An effective trading strategy based on multi-currency analysis of multiple DCs - page 8

 

As an example, I can show a graph for two instruments on M5: pink line - close USDJPY, blue line - trend from close USDJPY, black line - close USDSEK, red line - trend from close USDSEK. In principle, the trends can be replaced by moving averages, the picture will be similar. This example shows how multicurrency analysis can be used by those who work only with standard indicators, and who do not use more complex systems for analysis. If we trade on the USDJPY, using the second instrument as an auxiliary one, we can see reversal points much earlier and more clearly than when using different indicators on one instrument.

Probably, in this case it is an accident but the idea is very interesting. What can be a significant cross-correlation with the shift between the yen and the Swedish krona - I do not understand. One could try to analyse the charts of instruments logically belonging to the same foundation group - say, the Singapore dollar with the yen or all krones with each other (that's just an example too, I haven't analysed it myself) for interest. Or, say, the rand with gold. ...
 
Mathemat:

As an example, I can show a graph for two instruments on M5: pink line - close USDJPY, blue line - trend from close USDJPY, black line - close USDSEK, red line - trend from close USDSEK. In principle, the trends can be replaced by moving averages, the picture will be similar. This example shows how multicurrency analysis can be used by those who work only with standard indicators, and who do not use more complex systems for analysis. If you trade on the USDJPY, using the second instrument as an auxiliary, you can see the reversal points much earlier and more clearly than when using different indicators on one instrument.

Probably, in this case it is an accident but the idea is very interesting. What can be a significant cross-correlation with the shift between the yen and the Swedish krona - I do not understand. One could try to analyse the charts of instruments logically belonging to the same foundation group - say, the Singapore dollar with the yen or all krones with each other (that's just an example too, I haven't analysed it myself) for the sake of interest. Or, say, the rand with gold. ...

Afternoon.
interesting topic.

I agree that JPY and EUR are not related
Confirmation of the current uptrend in USDJPY and EURUSD

USDCHF + (EURUSD GBPUSD) is one of the interesting patterns

you could try

USDCHF + (EURUSD GBPUSD GOLD)

more at

(USDCAD USDCHF) + (EURUSD GBPUSD GOLD ) etc.

sometimes it is enough to use USDCHF + EURUSD

If we are talking about indices, you may try to correlate a group of pairs
The search space is large


It's a pity the tester does not support multicurrency
it may take long time to test it in real time
 
YuraZ:
Too bad the tester does not support multicurrency
it takes a long time to test in real time
I also thought for a while that it didn't. I was wrong. There is no problem to perform such analysis on history - everything works fine.
 
timbo:
YuraZ:
Too bad the tester does not support multicurrency
in real time test long enough
I also thought for a while that it didn't. I was wrong. There is no problem to perform similar analysis on history - everything works fine.

I know that you can read quotes of other pairs in parallel
but
1-reading the main pair you read "full" stream i.e. let's say you test EURUSD H4 with H1 M30 M15 M5 M1
but reading USDCHF will be done only with H4 which does not give a complete picture
(maybe I'm wrong - if so, give me an example)
2- besides, you cannot perform operations on several pairs simultaneously

3-authentic hedging strategies testing
 
Is this black chart a MT chart but not in a bar chart or did you draw it on the Metatrader chart? I think you drew the chart of the second pair on the USDJPY chart in the form of lines connecting the close?
 
YuraZ:
I know you can read other pairs' quotes in parallel
You can read any currency on any timeframe from any chart. Just do not read the Close of zero bar of alternative currencies (in relation to the currency of the chart) and everything will be mature.
Trades in other currencies may not be opened, but it is (1) not necessary for 90% of the idea development, (2) there are alternative ways for the remaining 10% - see Kim's forum and Roche's posts from the last championship. So, the toolkit is there and it is good enough. Maybe we would like it to be better, but even the facilities are good enough to work with. And complaints about the lack of multicurrency are left-wing excuses.
 
2 Piligrimm

As an example, I can show a chart for two instruments on M5: pink line - close USDJPY, blue line - trend from close USDJPY, black line - close USDSEK, red line - trend from close USDSEK. Basically, trends can be replaced by moving averages, the picture will be similar.

Explain pls what you call trends and how they are constructed.
Judging from the quote, they are not moving averages, so I wonder what they are.

