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Currency index trading experience

  • #21
  • Jun 24, 2014 2:08pm Jun 24, 2014 2:08pm
Quoting 21vs7
you meant something like this rite? the solutions and ideas are big as an ocean..there could be several strategies which should be run forward and later filtered in any situations. I am working solely on getting the right levels for entry and exit. I hope my friend the programmer who done this piece of work also will be on this issue as soon as possible. But would really like to make a group effort, as I have limited mind. {image}
Yes, something like this but as simple as the one I placed on the linear currency strength meter. It will be great if we find a community of coders willing to assist, and I will detail what I am looking for in another post shortly.
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  • #22
  • Jun 24, 2014 2:14pm Jun 24, 2014 2:14pm
Quoting hayseed
{quote} //---- hey j..... got your note.... the video you mentioned is a multi currency ea, but not written in a backtestable manner.... you can backtest multicurrency ea's in mq4 but it's a real pain..... the best deal is to just run the ea on all pairs being traded and manually combine the results..... use mq5 for true multi currency ea's..... Nikolay Kositsin is probably the worlds best in that area...... my video just shows a multi currency 'modulized' ea running...... it can place trades...

hello sir..can you share this....thanks you so much
  • #23
  • Jun 24, 2014 3:01pm Jun 24, 2014 3:01pm
you guys don't think single currency index trading can be lagging? It's similar to trading currency strength right? but by the time the strength has happened it can be a little late?
  • #24
  • Jun 24, 2014 3:15pm Jun 24, 2014 3:15pm
The proposed MTF Currency Strength Histogram is not a standalone indicator but an entry (trade) management (confirmation) tool. Trading strength & weakness is not enough, as you must have a trading system to back it up, and this is what this indicator will do for us. I will post live screenshots and trades to illustrate this in the following days.

I have no loyalty to any pair and this is why I ONLY trade strong against weak currencies, as I believe this is the key to success in forex trading. I have been working on this principle for years now but could not get a coder to develop the dashboard/histogram so I improvised by arranging 4 to 5 time frames of the LCSM.

The parameters for the dashboard/histogram is as follows:

We need at least 2 alarm points:

  1. when all time frames from say, M1 to M15 are in agreement and
  2. when all time frames from say, M1 to D1 are in agreement


These alarm points should be user selectable since we all trade differently. It should have the option to select say M1 to M30 or M1 to H4 or M30 to D1; and when all the time frames selected are in agreement, an alert is sounded that USD is weak on M1 to D1 and EUR is strong on M1 to D1. We can then match the weak currency against the strong one for a possible buy.

The 1st alarm alerts us to something happening on the lower time frame (LTF) of the concerned currencies, and the 2nd alert point is a further confirmation of possible trade(s) when the LTF is in agreement with the HTF.

The good thing about the histogram or dashboard is that you may miss a trade but you will not be in the wrong trade. When you enter a trade, you are trading strength against weakness and momentum is the result. If you are trading 2 strong currencies against each other, ranging/sideways movement is the result. Same with trading 2 weak currencies.

We should also be able to turn the alert off or have time filter, so we are not getting alerts when the market is quiet or liquidity is very low. The indicator histogram/dashboard should be able to work on any MT4 platform, whether the pair has prefix or is 4/5 digits. This is necessary in view of the upgrade with the new MT4 build where we cannot compile MQL indicators. The other variables like the MA method, price, the 8 major currencies, the slow & fast period options for each time frames should still be an option available for users to play with the settings most optimal to their own style of trading.

There is no need to over trade or trade every day and not get a life. All we need is an average of 20 - 50 pips every day and anything extra is bonus. 25 pips daily on a full lot is US$250, and this will give $1,250 for a week and $5,000 for the month. If you multiply this by 2, u get $500 per day, $2,500 per week and $10,000 per month if we make 50 pips. Think about it

The "holy grail" of trading is "PATIENCE & DISCIPLINE" which a lot of us traders don't have. This will teach us patience & discipline.

So in a nutshell, this is what I am looking for if any coder(s) is (are) interested. I will illustrate further with the screenshot I posted earlier in the next post.

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  • #25
  • Jun 24, 2014 3:50pm Jun 24, 2014 3:50pm
I will now explain how I use the improvised dashboard with my trading system:

I trade off the HTF (H4 or D1) and enter trades on the LTF (M5). I have put an MA Ribbon on my M5 chart to depict the trend of the H4 TF and in addition I have a mini chart of the H4 & D1 on the right hand side of my chart.

I look at the linear currency strength meter (LCSM) for strong and weak currencies (USD, EUR, GBP, CHF, JPY, CAD, AUD & NZD) on the HTF (H1 to D1) or even say M30 TF and want to see the M15 in the direction of the HTF. I match the strong against the weak currencies and look at my charts to ensure agreement with my setup, and if there is, then I begin to look at the M1 and M5 of the LCSM to turn in the direction of the M15 for an entry confirmation. I will enter on break of important S/R levels.

