Trading profitably using Recent Strength

Hi,

There's not much that I can do to fine tune the code. The strength indy is not excessively resource hungry; it's more a reflection of the fact that, in order to calculate across-the-board strength, it must gather and process data from up to 28 pairs x 9 different timeframes. In other words, perform up to 250 times as much processing as a 'normal' one pair/one timeframe chart.

You can choose to process/display only the timeframes that you want to see. If you aren't interested in the shorter TFs (M1, M5, etc), then I'd suggest removing them from the list in the TimeFrames parameter.

If you have RefreshEveryXMins set to 0, the whole gather/calculate/replot process occurs for every new price tick, which I expect could slow lower-spec computers to a virtual standstill (hence the warning in the instructions). If you set it to 1, the process occurs once every minute (every time a new M1 candle starts to form); to 5, every 5 minutes; and so on. The less often the process has to be performed, obviously the less overhead on the computer.

Alternatively, there are other strength indys that you might like to try (use the FF or forex-tsd search engines to find them). There is nothing special about 'my' RS indy; if it leads to profitable trading, it is not the indy itself, but the concept of strength that's important. Any indy that's capable of calculating strength accurately will do a similar job.

Sorry, Benji, for interrupting your thread. I'll disappear again now.

David

David,

Thank you for being a pillar of wisdom to this community.All your wonderful tools speak for themselves.This thread is honored to have you contribute.

Thank you for contributing towards Mcnish query i couldn't have done it any better.Your contribution gives me motivation to continue further research, towards improving this strategy.No doubt your contribution here will be much appreciated. Am still a student of all your wonderful tools you have developed,please feel free to contribute to this thread,that will help shorten our learning curve toward becoming better traders.

Benji

Hello David,
It's no interruption at all. In fact like Ben stated, 'Helps to shorten our learning curve.'
I'm very new here and was shy to put it to you directly, yourself being the one to develop it and myself, a newbee to the forum and also to the trading world compared to you. Thus I asked Ben.
About the resource intensity, I'll try and do as stated by you. On the other hand, I'll re-phrase the whole point later, directly to you. Will take a little time for that. Thank you for the response.
McNish.

Hello Ben,
Quite a few signals for the indi on the opening moves, specially the CHF pairs, for the obvious reasons. Will see how the trades follow through.
McNish.

Yes their are 2 signal which were generated on EURCHF & USDCHF 1H charts. This signals were NOT valid for the following reason:

 

1. RSIScalpsignal indicator comprises of 3 indicators lining up together to generate a Buy Or Sell signal. Amongst these 3, is momentum indicator.In cases where the market open with Gaps,momentum indicator interprates this as resulting from "candle momentum",which is not the case.This therefore may results to false signals being generated.

This strategy focuses on 1H & 4H charts,& this is how i approach this setups.At the beginning of every trading week, I DO NOT TRADE until the close of the first 4H candle.

This information should have been captured on the strategy document posted on post #1, However anyone following this threads is welcomed to use this information moving forward.


Benji.

Hi Ben,
The EC short was the best call for the day for this. Even EG gave fine pips and is still playing after the initial pullback. This looks like a 'Trade and forget' kind of thing.

There were few signals that were generated during this trading week,& none meet a criteria for a valid trade. Therefore this has been one of those calm trading weeks.This is not unusual, infact weeks such as this will be expected.However this varies with different trading systems.

looking forward for yet another trading week starting Sunday

Benji.

Ya, As Ben stated, there were a few signals but none met the correct criteria for entry, except maybe EC on 8th Aug at 1300hrs, GMT. It certainly went in the trade direction but bounce back on the next candle could have led to no so desirable results.
However an observation is that the signal implies the intent of the direction and the intensity for the same. If the trade does not frutify at the time of the signal, in subsequent time, the trend direction is, in most cases, ascertained. There are exceptions of-course.

Assuming we are trading using a GMT+2 broker, Yes we had a trade triggered on the 8th Aug on EURCHF pair 1H chart.

This is how this strategy trades on 1H charts,this information is also in the strategy document posted on Post #1

Take profit Setups;
A breakeven +2 is considered at the close of the entry candle. However if this position goes 25 pips into profit then a breakeven +2 can be considered even before the close of the entry candle.Overall take profit is set at the close of the second candle and position exited.

Am looking forward for automation of this system for correct strategy analysis .

Benji.

Hello Ben,
If one sticks to these rules, I agree, not much of a trade this ec short. But if my study is correct, then most of the game here in the fx market is that of fundamentals. Going with that, the ec was in a trend for down. If one incorporates some other useful indi with this and look at the trade further ahead in time, one sees the trend confirming in the down ward direction. (Talking particularly of the EC here.) The best possible look out can be IMO, the break of range. Maybe some one else can come up with something better.

As I have stated earlier my observations, this rsi scalper certainly tells us something and it's true most of the time with exceptions. How to exaclty trade it with minimal draw downs or losses is another matter of 'The Art of Trading'
Cheers!

Good thinking McNish,Your explanation above is a step in the right direction, & infact you have captured well some of the initial stages a trader goes through before he finds himself a favorable trading style.Your suggestions may have even a bigger edge profit-wise.

Its also good to point out the following:Before a trading system is developed their are stages it goes through,before it can be adopted,& trusted with real money. The strategy shared here is now on its final stage i.e forward testing stage,which is the most important & usually takes the longest time of all the stages in strategy development. A system which is on forward-testing,requires No further improvement or modification of any kind.At this stage the system is expected to prove itself in a real market environment.

This however does not shut the door for any improvement.This is how i would approach it :If the system is Not profitable as expected in the three market conditions namely Trending, Breakouts & Ranging (sideways) markets,then i would consider going back to the drawing board .

If you need further detail information on how to develop a strategy,kindly consider visiting other informative forums even outside this FF community.Am intending to keep this thread focused on the automation of this particular trading strategy.Automation will give accurate analysis for further improvement,if it would be necessary.

Benji.

Hello,
There was a trade today on AUDCAD and it came clean with profits. I'll jot down the other if there are any, i have not checked yet, in trade mode now.
So, I don't trade this setup. Neither do I co-relate it to David's indi. Like I had stated before, David's RS indi hangs my machine. Anyway, I'd like to know Ben if you took trades with it and what was the ratio of it, (w/L) or even if for testing on demos or whatever. Might just have to fall back a step or two from here and add a filter to this setup. I'm sure you'll do a better job of it for adding a filter as I'm still a novice at this.
Will be back with more. A general word, Markets are hung on tender hooks and I anticipate a sell off. The Eur zone is in a very very dicey situation. Sort of catch 22.
Cheers.

Can anybody kindly explain to me how to follow/use the news to trade, should i only open the trading when the news is about be release or can't i trde without the news? What does the previous, forecast and actual mean on the news page? How will i use this information to trade? What does the figures painted in red or green symbolize? How will i use the to determine the direction of the price? Please Urgent response. Thanks

Hello Hollam,
Seems u are very keen on trading the news, also that this is your first post and u are new here. I suggest you look up the proper thread for this, read and understand the various elements involved for news trading. This is not a thread to discuss news trading topic. Forum discipline. Members, please guide Hollam to the proper post.
All the best. McNish.

nice post. seems like using currency colleration to achieve the better results. however there are limitations to every ea. it is like a antique sword that only a capable user can magnify its power.

These are first trades of the week triggered few hrs ago starting the week with some profit .Below are Screenshots showing USDJPY,EURCHF,USDCHF trade setups.

Going forward, I think the profit booking rules can have some changes. Check this post http://www.trade2win.com/boards/trad...side-bars.html
The jist is if the subsequent bar makes a new high, move stop to 50% difference from this candle and the previous stop. This way, if there is a good run on the move,we cash in some more pips instead of closing the trade on the close of the next candle. I also noticed that at times when the trade is not profitable going by the original rules, the trade direction continues after stop out because of the pullbacks or small consolidations. Here, maybe a range can be drawn and if the trade re-enters the zone in the intended direction of the original signal, a re-entry is possible. Also please note a point from my previous post in this thread on this discussion. I am not using the RS indi rather taking the scalp signal on a stand alone basis and doing these studies. These studies or observations I have made mostly on the H1 tf. I'll start using the H4 tf and see what else I can come up with.
As far as the coding is concerned which u mentioned about in the first post, I think once the system is developed in totality, I'm sure there will be some one that u can approach personally for it. After all this is your baby and u are the one who is testing it. I'm merely giving my observation here and not trading it by the given rules. But one thing is sure, the signal delivers good trades most of the time, say 70 - 75%.
Cheers for now, More in the next.
McNish.

This EURGBP trade triggered today during London session,closed with 6 pips profit.

This EURJPY trade triggered few hrs ago during London session & closed with 20 pips profit.

Benji,

I thought the following article might interest you. Pairing the strongest against the weakest currency takes this idea one step further.

Happy reading,
David