indy Output parameter is
Output file: Recent Strength

I have confirmed currently it's outputting a file to;
C:\Program Files\MIG Bank Trading Station\experts\files


On Strength Alerts Demo indy FileName parameter is
FileName: Output---Recent Strength.csv

Let me know if am missing something.

However with my strategy these values are ignored as you have noticed by now. More emphasis is put on currencies appearing on the upper & lower column from 5m to D1 timeflames. I would prefer an alert to be triggered as a pair (two currencies combined) from the two columns.

On a different note,attached is a document with some more strategy explanations.These screenshots were taken today's during London session,markets were literally "smoking" even before the London session began,thus hitting the maximum Daily Range of most pairs.

Benji
Attached File(s)
File Type: doc Todays price action.doc   210 KB | 670 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #292
  • Jul 12, 2011 4:08pm Jul 12, 2011 4:08pm
Quoting kibed83
David,

I have not been able to receive alerts despite seeing currencies with less than <50 or >50 values displayed by the strength indy.I have configured these indy's as follows;

I have attached Resent Strength indy with default settings on one chart and only on the monthly timeflame.The Strength Alerts Demo indy is attached with default settings on one chart and only on the 1 Min timeflame.

On the Resent strength indy Output parameter is
Output file: Recent Strength

I have confirmed currently it's outputting...
Hi Benji,

I'm continuing to to test the 'Strength Alerts demo' indy, but haven't yet been able to reproduce the problem that you described. However, I have been running it on M5 instead of M1. Please note that an alert will trigger only if all of the conditions are currently met (in every timeframe); and at least one of them was not met, on the previous plot of the Recent Strength indy (which I assume you have running on a M1 chart also, and with RefreshEveryXMins = 1).

Anyway, if I can't reproduce the problem, I'll consider the possibility of rewriting the indy as soon as I get some spare time. The first attempt was merely a demo aimed at showing what was possible. I copied the concept (and some of the code) from a TDI alerts indy that I'd previously written. Perhaps it would be simpler to code the tests into the actual indy itself, rather than have them as parameters --- especially if you want the indy to alert immediately two currencies meet opposing conditions simultaneously (one > 50; one < 50).

David
  • #293
  • Jul 13, 2011 2:45am Jul 13, 2011 2:45am
Quoting hanover
The total of the NumPoints and SmoothingSMA values may not exceed 500.

I don't believe that this indy is suitable for what you're asking, in any case. The most efficient way would be to code your own currency strength algorithm into your EA.
Well that just limits the backtest's scale for about 2.5 years on D1 chart, which is just fine for me anyway.

I understand well that your great indi is not designed to used like this, and coding my own indi for such testing purposes would be a good idea on a long term. But before I start that (propably quite a large task), I would like to have at least some kind of confirmation that I'm on the right track with my EA. So I THINK that by using static values from a copied output file, I can have such a confirmation for my strategy before going deeper with it.
  • #294
  • Edited 2:59pm Jul 15, 2011 2:45pm | Edited 2:59pm
Attached is a document showing screenshots of a EURCAD trade i took today just before London session close.

Fridays is always a tricky day to trade for most traders,depending of the way they trade and the systems they use.Many day-traders can agree with this claim, some say this is a myth.I would appreciate the wisdom of experienced traders to shade some light on this. On that note,this strategy has a overall higher win to loss ration with trades taken on Fridays,this is yet another reason why i am motivated to do further research towards a solid system . Thanks to David who have been the brain behind this .

I would appreciate wisdom from experienced traders, mostly those who use Price action, Support & Resistance based systems.

Benji.
Attached File(s)
File Type: doc Friday 15 th July EURCAD trade setup.doc   526 KB | 663 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #295
  • Jul 15, 2011 4:40pm Jul 15, 2011 4:40pm
Quoting kibed83
Thanks to David who have been the brain behind this .
Benji,

I am not the brain behind currency strength.
There were plenty of strength indys around long before I started this thread. Tom Yeomans and Henry Liu's indys are two that come to mind.

What you've done is found a predominantly mechanical way of using it, which is great.

I will try to find time to rewrite the alerts facilities this coming week.

Nice trade on the EURCAD, btw.

David
  • #296
  • Jul 15, 2011 4:55pm Jul 15, 2011 4:55pm
Quoting AlliumPorrum
I would like to have at least some kind of confirmation that I'm on the right track with my EA.
Hi,

Sorry, it's taken me a long time to reply. I'm not sure what you meant by "confirmation", but (IMO) too much depends on how a trader times his entries and manages his trades, to offer conclusive comment as to whether an EA concept is "on the right track".

I will increase the array sizes, and associated logic from 500 points, to allow greater scope with your testing, some time this coming week.