The attached LCSM shows the M1 to M30 which is summarized in the small histogram. We can see that after the London open, 5 currencies were above the zero line on the both the M15 & M30 - CAD, EUR, CHF, GBP & USD indicating strength and 3 were below implying weakness - AUD, JPY and NZD. The NZD crossed after the London open. If you match the strong against the weak we get POSSIBLE trades as follows: AUDCAD, AUDCHF & AUDUSD short, EURAUD & GBPAUD long; CADJPY, EURJPY, CHFJPY, GBPJPY & USDJPY long. I will ignore the NZD match for now as it only crossed after London open and would not have been in my trading plan before Frankfurt open. So I check my charts for the best setup in agreement with the currency strength meter and begin to watch the M1 and M5 LCSM for confirmation.

I am however 8 hours behind London and did not come into the market until about 12.35 am PST when I did my plan which takes roughly 15-20 minutes on my spreadsheet and by this time, NZD was already down on both M15 and M30, so I opted for the NZDCHF short.

I could have entered earlier but I came to the market late and the trade was still okay to enter on LCSM confirmation, with 3 important levels I would have been looking at price breaking - the daily open (DOL), yesterday daily open, where if you look left, we had initial support; and yesterday's low (yL). So I entered on break of yL with my SL above the DOL.

I will illustrate with more live examples in the following days and hope we can find some interest in building this histogram or dashboard.

Thank you
Attached Image(s) (click to enlarge)
Click to Enlarge Name: MTF Currency Strength Histogram1.gif Size: 76 KB
Click to Enlarge Name: NCH Trade1 - 6242014.gif Size: 64 KB
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  • #26
  • Jun 24, 2014 4:00pm Jun 24, 2014 4:00pm
Quoting justin7
you guys don't think single currency index trading can be lagging? It's similar to trading currency strength right? but by the time the strength has happened it can be a little late?
Why don't we try it in the next few days and see whether it is lagging or leading!!! PA remains the leading indicator but since price does not move in a straight line and will always pause and retrace, we have an opportunity to use a combination of lagging indicators and turn them into leading indicators.

Just my humble opinion, and we can prove it as talk is cheap
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  • #27
  • Jun 25, 2014 3:03am Jun 25, 2014 3:03am
Good morning:

My strong/weak currency match for the London session. Most of the weak currencies are currently strong on the M1 & M5, implying retracement on the corresponding matches and will wait for possible trend continuation before considering any trade. If trend reverses, then no trade until I find structure on the chart.

Check the charts and do your own research as this is what I currently see.

Good trading to all

Shalom

George
Attached Image (click to enlarge)
Click to Enlarge Name: LCSM as at 1226 am pst - 6252014.gif Size: 190 KB
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  • #28
  • Jun 25, 2014 2:56pm Jun 25, 2014 2:56pm
Quoting 919gilead
Good morning: My strong/weak currency match for the London session. Most of the weak currencies are currently strong on the M1 & M5, implying retracement on the corresponding matches and will wait for possible trend continuation before considering any trade. If trend reverses, then no trade until I find structure on the chart. Check the charts and do your own research as this is what I currently see. Good trading to all Shalom George {image}
Hi George! On your chart I observe a table where I can see strong/weak currency match.
It is an indicator?
Do you use that on your trading?
Based on these information that you posted, do you sell GBP/USD and AUD/JPY and do you buy eur/cad at that moment or do you need more reasons to enter on a trade?
Thanks!
Shalom
Flaviu
  • #29
  • Jun 25, 2014 3:17pm Jun 25, 2014 3:17pm
Hi Flaviu,

The table is a manual matching of the strong against the weak currencies based on the overall LCSM with more values on the HTF. I don't enter based on this information alone as I want the strength/weakness information to agree with a setup or structure on my chart that makes sense - either the pair is trending and I have confirmation to enter or is in retracement and I need reversal structure to also enter, otherwise I try to sit on my hands.

Yes based on the information, both pairs were a sell but I did not sell them because GBPUSD had bounced several times off a daily 12 EMA I use as filter and AUDJPY was above the 5 EMA I use as entry filter on the M5 TF. So there was no entry on both, rather a CT began to develop on both and if you look @ the LCSM, you will see that all the currencies showing weakness prior to start of the London session sudden developed strength and crossed above the zero signal line. At that point we cannot know whether it was a pullback or trend reversal, so we sit on our hands until the market shows its true color. This is why we need a programmer that can help convert this exact LCSM into a MTF CSM with alert.

Shalom , and God bless

George
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  • #30
  • Jun 25, 2014 3:23pm Jun 25, 2014 3:23pm
Even if we do not get a programmer that can assist with converting this baby, if we have enough interest in trading strong and weak currencies, we can always eyeball the graph and alert ourselves, based on each trader's system.

I was just going for a snooze after watching the world cup match between Argentina and Nigeria when I checked my email and saw the Forex Factory email of your question. I'm off now and may not be as active for the rest of the month but will be back by July 2nd.

Shalom
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  • #31
  • Edited 10:32pm Jun 25, 2014 4:16pm | Edited 10:32pm
Can any kindhearted programmer please assist to add an alert to this indicator, so that when all the selected time frames are in agreement, an alert will sound that H1 to D1 are moving in the same direction, as an example.