2 Mathemat

Probably, in this case it is still accidental, though the idea is very interesting. What significant cross-correlation can there be with the shift between the yen and the Swedish krona - I don't get it.

It's probably not a fluke after all. Correlation may well be there as these are not currency charts but crosses and both crosses to the dollar.
In a situation where the yen and the krone are standing and the dollar is falling, the charts are bound to behave similarly. But the nature of the outperformance can probably vary. Depending on the session, time of day, or any other circumstances. You can see on the chart that some advance of the yen changes into the advance of the crown.

If these charts behave differently, it means that the yen-krona cross rate is changing.
 
419
Mathemat 06.05.2007 05.05.27

For example: pink line - close USDJPY, blue line - close USDJPY trend, black line - close USDSEK, red line - close USDSEK trend. In principle, the trends can be replaced by moving averages, the picture will be similar. This example shows how multicurrency analysis can be used by those who work only with standard indicators, and who do not use more complex systems for analysis. If you trade on the USDJPY, using the second instrument as an auxiliary, you can see the reversal points much earlier and more clearly than when using different indicators on one instrument.

Probably, it was an accident in this case but the idea is interesting. What significant cross-correlation there could be with the shift between the yen and the Swedish krona - I don't get it.

This is not an accident, you just need to get rid of stereotypes and start doing research where it seemed quite obvious that there will be no useful results.

I cannot say anything about the tester, I have never worked with it, and I've never been interested in its use.

379
elritmo 06.05.2007 12:18
Is this black chart a MT chart but not in the form of bars but in the form of lines or did you draw it in the Metatrader chart? I think the second pair chart was drawn in the USDJPY chart in the form of lines connecting the close?

I did not draw anything myself, both green and red lines are charts that MT draws as close lines, I only rescaled the USDSEK close chart, and put it in the USDJPY window.

125
Yurixx 06.05.2007 15:15
2 Piligrimm

For example: pink line - close USDJPY, blue line - close USDJPY trendline, black line - close USDSEK, red line - close USDSEK trendline. In principle, trends can be replaced by moving averages, the picture will be close.

Explain pls what you call trends and how they are constructed.
Judging from the quote, they are not moving averages, so I wonder what they are.

I don't use and have never used indicators. I get trends by vyvelet transforming initial signals.


I can offer you a couple more pictures.
On the AUDUSD M5 chart, I rescale it to show close EURUSD - red line, blue line - trend from close AUDUSD, yellow line - trend from close EURUSD.





In case the above chart is rescaled to fit GBPUSD, we'll get the following picture.




Here green line is close GBPUSD, pink line - close AUDUSD, close EURUSD - red line, blue line - trend from close AUDUSD, yellow line - trend from close EURUSD.
That the first point of yellow and blue intersection shows the end of a bearish trend, everyone can see it by looking at the previous history, and the second point of intersection will show the end of a bullish trend and the beginning of a bearish one, after a few hours, waiting for the trading session to start.
If you focus on these signals, you can easily take 60 pips from GBPUSD during a day trade, taking into account that no complicated analysis systems are used here, it is not so bad.
All the pictures above are not a coincidence, the trends are the same on other stretches of history. I have been dealing with multicurrency analysis for 3 years and obtained various very interesting results, and I would not make waves if I was not absolutely sure about the correctness and effectiveness of the chosen direction.
The last chart shows how closely different instruments are related, you can analyze one and use the other to trade, and even in this case you can make a correct decision, not to mention that if you use the information correctly, and not for 2-3 instruments, but for 15 or more, a good expert system can give high-quality forecasts of market behavior for a long interval in the future.

I hope the number of those who are skeptical about multicurrency analysis decreased, and the results will help someone to find an effective trading strategy.
 
Piligrimm

I hope the number of people sceptical about multicurrency analysis has decreased, and that the results will help someone to find his or her own effective trading strategy.

I have to hand it to you, it's a very interesting and meaningful idea.
And the vyvelet transformation looks very constructive. Gotta get the hang of it.
Bravo!
 
Piligrimm:
I hope that the number of those sceptical about multicurrency analysis has decreased, and that the results will help someone to find his or her own effective trading strategy.
I think the skepticism was in relation to the multicurrency analysis. No one ever thought to criticize the multicurrency analysis, on the contrary, it is quite effectively discussed in the next thread. And I myself have sinned drawing different charts and calculating correlations of different currencies and I got something so interesting, that I even don't understand it yet ;-)
Reason: