I cannot change the barcharts heatmap I am using. But back that up with heatmaps from 3 other sites too, so sort of getting an aggregate of all 4 of them. Unless they all tell me the same thing, I stay out of the basket trade.
@acandan21,
Thanks for this suggestion, as I told you entry/exit rules still need to be tuned.
Let me be a little bit more explicit on what I am trying to do :
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The ‘heatmap’ has 2 timeframes (setup) :
a. one as you understand to calculate the change percentage (daily, weekly or monthly)
b. another one to refresh the heatmap (M15, H1, H4 or even D1 if T1 = W1 or MN1). -
The heatmap is refreshing figures on each tick, but the rank of the currencies and the buy/sell orders in the basket are only refreshed on the second timeframe basis. Arrows are to indicate if a currency is rising or falling…
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The main idea is to open close a basket on each new T2 timeframe whatever the basket is profitable or not. I hope I will have a statistical advantage (still need to be confirmed…)
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I try also now to calculate a moving average of the currency basket return pips. The idea is to open a basket only if that moving average is positive.
If I understand correctly your point, you suggest to calculate the change of a currency starting 1 or 2 hours before the NY or london opening bell, instead of the begining of the day (midnight)? I will try to add a parameter…
Regards,
och
Hi Av8rdan,
Can you please share the links of the other sites you are using map?
Regards,
och
I really like what your doing with this…I agree with the moving average as I did the same thing (I used Exponential, 5 and 12 periods…no shift). My suggestion was simply to have it “Reset” two hours before the London open…you don’t want the reset right before the main session…as you will need a few hours of data for good entries…and the standard daily TF is so arbitrary…there’s no benefit to using it if you’re trading the main session like most traders. Give it a shot…I think you will see your numbers improve. I’d love to hear your results.
And yours looks much prettier than mine!!!
I guess the best way to explain why the shift works is …you don’t need that arbitrary 8 hours during the Asian session where volumes and volatility are very low…relatively speaking. That’s 8 hours of tick movement which doesn’t really mean much to your trading plan (assuming you don’t trade the Asian session)…but can have an impact on your percentages…I personally won’t enter the trade unless I see .3% or greater on all pairs for the one specific currency that I’m analyzing. But that 8 hours can skew the percentage unnecessarily. Of course…if you trade the Asian session also…I would suggest making another chart solely for that session.
This is far too much detail for me. I am not that kind of trader. I subscribe to KISS, and in reality have now moved on to a modified version of that basket strategy, adding an element of scalping to it, exiting the losers and adding size to the winners. But I do not get into the percentages and detail like you are describing.
@acandan21,
I guess I got your point and know how to implement it into my framework. Will try to do it this WE, and try to backtest it from begining of 2018, just to have an idea, then I will try forward test next week. I will keep you update.
@Av8rdan,
You said you are using different forex map from different web site instead of barchart.com. Can you share thoses links?
Regards,
This is a very interesting trend following strategy. It sounds similar to the turtle trading strategy Richard Dennis came up with. In theory, I just read the book “The Complete Turtle Trader” by Michael W. Covel because its on Pipcrawler’s list (Pipcrawler’s Favorite Trading Books). Essentially, the traders would buy what was going up instead of waiting for a retrace which people tend to do and miss the trend. You might get some ideas from the book or better understand why it works. Donchian’s 4-week rule and Gann’s “Truth of the Stock Tape” have also been helpful to me to understand trend following.
I think more important than whether or not it should or shouldn’t work is that it does seem to work for you, so stick with it!
One last thing, it does seem that some forex pairs are positively and negatively correlated. This page might be worth looking into Forex Market Pair Correlations | Best Currency Pairs to Trade. You might increase your winnings by not buying pairs with negative correlation.
Thanks. I tried factoring in correlations and it got to confusing to me, I am a KISS trader. Things go sideways if I add to much to the charts or start analyzing everything too much.
Thanks to all for all you reply.
I already study pairs correlation but never manage to include in a bot. Will try to give it a second chance…
It seems by design this way of classifying pairs (Av8dran ForexMap) include correlation, or more excatly give a higher weight to most trending pairs…
Many things to do this WE… I hope it will be a productive WE…
Regards,
och
PS1 : Thanks to Av8dran for your links, I will study thoses maps this WE…
PS2 : Do not loose your time on the soccer cup… 
Personal thoughs…
Edit 1 : After a fast review of the new maps, the third one seems to be quit the same but less obvious, the second and first one show importance of timeframe confirmation. Guess I already include with second refresh timeframe and moving average, will see …
yeah no worries here about losing time with soccer, I live in the USA and we are not as crazy about futbol as our football.
Where are you from US, East , Central or West?
Interesting idea. I have been thinking. Perhaps you could open 7 chart and use a S/R indicator to auto generate the S/R levels on a 5min or 10min chart. Instead of instant blast all. Do a one by one blast for each ones that breach a S/R level. I notice that the bar chart is updated every 10mins. Maybe reassess every 10mins and watch all 7 charts in real time for any reverse in price touching the S/R levels. The heat map is 10min lagging. Watch the price chart in real time. You may be on to a super scalping strategy. Remember position sizing should be small. When do you cut loss? Do you double up for the next trade?
Hi All,
Well, let’s say, this WE, I did not all I planned to do… Guess why!
Well, nonetheless, I manage to setup a foreward testing EA, based on the ‘heatmap’. The entry/exit rules are really basic:
Close open basket, then open a new basket on each hour. Rigth after recalculing % of variation (daily - since 0:00). This % setup witch pairs we are going to buy/sell…
I still need :
- allow backtesting (to be able to tune some setup). It is not so simple as MT4 do not allow basket/multi-currency backtesting. But not impossible
- Implement some more clever entry/exit rules. I am mainly thinking implementing a slope based on % of variation… Open to suggestions…
- Finish shift feature to calculate % variation (acandan21 suggestion)
And all kind of suggestions…
Regards,
och
PS1 : by the way result of half a day trading is not that good, but not that bad neither… And as we can definitly not rely on a one day testing, I let the VPS running… I will probably put a link someday…
I believe in trading a single pair or two. Most traders apply same strategy to all pairs. They do not try to understand or they dont know that every has some unique charecteristics. That’s why once you are expert is one pair, go for a second one, otherwise not.
If its working keep doing it. Sometimes trading too many pairs with the same currency can seem like conflict but really each chart should stand on its own.
Using a heatmap will indicate trending pairs, and likely the fact price will continue in trend direction is responsible for your profits. I would prefer to use market structure for targets. I assume you have a catastrophic stop in place?
This is not a good option to trade on a same pair because there is a largege possibility that you lose in this pair. You must have to trade on different pair so that if you get lose in one pair than there are other options must be available in which you can achieve your success.