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Strength for one week, No Charts Attached ;)

  • #61
  • Aug 9, 2011 2:13pm Aug 9, 2011 2:13pm
Finally, with 10 weeks in "StrengthMeter" indicator and No Update on tick, results are really close to "ForexPeaceArmy" Calculator.

First column is "ForexPeaceArmy" list, second is "StrengthMeter" list:

1.- CHF / CHF
2.- JPY / JPY
3.- NZD / NZD
4.- USD / USD
5.- EUR / EUR
6.- GBP / CAD
7.- CAD / GBP
8.- AUD /AUD

So only GBP and CAD are exchanged, casually one of the trades that I have closed in loss, Buy GBP/CAD.
  • #62
  • Aug 9, 2011 3:09pm Aug 9, 2011 3:09pm
Hi, FB, genius thoughts

however, there is supposed to be 28 pairs, isn't there? any 2 out of 8 pairs have 28 combinations......

i just want to confirm the config, since i notice that you usually have only 24 pairs. i guess it is that your broker does not support some pair config, like your nzdchf.

Quoting FBForex
If this would have been monday morning I would open trades like this:
Sell GBP/CHF
Sell EUR/CHF
Sell USD/CHF
Buy CHF/JPY
Sell CAD/CHF
I don't have NZD/CHF available...
Sell AUD/CHF

Good luck next week!
  • #63
  • Aug 9, 2011 3:27pm Aug 9, 2011 3:27pm
Sounds interesting.. will follow this along.

So are we looking at the last 10 days? or the last 10 weeks?
  • #64
  • Edited 3:34pm Aug 9, 2011 3:33pm | Edited 3:34pm
last ten weeks

it's all in the opening post...:-)
  • #65
  • Aug 9, 2011 4:19pm Aug 9, 2011 4:19pm
Tried it mid day today on demo and was profitable. Might have to look into this more.
  • #66
  • Aug 9, 2011 5:51pm Aug 9, 2011 5:51pm
Quoting Caillou
Finally, with 10 weeks in "StrengthMeter" indicator and No Update on tick, results are really close to "ForexPeaceArmy" Calculator.
Caillou,

How did you get 10 weeks in the StrengthMeter? Whenever I enter more than 1440 (D1) for timeframe, the indicator disappears.
  • #67
  • Aug 9, 2011 6:07pm Aug 9, 2011 6:07pm
Quoting gilab
Caillou,

How did you get 10 weeks in the StrengthMeter? Whenever I enter more than 1440 (D1) for timeframe, the indicator disappears.
I was able to make it work for Weekly TF with the following:

Put the indi on W1 and enter the following settings:

TimeFrame: 10080
StrengthBase: 10
RecentCHBase: 1 (or any number > 0 and less than the StrengthBase number)

If you can't get that working, I've put it on D1 myself with the following:

TimeFrame: 1440
StrengthBase: 50
RecentCHBase: 5

You can also do this for H4 (240) and H1 (60) too, just multiply the StrengthBase and RecentCHBase by 6 (for H4) and 24 (for H1).

I wasn't able to get it working for lower TFs.

NOTE: The RecentCHBase numbers I've suggested means within the last week.
You can make them even smaller to get a more up-to-date reading on the strengths.
I wouldn't suggest going too small though.

HTH,
Mike.
  • #68
  • Aug 9, 2011 8:17pm Aug 9, 2011 8:17pm
Very interesting thread...honestly the first thought provoking thread I've read on FF. It has me stepping outside of what I know "trading to be". I will be following along as well.

Question: What is the purpose behind opening a trade with ALL pairs. Why not just pick the majors or more popular minors?

So if CHF is the strongest then Sell USD/CHF & GBP/CHF why open positions with all the others? (This is my first exp with basket trading) Thanks in advance.

-Darren
  • #69
  • Aug 9, 2011 8:26pm Aug 9, 2011 8:26pm
Quoting pilotui

Question: What is the purpose behind opening a trade with ALL pairs. Why not just pick the majors or more popular minors?

So if CHF is the strongest then Sell USD/CHF & GBP/CHF why open positions with all the others? (This is my first exp with basket trading) Thanks in advance.

