LIVE FOREX STRATEGY RESULTS
Take a look, see how we are doing.
LIVE STRATEGY CHARTS
We have made a selection of the Forex strategies we have developed through the years, and decided to share their performance with you. Not only are we displaying them, but we would like you to be able to see the details as well. You will be able to see:
As you might be able to deduce from what we are sharing, our intention is to give you as much insight as possible into how our automated strategies and robots perform so you can derive your own conclusions.
The BLUE Strategy This strategy is based on an extremely sophisticated approach for determining the entry point of the trade set up, and a mathematical approach to determine its exit point. The entry point of any Forex strategy is perhaps the most critical part of the system, and it will set the tone for the lifetime of the trade. In order to determine our entry point for this strategy, we use a combination of indicators running in parallel. These indicators will in turn fire “signals”, and based on these we either proceed with placing a trade, or hold, and wait for the market to provide us with better conditions. These are some of the main indicators we use:
Combining Relative Strength Index (RSI) & Stochastic Oscillator Analysis
Relative Strength Index (RSI) This indicator is mainly used for determining oversold and overbought conditions, it is an effective measurement in determining weak and strong price patterns, and price over time periods in comparison to volume and price patterns. RSI is determined using the following formula:
100 RSI = 100 - -------- 1+ RS
RS = Average Gain / Average Loss
The initial calculation looks like this: First Average Gain = Sum of Gains over the past 14 periods / 14 First Average Loss = Sum of Losses over the past 14 periods / 14
The subsequent calculations look like this: Average Gain = [(previous Average Gain) x 13 + current Gain] / 14 Average Loss = [(previous Average Loss) x 13 + current Loss] / 14
Traditionally, a reading of < 30 will indicate an oversold state, and a reading of > 70 will indicate an overbought state within a range of 100 points. Another common assumption is to use periods of 14, as shown above. These variables can of course be modified in order to increase the sensitivity of the readings.
Stochastic Oscillator (and Moving Average)
The Stochastic Oscillator shows the closing price in relation to the high and low range of the price over a certain period of time incorporating a moving average. This oscillator tracks the momentum of price, which will often shows changes (when analyzed correctly) before the actual price reverses direction as it reveals bearish or bullish discrepancies.
%K = 100(C - Lx)/(Hx - Lx)
The formula is as follows:
x = periods. The default value is usually 14. C = the most recent closing price Lx = the low of the x previous trading sessions Hx = the highest price traded during the same x-day period %K= the current market rate for the currency pair %D = 3-period moving average of %K
The Stochastic Oscillator will use values within a range of 100 where most Forex analysts will consider >80 as an overbought state, and <20 as an oversold state; the default period value is usually 14. As with the RSI, these are meant as “default” values only. We have optimized our levels for each strategy before entering production or “live” mode.
Average True Range (ATR)
This is one of the indicators we like using in order to determine market volatility. This is a non-directional indicator that feeds data into our systems in order for us to determine if the present market volatility conditions favor a particular strategy or not. Strategies alternately need the presence or absence of certain levels of volatility to determine if the entry or exit conditions of a trade are in place according to the parameters of that particular strategy. It could also -in combination with other indicators- display indications of the acceleration or reversal of a given trend.
True range is the largest outcome of the following 3 equations:
#1 TR = H – L #2 TR = H – Cl #3 TR = Cl – L
TR: True Range H: Today's High L: Today's Low Cl: Yesterday's Close
ATR would then be the moving average of the TR for the giving period, being 14 periods the default parameter.
A moving average is a series of means; a mean is the average of a set of numbers. It is referred to as a "moving" average given every time a new value appears, the last value is replaced by the new one. These moving averages when customized properly, can be very useful in defining trends, or pointing out a potential pause or reversal. There a literally hundreds of different usage variations of this tool; some of the most useful ones incorporate assigning different weight to incoming and outgoing values therefore adjusting the relevance of data according to how close, or far, they are to the present. Some more complex approaches bundle a series of different Moving Averages and draw conclusions from the resulting correlations.
Moving Average Convergence Divergence (MACD)
The Moving Average Convergence Divergence is a momentum indicator (trend based) that compares 2 moving averages of a given currency price chart. You can calculate the MACD by subtracting the 26 period Exponential Moving Average (EMA) from the 12 period EMA resulting in the "MACD line". A 9 day EMA of the resulting MACD line produces the "Signal line". A histogram is usually added to visually illustrate the difference between the MACD line and the Signal line. The crossover action of these lines will imply the initial favorable conditions for either a buy or a sell set up.
As you can see, each tool or indicator has its own specific nuances, but there is a palpable common ground in which they can work together, both in the area of locating divergences, price momentum, the emergence or decrease in favorable trading conditions, as well as the formations signalling potential reversals. Each of our strategies has their own particular blend of adjustments that suit its approach in the most optimized fashion. After years of backtesting the Forex market we have determined our own specific set of levels and parameters for these and many other tools and indicators that enable our strategies to give us their best performance providing us workable entry and exit points for our trade set ups.
We have 2 different approaches to money management, which are simply either automated or manual. Our automated approach pairs the risk profile of the strategy with either a fixed or a percentage of the selected available equity to the strategy or trading system. The robot will (re)calculate this amount each time it opens a new position. The manual money management strategy provides the trade set up with a more variable approach to how lots are allocated and how much risk is to be incurred for each new position opened based on the present market conditions. This for example, will allow a more risk-on approach when the market presents the market conditions that are a specifically favorable to each particular strategy, or a more risk-off approach when the market is unstable and/or unfavorable. All of our strategies can be customized for automated, manual, and/or hybrid money management approaches.
Macro Economic Variables
A selection of our strategies will include an extra set of data elements, such as Macro Economic Variables. We believe some strategies are more vulnerable to Macro Economic factors and thus it is important to factor them into the equation. Given that each currency will have different macro economic factors affecting it, we look at a wide range of elements (but not limited to):
OK, but what is all this worth without results?
Exactly. All the information above means nothing if we have no results to show for it. The idea behind giving you a peek under the hood is to provide you with a sample of how we approach the different aspects of a trade setup. You are more than welcome to contact us and engage with our analysts if you are interested in our strategies or would like to develop your own.
Interested in learning more?
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