putting this up for all to consider
https://www.forexfactory.com/showthr...99#post8376599
can an ea be made so as to strategy test &/or forward test... we can see from the image how profitable the strategy can be if done right...it is said to be a 97% winning strategy when executed correctly.....it is very simple, divergence of pairs strategy(... you can see in the picture... it overlays two correlated pairs
in that case it is uchf and eu, since they are always very highly negatively correlated (or possibly cointegrated)
however we should be able to choose any correlated pairs each day or have the Ea choose them for us based on criteria.
since eu and uch are always negatively correlated, that will be the default pairs... or other pairs are picked/chosen manually each day from correlation indicators or websites
choosing pairs can be done manually each day for instance in order to keep the coding simple for now or we can simply just use uchf and eu
then the Ea needs to simply trade when they diverge, or converge (depends if the pairs are negatively or positively correlated)...correlation/cointegration does not gauge strength or direction so....angle of 1 sma indicator or angle of divergence or simply a divergence indicator.... a linear regression channel, (or just about any channel indicator really) can be used to gauge direction and timing...
any divergence indicator will do to gauge timing also https://www.forexfactory.com/showthread.php?t=22109
i'd prefer COT divergence or else perhaps bid ratio divergence as perhaps we can be more precise https://www.forexfactory.com/showthr...78#post9599978
anyway, the idea is to use divergence of the correlated pairs as a way to automatically place trades with ideal timing
so the ea then for all the correlated pairs will automatically take trades based upon the idea in the image using the divergence of correlated pairs
a dashboard that autotrades is the eventual goal but the request being made now is a simplified EA
is it doable
the method is a variation of what is being discussed in this thread currently>>>>> https://www.forexfactory.com/showthread.php?t=677100
https://www.forexfactory.com/showthr...99#post8376599
can an ea be made so as to strategy test &/or forward test... we can see from the image how profitable the strategy can be if done right...it is said to be a 97% winning strategy when executed correctly.....it is very simple, divergence of pairs strategy(... you can see in the picture... it overlays two correlated pairs
in that case it is uchf and eu, since they are always very highly negatively correlated (or possibly cointegrated)
however we should be able to choose any correlated pairs each day or have the Ea choose them for us based on criteria.
since eu and uch are always negatively correlated, that will be the default pairs... or other pairs are picked/chosen manually each day from correlation indicators or websites
choosing pairs can be done manually each day for instance in order to keep the coding simple for now or we can simply just use uchf and eu
then the Ea needs to simply trade when they diverge, or converge (depends if the pairs are negatively or positively correlated)...correlation/cointegration does not gauge strength or direction so....angle of 1 sma indicator or angle of divergence or simply a divergence indicator.... a linear regression channel, (or just about any channel indicator really) can be used to gauge direction and timing...
any divergence indicator will do to gauge timing also https://www.forexfactory.com/showthread.php?t=22109
i'd prefer COT divergence or else perhaps bid ratio divergence as perhaps we can be more precise https://www.forexfactory.com/showthr...78#post9599978
anyway, the idea is to use divergence of the correlated pairs as a way to automatically place trades with ideal timing
so the ea then for all the correlated pairs will automatically take trades based upon the idea in the image using the divergence of correlated pairs
a dashboard that autotrades is the eventual goal but the request being made now is a simplified EA
is it doable
the method is a variation of what is being discussed in this thread currently>>>>> https://www.forexfactory.com/showthread.php?t=677100