Inspired by people who shared their system, I'm introducing this system I call D-52.
Nick, it definetilly take you up in your offer, please code this system. I'd be very glad to share it, specially if we get the right input to make this even better.
ANALYSIS
Currencies react to the risk of aversion and risk of apetitie. The currencies that go up with risk of aversion are JPY, USD, and CHF (in that order). The currencies that go up with risk of apetite are AUD, NZD, EUR, and CAD.
We will be looking at the relative strength of currencies. Please see the bottom of the picture below with a shot of the relative strength of the major currencies (late 2008 credit crisis). Notice that the "safe haven" currencies gain strength and the "risker" currencies lost strenght, first and then as the risk of apetite took over, the riskier currencies gain strength again.
This concept can be applied to long term, mid-tem, short-tem, intraday and even news releases.
The currency that gains more strength with kisk of aversion is JPY, and the currency that looses more strenght is the AUD. I'm not using NZD because it is a litle bit messi.
AUDJPY, where the carry trade is at this time, happen to be the most volatile pair for this basic risk analysis. As a general rule most of the times AUD goes up, JPY goes down and viceverse. Please take a look to attached pictures audjpy feb 2010 (1HR frame). At the bottom you will see again the indicator for their individual relative strength (Orange=AUD, Maroon=JPY). Notice how their movement goes most of the time in the opposite direction.
INDICATORS
CCis the relative strength of currencies. Once you open a new chart AUDJPY 1 HR TF you will add this indicator and you will edit it, set all the colors to none with the expeption of maroon (JPY) and dark orange (AUD). Draw a horizontal line right at 0.000 for reference.
Notice that as a general rule when both slopes change direction ie, the orange line start to go up AND the maroon line start to go down, the currency AUDJPY goes up, and viceversa (when AUD slopes changes to negative AND JPY slopes changes to positive the pair goes down)
Cycle identifier shows the highs and lows of this pair. it has adds a green vertical line when te price is going up and a red vertical line when the price is going down. Beware, it repaints.
ENTRY
Long position
There are 3 conditions that need to be met to enter a long position:
Nick, it definetilly take you up in your offer, please code this system. I'd be very glad to share it, specially if we get the right input to make this even better.
ANALYSIS
Currencies react to the risk of aversion and risk of apetitie. The currencies that go up with risk of aversion are JPY, USD, and CHF (in that order). The currencies that go up with risk of apetite are AUD, NZD, EUR, and CAD.
We will be looking at the relative strength of currencies. Please see the bottom of the picture below with a shot of the relative strength of the major currencies (late 2008 credit crisis). Notice that the "safe haven" currencies gain strength and the "risker" currencies lost strenght, first and then as the risk of apetite took over, the riskier currencies gain strength again.
This concept can be applied to long term, mid-tem, short-tem, intraday and even news releases.
The currency that gains more strength with kisk of aversion is JPY, and the currency that looses more strenght is the AUD. I'm not using NZD because it is a litle bit messi.
AUDJPY, where the carry trade is at this time, happen to be the most volatile pair for this basic risk analysis. As a general rule most of the times AUD goes up, JPY goes down and viceverse. Please take a look to attached pictures audjpy feb 2010 (1HR frame). At the bottom you will see again the indicator for their individual relative strength (Orange=AUD, Maroon=JPY). Notice how their movement goes most of the time in the opposite direction.
INDICATORS
CCis the relative strength of currencies. Once you open a new chart AUDJPY 1 HR TF you will add this indicator and you will edit it, set all the colors to none with the expeption of maroon (JPY) and dark orange (AUD). Draw a horizontal line right at 0.000 for reference.
Notice that as a general rule when both slopes change direction ie, the orange line start to go up AND the maroon line start to go down, the currency AUDJPY goes up, and viceversa (when AUD slopes changes to negative AND JPY slopes changes to positive the pair goes down)
Cycle identifier shows the highs and lows of this pair. it has adds a green vertical line when te price is going up and a red vertical line when the price is going down. Beware, it repaints.
ENTRY
Long position
There are 3 conditions that need to be met to enter a long position:
- AUD is gaining strenght: The orange line value at the top hour is higher than the value from the hour before, making a positive slope, or more simple, the orange (AUD) line is going UP.
- JPY is loosing strenght: The marron line value at the top hour is lower than the value from the hour before, making a negative slope, or more simple, the maroon (JPY) line is going DOWN.
- Buy Cycle: Cycle identifier indicator shows the price going up (the last vertical line is green). This helps to allign the trade with the trend.
Short position
There are 3 conditions that need to be met to enter a short position:
- AUD is loosing strenght: The orange line value at the top hour is lower than the value from the hour before, making a negative slope, or more simple, the orange (AUD) line is going DOWN.
- JPY is gaining strenght: The marron line value at the top hour is higher than the value from the hour before, making a positive slope, or more simple, the maroon (JPY) line is going UP.
- Sell Cycle: Cycle identifier indicator shows the price going up (the last vertical line is green). This helps to allign the trade with the trend.
Exit: TP 30 pips, SL:30 or trailing stop=30.
I preffer to use it with the trend
More info, trades, and pictures to come
Attached File(s)
CC.mq4
17 KB
|
430 downloads
CC.ex4
18 KB
|
399 downloads
Cycle identifier.mq4
13 KB
|
438 downloads
Cycle identifier.ex4
10 KB
|
360 downloads