relative currency strength trades

Discussion in 'Trading Journals' started by hayseed, Dec 19, 2012.

  1. hayseed

    hayseed Master Trader

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    in 2007 simeon semenych introduced us to his cluster indicators..... at first glance the original cc indicators might look confusing.....


    over the years they have been modified by many...... including me..... the credit for any code here, even if written by me, should go to simeon, also known as semsemfx.....

    //----

    opened a new fx account with etradefx for this deal..... only put in 2000, as that's my loss limit for new ea's..... etrades platform is not metatrader, so the ea will run on ibfx and i'll manually place the trades on etrade.....

    opened 2 trades tonite due to 2 new signals..... usdcad buy and audcad sell.... in the purist sense, those trades might be considered conflicting......

    i will post the ea along with quite a few of semsem's indicators..... both his original and modified versions later.....

    this is not a set in stone ea..... it usually takes months before completion.... or deletion......

    the rough idea is to trade the new currency cross.... see picture below...... of course this should have most, if not more, of the weakness's common to any moving average system......

    what i have done is to take semsem's math and apply it to the 15,30,60,240, and 1440 timeframes.... the results then are sorted in decending order and displayed on the chart..... they are updated on every tick.......... below each timeframe are the pairs.... each pair is colored as to buy or sell, blue or red on it's particular timeframe..... to the right is the word itself.....

    occasionally there will be a new cross at which point a 'new buy' or 'new sell' will be displayed..... see chart below..... these new buys/new sells will be my focus for now...... possibly lookin at adding others already in the existing buy or sell status.....

    some sort of confirming indication will be beneficial..... pallada, tsr, tdi-sig, are a few that come to mind..... hopefully would reduce the signals to the cream of the crop......

    it's not a new idea by any means and has been attempted by others on other forums before..... as mentioned, this thread should be considered nothing more than a work in progress.....

    still learning etrades platform.......h

    //----
    12/23/12 11pm, adding 4 indicators..... the CC and CCFp are semsem's original.... CC finimej and CCFp finimej are finimej's adaptations.......
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    12/24/12 7am note on finimej versions..... the finimej versions will work on ibbfx mini account..... they are also set to only show 2 lines by default.... if you want to all the lines change using the finimej versions change the first input 'ShowOnlyPairOnChart ' to false.......

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    1/1/13 6:30pm..... happy new year..... uploading the dashboard in first draft form.... this is far from finished and in no way meant to be taken as a stand alone reason to buy or sell..... it's just one piece in the thousand piece forex puzzle......

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    Last edited: Jan 10, 2013
  2. hayseed

    hayseed Master Trader

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    correct settings

    in the previous post was an audcad chart with green lines denoting the crosses as reflected by the top indicator..... you can see the crosses are quite a bit late alerting us of the move....

    that was my error.... i'm traveling now and must have clicked on improper settings.... so let's blame it own priscilla's wreckless driving....

    the chart below has the correct settings, but left the lime lines as they were so as to see the importance of settings....

    just by chance a new signal alerted on the audcad 30 minute..... when lookin at it i noticed my prior error.....

    this new trade will not be taken.......h
     

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  3. capsmart

    capsmart Active Trader

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    Thank you for your post. Since you programmed all this you will also understand the logic behind it. I assume that in order to calculate the strength of (let's say) CAD you will use all the available CAD pairs. Do you put the same weight to usd/cad and aud/cad or somehow the usd/cad is more important for your calculations than the other cad pairs.
    Mataf is creating charts with currency strengths. How close is you chart to mataf's.
    Regards
     
  4. hayseed

    hayseed Master Trader

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    math

    hey capsmart..... are you familar with kostas1 over on forexfactory..... he is from greece also.....

    when speakin of semsem's cc indicators, there are 2 main ways the charts are created..... both methods use all the pairs.... here would be the aud strength using the method i prefer......

    Code (Text):

               aud = (audusdfastma / audusdslowma - 1.0)+(eurusdslowma / audusdslowma / (eurusdfastma / audusdfastma) - 1.0)+
                       (gbpusdslowma / audusdslowma / (gbpusdfastma / audusdfastma) - 1.0)+(audusdfastma / nzdusdfastma / (audusdslowma / nzdusdslowma) - 1.0)+
                       (audusdfastma * usdchffastma / (audusdslowma * usdchfslowma) - 1.0)+(audusdfastma * usdcadfastma / (audusdslowma * usdcadslowma) - 1.0)+
                       (audusdfastma * usdjpyfastma / (audusdslowma * usdjpyslowma) - 1.0);
     
