Correct calculation of currency indices. - page 11

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bliznec1986:
I mean how to calculate these values, they also change with every tick
These values do not change. But your idea works in the right direction. The weights should be dynamic.
 
somehow these values have been calculated, so it is possible to do the same calculations only changing
 

What do you expect from the index itself? How do you think the index is better than EURUSD?

P.S. There is also the artificial reserve and payment medium SDR.

 

I have read all 11 pages of this thread very carefully. I still don't understand - what do you need an index for?

The only benefit I see in indexes is that you can clearly see which currency is changing in price and at what point in time.

Let's take the EURUSD currency pair as an example. The resulting movement on the price chart is formed as follows, taking into account time-varying indices of the national currencies EUR and USD:

1). EURUSD is rising if:

а). EUR is rising and USD is falling;
б). EUR - rises and USD - does not change;
в). EUR - does not change and USD - goes down; d);
г). EUR - rises and USD - rises, but slower than EUR;

2). EURUSD - is falling if:

а). USD - is rising and EUR - is falling;
б). USD - rises and EUR - does not change;
в). USD - does not change and EUR - goes down; d);
г). USD - rising and EUR - rising, but slower than USD;

3). EURUSD - does not change if:

а). USD - does not change and EUR - does not change;
б). USD - increases and EUR - increases, but the same with USD;
в). USD goes down and EUR goes down but in the same way as USD.

And another question for those who think that the EUR/USD ratio must equal the EURUSD exchange rate.

Imagine that you have one U.S. dollar, i.e. USD. Exchange it for EUR at the current EURUSD exchange rate, then exchange the resulting EUR for JPY at EURJPY, and exchange the resulting JPY back to USD at USDJPY.

Attention question: Why does it not end up with exactly one USD????

What is an index?

Index (lat. index - a list, register, index) - a number, letters or other combination of symbols indicating the place of an element in the aggregate or characterizing the state of some system, for example an indicator of activity, productivity, development, change of something.

That is as a matter of fact, there are no generally accepted rules or formulas to calculate the index. Everyone calculates indexes for himself. The main thing is that everyone should understand their indexes. As I mentioned before. Personally, my purpose of calculating indices is to clearly see which currency starts to move related to it. And in order to do that I need only these formulas.

I got the idea of these formulas here: http://www.umis.ru/study/trading_school/fc_methods?start=0 But I didn't bother with coefficients. Because they are needed only to show the proportions of currencies in a basket of currencies, when you buy or sell an index. In addition, the Japanese yen dynamation would be useful, just move the decimal point in yen rates two decimal places to the left. :-)))

 
brown-aleks: And another question for those who think that the EUR/USD ratio should be the same as the EURUSD exchange rate.
I do not think so. But it's just a dream. People like to think that EURUSD = EUR / USD. In some ways it is a well-founded dream.
 
Mathemat:
I don't think so. But it's just a dream. People like to think that EURUSD = EUR / USD. In some ways, it is a well-founded dream.


They are different things. How can they be compared. But it seems to me that we are talking about indices. And these can and should be compared
 
brown-aleks:

Attention question: Why does it not end up being exactly one US dollar????

Because of the spread.

Your formulas are just as wrong as the ones you have criticised. At least because indexes should be calculated according to fins and not according to bid, and there is no such a thing in Forex.

Or at least according to the average between Ask and Bid. But this is also wrong, because trading volumes for each pair are not taken into account.

That is why it is better not to bother and use proven bikes.

 
OnGoing:
I compared them, even made an indicator, they are going almost identically and there is probably no money to be made on it.

If you calculate the indices correctly, you can sometimes see the difference even on H4. I've already written here that I've seen GBPUSD lagging on H4 by a couple of bars of the natural pair from the synthetic pair.

Sometimes the synthetic lags. Mostly they go together. In this way you can track the insides. But it requires all pairs. Low-liquidity African, Latin American and Asian currencies in pairs are desirable.

 

Look at the code right away. It draws histograms starting from the current point in time, just a quick sketch for interest.

Files:
eurxusdx_histogram.mq4  3 kb
 
alsu:

You're a fucking idiot.

57.6% -> -0.576

11.9% -> 0.119

13.6% -> 0.136

and so on. Ratio 50.14348112 is chosen so that it would be exactly 100 at the moment of fixation.

Before you start copying, you need to understand the subject.

Индекс USD =50,14348112/EURUSD^0,576*USDJPY^0,136/GBRUSD^0,119*USDCAD^0,091*USDSEK^0,042*USDCHF^0,036=50,14348112/1,27178^0,576*76,96^0,136/1,5425^0,119*1,02773^0,091*1^0,042*0,95503^0,036=71,94487014

Don't know USDSEK rate, so took =1 for now, if you put in the true value of the rate, the index will change slightly.

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