-Darren
My thoughts as well... Just create a basket of the best pairs and trade them using larger lots, compared with trading all possible pairs with smaller lots.

Maybe time will tell why we should use all possible pairings, but to me it just increases the chances to lose money by having to kill off the biggest losers.

Quality over quantity for me right now.

Mike.
  • #70
  • Aug 9, 2011 8:36pm Aug 9, 2011 8:36pm
Quoting Caillou
Finally, with 10 weeks in "StrengthMeter" indicator and No Update on tick, results are really close to "ForexPeaceArmy" Calculator.

First column is "ForexPeaceArmy" list, second is "StrengthMeter" list:

1.- CHF / CHF
2.- JPY / JPY
3.- NZD / NZD
4.- USD / USD
5.- EUR / EUR
6.- GBP / CAD
7.- CAD / GBP
8.- AUD /AUD

So only GBP and CAD are exchanged, casually one of the trades that I have closed in loss, Buy GBP/CAD.

What parameters you are using....I didnt get this list....
  • #71
  • Aug 9, 2011 8:58pm Aug 9, 2011 8:58pm
Quoting pilotui
Very interesting thread...honestly the first thought provoking thread I've read on FF. It has me stepping outside of what I know "trading to be".
My thought exactly. If does not have a catch, then this is the holy grail, and we all know that really shouldn't exist.. because if it does, the economy will go to hell when found.


Anyway, this is very interesting, and I have a few thoughts on how to make it even more profitable.

Instead of closing the losers, how about making a new strength analysis for the pairs? One could make a strength calculation for monday to e.g. wednesday, and if the strength on that period of time differs enough from the initial strength calculation for the pair, maybe then you could change direction of that pair's trade.

Note that I haven't even opened MT4 after starting to read this thread, so this idea may be really bad, but theoretically it could work.

This is what I am thinking about doing;

For a few weeks, I will have 1 account trading the initial rules of this thread, and 1 account trading the rules I just mentioned, with some probable change. I will let you know as soon as I have results on the testing.

Finoli
  • #72
  • Edited 10:41pm Aug 9, 2011 9:14pm | Edited 10:41pm
Following my last post, I'd like to share my current setup at the moment.

Image is self-explanatory...

Settings for 1st window:

TimeFrame: 60 (H1)
StrengthBase: 600 (5 Weeks)
RecentCHBase: 60 (2.5 Days)

Settings for 2nd window (original strength calculation range):

TimeFrame: 60 (H1)
StrengthBase: 1200 (10 Weeks)
RecentCHBase: 120 (5 Days [1 MT4 Week - we don't get data for Sat/Sun])

NOTE: The reason I used H1 TF is because I want the latest possible strength calculations, and H1 is the lowest the indicator will go.

Cheers,
Mike.
Attached Image (click to enlarge)
Click to Enlarge Name: strengths.png Size: 36 KB
  • #73
  • Aug 9, 2011 9:51pm Aug 9, 2011 9:51pm
You can't have trading stratgey without MM IMO. As far as I know most of the great traders are trend traders, this is a trend trading stratgey. It looks good. I would like to know how you know when to take profit and where or how many pips away your stoploss point is.
Many thanks
  • #74
  • Aug 9, 2011 10:47pm Aug 9, 2011 10:47pm
i have 2 settings, one for m5 or current chart time and the other for 10 weeks. i will give a try this and next week!
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-08-10_0044.png Size: 29 KB
passion and discipline
  • #75
  • Edited 11:59pm Aug 9, 2011 11:03pm | Edited 11:59pm
Hello everybody,

I think the idea of this thread is really very interesting and promising.
I have not tested nor backtested the system but here are some ideas that came to my mind while reading:
1. This system is built on the assumption that strong currencies become stronger during the new week and weaker become weaker. To my mind it is safer to compare the current strength of every currency with its strength one week ago and to trade accordingly. Then we trade to the direction of strength change, which sounds more logical.
2. Trading so many pairs seems very dangerous. If CHF, for example, is very strong then it means that we buy it against 7 other currencies. What if trend changes during the week or there is a bigger retracement in CHF or SNB intervenes? It can kill us.
3. When trading a basket of currencies, I would suggest to equalize all trades by taking into account pip value and volatility. For volatility I suggest this calculator: http://www.forexticket.co.uk/en/tools/02-01-volatility.
4. The main idea of the thread starter, as much as I understand, was to trade without charts. So, I wonder... if we have very nice online calculators, why in the hell should we start testing different indicators to do the same job...
Thanks for the attention, and will stay around for sure.
  • #76
  • Aug 9, 2011 11:17pm Aug 9, 2011 11:17pm
Quoting gilab
Caillou,

How did you get 10 weeks in the StrengthMeter? Whenever I enter more than 1440 (D1) for timeframe, the indicator disappears.