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    over the years i have substituted almost every indicator possible.... this includes every known method of moving averages........ but also, rsi, stoch, macd, wilr, and dozens more....... such as summing the rsi's on all timeframes on all pairs ascociated with the aud.... then plotting that on a chart with the same done for all currencys....


    mataf's deal is similar, but of course we can only guess at his math....

    there are many other currency strength indicator/meters out there..... mladen has a real nice one..... ferrufx has another...... there is another, can't recall the name, that's commonly seen for sale on the net..... it's easy to reproduce in mq4.....

    each method has it's own strengths and weaknesss also.....h
     
    Last edited: Dec 19, 2012
  5. hayseed

    hayseed Master Trader

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    prefered strength

    when lookin at just numbers it's kinda hard to draw any tradable conclusions..... we need more....

    take for instance the audcad.... again this morning 2 more audcad short trades were alerted to.... on the 240 and 1440 charts..... see picture below.... those trades were not taken.....

    the reason..... even though the cad was at least temporarily stronger than the aud, both are weak over all..... note in each timeframe both lines are falling, with one falling faster..... so we would be attemting to trade the weaker of the weak..... it would seem best to pass....

    there is strength and there is prefered strength.....h
     

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  6. capsmart

    capsmart Active Trader

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    Excellent work hayseed !!!
     
  7. hayseed

    hayseed Master Trader

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    new trades

    several new trades today...... some others were pased on...... several trades were placed considerably after the signal due to my not being familar with etrades platform......

    odds are i'll be takin some trades just to practice the platforms mechanics.....

    few if any of the lower timeframe signals will be acted own..... probably just 60, 240 and 1440.....h

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  8. capsmart

    capsmart Active Trader

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    Hi Hayseed
    I sent you a PM.
     
  9. hayseed

    hayseed Master Trader

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    sharing

    hey capsmart and all others.... yes i plan to share everything.... i mainly code for the ibfx mini platform which uses different symbols.... they use a suffix 'm'...... so i must recode the indicators and ea to accept non-ibfx symbols......

    we post everything asap.....

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    after only 6 trades it's clear a more precise entry is needed.... or perhaps a far more selective one.....

    capsmart has suggested something along the line of pinbars..... i like that idea.....h
     
  10. hayseed

    hayseed Master Trader

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    trade what

    the pictures below should include, usdnzd, audcad and eurnzd..... each should have a version of the ccp along with arrows, rectangles and triangle at same locations......

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    seems like most everything written on trading relative strength says buy the strongest and sell the weakest...... their definition of strongest and weakness does seem to vary a bit.....

    to me, that does not seem the correct path...... or least when using the cc indicators......

    there were quite a few audcad sell signals last week..... most were passed on for the reason mentioned in post 5...... 2 trades were taken..... those audcad trades were very poor examples of using the cc indicators.......

    in the pictures below you can see yellow arrows..... those clear crosses with decisive trajectory, at least in my mind, are where we should focus.....

    there are also 2 rectangles marking 2 currencys...... tracing those, you can see an occassional cross but overall they are just kinda lollygagging along...... last week the audcad was similar.....

    the strongest at the beginning of last week ended up the weakess in the end...... the nzd..... the real money would have been made, not by buying the strongest, nzd, but by trading the crosses.....

    of the cc and ccfp, the cc is the more sensitive..... if you zoom out on the chart you'll see...... this faster response should be usefull........

    still studying on it.......h

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  11. capsmart

    capsmart Active Trader

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    Right now the market is very thin. Any signal could just be market noise.
     
  12. hayseed

    hayseed Master Trader

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    symbol only

    in the charts above, the arrows were just pointing out the crossing of various lines..... each line represents a particular currency, not pair....... it would not matter which pair the indicator happened to be on.....

    with so many lines it can look confusing...... some people will only want to look at the currencys involved with the charts pair ...... such as, if the chart is of the eurnzd they would set 'eur' and 'nzd' to true in the inputs and everthing else false...... the result is the eurnzd chart below....

    the more you use them, the less intimidating the indicators become......h

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  13. hayseed

    hayseed Master Trader

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    slow

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    hey capsmart...... yes..... there have only been a handfull of signals this evening so far......

    my relative strength trading for the next 10 days will be very light..... more interested in getting a trade producing ea here.....

    usually when testing a ea, i'll just throw it in a ibfx mini with 0.01 lot sizes and see what gives..... that's kinda reckless but at a penny a pip, losses can't hurt much.....

    the etrade account is 1$ a pip, so i must be carefull......h
     
  14. capsmart

    capsmart Active Trader

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    If you do not have much time, post the ibfx indicators and I will take care of the code modification.
     
