Trading system using relative strength

closed tonights basket at +10ish, spent most of the trade in the red - went up to +100 at one stage but retraced again. the market looks dangerous tonight so im done.

new basket, not feeling so confident about this one. PA doesnt support the trade suggestions given my the excel sheet. Still in Demo mode so going to give it a shot

Closed at +28, the basket fluctuated between +30 and -30 for 4 hrs

let's just say my trial for this system is beating the crap out of my live/actual trading...

last week, took 2 trades using the first indicator of this thread but took trades on the daily only...so 2 trades...amounted to 7% increase (total)...

today, after finally finishing the whole thread, tried the histogram method by FH using 4hr...after 2 candles...400+pips = 4% increase

my position sizing may be a tad out of whack but hell, it's beating my actual trading wherein im supposed to be exerting more brain power LOL

will be doing a serious research re:

basket trading
diversification
currency index
position sizing
portfolio management

by doing so, i will be more confident using relative strength as core strategy...

any referral w/ regards to any reading material abt the subjects indicated above would be much appreciated...

hmmm...feels kinda weird that none of the subjects above have anything to do with technical analysis (MA, trendlines, fibs, elliot, murray math and whatnot)

PS...and to think that my current system has not given me a single negative day since its inception last July 22, not a single negative trading day...now i'm torn...LOL

by the time i finished posting the reply above...the account is now showing a 7% unrealized profit...sigh

closed all trades at 10% gain on DEMO...

it became too unbearable watching my demo beat the crap out of my live...LOL

closed @ - 162

Greeting with my full respect to all the contributors of this tread.

After several days reading, i've finished the whole thread.I have many gaps about understanding this system. i really need help. Any instruction or hints will be precious to me.

1.entry time is still strictly obeyed after the 04:00 est?
2.plantform such as FXdd, interbank troubled a lot in the old system. Does it still exist in the improved system?
3. Since ES trader re-opened the thread, -ForexHard- made extraordinary contribution to improve the system; what indicator is needed to the template provided by him? cc-Diff_[v2.0].ex4 or sth else?

Please give some hints or help. As the ForexHard said, he taught himself. The rest left to me, but I need the hint.

thanks a lot and best regards,

Joey

I just put on this basket. Hope it goes the way I'm expecting...

I'm using the first ES method, Trying to stick to KISS principle.

Regards.

so far +112 pips!

This method is great!!!

but, Does anyone have statistical data of win/loss???

to all this system followers,

Is there any way to know how low and how up the basket went?
I mean, is there any way to keep a log with the pips variation over the trade? Just to know about my basket behavior....

Thanks in advance


Regards!!!!!

@33drifter and @only1kader

Can you link these demo accounts to a signal provider account in zulutrade so that we can see the results and drowdowns on the daily performance charts?

cheers,
mem

You can use one of these equity analyzer type indicators on FF...look at your profits bounce up and down...

i really thank for such a promising system...lemme try this with hope...
happy pippin

regarding post #2249 by Rodcisal--
would someone please explain the values in the 3 columns.
it looks like column1 = column2 + column3.
But what do these values actually represent ??
Thank you.

I've been reading this thread with interest from the start to about half way through and I have come to a few conclusions.

All the indicator tells you is what currency is strengthening against other currencies and which currencies are weakening so you can trade the two together. It strikes me that a quick glance through the charts at the last 4 hour candle and taking into account the trend would achieve a better result.

Opening a basket based on the current relative strength tells you nothing about the trend or what the next change in relative strength is likely to be.

Buying or selling a basket of 8 to 12 pairs that are clearly trending would achieve the benefits of spreading your risk and also give you a higher chance of making a profit. I believe it could be as simple as just going through the charts and opening trades in the direction you think the next 4 hour candle will move with the aid of 2 moving averages maybe (20 and 50 ema?).

Maybe I'll try it out and let you know?

Yes, I am interested in the results. I'll try it as well.

Disclosure: I have read most of the thread. Have not demo'd it yet but will start Monday using the D1 TF.

I installed CC_Diff 2.0 tonight just to make sure it loaded well and to move the data window to a less cluttered part of the chart. I got 17 suggested trades, which I guess I'd place as my basket. Attached pic of the suggestions. My concern goes really to account size. Assuming I trade micro lots, we would be talking about a trade size the equivalent of 1.7 mini lots. Assuming a 200 pip SL, which might be tight on a D1 TF, you are talking about a loss of over $340 if your SL is hit. If you only want to risk 2% of your account, you'd need to start with $17k. Maybe $5.7k if you want to risk 6% of your account, which is what some MM programs suggest when placing more than 1 trade at the same time.

I wonder if anyone has tried trading only the currency pairs that have the highest score. For example, in the attached pic the Aud has a red-2 while everything else has a 1. You'd only trade the pairs where you are shorting the Aud paired with currencies that have a green-1 or more.

I guess otherwise you'd just skip that day and wait for a day with a lower number of suggested trades?

Thanks.

I think trading the relative strengths on a daily chart would be more successful than 4 hour but 17 trades is a lot to open in one basket. In those trades you must be trading a lot of pairs that are very highly correlated. I would suggest that you weed out a few of the more correlated pairs such as not opening too many yen crosses as they do tend to move together. Also commodity currencies are good ones to watch, aud and nzd are usually highly correlated.

There is no way round risking a few hundred bucks per trade which is why it's best to trade on demo until you're sure this works and if you do go live you want to have a good few thousand in your account.

Ok, I'll try it out for the next week and if I make some progress I will start a thread. Just so we're on the same page the idea is that just before the close of a 4 hour candle you look through all available pairs and write down those that you have a good feeling will go one direction or the other. You look through for correlations so you're not opening too many related trades maybe keeping your max exposure to each individual currency down to 2 or possibly 3 trades. When the new candle opens you enter each trade with a 30 pip trailing stop. When the stop gets to breakeven you stop trailing and let the trade run. At the next 4 hour candle you do the same. Any trades you still have open you either close if you feel they may not have further to go or you leave the stop at break even and let them run or lock in profit and let them run. At this point you open any more potential trades looking at the correlations again and possibly double up on the successful trades. Most of the above can be varied in some way that would produce a slightly different and possibly better result but we have to start somewhere and that seems a reasonable set of rules to be going on with.

Do you have any suggestions yourself?

Also the criteria for whether to take a trade or not has to be based on something like trend direction, s/r, momentum, etc. There are hundreds of systems that could get you into an individual trade, the idea of this method is to place a lot of trades at the same time and the good ones pay for the bad ones. In this way the individual trades don't need to be A+ trades, they just have to have a reasonable probability of going one way or the other over the next 4 hour period.