What do you think of multicurrency indicators? - page 3
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The calculation principle is taken from the triangle principle (3 pairs) which creates a closed loop of currency flow from one to the other.
To put it in perspective: EURUSD(1.0843) / GBPUSD(1.5033) = EURGBP(0.7207) the error is always around the spread. I.e. no matter how one of the three prices changes, the other two are adjusted for it.
In this example there are 3 currencies, one flowing into the other. And the indicator calculates 8 currencies/indices/clusters based on 28 pairs.
And the currency lines do not and cannot diverge to infinity as it is like a closed vessel, or rather a bubble that gradually grows but stays within its boundaries with a constant total ratio.
....
OK, I see. I am of course aware of this property, but to apply it to overlapping pairs... - it never occurred to me before.
Thank you!
Looking at the screenshots and I can't understand - why do all the lines converge at zero? More often than not the lines start moving away from the zero level, not towards it!
Like starting at zero and then changing as new data becomes available!
Working along the same lines:
is it?
https://www.mql5.com/ru/forum/41495#comment_1418316
)
is it?
https://www.mql5.com/ru/forum/41495#comment_1418316
)
what is it?
If you say A, say B, so it's clearer what you mean :)
what is it?
If you say A, say B to make it clearer what it is about :)
Six currency pairs are used for the calculation, the average price between bid and ask is used. All other currency pairs are calculated from them. Moreover, inverse pairs EURUSD - USDEUR are also used.
At the initial calculation moment the indices of all currencies are taken equal to 1, and then it is calculated according to the following formula:
indexval1 = oldindexval1 + (val1val2/oldval1val2 + val1val3/oldval1val3 + ... + val1valn/oldval1valn) / (n - 1);
n - number of currency pairs participating in the calculation;
indexval1 - current calculated value of the index;
oldindexval1 - old calculated index value;
val1valn - current value of currency pair quotation, where val1 - base currency pair, valn - quoted currency pair;
oldval1valn - old value of the currency pair quotation;
That is, at the initial moment all indexes are equal to one, and then the arithmetic mean of the sum of deviations in each currency pair is added to them.
And yes the vertical axis is a percentage.
I am also interested in multi-currency trading on currency indices. I call these indices "THE OWN PRICE OF A PERSONAL CURRENCY". Very difficult to get results. recently started trading turbo options. Found an indicator on the website that also displays indices of individual currencies. When supposedly the divergence of indices starts, I enter the position.
I am not a good programmer, but I know the maths, that's why I can offer to write such an indicator:
The index is also plotted as a line based on average bar prices.
The dollar index is calculated as follows: N1*N2*N3/M4/M5/M6
Where N is a currency pair with dollar in the numerator (e.g. usd/jpy) and M is a currency pair with dollar in the denominator (e.g. eur/usd). Thus, we obtain a product with dollar to the power of K (where K is the number of currency pairs), and in the denominator we obtain the product of other currencies. The result can be transformed into the root of degree K. Then we will get usd in numerator, and the root of K-degree from the product of other currencies in the denominator. But I think it's better not to add the root.
In general, the result will depend on the fluctuations of the dollar itself, so it will display its index, i.e. the fluctuation of the VALUE OF THE DOLLAR. The same can be done for other currencies.
I have been wishing to use such an indicator for a long time. I am not a very good programmer, as I have pointed out. If you liked my idea and if you want to make it, please share the program.
All this is nonsense, pairs may separate and not come together for years. 0.01 lot is enough to keep it together and the profit is about 10%.
This direction has been studied for a long time.
wrote an indicator (similar to orest)
I am currently testing the Expert Advisor of this system.
Is there anyone who would like to discuss the ways of development of this subject?