How to minimise index correlation - page 3
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
There's a 'magic word' - rationing.
You can base the point value on a currency or even convert it to a GOLD value
You could use a point value in a currency or even a GOLD value as a basis.
On the contrary, you have to move away from the value.
in what units will you then express the progress of the index?
Freud, don't lump indexes, smoothing, preemption and everything else together. No topic can be completed that way.
Minimal correlation and equality of indexes division result to the corresponding currency pair is all that is required from correct indexes.
Everything is written correctly here https://www.mql5.com/ru/forum/114579/page18. No weights, coefficients taken from the ceiling and other nonsense. It's only worth switching to relative values for ease of perception on a single graph. And to make the indices more independent it is worth taking more currencies to calculate, even if they will not be used in trading.
Or maybe you see some problems in this picture?
Freud, don't lump indexes, smoothing, preemption and everything else together. No topic can be completed that way.
Minimal correlation and equality of indexes division result to the corresponding currency pair is all that is required from correct indexes.
Everything is written correctly here https://www.mql5.com/ru/forum/114579/page18. No weights, coefficients taken from the ceiling and other nonsense. It's only worth switching to relative values for ease of perception on a single graph. And to make the indices more independent it is worth taking more currencies.
Or maybe you see some problems in this picture?
The picture here shows that the JPY has the largest move, but in practice the JPY has a smaller move in terms of value
The picture here shows that the JPY has the largest move, but in practice, in terms of value, the JPY's move is smaller
In terms of what? Write down what you think.
In terms of the cost of what? Write down what you calculate.
((lot_JPY/open_eurjpy)-(lot_jpy/bid_eurjpy))*bid_eurjpy ; // lot in yen profit in yen
((lot_JPY/open_gbpjpy)-(lot_JPY/bid_gbpjpy))*bid_gbpjpy ;
the other couples are the same
((lot_JPY/open_eurjpy)-(lot_jpy/bid_eurjpy))*bid_eurjpy ; // lot in yen, profit in yen
((lot_JPY/open_gbpjpy)-(lot_JPY/bid_gbpjpy))*bid_gbpjpy ;
other pairs similarly
We are not counting money, but indices, so it is unclear what lot and profit have to do with it.
In the highlighted area, the strongest movement was on EURJPY - about 4.5%. You can check it out.
The calculations use 18 currencies, not 8. The JPY will move less on 8 currencies. The correlation is higher. In general, any other number of currencies will change the whole picture. Absolutely no exact indices exist. But the more currencies, the less correlation.
You can take as a basis the point value in some currency or even recalculate into the GOLD value
i did so. as a variant, i took the pip value in all pairs in the depo currency, (preferably for different currencies) but the balance lines diverge, the growth rates of pairs are different.
But the cost was applied only in the beginning, then only velocities are considered at all, and they are composite velocities from different spectra. then the acceleration between velocities is already considered.
As a result, it turns out that we get a small lead for each individual spectral line of the pair, and from this we need to somehow reconstruct the pair itself.
Freud, don't lump indexes, smoothing, preemption and everything else together. No topic can be completed that way.
Minimal correlation and equality of indexes division result to the corresponding currency pair is all that is required from correct indexes.
Everything is written correctly here https://www.mql5.com/ru/forum/114579/page18. No weights, coefficients taken from the ceiling and other nonsense. It's only worth switching to relative values for ease of perception on a single graph. And to make the indices more independent it is worth taking more currencies to calculate, even if they will not be used in trading.
Or maybe you see some problems in this picture?
I think that orthogonality cannot be obtained by simply adding the number of instruments to the calculation according to that standard formula. we should consider the increments of pairs, and the formula should not take into account trend values of sums of increments, but the absolute values of increments in each individual segment. the number of pairs should in my opinion only give a better overall line.
To say, roughly speaking, from a to get b