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Suggestions for Trading System - page 13

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Boyan Taksirov
977
Boyan Taksirov  

There are many strategies about using currency strength(forex index) in trading. I am trying to automate such a strategy. But before to continue, I have to mention the following:

In fact many indicators that pretend to measure currency strength actually, don't do exactly that. There is a widely accepted formula for currency strength measurement. It is explained here:

https://www.dukascopy.com/swiss/english/marketwatch/currency_index/

I, personally, am very suspicious about different "secret" formulas that pretend to enhance currency strength measurement. So, in my trading strategy idea I'll adhere to the classic formula of currency strength.

Forex is not about currency pairs - it is about currencies, each of them represents a separate economy, financial and political strength and so on. A currency pair is a combination of two movements, two tendencies, not a one.

So in very basic terms - if we combine an up trend for a currency with a down trend for another, we would increase our chances for a positive outcome. The problem here, is that there is a some sort of correlations between currencies. Considering the trend example - very often when one currency trend reverses, the other currency trend going in the opposite direction reverses too. So, there should not be a negative correlation between the currencies we choose to trade against each other. 

So, the automated strategy should:

  1. Calculate forex index historical data of each currency.
  2. Find trend or tendencies in these indexes.
  3. Apply correlation algorithms.
  4. Combine these tendencies that are opposite and not too much negative correlated.
It would be nice if this is a good starting point for a discussion.

Sergey Golubev
Moderator
99056
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read

Sergey Golubev, 2017.09.16 05:48

Expert Advisor Programming for MetaTrader 5


This book will teach you the following concepts:

  • Learn the basics of MQL5, including variables and data types, operators, functions, event handlers, and object-oriented programming.
  • Place, modify and close market and pending orders.
  • Calculate, verify and add stop loss and take profit prices to an open position.
  • Add a flexible trailing stop and/or break even stop to your strategy.
  • Manage your trade risk with money management.
  • Use pending orders to scale in and out of positions.
  • Use price, time and indicator data in your expert advisors.
  • Control program execution by trading on new bar open, and add flexible trade timers to your strategies.
  • Walk through the creation of several basic trading strategies from start to finish.
  • Inform the user with dialog boxes, email alerts, mobile notifications and sounds.
  • Draw trend lines, arrows and text labels on the chart.
  • Read and write data to CSV files.
  • Learn the basics of creating indicators, scripts and libraries in MetaEditor.
  • Debug, test and optimize your trading strategy.
  • And much more!

Whether you’re an experienced programmer moving from MQL4, or a novice just starting with MQL5, this book will give you the foundation to quickly program fully-featured and robust trading systems.


Sergey Golubev
Moderator
99056
Sergey Golubev  

Requests & Ideas

The beginning

  1. Requests & Ideas, the beginning - the thread  
  2. Suggestions for Trading System thread 

After

  1. Requests & Ideas (MQL5 only!) - the thread
Sergey Golubev
Moderator
99056
Sergey Golubev  

And just to remind about the following Freelance services:


Sergey Golubev
Moderator
99056
Sergey Golubev  

Interesting thread (with some codes): 

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I have a lot of open positions.How can I closeall at the same time?
Michele Manenti
475
Michele Manenti  
Work manually, there is no better TRADING than that done with eyes and hands.
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