Thread: Playing with the currencies: Gabin System

Hi traders
On the picture # post 2, we can observe the movements of the 8 currencies during a session. The main methods to exchange are to wait for a cross of 2 currencies and to take position in the fantastic direction. Unfortunately I have not had good results because after a cross frequently happens a cross in another direction. So I have tried another method thinking that when a currency is very strong (or weak) in comparison to others, its movement is over or almost. However, I needed a fantastic indior to compare the strenght ( or the weakness ) of this currency compared to others. Ezios left it. . .thank you.
This indior altered by Ezios displays 2 important parameters: DeltaUp and DeltaDown.
Explanation:
Currency in 1 st position; Value of Upper Currency (VUC)
Currency in 8 st position: Value of Lower Currency (VLC)
Average of this 7 Others Currencies: ( A7OC )
Calculation: DeltaUp = VUC - A7OC and DeltaDown = A7OC-VLC.
You understand how is calculated that the strenght or the weakness compared to the 7 others currencies.
Example:
On the picture # post 3, the upper currency is USD with 7.0.
The average of the 7 others is ( 6.6 5.9 5.1 3.7 3.1 3.1 1.4)/7 = 4.1
So the DeltaUp is 7.0 - 4.1 = 2.9....same calculation for DeltaDown.
More the Delta is high more the probability of return of their currency to others is great.
Practice:
I live in France... therefore the London session is Ideal for me. . .30 mn before available till NY open. . .sometimes afterwards
I put delta = 4.4. As soon as the DeltaUp or the DeltaDown reaches the value, the indior displays the order.
If DeltaUp gt; 4.4, we market Upper Currency basket. In case DeltaDown gt; 4.4, we buy Lower Currency basket.
To activate the orders, there are lots of tools. I use Dashboard Power Meter V3 cust_Curr.
Sometimes at the beginning the market is moving against us. I activate an additional order at delta = 4.8 and yet another at 5.2.
Of course, a SL is an absolute need.
It's possible to observe another indiion on the indior... Delta 1/8.
Delta 1/8 is the calculation of the upper currency versus the lower. The fantastic value of Delta 1/8 is higher.
In this case, the indior displays the order. So you can trade just the pair and not the basket.
Close:
Depending your trading style. I am waiting to get a position of this currency in middle of board ( position 4 or 5 ) to shut the transactions.
I suggest strongly too the use of a lock appliion to protect your gain ( see post # 39 )
Currently Ezios and faryne are working in an EA to automate the transactions with the same cause as the indior and 3 levels of delta.
For instance with USD upper currency 1 st market USD basket in 4.4... 2 nd market USD basket at 4.8 3rd market USD basket in 5.2.
Of course, the levels of delta could be put by the trader according his trading design ( spacing out the deltas through the intervals of volatility )
If some coders wish to work with us, they are welcome to enhance Gabin System.

Warning
This thread is just for eduion purpose and you've got not to go to account.
Gabin System is a countertrend system utilized to ch a reversal currency transfer.
So it's risky particularly during the periods of volatility.
The provided tools within this thread will also be for testing and have not to be utilized in actual account.
But if you understand the logic and utilize Gabin System along with your brain preventing news, with good settings, a correct SL and a lock appliion, you can make some good pips regularly.
Enjoy it.
Many thanks particularly for Ezios, faryne and gvc, the creator of the dashboard below.

Do not forget to leave your appreciation about the survey over
https://www.nigeriaforextrading.com/...1368065327.ex4
https://www.nigeriaforextrading.com/...5125657540.mq4

thank you Luxing to your contribution. We'll try out the machine in demo step by step to understand
the degree of activate, take profit and stop loss to employ.
Eduing me to change the indior to ea I post a previous version where I put a black
background box to conceal the traces of graphic that disturb the eyesight of the values.
That I cutt off from the input y and x axis since I need this in fixed position.
I shall continue the ea adding step by step what we want.
https://www.nigeriaforextrading.com/...1478057271.ex4

Instance of a fantastic exchange

Originally Posted by ;

Example of a fantastic trade image

. . .looks interesting, wish you great fortune !

Originally Posted by ;

quote . . .looks interesting, wish you good luck !

Thank you. The principal difficulty in this method is the entrance.
We need a good entrance to avoid a too significant DD.
So sometimes we have to incorporate new baskets in order to average.
I propose strongly baskets with little lots.
Syndi, a part, attempted the machine this week.... IMO DD overly large but good results
https://www.myfxbook.com/members/Str...ndmade/2421353

Originally Posted by ;

Hi traders About the picture # article 2, we can see the movements of the 8 currencies throughout a session. The key methods to exchange would be to await a cross of 2 currencies and to take position in the good direction. Unfortunately I have never had good results because following a cross frequently occurs a cross in another direction. So I have tried another egy thinking that when a currency is quite strong (or weak) compared to others, its move is almost. But I had a good indior to compare the strenght ( or the weakness ) of the currency compared to others....

