Hello FF trader's.
This thread is born out of what I have been following on the thread by Tylamai on basket trading.
They blew my mind on how they came up with their virtual currency chart. Which is that it takes open of a candle from each currency pair adds it together
EurUsd Candle Open = 1.1000
GBPUsd CAndle Open = 1.2000
UsdJpy Candle Open = 108.100
UsdCad Candle Open = 1.2900
1.1 + 1.2 + 108.1+1.29 =111.69
111.69/ 5 = 22.338 this result will be used as the open price of a candle . This same exercise is done for the low high and close price
So basically the four currencies have compressed in to one. We now have a virtual currency to trade.
Note this is a very basic understanding of the virtual currency. The mathematics is a bit more complex.
When i expressed the above in the basket knight thread, i was further educated as to how the virtual currency is brought about. Ty was wondering if it could be made more efficient. This thread will try experiment with that.
An area of probable improving comes about with the question of weighting that has to be done when carrying out the mathematical exercise. This can be subjective .
If you see in above simple maths i did UsdJpy totally threw out the price or is dominating the result. That it the candle will react more to UsdJpy movement than other pairs.
This thread is born out of what I have been following on the thread by Tylamai on basket trading.
They blew my mind on how they came up with their virtual currency chart. Which is that it takes open of a candle from each currency pair adds it together
EurUsd Candle Open = 1.1000
GBPUsd CAndle Open = 1.2000
UsdJpy Candle Open = 108.100
UsdCad Candle Open = 1.2900
1.1 + 1.2 + 108.1+1.29 =111.69
111.69/ 5 = 22.338 this result will be used as the open price of a candle . This same exercise is done for the low high and close price
So basically the four currencies have compressed in to one. We now have a virtual currency to trade.
Note this is a very basic understanding of the virtual currency. The mathematics is a bit more complex.
When i expressed the above in the basket knight thread, i was further educated as to how the virtual currency is brought about. Ty was wondering if it could be made more efficient. This thread will try experiment with that.
An area of probable improving comes about with the question of weighting that has to be done when carrying out the mathematical exercise. This can be subjective .
If you see in above simple maths i did UsdJpy totally threw out the price or is dominating the result. That it the candle will react more to UsdJpy movement than other pairs.
Attached File(s)
_Channel_25.mq4
1.4 MB
|
216 downloads
|
Uploaded Jan 7, 2020 8:15am
Tidane_EA_v03.mq4
1.3 MB
|
223 downloads
|
Uploaded Jan 14, 2020 5:06am