  15. hayseed

    hayseed Master Trader

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    ibfx mini

    hey capsmart...... the finimej versions will work on both ibfx mini or any standard symbol...... semsem's originals will only work on standard symbols.....

    from this point, everything posted should work on both..... except for any original semsem version...... he has 2 more that i have not posted......

    i'm still on the road for holidays, will post and explain more asap...... including the non-trade producing ea...... it's a manual deal now....... the trade producing version will be later......

    still studying on it......h
     
  16. capsmart

    capsmart Active Trader

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    Thank you. I downloaded the indicators and looking at them right now. It would be nice to have the large dashboard because of the different timeframes. The four indicators look and "feel" pretty much the same so I will be waiting for more info. Have a good time.
     
  17. hayseed

    hayseed Master Trader

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    dashboard

    hey capsmart..... will upload the dashboard 'as is ' tonite......

    the code is still in draft form..... i've included comments in the code at the begining of the various sections...... the final result will be reduced to 1/4 in size....

    speakin of size, it's written to exactly fit this laptops screen size..... so if your screen is smaller, it will be to big..... i do this so it will be small on my larger desktop monitors.....

    until the code is cleaned and reduced to final size there will be the risk of it hosing up your computer or possibly making it sluggish..... a picture below is showing task manager.... my cpu usage bounces from 0 to around 15 %....

    occasionally while testing/coding, i will run 4 or 5 versions at the same time with no trouble......

    when first attached it will pull a lot of data, so expect some lag then...... the math is coded in so there is no icustom call.....

    //-----

    the trade producing ea is still in the works..... last week it sent about a dozen trades, only 1 lost...... still not pleased with it....

    there is a need to filter the trades and place entrys better..... a perfect example is in the chart below.... you can see a new eurgbp sell..... now that trade might win but will be filtered out.....

    still on the road for the holidays ...... studying on it......h

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  18. hayseed

    hayseed Master Trader

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    brief explanation

    brief explanation of the Currency Strength Sorted.mq4 in first post.....

    it should work on both ibfx standard and mini accounts along with most metatrader platforms with other brokers..... as far as brokers with odd symbols, it will not work......

    it's a non trade producing ea..... it goes in the experts folder..... it does not require any indicator.....

    it's based on semsem's indicators..... all credit should go to him......

    the trade producing version will follow...... but not until i'm satisfied with it.....

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    there are a couple math methods used in his indicators..... i broadly separate them into the method using (-1) and the method not using (-1)..... this is the reason you'll see different values between indicators.....

    i have chosen to use the (-1) method which is encoded into the ea..... so no icustom is calling any indicator.....

    it sorts the values on each timeframe..... provides indications based on those values..... a new buy or new sell is displayed on a cross of the lines..... otherwise the relationship of the lines is displayed with buy or sell..... not meaning to buy or sell anything.....
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    important note on the audio alerts...... i trade strictly from multi symbol multi timeframe ea's attached to one chart..... most will know what that means, but for those that do not, it means from a single chart the ea's can place trades on every symbol on every time frame.....

    usually, i will have alerts for every timeframe, 15 minute up , on every pair..... usually i run them on the 15 minute chart..... as you might imagine unless restricted they can be annoying..... so i limit them to only 1 per charts timeframe.....

    the Currency Strength Sorted probably will work best on a 15 minute chart.....

    while playing with the kids at christmas, i put in the rotating colors on newbuys/sells..... like christmas lights..... so, merry christmas.....

    //-----

    as mentioned in the first post, this is far from finished and in no way meant to be taken as a stand alone reason to buy or sell..... it's just one piece in the thousand piece forex puzzle.............h

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  19. hayseed

    hayseed Master Trader

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    cc version

    wrote a second version based on the CC indicator in the first post...... the CC indicator itself gives a faster response..... as you would expect, the new dashboard gives quicker signals ...... naturally this will also give more false signals...... it's the typical trade off........

    the newer version would possibly be best used as in adding new positions to existing profitable positions...... or in taking partial exits......

    a good example would be the usdcad today..... the CCFp version still shows a sell, while the new CC version shows a new buy on the two lowest timeframes.... the CC indicator is the lowest indicator in the chart below..... the second indicator from the bottom is the CCFp......

    i took both those trades just to test......

    still studying on it.......h

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  20. hayseed

    hayseed Master Trader

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    daily changes

    over half of the pairs switiched daily signals today according to the second version mentioned in last post..... the original version, which is of course slower in response, only has 3 daily signal changes.....

    took the usdcad buy..... it has been coiling within 50 pips almost this entire month..... that tight coil will break.....

    now as for break which way and how far, that's anybodys guess.....h
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