Thank you for your help.

Cheers

George


NB
Thanks guys, Fxdaytrader attended to my request on another forum, so I am stepping down the request from here and removing the indicator. Those interested in the indicator can find it here.
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  • #32
  • Jun 26, 2014 8:30am Jun 26, 2014 8:30am
Hi guys!

I will lend my experience and one major lesson learned. Something that applies to currency indexes.

The general principle from physics is.. a body on motion keeps on moving unless a force is acted on it. So you need forces of equal strength to create a 0 net balance. But if one has enough force/momentum greater than the other, then that cross will be successful. That's my current understanding ​

This is similar to "crossing the creek" / "falling through the ice" in Wyckoff's way of trading. It's just physics. In order for a currency pair to be bull or bear, one of them has to have enough momentum to cross the other.. if not it will result in a failed cross.

Here is one of my creations of this principle.

Good luck everybody!
Attached Image (click to enlarge)
Click to Enlarge Name: screen1.png Size: 69 KB
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  • #33
  • Edited 9:14am Jun 26, 2014 8:48am | Edited 9:14am
Hi Saver,

hope you will stick around and develop your advanced system with this and share your experience.

Good point on the physics.
_______________________
Over only 1y of testing and filtering...

I became a machine. Well, a farmer..

Automated system. In general I give weight of one system only on its win rate and R:R. Other stuff just cant buy me.

I would recommend to you, that you establish a system, where you could forward test the strategies inside the system.
Pretty exciting times.
  • #34
  • Jun 26, 2014 10:19am Jun 26, 2014 10:19am
hey i like currency strength meter but can you tell me a good strategy oder a thread with a strategy ?



thanks
Everyday better.
  • #35
  • Jun 26, 2014 10:57am Jun 26, 2014 10:57am
Quoting 21vs7
Hi Saver, hope you will stick around and develop your advanced system with this and share your experience. Good point on the physics. _______________________ Over only 1y of testing and filtering... I became a machine. Well, a farmer.. Automated system. In general I give weight of one system only on its win rate and R:R. Other stuff just cant buy me. I would recommend to you, that you establish a system, where you could forward test the strategies inside the system. Pretty exciting times.
Got any of your EA results posted online? I have been developing them for years as well. Found a couple that worked but I'm not confident enough to use any of them with real money. Are your EAs mainly based on the currency indexes?
Focus, Patience, Determination & Order in chaos
  • #36
  • Jun 26, 2014 11:11am Jun 26, 2014 11:11am
Quoting arlucad
hey i like currency strength meter but can you tell me a good strategy oder a thread with a strategy ? thanks
If you are a programer there are ways of testing lots of strategies right here..
Ocean of interesting strategies if you try the market few times..
  • #37
  • Jun 26, 2014 11:18am Jun 26, 2014 11:18am
Quoting saver0
{quote} Got any of your EA results posted online? I have been developing them for years as well. Found a couple that worked but I'm not confident enough to use any of them with real money. Are your EAs mainly based on the currency indexes?
I have this one on my profile. Otherwizze few hundred are forward tested in the black lab-room.

Mainly based on currency indexes yes.

Found a few which are worth to put money on. But I know we could do better.

The progress is relatively slow due to forward testing. Did you tackled the backtesting problem with multi-currency systems?
  • #38
  • Jul 2, 2014 1:39am Jul 2, 2014 1:39am
Hello Traders,

The month of July is upon us and this is wishing all great pips

I have found an alternative to the currency strength histogram/dashboard (at least for now), and thanks in part to zznbrm. The Currency Slope Strength True indicator shows the strength/weakness values on each TF, thus giving a visual highlight of currencies strong/weak across selected TFs. I wish the fonts could be increased but the MQ4 version of the indicator which can be found here is not provided.

I have therefore improvised by placing the M1 to M15 TFs of the indicator on my chart, looking to match currencies showing consistent strength/weakness across these TFs, or using them to confirm entries on the currency pair of interest.

Use at your own risk and as always do your own research

Shalom

George
Attached Image (click to enlarge)
Click to Enlarge Name: Currency Slope Strength - 7012014.gif Size: 104 KB
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  • #39
  • Jul 2, 2014 1:54am Jul 2, 2014 1:54am
This was my 1st test of this session and closed the trade when price stalled at the S1, and now price has reversed (or retraced back to its daily open), and this is why I added the M15 CSS instead of using just M1 & M5 CSS
Attached Image (click to enlarge)
Click to Enlarge Name: EU Trade1a - 7012014.gif Size: 70 KB
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  • #40
  • Jul 2, 2014 2:16am Jul 2, 2014 2:16am
2nd trade - Now I entered based on M15 & M1 confirmation, not a perfect one because M5 is not in alignment with the others but price will still move and if M5 joins, then I will remain in the trade otherwise I take whatever the market gives
Attached Image (click to enlarge)
Click to Enlarge Name: EJ Trade1 - 7022014.gif Size: 246 KB
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