Apologies, I meant never 'closed' a negative basket in the 4 week period
Thanks for your contribution, it looks promising. Relative strength of currency pairs is one of my go-to tools in analyzing what trades to take. Namely CFP and Complex pair, as in the *484 article on MQL4 site.
A least in tradestation USD index is a standard symbol
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Another one of my many ideas. I've gone through too many ideas but like every experienced trader, just by reading or seeing a strategy you quickly come to know if a strategy has legs and decide to spend time on it.
Is it possible to automate this? Its an easy question but not so easy to code.
Attached is a 4hr chart of USD index with RSI crossing MA. Its from another charting software. MA is red.
Currency indexes are not available in MT4 via current brokers. And thats the challenge. I have read many attempts at basket trading to determine strength etc, and some are good but I believe as long as you try to reproduce currency strength within MT4, you are going to be a step behind before you start due to the nature of MT4.
So the attached index chart is reliable data from the US exchange. Its as accurate as you can get it in the retail world.
When RSI crosses MA down on the index, in MT4 sell basket of USD and buy USD basket when cross up. I use 4h chart as it gives enough time for the FX pairs to level out. However for shorter term basket in and out, although not tested, I would say 1hr index chart would still be profitable.
Check for yourself. Look at the US index chart attached, then go to the 4hr charts of the USD pairs for the same time. You will see the correlation.
Attached is my manual trades for a period of 4 weeks on a demo of 50k account using 0.5 lots. In the 4 week period, I never had a negative basket. Highest DD was 8%. Pairs traded were USD vs AUD,GBP,CHF,EUR,JPY,CAD and gold. You could add more but I was happy with a few. I didnt have a TP but chose to manually close the basket when I was happy with the total balance.
12% return for the month
Of course the EA (if feasible) would have the usual MM to take care of TP/SL/BE and so forth. I'm sure this can be further enhanced, filtered and whatever else that can be thrown at it.
What do you think?