replicating currency indexes like usdlfx or eurlfx through custom symbols.

[Saurabh Suman]

I was not using currency strength indicators to their fullest as in my view the graph of currency strength indicators aare uncertain and may show a reversal or continuation at any point where as those of any currency pairs are predictable. Inspired by many youtube videos i gave a try to lite forex account to view those lfx charts but it seeems that they have revoked those charts as i didn't see any of then in any real or demo lite fx accounts.

So i tried creating similar charts by through custom symbols wherein you have to put a synthetic instrument formula. I simply entered (EURAUD+EURCAD+EURCHF+EURGBP+EURJPY+EURUSD+EURNZD)/7 with and without "7" separately . The chart formed as a result was similar  to those of live euro indexes available online, but there was specific time slots which didn't match. Moreover my chart had lots of noise.

How to make this chart better.?

My chart shows bears and bulls at proper time slots but the amount of rise or fall is not in order.

I have already tried (EURAUD+EURCAD+EURCHF+EURGBP+EURJPY+EURUSD+EURNZD+EURDKK+EURHKD+EURHUF+EURNOK+EURPLN+EURRUB+EURSEK+EURSGD+EURTRY+EURZAR)/17    but the result is similar to above.

Please help..Also is their any CFD that should be directly or inversely added..

My whole idea is to create a custom symbol like eurlfx.

Also pls see if my approach has been wrong from the start.

Online live euro indexes that i compared my chart with were from:-

https://www.sgxniftydowfutureslive.com/Currency_Forex_Market/EuroFX_Index_Live_Chart.htm

https://in.investing.com/indices/investing.com-eur-index

and https://www.ifcmarkets.co.in/en/market-data/personal-instrument-pci-prices/eur-index

.

This example shows creating usd index but i think this is just an example so they have used vague instrument formula i.e

50.14348112*pow(ask(EURUSD),-0.576)*pow(USDJPY,0.136)*pow(ask(GBPUSD),-0.119)*pow(USDCAD,0.091)*pow(USDSEK,0.042)*pow(USDCHF,0.036)      as these numbers and use of pow(a,b) and use of '*' didnt make any sense to me.

https://www.metatrader5.com/en/terminal/help/trading_advanced/custom_instruments

[Alain Verleyen]

saurabh suman:
...

This example shows creating usd index but i think this is just an example so they have used vague instrument formula i.e

50.14348112*pow(ask(EURUSD),-0.576)*pow(USDJPY,0.136)*pow(ask(GBPUSD),-0.119)*pow(USDCAD,0.091)*pow(USDSEK,0.042)*pow(USDCHF,0.036)      as these numbers and use of pow(a,b) and use of '*' didnt make any sense to me.

https://www.metatrader5.com/en/terminal/help/trading_advanced/custom_instruments

No this is not a vague formula, it's the formula. Are you thinking you can invent yours and it will match other site charts ?

And when you post a link please use the Link button to make it clickable.

[Saurabh Suman]

Forum on trading, automated trading systems and testing trading strategies

replicating currency indexes like usdlfx or eurlfx through custom symbols.

Alain Verleyen, 2018.12.21 13:58

No this is not a vague formula, it's the formula. Are you thinking you can invent yours and it will match other site charts ?

And when you post a link please use the Link button to make it clickable.

1. Is it really "the formula", cause i have never seen any similar formula anywhere. Please provide a link or some keywords through which i can get more info.

2.Not really invent but i want to find (derive or copy) a formula that can provide currency index charts similar to this one https://in.investing.com/indices/investing.com-eur-index  or  https://www.ifcmarkets.co.in/en/market-data/personal-instrument-pci-prices/eur-index.

Please see everything mentioned from start.

thanks for concern.