The order, timing and potential of the trading process

 

Dear forum members, let's talk within this topic about the regularities of the trading process, namely, the regularities of equity change from time Y(t), as the most important indicator. This pattern in general case looks as follows: Y(t) = f(n,t/T,D) where n,t/T,D are defined as parameters of the trading process. There are corresponding formulas for determination of order n, time T and potential D of the trading process. The value of t is "our" earth time as we used to understand it. Below are the graphs of dependence of these parameters when trading a real basket of currencies, where time t is given on abscissa:

The coincidence of actual and calculated values of equity can be seen on the chart:


In this case, the calculation accuracy is about 20%:


Паттерны, доступные при торговле корзинами валют. Часть III
Паттерны, доступные при торговле корзинами валют. Часть III
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Это заключительная статья, посвященная паттернам, возникающим при торговле корзинами валютных пар. Рассмотрены трендовые объединенные индикаторы и применение обычных графических построений.
 

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Well, the main pattern is for the total equity of positions to predominantly grow and for the dips to be small...

How's the PNB doing? - I would like to take this opportunity to ask...

 
Yousufkhodja Sultonov:

This pattern, in general, has the form: Y(t) = f(n,T,D)

Where did you get this formula from? Order, process potential - what kind of beast is that?

SPPP?

Maxim Kuznetsov #:

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transcendreamer #:

Well, the main pattern is for the total equity of the positions to predominantly grow and for the falls to be small...

How's the PNB doing? - let me ask you this as an opportunity...

1. 1. I agree with you;

2. this is the result of the PNB.

 
Aleksei Stepanenko #:

Where did you get this formula from? Order, process potential - what kind of a beast is that?

PVPP?

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It is a generalised form of the P function (formula) in the PNB chain of functions and this "beast" describes all processes in nature, including the process of trade, as we shall see later. Our task is to understand, accept, comprehend and give an intelligible definition to all four "beasts" n,t/T and D.

Order of process

The most puzzling parameter is the order of the trading process n the impact of which has not yet been fully revealed, although it is objectively present and unambiguously defined and cannot be avoided. I cannot find an explanation for it but I hope that analysis of facts will help us understand the nature and role of this "little beast".

The time constant of the trading process

It was found out that every dynamic process in nature develops within time frames allotted to it. But this time is different for each process, it does not need to be guided by "our" time t. The rate of this time of the process is given by the "constant time t". If during this time the conditions of the process remain constant, then this time T will remain truly constant, as in the case of static and stationary processes, e.g. for electron orbits of minerals and metals. But in reality. e.g. in market conditions, the process rate changes and consequently the time constant of the process changes T. The inverse of T is called the system impedance or the system resistance to the process flow. The formulas for unambiguously defining T have been found in the process of developing the PNB. We will then show the role of the process time constant T. We will study the dynamics of the price or, in this case, the change in equity, depending on the value of T. For now, you can estimate this effect by analysing the graphs of the change in T and equity.

The system potential

From the above chart, it can be seen that the current value of equity directly depends on the value of the system potential D. This is also evidenced by the explicit form of the above P formula for equity. It is a pity that our knowledge is scarce in this respect, as in the case of the order of process n.

 

I can see that you are doing well and going your own way...

I wish you every success in your work!

It's just a pity there's no profit at all from the PNB...

(looked at the signal and it's getting worse and worse)

 
transcendreamer #:

I can see that you are doing well and going your own way...

I wish you every success in your work!

It's just a pity there's no profit at all from the PNB...

(looked at the signal and it's getting worse and worse)

But, it's not as bad as it seems at first glance:

1. The account is holding and there are no signs of an imminent drain, or, no signs of a deposit drain at all;

2) Equity is holding close to its calculated values;

3. The rapid growth of the D-system potential gives hope that the equity may "burst" at one moment. The role of this potential is not yet sufficiently understood, although it is clear that it is directly related to and responsible for equity. Apparently, CU is gaining strength and waiting for the right moment to breakout.

4. Now the trade is developing along the descending line of FOB, but the ascending line has not disappeared either. This fact evidences that there is still a possibility of further equity increase at this rising line. All of us, starting from me, need to learn to understand PNB better.

 
Maxim Kuznetsov #:

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Bravo, Maxim! Now I recognise you, and I was wondering who and which is the "King" of Forex. I always confused the King (Queen) with the Queen. The thoughtful look bordering on madness is dementia.

 
Yousufkhodja Sultonov:

Dear forum members, let's talk within this topic about the regularities of the trading process, namely, the regularities of equity change from time Y(t), as the most important indicator. This pattern in general case looks as follows: Y(t) = f(n,T,D) where n,T,D are defined as parameters of the trading process. There are corresponding formulas for determination of the order n, time T and potential D of the trade process. Below are graphs of dependence of these parameters in the course of real trading with a basket of currencies:

The coincidence of actual and calculated values of equity can be seen from the chart:


In this case, the calculation accuracy is about 20%:


Dear Yusuf, sorry for the intrusion. You have put the cart before the horse.

You should have worked out the single pairs thoroughly before making a basket of currencies. If you can extract sufficient profit from individual pairs, your basket will work fine. In the meantime, the basket is rattling, but it does not provide any funds growth. And it won't, as it is evident from the signal information.

The theoretical part of your approach to the market is interesting, but still in a very crude stage. I follow you and even worry about it.

 
transcendreamer #:

I can see that you are doing well and going your own way...

I wish you every success in your work!

It's just a pity there's no profit at all from the PNB...

(looked at the signal and it's getting worse and worse)

Nah, there is a steady growth, negative though)
Negative profit is exactly the size of the spread. I hope the system is really building up potential..., And not having a 0-spread expectation.