FLASH CRASH DIAGNOSYS BY EA - page 2
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what do you think about each movement more than 500 pips a day on any pair as suspicious movement/
that's the whole question.
why 500 pips? why not 120?
you can't generalize a calculated/watched value to other pairs, and even to the same pair for all time periods.
i.e a (daily) movement of X pips can be a realistic/normal for a pair, not for another pair. or the same X pips can be a suspicious move but not in some weekdays of some months.
so you can't come up with a valid hard number, and use it as a crisis detector threshold. but probably some set of normal-ranges for each pair you'e interested in trading.
A 'flash crash' is not x pips a day, but x pips a second, or milliseconds.
You can process all bars, pull the average, double it, and use that as a maximum for sending out extreme movement alerts, or to blow an emergency fuse.
that's the whole question.
why 500 pips? why not 120?
you can't generalize a calculated/watched value to other pairs, and even to the same pair for all time periods.
i.e a (daily) movement of X pips can be a realistic/normal for a pair, not for another pair. or the same X pips can be a suspicious move but not in some weekdays of some months.
so you can't come up with a valid hard number, and use it as a crisis detector threshold. but probably some set of normal-ranges for each pair you'e interested in trading.
biggest daily movements related to GBP pairs specially GBPNZ i think GBPNZD can be our milestone. it have have even 700 pips daily movement in normal market condition.
but as you know flash crashes as a whole are more than 1000 pips in even a few minutes.
A 'flash crash' is not x pips a day, but x pips a second, or milliseconds.
You can process all bars, pull the average, double it, and use that as a maximum for sending out extreme movement alerts, or to blow an emergency fuse.
that is completely right.
i have tested some flash crashes and seen that most of crash occurs in 2 or 3 minutes as a whole .
after that market will start to come back. fast or slowly.
for example eurchf flash crash on some brokers made some huge gaps with a few price points between them , and on another brokers made some huge m1 candles.
with or without some gaps between them.
for example a 114 pip downward move on 1st m1 candle ...then a 250 pip candle... etc...
in case of brokers with huge m1 candles:
i think if we divide this number to 60 seconds we can get result of 114pips/60seconds: 1.9 pips a second as an average but i know this is not
exact number because in a non flash crash , market can move even 20 pips or more in 1 second candle . and also in a m1 candle all s1 candles
can not be exactly the same number of pips.
for example 1st s1 : 5 pips
2nd s1: 15 pips
3rd s1: 1.8 pips
etc...
CAN YOU GIVE ME AN EXAMPLE.?
It differs if you are looking at the matter on MT4 or MT5.
If you look at the event on MT5 you will usually find a higher resolution of ticks and candles.
This is where MT5 really excels.
It boils down the the quality and stability of the price feed in combination with the stability and speed of the network connection.
You would expect that if it is a fancy big brokerage, they would have the necessary capacity to handle such event.
But the reality is the more terminals there are on the server, will mean many more entry and exit triggers to process.
That takes time and the server can begin to stutter due to the overload of all triggering stops and new trade requests.
The huge price gaps you mention could be a result of a freezing server, if you know what i mean.
You don't need to calculate exact numbers, in radio there exists a technology called AFC which stands for Automatic Frequency Control.
It's a self calibrating system. and you can code something similar for a price feed.
It will calculate the values between what always happens, what usually happens, and what rarely happens.
Then you can just set the number of (near) events you want to receive to adjust how close it operates to a trigger.
You can make (and lose) a lot of money on these types of events, but (un)fortunately they do not happen very often.
You can try however, and i will give you this 4Free, to trade the Friday dump, or Friday event call it what you like.
This event usually happens every Friday and is an excellent example for starters.
See if you can find the differences between the first week of the month and the last week of the month, and seasonal influences and etc.
It boils down the the quality and stability of the price feed in combination with the stability and speed of the network connection. + the bank that provided liquidity for our brokerage.
The huge price gaps you mention could be a result of a freezing server, if you know what i mean. but they (brokerage) claim that this is related to their liquidity provider and their price feeds.
there is another problem too , i can see even big brokers with decades of experience in the marketplace have made price gaps in their charts. while there isn't any price gap on smaller brokers
on that special pair at the same time.
and vice versa another times small brokerage made a gap between prices and bigger brokerage doesn't have it. (there is not an exact rule here.)
also even on a big and important event like chf flash crash there is a difference in price change among different brokerages. for example 2300 pips in broker A , 1900 pips on broker B. etc...
You don't need to calculate exact numbers, in radio there exists a technology called AFC which stands for Automatic Frequency Control.
It's a self calibrating system. and you can code something similar for a price feed.
It will calculate the values between what always happens, what usually happens, and what rarely happens.
Then you can just set the number of (near) events you want to receive to adjust how close it operates to a trigger.
You can make (and lose) a lot of money on these types of events, but (un)fortunately they do not happen very often.
can you explain more and send me that code .
can you explain more and send me that code .
I thought that i said it all right there.
Even the graphics.
I thought that i said it all right there.
Even the graphics.
i mean about that program code specially
and its code called AFC
Yes you may have to design that.
do you have any idea .?
please let me know then we can work on it together .