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Strength for one week, No Charts Attached ;)

  • #201
  • Aug 12, 2011 9:05am Aug 12, 2011 9:05am
Quoting zznbrm
- I closed trades each day at 20:00 Central European time, you did not. Pay particular attention to Friday of last week. Almost every trade retraced from the time you closed until 20:00.

- As stated, I used a different (although, I would have to assume similar) currency percentage calculation. For last week, all of my trade directions were the same as yours except EURCAD.

- I'm backtesting using H1 data, fixed spreads, and no swap.

Why H1 data? Because the strategy calls for all trading decisions to be made at the top of the hour (08:00,...
Thanks for the explanation... seems very logical now

I wonder if it would be possible to provide me with the program / EA / spreadsheets... you use to backtest, so I could perform these tests myself?

I have a few ideas, suggested in this thread and others, to put to the test.
E.a Reverse positions if monday is overall negative or just reverse the largest negative positions (as suggested in this thread by someone) as it seems that start of the week is very indicative of direction for the rest of the week. And I wanted to test the close whole position if returns become negative... or maybe you can test those yourself?

If you don't want to share your files, maybe you could explain how you backested multiple currencies? I've only backtested single currency strategies this far...

Thanks for your efforts!
  • #202
  • Aug 12, 2011 1:04pm Aug 12, 2011 1:04pm
Quoting FBForex
I wonder if it would be possible to provide me with the program / EA / spreadsheets... you use to backtest, so I could perform these tests myself?
Sorry for the delay...I was busy.

Please see the attached script. It will create 1 summary file and weekly detail files in comma-delimited format. I'll leave it up to you to format the data per your preferences.

You will notice there are no currency change % calculations in the script. This is because they are not needed. Why are they not needed? Well, review the attached spreadsheet for a hint!

Good luck!
Attached File(s)
File Type: xls CcyIndex2.xls   23 KB | 533 downloads
File Type: mq4 BackTest_FBForex2.mq4   16 KB | 411 downloads
  • #203
  • Aug 13, 2011 6:41pm Aug 13, 2011 6:41pm
Quoting FBForex
... at 20.00 hours Central European time that is, markets are likely to have settled and it's a suitable time for me to look at the positions ...
Hi FB et al,

I only came across this thread a few days ago, but haven't had time to read it fully, just the start and a few recent posts.

The idea sounds interesting, but I'd be grateful for all your views on how important 20:00 CET is, ie are there any earlier times of day that could be used.

In Japan it would currently be 03:00 JST, so it's a bit impractical for me . Daylight saving isn't used here, BTW.
  • #204
  • Aug 14, 2011 7:21am Aug 14, 2011 7:21am
Thanks for the thread and for thinking out of the box.

The reason for the big DD this week is because of the long tails we observed in most of the pairs this week. I have the pictures of USDCHF and AUDUSD.

May be cutting half of the losses end of the day might bring us overall profit in the long run. The other option is to leave these trades for another week, as trends will not reverse that easy and will continue in the next week.
Attached Image (click to enlarge)
Click to Enlarge Name: Week of Aug18.jpg Size: 126 KB
  • #205
  • Aug 14, 2011 6:16pm Aug 14, 2011 6:16pm
Quoting FBForex
[size=3][color=Navy]Hi Guys,

I had a very simple idea two weeks ago.

What would happen if I just follow strength of the 8 majors for one week?

Let me explain the idea a bit further:

Monday morning 8.00 am (Central European Time)
I look at the currency strength calculator on this site: Currency strength calculator
[color=DarkGreen]I don't exactly know...
So FBForex,

We have to wait until 8:00 AM CET/2:00 am EST to look at
the currency calculator to open new positions?