All the best,
David
  • #297
  • Jul 15, 2011 5:16pm Jul 15, 2011 5:16pm
Quoting kibed83
I would appreciate wisdom from experienced traders, mostly those who use Price action, Support & Resistance based systems.

Benji.
Benji,

I don't know if I'm an "experienced" trader yet, and I don't want to add any confusion to what you're developing here.

But here's an alternative idea that you might like to consider.

Traders either trade renewed strength, or temporary weakness. "Renewed strength" usually results in a breakout-type trading style, while "temporary weakness" is pullbacks.

I use the pullbacks idea. I'll illustrate with your recent chart.

The diagonal green arrows illustrate pullbacks, while the blue arrows show an outside or engulfing candle which is a often a strong indication that the (downward, in this case) move is going to resume itself. That will get you earlier into a possible move.

The problem with trading this entry is that you probably won't have the right settings in the strength indy in the lower timeframes, because it will take a few more candles into the downward move for the strength indy to register this renewed strength/weakness.

What you might like to try is this: (1) definitely continue with the way that you're going, i.e. looking for strength/weakness correlation across all timeframes from M5 all the way across to D1; but (2) also make a mental note of what pips you would have made, if you'd made the alternate entry, e.g. in your example, you'd want to see strength in CAD and weakness in EUR in the H1/H4/D1 timeframes, but then look for the price action setups on the lower timeframes (say M15/M30).

If this is too complicated, then please ignore my post.

David
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-07-16_1003.png Size: 119 KB
  • #298
  • Jul 16, 2011 12:32pm Jul 16, 2011 12:32pm
Quoting hanover

Traders either trade renewed strength, or temporary weakness. "Renewed strength" usually results in a breakout-type trading style, while "temporary weakness" is pullbacks.
I second you on this.

Quote
I use the pullbacks idea. I'll illustrate with your recent chart.

The diagonal green arrows illustrate pullbacks, while the blue arrows show an outside or engulfing candle which is a often a strong indication that the (downward, in this case) move is going to resume itself. That will get you earlier into a possible move.

The problem with trading this entry is that you probably won't have the right settings in the strength indy in the lower timeframes, because it will take a few more candles into the downward move for the strength indy to register...
I strongly agree with this, for a long while now,i have been playing around with this indy to understand different settings,will reflects different market behavior. Therefore the main challenge is in finding the best settings to use for either renewed strength,or temporary weakness strategies.
In my view I have found default settings to be more suitable for renewed strength approach.

Quote
What you might like to try is this: (1) definitely continue with the way that you're going, i.e. looking for strength/weakness correlation across all timeframes from M5 all the way across to D1; but (2) also make a mental note of what pips you would have made, if you'd made the alternate entry, e.g. in your example, you'd want to see strength in CAD and weakness in EUR in the H1/H4/D1 timeframes, but then look for the price action setups on the lower timeframes (say M15/M30).
Well understood & no doubt you are well knowledgeable with dynamics involving renewed based trading approach. I have also been taking advantage to profit on lower timeframes M15/M30,using a strategy based on treadlines Breaks.This have been working like a charm .I will try to highlight this strategy on my next posts. The downside of this treadline breakout strategy is that it's double the time i need to be infront of the computer!!,(which is a health hazard!!) as a result i don't trade it so often,i have noted significant potential using this strategy to increase profits.To go around this "health hazard situations" i have come across a tool which has been of great help, which i will also share it here.


Benji
Don't tell me the sky is the limit when there are footprints on the moon.
  • #299
  • Jul 19, 2011 9:13am Jul 19, 2011 9:13am
I read this statement from post #59 & i thought to show some screenshots to validate it .
Quoting hanover

I totally agree with your statement that the more currency pairs offered by the broker, the more comprehensive the RS picture becomes.
Attached is a document showing a comprehensive picture of 2 brokers offering the highest number of the 28 key pairs.I receive information from either of them & enter trades on my preferred broker GO Markets.

Happy Piping,

Benji.
Attached File(s)
File Type: doc 2 of the MT4 brokers i use for a comprehensive picture.doc   279 KB | 560 downloads
Don't tell me the sky is the limit when there are footprints on the moon.
  • #300
  • Aug 4, 2011 3:44am Aug 4, 2011 3:44am
These screenshots below explains how i personally use RS to know market behaviors at any given time.Notice how RS have been able to foresee behaviors across these pairs.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: RS chart.jpg Size: 415 KB
Click to Enlarge Name: EURJPY eur showing more strength.jpg Size: 314 KB
Click to Enlarge Name: USDJPY showing usd strength.jpg Size: 327 KB
Click to Enlarge Name: EURUSD showing no change.jpg Size: 297 KB
Don't tell me the sky is the limit when there are footprints on the moon.
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