21 currency pairs vs 7 currencies: Trend recognizer

Beginner Questions
1

Got this information on another forum and it was very interesting for me:

We would like to share with you our new market report. We would like to remember you that on this thread we do not want to talk and explain any news, fundamental views of any economy, while we think any price movement over the news for us mean only adjustment of particular currency pairs trends.

Our goal is to inform the traders about the market report which is different, extended and mindbreaking while we together try to get a hold of technical factors.

We only use mathematics for our decision making.

Main idea: we have 5 expert advisers which work on a tool and provide signals from and of the market. They are purely trend experts which acknowledge price action on 21 crosses. We then get all signals together and try to see changes within the market – on a daily perspective. Our method values trend / flow movement of 7 currencies and their pairs.

The story is that you can pick the least bought currency and sell it to most bought one. Of course there are different variations of this. Mainly we recommend to sell sold currency also in the future. Trend is our friend. This is the purpose of this thread – to get different opinion about trading style. This report tries to say what the trend is saying!

Experts: Experts concentrate on trend recognition and they will show signals accordingly. Our experts are profitable only if trend is strong otherwise they are not directly profitable – but if we combine them together with all market signals we get a clear trend recognition. Or at least try it.

We can say that we use 5 mathematic analysis in all of the experts and we have ponders on them on different time shells. Every signal is derived from at least 4 different attributes. If the trend is very strong we can see all experts doing what the trend is doing.

As we all know trends could be relatively strong and also can move sideways. The excelence behind recognizing the trend is not directly in this report but in reading this report.

As we all know »the big players« are investing in different currencies which is shown on all of currency pairs. If they decide to boost up lets say GBP they will sell all other currencies accordingly. Then we move in. We recognize what flows are doing and we try to follow them.

Weekly we could get around 5.000 signals from the market. If trend is strong or was really strong we will get only selling/buying of particular currency and also on particular currency pair.

We will provide monthly, weekly and daily reports. Or any other if there will be any interest. We are developing this system for about a year now.

We analyse 7 currencies of the market: USD, EUR, GBP, JPY, CAD, CHF, AUD. That means: 21 currency pairs and all market for 7 currencies.

Currency pairs we analyse:

  1. EURUSD
  2. USDJPY
  3. USDCAD
  4. GBPUSD
  5. AUDUSD
  6. USDCHF
  7. EURJPY
  8. EURCAD
  9. EURGBP
  10. EURAUD
  11. EURCHF
  12. CHFJPY
  13. CADJPY
  14. CADCHF
  15. GBPJPY
  16. GBPCAD
  17. GBPAUD
  18. GBPCHF
  19. AUDJPY
  20. AUDCAD
  21. AUDCHF

Summary of 7 currencies all together.

  1. USD
  2. EUR
  3. GBP
  4. CHF
  5. JPY
  6. CAD
  7. AUD

We will proceed with development of this system also with your comments and remarks about the report. In the future we will provide extended report, which will include real time changes in the market. We hope that this report will be developed in month time.

FACTORS TO WATCH:

Report is distributed daily.
Trade only in trend direction.
Show your trading tips.
Show your remarks.
No news trading.

2

In the attachment you can see results for November signals. It was seen a lot of EUR and GBP selling.
On particular pair we can see that a lot of selling was seen on EURAUD (-4,5%), GBPUSD (-3,0%), GBPAUD (-0,5%) GBPCAD (-2,5%), EURCHF (-5,2%), GBPJPY (+1,0%) and others.
Also, we can see, that a lot of buying of CADCHF (+1,5), USDCHF (+2,2%).

I agree, that we all can be very “smart” when we see the past, right?

For december we can say - that on all CHF crosses there were around 4.200 signals from every CHF pair. We can see 72 % of CHF cross buying signals. Also we can see mayor buying ratio on AUD. On the other hand we can see a lot of selling signals on general GBP cross and also on any particular GBP cross.

On particular currency cross: lots of selling on EURCHF, GBPCHF, EURAUD, GBPAUD, CADCHF, EURJPY and lots of buying signals on CHFJPY, AUDJPY, AUDUSD.

We see that mainly all pairs were spot on if you remember december movement.

3

Oh come on, this is ridiculous.

4

Well, you have to give them credit… their idea is creative and makes some sense.

But, I would say that this is the type of robotic system that will eventually fail if/when it becomes adopted by masses.

In a nutshell, sounds like they are essentially gathering “hints” of trend direction from all these sources (dare I call it confluence?) So basically, you would be taking a highly filtered opinion about the market sentiment, and then jumping on that bandwagon, hopefully early enough.

But the problem is that once enough people jump on the bandwagon, it will no longer have any sort of edge. I don’t know how long it would take to squash the edge, but my guess is not very long.