Relative Strength Basket Trading System
To all active members and coders (and downloaders only),
First of all, I try hard to write this in English. English is not my native language. So please forgive me if I made a mistake or made it difficult for you to understand. Ok, I started this post with the intention of developing a "basket trading system" based on the relative strength of currencies. The idea originated from the topic "Trading system using relative strength 1 and 2".
After reading and studying the documentation on CCFp and using the CCFp indicator for a month, I realized that relative strength shows us early price action more accurately. I am confident in this because its strength is measured and compared to other currencies…
Basket trading systems are very popular right now and we can find some posts discussing and developing this trading style here. So, based on comparative advantage, I plan to develop and openly discuss this. The idea is to open trades on all currency pairs related to the currency with the highest and lowest index value in a specific time frame.
After looking at the formula used by the CCFp indicator, I decided to use my own formula to measure the strength of each currency in order to provide me with more sensitive and accurate results. Therefore, all indicators we use for observation are based on this formula and not the original formula.
What is the goal?
1. We need to develop ENTRY and EXIT rules.
2. We need to make an EA.
I’ve written about a few indicators that will help us observe. Actually, I'm not a coder, but I try to make it useful for our observations. First let me explain all the indicators we will use:
CCFp_experiment.ex4
This is my modified CCFp indicator. I changed the strength formula and used mine, but all the lines look like the original. We won't be using this in our observations, but I'm posting it to show you how this formula works. You can check it and bactest. The (+) positive value area is a strong area, and the (-) negative value area is a weak area. Therefore, if the currency index is in the negative zone, it means that the currency is weak, and if the currency remains in the positive zone, it means that the currency is strong. A cross between two currencies means the formation of a new trend, with the direction of the currency pair following the largest index.
kgTREND_MTF_MULTIPAIRS.ex4
These indicators show us the direction of the movement of currency pairs, divided into 8 groups (USD, GBP, EUR, CAD, CHF, JPY, NZD and AUD). This indicator will show us all trends from TF M1 to MN. Lime represents strong, dark green represents weak, red represents strong, and maroon represents weak. All trends are calculated using the relative strength formula.
Kilogram IndexMTF.ex4
This indicator shows us the index value for each currency from the time frame M1 to MN. All index values are multiplied by 10000. Green means the currency is in a strong area, red means the currency is in a weak area. This value shows us the index value.
highest_lowest_index.ex4
This indicator tells us which currency has the highest and lowest index value among all TFs.
formula_2.ex4
This is a formula file. All the above indicators require this file for calculation. For coders, you can use "iCustom" to use it with output indexes 0=usd, 1=eur, 2=gbp, 3=chf, 4=jpy, 5=aud, 6=cad and 7=nzd.
CCFp highest and lowest observed value.tpl
This is the template we use for observation.
Just copy all ex4 files to your_metatrader/expert/indicators directory and copy tpl files to your_metatrader/templates and restart Metatrader, open charts and click on templates.
I hope everyone can participate, start observing, and develop a "basket trading system" based on this indicator.
KG
----------------------------
----------------------------
All indicators on the first page are observation tools only. We have made visual indicators for testing and trading on this page http://www.forexfactory.com/showpost.php?p=2392993&postcount=1277 This is the first indicator from all the rest of observations and testing. We still test this indicator and find out the shortcomings of the strategy and the indicator.
For Multi_Purpose_Trade_Manager and JPY scripts you can download them here http://www.forexfactory.com/showpost.php?p=2355117&postcount=297
The new script is here: http://www.forexfactory.com/showpost...postcount=1109
The EA is here: http://www.forexfactory.com/showpost...postcount=1826
When you run the EA, a common error is " Unknown subwindow number -1 for object creation function" may appear, please ignore it.
First of all, I try hard to write this in English. English is not my native language. So please forgive me if I made a mistake or made it difficult for you to understand. Ok, I started this post with the intention of developing a "basket trading system" based on the relative strength of currencies. The idea originated from the topic "Trading system using relative strength 1 and 2".
After reading and studying the documentation on CCFp and using the CCFp indicator for a month, I realized that relative strength shows us early price action more accurately. I am confident in this because its strength is measured and compared to other currencies…
Basket trading systems are very popular right now and we can find some posts discussing and developing this trading style here. So, based on comparative advantage, I plan to develop and openly discuss this. The idea is to open trades on all currency pairs related to the currency with the highest and lowest index value in a specific time frame.
After looking at the formula used by the CCFp indicator, I decided to use my own formula to measure the strength of each currency in order to provide me with more sensitive and accurate results. Therefore, all indicators we use for observation are based on this formula and not the original formula.
What is the goal?
1. We need to develop ENTRY and EXIT rules.
2. We need to make an EA.
I’ve written about a few indicators that will help us observe. Actually, I'm not a coder, but I try to make it useful for our observations. First let me explain all the indicators we will use:
CCFp_experiment.ex4
This is my modified CCFp indicator. I changed the strength formula and used mine, but all the lines look like the original. We won't be using this in our observations, but I'm posting it to show you how this formula works. You can check it and bactest. The (+) positive value area is a strong area, and the (-) negative value area is a weak area. Therefore, if the currency index is in the negative zone, it means that the currency is weak, and if the currency remains in the positive zone, it means that the currency is strong. A cross between two currencies means the formation of a new trend, with the direction of the currency pair following the largest index.
kgTREND_MTF_MULTIPAIRS.ex4
These indicators show us the direction of the movement of currency pairs, divided into 8 groups (USD, GBP, EUR, CAD, CHF, JPY, NZD and AUD). This indicator will show us all trends from TF M1 to MN. Lime represents strong, dark green represents weak, red represents strong, and maroon represents weak. All trends are calculated using the relative strength formula.
Kilogram IndexMTF.ex4
This indicator shows us the index value for each currency from the time frame M1 to MN. All index values are multiplied by 10000. Green means the currency is in a strong area, red means the currency is in a weak area. This value shows us the index value.
highest_lowest_index.ex4
This indicator tells us which currency has the highest and lowest index value among all TFs.
formula_2.ex4
This is a formula file. All the above indicators require this file for calculation. For coders, you can use "iCustom" to use it with output indexes 0=usd, 1=eur, 2=gbp, 3=chf, 4=jpy, 5=aud, 6=cad and 7=nzd.
CCFp highest and lowest observed value.tpl
This is the template we use for observation.
Just copy all ex4 files to your_metatrader/expert/indicators directory and copy tpl files to your_metatrader/templates and restart Metatrader, open charts and click on templates.
I hope everyone can participate, start observing, and develop a "basket trading system" based on this indicator.
KG
----------------------------
----------------------------
All indicators on the first page are observation tools only. We have made visual indicators for testing and trading on this page http://www.forexfactory.com/showpost.php?p=2392993&postcount=1277 This is the first indicator from all the rest of observations and testing. We still test this indicator and find out the shortcomings of the strategy and the indicator.
For Multi_Purpose_Trade_Manager and JPY scripts you can download them here http://www.forexfactory.com/showpost.php?p=2355117&postcount=297
The new script is here: http://www.forexfactory.com/showpost...postcount=1109
The EA is here: http://www.forexfactory.com/showpost...postcount=1826
When you run the EA, a common error is " Unknown subwindow number -1 for object creation function" may appear, please ignore it.
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