Many traders and analysts are puzzled by this question. The problem is that it becomes ineffective to analyze the price with the help of the price. Modern markets are little-predicted, the efficiency of techniques is close to 50%. When we find a pattern, we start to test it diligently, go to large samples of data and find that the pattern works in cycles, and the alternation of cycles is more like chaos. That remains, seek a new a near certainty?! No, this is a past stage, this approach leads to retraining and is usually not able to work in the future.
There is a way out-to attract new information that really carries a semantic load for the future movement of financial instruments.
Options here can be many, choose more-less real:
- News
- Data on optional levels
- Trump's Twitter
- Quotes of another instrument
- Informed friends
- ...
It was decided to use the data of other symbols as new data. Fortunately, the capabilities of MetaTrader 5 allow multi-currency testing, which opens up new horizons of trading strategies. The idea was to take quotes of 8 popular currencies and build an index. Coefficients in the index to pick up using a neural network.
The result was so amazing that the results were rechecked many times, just could not believe in the absence of errors. There were no errors, indeed, the resulting index perfectly (in the understanding of real traders) predicted the future movement. With the help of the obtained index, it was possible to create a trend indicator that gives a constant profit when trading always in the market(we can not close a deal, we always either buy or sell). And this is at an interval of 10 years and more than 3000 transactions for each of the 8 instruments.
The results required tests in combat, real-world conditions. Adding entry on limit orders and a simple stop loss and take profit, we launched the Investor project. Undoubtedly this is a challenge, as all previous experience screams that the system, trading always, are not able to make a profit in the volatile world of Forex.
Time will tell...
- A small real account to debugging and test: https://www.mql5.com/en/signals/621319
- Demo account for study multicurrency symbiosis: https://www.mql5.com/en/signals/621016
