Trade101 multi-currency indicator - page 7
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It is not clear what principle is used to form a portfolio of 14 pairs. There are pairs with forward and reverse quotes. Could they be moving in the same direction? What makes it happen?
And if it is not so, how can they be bought or sold at the same time? I have no experience with portfolio strategies - please explain.
After scratching my head, I think I've started to get the gist of the method. The original sets of pairs:
1) it's short in the original:
GBPUSD EURGBP GBPCHF CHFJPY AUDJPY EURJPY USDCHF (6 currencies / 7 pairs)
2) long:
CADJPY AUDUSD USDJPY EURUSD EURCHF GBPJPY USDCAD (7 currencies / 7 pairs)
Some currencies within sets of pairs are traded inversely, performing reductions within sets and making some assumptions (about the equivalence of lots, etc., and for the sake of clarity, calling these lots by portions) we transform our sets into (- means sold, + bought, the figure - the number of portions):
1) -GBP, -2*EUR, +CHF, -AUD, +3*JPY
2) +GBP, +2*EUR, -CHF, +AUD, -3*JPY
As expected, and it was obvious from the start, - full balance. But these transformed sets are easier to analyse and understand what, how and why.
- The USD is "hedged" within the sets due to unpredictability;
- JPY is the main driver of JPY sets, the pairs involving it are volatile and the movement of the yen in the pair is difficult to "outbid";
- The 2nd driving force is the major European currencies (EUR, GBP), the AUD kangaroo is often counter-directional to the JPY due to powerful movements of the latter;
- Chiff is involved in EURCHF and GBPCHF pairs and therefore its sign is opposite;
Having displayed all this "money" in such a way, it becomes clear why at a purposeful market movement pairs of one set profit and another set loss like by a magic wand.
It only remains to understand why one should trade unidirectionally in the direction of the pair going from loss to profit, pairs changing places at positions 7-8. I can intuitively see the logic here, but I cannot yet formulate it. If you have mastered - you are welcome).
З.Ж. I understand that all it sounds approximately as if after a nuclear war the survived mutated imbeciles have created school and teach children, type heavy bodies fall faster than easy). But I have not yet come up with a more adequate way to expose this TC. For some reason everyone is trying to attach some indicators to the system, but this only leads away from the essence of the method, imho.
Who has progressed on the T101? Indicator in the relevant threads, there are many on the internet, versions of them, sub versions. Completely confused, can anyone demonstrate the optimal, run-in and time-tested one?
Who has progressed on the T101? Indicator in the relevant threads, there are many on the internet, versions of them, sub versions. Completely confused, can someone demonstrate the best, run-in and time-tested?
>> http://forum.alpari.ru/thread42950-577.html
https://www.mql5.com/go?link=http://forum.alpari.ru/thread42950-577.html>> thank you.
I used data from 1 minute timeframe and used it for each interval, so we got a sliding window in a minute of each interval from 5 minutes to a month ... I tried it on different sets of 14 pairs, there were balanced and not so balanced pairs in each ... By the way, unbalanced ones were the better winners.But alas, the moment has been missed or has not come yet. The reason is simple - correlation - everything depends on it, no matter how pairs hedged each other, if there is no correlation between instruments, then what's the point of entering them ?
for example, the above set
AUDUSD CADJPY USDJPY EURUSD EURCHF GBPJPY USDCAD (7 currencies / 7 pairs)
beautiful, but what is the use, if you look at the correlation of pairs (say a month)
AUDUSD:CADJPY 0.53
AUDUSD:USDJPY 0.48
AUDUSD:EURUSD 0.04
AUDUSD:EURCHF -0.04
AUDUSD:GBPJPY 0.73
AUDUSD:USDCAD -0.87
and what is there to catch?