Thanks,
rozario173
  • #206
  • Aug 14, 2011 11:03pm Aug 14, 2011 11:03pm
Hi,

You are genius really, simple method, simple SL, your method is The Best

We want create Indicator for forexpeacearmy strength calculator

I have started this week, please check

bye
ajentha
Attached Image(s) (click to enlarge)
Click to Enlarge Name: RelativeStrength.PNG Size: 263 KB
Click to Enlarge Name: RelativeStrength28pairs.PNG Size: 99 KB
  • #207
  • Aug 14, 2011 11:54pm Aug 14, 2011 11:54pm
I am using period 6/6 to 8/12 to test. This is test week 1.
I extracted the Relative Currency Strength on Saturday and entered the positions during market open today.
Attached Image (click to enlarge)
Click to Enlarge Name: NCA1.jpg Size: 139 KB
Pivot Boss in the making~
  • #208
  • Aug 15, 2011 1:31am Aug 15, 2011 1:31am
Attached is strength calculator readings for this week and trades that I opened this morning.

Important: If at the end of this day the position is negative, we close all open trades and wait till next week to start trading again!

If during the week the position becomes overall negative (including closed trades) we close all open positions!

If trades are showing profit and at the end of the next day profit is less, we close all open positions for the profit we have at that moment!

I found these actions to prefent us from giving away to much profit or getting into deep drawdown.

Good luck everybody!
Attached Image (click to enlarge)
Click to Enlarge Name: Mt4.jpg Size: 264 KB
Attached Image
  • #209
  • Aug 15, 2011 2:46am Aug 15, 2011 2:46am
Quoting FBForex
Attached is strength calculator readings for this week and trades that I opened this morning.

Important: If at the end of this day the position is negative, we close all open trades and wait till next week to start trading again!

If during the week the position becomes overall negative (including closed trades) we close all open positions!

If trades are showing profit and at the end of the next day profit is less, we close all open positions for the profit we have at that moment!

I found these actions to prefent us from giving away to much...
Hello FBforex,

We are also in the same basket. we start from this week.

By the way what is the your last week basket result? can u please show us.

Thanks in advance.

Umpats
  • #210
  • Aug 15, 2011 4:05am Aug 15, 2011 4:05am
Thanks for your explanation

" Important: If at the end of this day the position is negative, we close all open trades and wait till next week to start trading again!"

It Means If Total profit is negative, we close all trade - yes correct!


"If during the week the position becomes overall negative (including closed trades) we close all open positions!"

It Means, End of today (15/08/2011) total profit is positive, we close the negative pair only to reduce half of the negative total. but during this week total profit reach negative, that day end, we close all open position - is it correct!

Please confirm, thanks for your explanation of Stop loss

I have attached the current status of 28 pairs result

bye
ajentha


Quoting FBForex
Attached is strength calculator readings for this week and trades that I opened this morning.

Important: If at the end of this day the position is negative, we close all open trades and wait till next week to start trading again!

If during the week the position becomes overall negative (including closed trades) we close all open positions!

If trades are showing profit and at the end of the next day profit is less, we close all open positions for the profit we have at that moment!

I found these actions to prefent us from giving away to much profit...
Attached Image (click to enlarge)
Click to Enlarge Name: currencyStrength28pairs.PNG Size: 72 KB
  • #211
  • Aug 15, 2011 4:38am Aug 15, 2011 4:38am
Quoting ajentha
Thanks for your explanation

" Important: If at the end of this day the position is negative, we close all open trades and wait till next week to start trading again!"

It Means If Total profit is negative, we close all trade - yes correct!


"If during the week the position becomes overall negative (including closed trades) we close all open positions!"

It Means, End of today (15/08/2011) total profit is positive, we close the negative pair only to reduce half of the negative total. but during this...
Yes you have understood correctly!

Good luck with your trading!
  • #212
  • Aug 15, 2011 1:28pm Aug 15, 2011 1:28pm
You should have closed all positions today since total position was at a loss of about 1000 euro...

Now we wait for next week to take new positions...

I'll be on vacation for three weeks next week, so no trading for me...

Hope someone will keep track of trades during that time
  • #213
  • Aug 16, 2011 12:20am Aug 16, 2011 12:20am
Quoting jurn_e
I am using period 6/6 to 8/12 to test. This is test week 1.
I extracted the Relative Currency Strength on Saturday and entered the positions during market open today.
Hi Jurn_e,

Do you mind sharing your excel spreadsheet??
  • #214
  • Aug 16, 2011 6:09am Aug 16, 2011 6:09am
Quoting rozario173
So FBForex,

We have to wait until 8:00 AM CET/2:00 am EST to look at
the currency calculator to open new positions?

Thanks,
rozario173
rozario173, I think you should be able to see the currency calculator results that are needed before the markets open for the week.

If you set up MT4 trades to run at 8am CET Monday, just checking each day at 8pm CET would be necessary - 2pm EST? That would be the hard part for me!
  • #215
  • Aug 17, 2011 1:20am Aug 17, 2011 1:20am
Some of the approaches I identified with this system that need to be reviewed are:

1) We have quite a high exposure to risk because we selected highly correlated pairs AUD and NZD. If one moves against the trend, the other follows and that is double blow to this trading method.
2) Currencies like CHF and JPY are at all time high and hurting the local economy like never before, high intervention probabilities which could make huge moves in a short time.
3) The 10 weeks trend doesn't go well for the daily trades. If one currency reverses for a day we will be in trouble.
I am trying an average of 10 days and one month. Let me see how it goes.
  • #216
  • Aug 17, 2011 5:26am Aug 17, 2011 5:26am
what about multi time frame structure? For example W1, D1 and 4H with the indicator StrenghtMeter?
Imparo ancora
  • #217
  • Aug 17, 2011 6:56pm Aug 17, 2011 6:56pm
Quoting PipMaxzz
Some of the approaches I identified with this system that need to be reviewed are:

1) We have quite a high exposure to risk because we selected highly correlated pairs AUD and NZD. If one moves against the trend, the other follows and that is double blow to this trading method.
2) Currencies like CHF and JPY are at all time high and hurting the local economy like never before, high intervention probabilities which could make huge moves in a short time.
3) The 10 weeks trend doesn't go well for the daily trades. If one currency reverses for a day...
I am down -600$ after day1 with the (10days+1month)/2 trend on my demo. The main reasons are the AUD and NZD strengthened instead of following the trend to weaken. Closing some trades might cause more harm than benefit at this stage, because the trend might come back and so I am leaving them intact for another day. Next time I am thinking to drop one of the related pairs AUD/NZD from the bucket.
  • #218
  • Aug 18, 2011 5:32am Aug 18, 2011 5:32am
Yes, You are correct

I think, you are trading real money?

bye
ajentha



Quoting FBForex
You should have closed all positions today since total position was at a loss of about 1000 euro...

Now we wait for next week to take new positions...

I'll be on vacation for three weeks next week, so no trading for me...

Hope someone will keep track of trades during that time
  • #219
  • Aug 18, 2011 7:31am Aug 18, 2011 7:31am
Hi everyone.

Apologize my bad English, is not my language.
Honestly i think this method not work itself. The relative strength only determined the possible direction of the week (UP/DOWN). However, the entry could be in function of price action. If you enter early at the week you can suffer a lot of losses at Monday/Tuesday. Many times you close a trade to cut losses. However, a high percentage of this losses change to profit along the week cause starting the week usually there is a retracement of price respect the close of previous week. In most cases, the price back to the original trend. Simply you can reduce the drawdown if you wait for this retracement.

Otherwise, if you closes the trades at the end of the week, you are searching for a immediate profit and I think what the time period of 10 weeks is extensive. You probe with the comparison of relative strength of two times period, 1 and 2 previous weeks. This indicates the level of power of bullish and bearish, and get you a hindsight about who is in control of the market.

Kindest regards
That which you give to others, life will return it in spades
  • #220
  • Last Post: Jun 25, 2019 2:31pm Jun 25, 2019 2:31pm
Does anyone still trade with this method ?
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