Currency Strength Deviation Basket Trading

Currency Strength Deviation Basket Trading

24 March 2018, 17:18
Julian Lo
0
1 270

You must have Advanced Currency Strength28 and Pipfinite Volume Critical to run the Deviation EA.


Deviation is defined as the distance between  the base currency strength and the quote currency strength.  When the distance becomes too large, the 2 currencies will eventually converge into either a pullback or a trend change.  The pullback could be small and then a continuation of the previous trend direction.  The pullback is predictable and this is the premise for this dashboard EA.  Entry can never be at the exact turning point, therefore, I apply the grid strategy from the EA, i.e. cost averaging.  Here is a setup screen shot.  Follow the red dash line for a short.  Notice the price bounced up from around 50SMA and continued its uptrend.  The solid cyan and magenta lines are the GAP lines (iGap).  You can trade both directions with ACS28, but here we are talking about the counter trend strategy.  For trend trading, read my blog here https://www.mql5.com/en/blogs/post/717032

Deviation


As you can see those deviation lines signal pullbacks quite accurately.

CS Deviation



Deviation trades

Once the same setup occurs in more than one currency pair, you get a basket.  Here is a basket of two openng trades.  Let ACS28 deviation select the basket for you.

deviation basket


3_24_2018. Live deviation EA performance. Update daily

This account increased 50.1% from the initial deposit $982. Borrowed $2000 from another account just in case but was never needed it for margin.

deviation live


deviation monitor


3_26_2018  A typical trade in progress

Deviation live


4_19_2018  Not all pullbacks are created equal.  This is when manual closing and stopping trading become necessary.

pullbacks


Can you guess when is the best time to short for this pullback?  You can't.  That is why you try a few times to average your cost.

cost averaging


5_23_18

harmonic

Started scalping knowing the harmonic pattern was supporting long and it was strongly over-sold

5_23 eurjpy


5_25_18

With harmonic patterns, deviation criteria can be relaxed.

harmonic entery

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