Discussing the article: "Developing Trading Strategy: Pseudo Pearson Correlation Approach"
Would be great to see reports with actual performance metrics of the test EA, in comparison with the same strategies not using the correlation filter - this way the efficiency of the new indicator can be estimated.
if(EnableStrategy1 && ((corr_prev < PPr && corr_curr > PPr) || !EnableCorrelation)) { if(maFast[0] > maSlow[0]) OpenTrade(ORDER_TYPE_BUY, "Strategy1 BUY"); else if(maFast[0] < maSlow[0]) OpenTrade(ORDER_TYPE_SELL, "Strategy1 SELL"); }
Most of oscillators of the same period are highly correlated by definitions, and using their correlation is of little interest. Analysis of multiple different periods makes sense, but probably every trader would do it with his/her preferred oscillator, that is with the same kind of oscillator, which setup is not covered in the article (that is you can't choose 3 RSIs or 3 MFis, for example).
who checks articles now ?
What is this invention of new terms with the attraction to the known ones? This kind of devalues the mql5 resource.
well, there is no "Pearson's pseudo-correlation" and its criteria in trading or statistics. NO
It would be great to see reports with real performance of the test Expert Advisor compared to the same strategies without using the correlation filter - this way we can evaluate the effectiveness of the new indicator.
Most single period oscillators are by definition highly correlated, and using their correlation is not of much interest. Analysing several different periods makes sense, but probably each trader will do it with his preferred oscillator, i.e. the same type of oscillator, the setting of which is not discussed in the article (i.e. you cannot choose 3 RSI or 3 MFis, for example).
who's checking the articles now?
what is this invention of new terms with the attraction to the known ones ? this kind of devalues the mql5 resource ?
well, there is no "Pearson's pseudo-correlation" and its criteria in trading or statistics. NO
You are right, there is no strict term "Pearson's pseudocorrelation". What is meant here is the well-known phenomenon of spurious correlation - when Pearson's coefficient shows a relationship that has no causal meaning (e.g. due to a trend or hidden variable.
How is it possible that the first comment in a thread discussing an article is dated six months earlier than the article itself? )))
Because I posted it in the English thread when the original was published. After switching on automatic translation of forums into other languages - this situation happens regularly - you can see auto-translated posts from under the original in the discussion.
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Check out the new article: Developing Trading Strategy: Pseudo Pearson Correlation Approach.
Generating new indicators from existing ones offers a powerful way to enhance trading analysis. By defining a mathematical function that integrates the outputs of existing indicators, traders can create hybrid indicators that consolidate multiple signals into a single, efficient tool. This article introduces a new indicator built from three oscillators using a modified version of the Pearson correlation function, which we call the Pseudo Pearson Correlation (PPC). The PPC indicator aims to quantify the dynamic relationship between oscillators and apply it within a practical trading strategy.
Generating new indicators from existing ones offers a powerful way to enhance trading analysis. By defining a mathematical function that integrates the outputs of existing indicators, traders can create hybrid indicators that consolidate multiple signals into a single, efficient tool. This method reduces chart clutter, simplifies interpretation, and leverages the individual strengths of each component indicator to improve decision-making.
The approach to technical analysis involves monitoring several indicators simultaneously, each providing a unique signal. However, this can result in a cluttered chart, increased difficulty in interpretation, and at times, conflicting signals. The solution proposed here is to mathematically combine the signals of selected indicators into a single, new oscillator.
This article introduces a new indicator built from three oscillators using a modified version of the Pearson correlation function, which we call the Pseudo Pearson Correlation (PPC). The PPC indicator aims to quantify the dynamic relationship between oscillators and apply it within a practical trading strategy.
Author: Daniel Opoku