World currencies index (clearly visible as the bubble burst) - page 2
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and what have you posted here - a cluster indicator.
"Cluster indicators show not indices of currencies but their relative fluctuations relative to each other"
https://forum.mql4.com/ru/39362
What do you call putting everything in one pile? :))
Another topic about currency indices...
There are many ways to calculate these indices. You have to understand what you want to get in the output. Then you can get the right formula.
From my experience, I can say that the official formula for the calculation of the major currency indices reflects the current situation in the economy, but it is not suitable for trading.
Maybe we should have added up the world currency indices as well?
And the author adds up something and sees some kind of pattern there. This is nonsense.
I have an idea: take 27 currency pairs (currencies like USD, EUR,GBP,CAD,JPY,AUD,CHF,NZD) and find the average. You get a basket of world currencies.
You can clearly see here that the bubble is growing until 2007.
Here's the thing: you didn't get the idea, but you were given the quotes for 27 currency pairs, although there are 17 freely convertible currencies:
AUD, CAD, DKK, EUR, HKD, ILS, JPY, MXN, NZD, NOK, SGD, ZAR, KRW, SEK, CHF, GBP,USD
and the bubble idea is not yours, but you have been brainwashed by the media and now you think it is so
As for the subject, here's a similar theme https://www.mql5.com/ru/forum/125734 and hrenfx was dealing with multicurrency trading - read his posts
I now use all available currencies, special drawing rights and metals to calculate currency indices. That is 182 instruments.
The total is 182 x 182 - 182 = 32942 pairs. This turned out to be necessary. Very interesting patterns were found.
CHRENFIX has been doing... and, in my opinion, deluded. Maybe he's realised it now.
Very interesting patterns have been found.
What do you use for analysis: ticks, OHLC or something else?
imho it's hard to find correlations between different instruments as market orders are not correlated with each other in any way, i think there are no multi-currency dependencies on ticks
What do you use for analysis: ticks, OHLC or something else?
imho it is hard to find correlation between different instruments as market orders are not correlated with each other in any way, I believe there is no multi-currency correlation with ticks
Nikolai, have a look at this thread https://www.mql5.com/ru/forum/128338. It gives data on volumes and percentages by year. Take into account the shares of pairs in your formula and see how the lines of the old version and the new one are wound and post both figures here.
What do I want to get? To clarify...
There are some numbers A+B+C....+Z = equal to for example 10.
If in some time these numbers have changed in different ways (A-1+(B+3)+(C+1)....+(Z-2), but the sum of these numbers increased, then in spite of the decrease of individual numbers, I will have a positive difference.
Quotes for currency pairs are also just numbers, if the sum of these numbers increases, then it makes sense to buy. But how to know which pair to buy?
An easier way is to buy all pairs at once, then in spite of the loss of some currency pairs you will make a profit.
Here are some examples:
- the fall of the index by 0.4 points between 18th and 24th of February resulted in 169% of the margin (1809 RUB pledge, leverage 1 to 500, opening of all sell orders at 0.01 lots on all 27 pairs), i.e., 3069 RUB
- the growth of the index by 0.3 points from february 25th to march 1st has yielded 2200 rbl.
- well, a clear fall of the index from July 1, 2008 to January 1, 2009 by 10.78 points has brought RUR 144000 of profit (with the pledge of about RUR 1800)
- in 2004-2005, when the fall of GBPUSD from 1.95 to 1.70 was significant, the index was hardly affected, the index even went up. In this case we got a hedge.