Suggestions for Trading System - page 13

[Sergey Golubev]

Freelance

The forum

1. What MQL5 developers think about the Freelance service 
2. MQL5.com Freelance: Developers' Source of Income (Infographic)

The articles

1. How to implement traders' orders and make a profit in the MQL5 Freelance service 
2. Freelance Jobs on MQL5.com - Developer's Favorite Place 
3. MQL5.com Freelance: Developers' Source of Income (Infographic) 
4. Do Traders Need Services From Developers?

[Boyan Taksirov]

There are many strategies about using currency strength(forex index) in trading. I am trying to automate such a strategy. But before to continue, I have to mention the following:

In fact many indicators that pretend to measure currency strength actually, don't do exactly that. There is a widely accepted formula for currency strength measurement. It is explained here:

https://www.dukascopy.com/swiss/english/marketwatch/currency_index/

I, personally, am very suspicious about different "secret" formulas that pretend to enhance currency strength measurement. So, in my trading strategy idea I'll adhere to the classic formula of currency strength.

Forex is not about currency pairs - it is about currencies, each of them represents a separate economy, financial and political strength and so on. A currency pair is a combination of two movements, two tendencies, not a one.

So in very basic terms - if we combine an up trend for a currency with a down trend for another, we would increase our chances for a positive outcome. The problem here, is that there is a some sort of correlations between currencies. Considering the trend example - very often when one currency trend reverses, the other currency trend going in the opposite direction reverses too. So, there should not be a negative correlation between the currencies we choose to trade against each other. 

So, the automated strategy should:

1. Calculate forex index historical data of each currency.
2. Find trend or tendencies in these indexes.
3. Apply correlation algorithms.
4. Combine these tendencies that are opposite and not too much negative correlated.

It would be nice if this is a good starting point for a discussion.

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read

Sergey Golubev, 2017.09.16 05:48

Expert Advisor Programming for MetaTrader 5

This book will teach you the following concepts:

• Learn the basics of MQL5, including variables and data types, operators, functions, event handlers, and object-oriented programming.
• Place, modify and close market and pending orders.
• Calculate, verify and add stop loss and take profit prices to an open position.
• Add a flexible trailing stop and/or break even stop to your strategy.
• Manage your trade risk with money management.
• Use pending orders to scale in and out of positions.
• Use price, time and indicator data in your expert advisors.
• Control program execution by trading on new bar open, and add flexible trade timers to your strategies.
• Walk through the creation of several basic trading strategies from start to finish.
• Inform the user with dialog boxes, email alerts, mobile notifications and sounds.
• Draw trend lines, arrows and text labels on the chart.
• Read and write data to CSV files.
• Learn the basics of creating indicators, scripts and libraries in MetaEditor.
• Debug, test and optimize your trading strategy.
• And much more!

Whether you’re an experienced programmer moving from MQL4, or a novice just starting with MQL5, this book will give you the foundation to quickly program fully-featured and robust trading systems.

[Sergey Golubev]

Requests & Ideas

The beginning

1. Requests & Ideas, the beginning - the thread  
2. Suggestions for Trading System thread 

After

1. Requests & Ideas (MQL5 only!) - the thread

[Sergey Golubev]

And just to remind about the following Freelance services:

-----------------

The new Freelance layout! - the announcement about new Freelance wendesign

[Sergey Golubev]

Interesting thread (with some codes): 

----------------

I have a lot of open positions.How can I closeall at the same time?

[Michele Manenti]

Work manually, there is no better TRADING than that done with eyes and hands.

[Sergey Golubev]

Good article was published - 

----------------

R-squared as an estimation of quality of the strategy balance curve

Table of Contents

• Introduction
• Criticism of common statistics for trading system evaluation
• The behavior of common in testing of trading systems
• Requirements for the testing criterion of the trading system
• Linear Regression
• Correlation
• Coefficient of determination R^2
• The arcsine theorem and its contribution to the estimation of linear regression
• Collecting the strategy equity
• Calculating the coefficient of determination R^2 using AlgLib
• Using R-squared in practice
• Advantages and limitations of use
• Conclusion

[[Deleted]]

Boyan Taksirov:

There are many strategies about using currency strength(forex index) in trading. I am trying to automate such a strategy. But before to continue, I have to mention the following:

In fact many indicators that pretend to measure currency strength actually, don't do exactly that. There is a widely accepted formula for currency strength measurement. It is explained here:

https://www.dukascopy.com/swiss/english/marketwatch/currency_index/

I, personally, am very suspicious about different "secret" formulas that pretend to enhance currency strength measurement. So, in my trading strategy idea I'll adhere to the classic formula of currency strength.

Forex is not about currency pairs - it is about currencies, each of them represents a separate economy, financial and political strength and so on. A currency pair is a combination of two movements, two tendencies, not a one.

So in very basic terms - if we combine an up trend for a currency with a down trend for another, we would increase our chances for a positive outcome. The problem here, is that there is a some sort of correlations between currencies. Considering the trend example - very often when one currency trend reverses, the other currency trend going in the opposite direction reverses too. So, there should not be a negative correlation between the currencies we choose to trade against each other. 

So, the automated strategy should:

1. Calculate forex index historical data of each currency.
2. Find trend or tendencies in these indexes.
3. Apply correlation algorithms.
4. Combine these tendencies that are opposite and not too much negative correlated.

It would be nice if this is a good starting point for a discussion.

Generally excluding dictatorships, it is impossible to quote any currency in the world except in terms of another currency. Thus, generally speaking, a currency value is always a currency pair.

[Jiri Snydr]

Yes, I have to confirm, that the manual trading has a lot of advantages