@Madscalp
Nice to see that someone is playing with currency strength numbers and devising formulas to pinpoint triggers.
My first love in forex was basket trading. Since a couple of years, my trading is almost exclusively based on currency strength / weakness.
Here's my take on which you propose...

First and foremost, it's very important to understand that this system is countertrend basket trading, utilizing reversion to the mean because main cause.
I'm not too sure if this really is a good idea (combo of basket and countertrend).

Baskets - with the exclusion of USD - are comprised of 1 major and 6 crosses.
i.e. EUR basket: EURUSD (major), EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD (6 crosses).
What's the common denominator in crosses?
Based on what the USD is performing, once a couple of crosses begin motoring, they could reach hefty ATRs.
I.e. consider the daily range of EURAUD, EURCAD, EURJPY, EURNZD compared to the major (EURUSD).

Graphically, here's what the interconnection resembles.



Back for the motoring thing.
You go countertrend on a EUR basket, but what if the bottom falls out and EUR tanks across the board?
The crosses will possibly begin tanking big style (see: going against you). Not 1 cross, but mostly 3 to 4.

Now for the formula part.
Delta up, Delta down, Average Other Currencies, etc..
The currency asset meter you are using (FWIW I'm using exactly the same): 8 currencies, arithmetic mean = 4.5, the sum of the 8 currency worth is always 36.
Knowing this and hammering a very simple formula into Excel, it's a piece of cake to compute your initial trigger.



You will buy a very first basket when the poorer currency value is 0.8. At that respect, your delta down gt;= 4.2.

Concerning money management, let's assume that you have a $10K. A conservative (total) lot size for a basket would be 0.10-0.14.
Chopped up in seven pairs that would be 0.02 lots each pair.

So, I will replay your trading situation in slow motion.
Please bear in mind that this is not a black swan situation. This situation will play out at least one time a month, but usually 3-4 times.

Friday 9 Feb..
The moment you see from the screenshot of my EAs log record is the (and my) local time. GMT 1.
London opens, apparently soon there is some high impact news on the GBP.
Fine, this is perhaps going to move things somewhat. Let's see exactly what direction the market takes.



Took a while, but your patience is rewarded.
Three hours in the London session, at 12h14 to be exact a GBP long basket is triggered.
At that moment, GBP CS (currency power ) falls under the 0.8 worth )



About 40 minutes later, time to start the next GBP extended basket. GBP currency strength worth prints 0.40



Nevertheless no pullback, but patience. Reversion to the mean will come, right ?

Well, about 1.5 hours following NY open, we get the six sigma occasion.
GBP currency strength goes under 0.1 plus a third GBP extended basket ought to be opened.

I'm not likely to conduct the drawdown numbers, but seeing that there was an additional drop gt;100 pips (GNPAUD, GBPCAD, GBPJPY) things seem rather nasty.

Just my thought of course, but a basket of currencies in conjunction with countertrend trading is something that may easily spiral out of control.
Happy (basket) trading !

Thx Luxing for your opinion. . .it's very precious
Of course, this system is still experimental...I forgot to say it. . .only demo . .no live. . .no immediately trading. . .no trading through news (currently GBP is very volatile)
I've given a connection of transactions this week using 40% profit. For me this trading is too agressive but I believe that it's possible to make 1 percent daily with a fantastic management without news.
I concur with you about problems since last tuesday JPY has been very strong during all the day falling very late.
In these cases, we must take a breakeven or a little loss: that is what happened.
But your experience is precious since you tell that this black situation can occur 2-3 times each month.
So We Are in Need of a SL. Having a daily profit of 1-2% plus a SL (equilibrium - equity) of 5%, it is still profitable.
Once again, we must beware of the news in London session to optimize the trading.
What's your trading egy with all the currencies?

Originally Posted by ;

quote Thank you. The difficulty in this system is your entry. We are in need of a good entry to prevent a too significant DD. So sometimes we must add new baskets in order to average. I suggest strongly baskets with little lots. Syndi, a part, attempted the machine this week.... IMO DD too large but good results https://www.myfxbook.com/members/Str...ndmade/2421353

In the moment I try to trade all signs whenever there is a possibility is in the computer, irrespective of sessions.