Hi,

I have put the indicator on a Weekly chart with these settings:

- TimeFrame: 0
- StrenghtBase: 60 (60 weeks)
- RecentCHBase: 10 (10 weeks)

RecentCHBase shows me a similar list to "ForexPeaceArmy" Calculator but yesterday, StrenghtBase histogram had for me the better results.......

Early days.....
  • #77
  • Aug 10, 2011 12:01am Aug 10, 2011 12:01am
Quoting Indrek
Hello everybody,

I think the idea of this thread is really very interesting and promising.
I have not tested nor backtested the system but here are some ideas that came to my mind while reading:
1. This system is built on the assumption that strong currencies become stronger during the new week and weaker become weaker. To my mind it is safer to compare the current strength of every currency with its strength one week ago and to trade accordingly. Then we trade to the direction of strength change, which sounds more logical.
2. Trading so...
1. See 4.
2. I agree
3. I agree somewhat, but pips are pips - I also didn't know how to do this, thanks for the link to this knowledge
4. I use the indi so I can see changes like you addressed in point 1.
I could use the online one, but it is too cumbersome, I want a fast analysis.
  • #78
  • Aug 10, 2011 12:04am Aug 10, 2011 12:04am
Quoting the-game
My thoughts as well... Just create a basket of the best pairs and trade them using larger lots, compared with trading all possible pairs with smaller lots.

Maybe time will tell why we should use all possible pairings, but to me it just increases the chances to lose money by having to kill off the biggest losers.

Quality over quantity for me right now.

Mike.
Reason for opening trades on all pairs is that you simply won't know in advance what pairs will have the strongest movement.

Sure, USD is the most liquid pair but last week for instance the biggest profit came from AUD/CHF, this week the biggest winner seems te be GBP/CHF.

The edge at the start of the week is that we know what strength of each pair was at that time relative to other pairs. If it works out to be the same the following week that is great, we would have all winners, if it doesn't work out exactly like that there still is a good chance that the pairs that are trading the direction of strength for the last 10 weeks will outperform the ones that go against it.

Quote
Indrek couple of ideas
Hello everybody,

I think the idea of this thread is really very interesting and promising.
I have not tested nor backtested the system but here are some ideas that came to my mind while reading:
1. This system is built on the assumption that strong currencies become stronger during the new week and weaker become weaker. To my mind it is safer to compare the current strength of every currency with its strength one week ago and to trade accordingly. Then we trade to the direction of strength change, which...

1) Trading direction of trend change might be worthwile to check out, however, change isn't the strongest movement. Strongest movements come from trends, especialy if trend has been going for a longer time (e.a. current movement in CHF pairs, CHF has been trending for long time and last week started to accelerate even more). Change in trends usually act more like corrections, more choppy less movement in one direction.

2) See my comment on other quote in this post

3) That was going to be my next step, so well thought! Have to think about how to implement this in a simple way.

4) You're absolutely right about that! No Charts for me! But if someone finds the "strengthmeter" attached to a chart more convenient then by all means go for it. For now, I will stick to the calculator found online.

Nice to see growing activity and interest in this thread
  • #79
  • Aug 10, 2011 12:04am Aug 10, 2011 12:04am
Quoting the-game
4. I use the indi so I can see changes like you addressed in point 1.
I could use the online one, but it is too cumbersome, I want a fast analysis.
But you have to check it once per week!? It takes under one minute per week to put the trades...
  • #80
  • Aug 10, 2011 12:08am Aug 10, 2011 12:08am
Quoting Indrek
But you have to check it once per week!? It takes under one minute per week to put the trades...
Sorry, I was saying it in context to what I'm currently doing with FB's idea.
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