Correct calculation of currency indices. - page 16
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Well, if you need to account for this index and these people (this need should preferably be checked first), you can account for it in the same way you would account for currency pairs.
In your calculations you take the coefficients based on the main US foreign trade turnover as of March 1973.
The euro came into existence in 2000, not 1973.
And although you don't want to explain, you only calculated your index,
Above I gave not only the formula but also the result of the calculations in the hope to hear at least someone's opinion.
I agree, the market is a living organism that takes into account the environment.
First, in 1991 the Soviet Union collapsed, and the post-Soviet countries started to use USD for foreign trade payments (even between each other).
Second, in 2000 a new player, the Euro, appeared, though until 2000 it was counting on a basket of strong countries in Europe, but since 2000 the Euro had become responsible for the whole of Europe, and not only for the strong countries, the bam market had changed.
Third, the 2008 crisis made China become a real force to reckon with, and even though it is still in the shadows (yuan is not traded on the forex market), the shadow is pushing harder and harder on the dollar, the bam market has changed.
Even on these three points, it is not correct to calculate indices on the 1973 coefficients.
In your calculations you take the coefficients based on the main US foreign trade turnover as of March 1973.
The euro was introduced in 2000, not 1973.
And although you don't want to explain, you only calculated your index,
Above I gave not only the formula but also the result of the calculations in the hope of hearing at least someone's opinion.
Euro - just added up the % of countries that switched to the euro, without recalculating the foreign trade turnover.
By using the formula and comparing the calculated and quoted indices, the unequivocal conclusion: the relative movements of both indices are almost identical.
And you don't want to explain the sense of using ratios based on economic data which is 39 years old, too bad :(
Even on these three points, it is not correct to calculate indices on the 1973 coefficients.
who are 39 years old at lunch, don't want to explain, sorry.
Why, I have explained it, and very fully.
In supporting these posts I had a quite definite purpose - I am looking for a team to develop a model of the state space. In them indexes are the most justified, everything else is much less justified. I am willing to discuss this problem.
You must agree that transferring the system from one space to another will not bring anything new to the information, so you will move to the index space, but then what? What is the over-objective?
Since the beginning of this thread a lot of water has flowed, I have changed my opinion that indexes bring something new, maybe they are convenient to use when making arbitrage or hedging decisions (not a fact, but still a justification for their usefulness), but we are still trading currency ratios.
Why load the terminal with a bunch of calculations when similar signals can be obtained directly from currency pairs?
Coefficients can be taken from the SDR, it is calculated quite often.
https://forum.mql4.com/ru/40230
https://forum.mql4.com/ru/39417
SDR I do not really understand how it is calculated. For me I came to the conclusion that one has to calculate only the basket of currencies that one trades in and I calculate indices by the formulas given above by Neutron.
In my opinion, they show very well which currency pair is better to trade.
You must agree that transferring the system from one space to another will not bring anything new to the information, so you will move to the index space, but then what? What is the over-objective?
Since the beginning of the branch a lot of water has flowed, I have changed my opinion that indexes bring something new, perhaps they are convenient to use when making arbitrage or hedging decisions (not a fact, but they are still justified), but we are trading currency rates anyway.
Why load the terminal with a lot of calculations when the same signals can be obtained directly from the currency pairs?
SDR I don't really understand how it is calculated. For me I came to the conclusion that I should only calculate a basket of currencies that I trade and I calculate indices using the formulas given above by Neutron.
In my opinion, they show very well which currency pair is better to trade.