Using VWB Trading Exotic Currencies?

Hi guys!

Being a trader in a bank in the small country of the Philippines, I was wondering whether the VWB system would work trading the USD/PHP (US dollar/Philippine peso).

If so, what would be good Fib numbers to use?

Thanks!

Hi magicwords,

I'm also from the Philippines. Kamusta kabayan?
But anyway, I don't think anyone could answer your question (I maybe wrong).

If you want to know the answer, you'd have to see or look for it yourself through testing.

Also, where will you get the data? Until now, I still haven't seen any data feed for USD/PHP except at yahoo finance. There may be available data feeds, but I'm still not aware of any.

But anyway, in order for you to test it also, what platform are you planning to use? Right now, most are using Metatrader4 and VT (Visual Trader?).. Maybe after getting the historical data, you can visually see if it'll work or not.

You also have to see which fib numbers are likely to be reached.. So you have to test which of the fib numbers will work best (if it's going to work).

Hope this helps,
East

Oi kumusta?

Well since I work in a bank. I get my real time feed from Reuters and the Philippine Dealing System.

I'm actually just a trainee trader. The thing is, since the pace of my training in the bank is quite slow, I decided to speed things up by studying on my own!

I haven't even taken the Treasuy Certification Program yet. I will this June though.

You work in a bank too, pare?

Ayos lang, pre.. Nasa Japan ako ngayon e.
I'm working as a web app systems programmer.

Anyway, now that you have the data, I think it will be easier for you to import it into a platform like Metatrader4.. If you're using other platforms, I think you have to program the indicator yourself or ask somebody else to program it for you.

I think the basic idea of VWB is that you have a tunnel. That tunnel is somehow a base where price returns to.. In times when it goes away from it, it has the probability of it returning to the tunnel and overshooting it. I think this is related with the law of averages?

Anyway, so if you want to set it up with the USD/PHP data, you have to look for the appropriate parameter for the EMA to act as your tunnel. In VWB, I think it is the 28 EMA. From that tunnel, you now compute for the appropriate Take Profit levels. Again, you're the one to choose how you will compute for those TP levels.

To compute for them, you can use the same concept used in VWB which is using fib numbers as TP levels.
If volatility of price is low, you may want to use low/small fib numbers.

So I think that's basically it. That's how I understand how it works however inaccurate. But like I said, you still have to find out for yourself if it works or not.

Hope this helps,
East

P.S.
Good luck on your Treasury Certification Program. If ever luck has to do with it..