Hi Traders,
Just thought I should write some about the progress we’re making
in Currency Analytics.
Most people use “Currency Meters”. These are “a dime a dozen”,
often free, and are “completely useless”.
A couple of years ago, I set out to develop a Currency Analytics
approach which had the following characteristics:
-
It was a good basis for Trading Signals, in choosing the
Currency Pair to trade, as well as the direction. -
It worked for Medium to Longer term trades, for the “big”
moves; but also for very short-term trades as well.
SO LET ME CONCENTRATE SOLELY ON THE MICRO-SCALPING
SIGNALS, which I’d wager is something nobody has done before
not in the retail space anyway.
Our software is layered on MT4 and is written in Java over the
NJ4X.com API into “pools” of MT4 “terminal.exe” processes.
This allows us to use nearly any “standard” MT4 brokerage,
and is also designed for the Trader Tools software to run mostly
unattended on a VPS or Dedicated Server, either Windows or
Linix. (Windows is definitely easier, but Linux definitely more
stable…)
I’ll attach a screenshot typical of what we see with our more precise
and fastest “realtime” indicator using Currency Strengths. These
are called the “Fast Delta Divergence” charts. They are “divergence”
because we pull the 8 Currency traces to the SAME normalized level,
at some time X hours in the PAST. Then we are able to watch them
as they “diverge”.
One of them is 3 hours, and the other is only 1 hour wide, and
these are available on our server; let me know if you’re interested
for FREE. When it’s “for free” it means you get limited support,
but you at least gain access to the indicators in a Browser.
Most proponents of “currency meters” trade “with the trend”, so if they
think one currency is Strengthening, they will assume it will continue
to strengthen and “go with it”.
We, on the other hand, trade “counter trend”, using Currency Analytics
features to pick the “pivot points” where a Price Trend reverses. Yes,
this can be dangerous, but we use Multiple Price Entries to get an
advantageous Cost Basis while we are waiting for Price to turn.
Of course, if you can “nail” the price pivot points, then that does
give you good trades. Most traders “chase” price, when they feel that
a Trend has been “confirmed”. But we don’t do that.
The Confidence we get by “knowing” that one Currency is “too strong”,
and another is “too weak”; is that it is fairly improbable that the pair
will continue to move with even greater Currency Divergence. Rather,
the higher probability is that it will reverse, as the Artificial Over/Under
Valuation of a Currency is relaxed.
Good Trading !
hyperscalper
