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OmniTrader 2017 Upgrade Forums
Plug-ins for OmniTrader
FX Trader - Impr. Suggestion
Last Activity 12/24/2017 1:50 AM
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John J

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Location: Leduc, AB

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Subject : FX Trader - Impr. Suggestion
Posted : 6/30/2017 2:34 PM
Post #41204

Hi,

The Forex Trader module was a very welcome addition. However most traders quickly realizes that it's not always a good idea to trade all the Major Cross Rates right out of the box. The reason is simple; they are all USD based, and you may end up entering trades that could be canceling each other out (i.e. you are long EURUSD and USDCAD at the same time).

What I would like to see in version 2.0 is advanced analyses based on correlation tendencies among certain cross currency pairs. Note, the attached table indicates what's likely to occur, and is obviously not a 100% certainty. (A google search will provide more information regarding this).



[Edited by John J on 6/30/2017 3:12 PM]

Attached file : currency-pairs-correlation-chart.jpg (139KB - 153 downloads)

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LearnerGuru

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Subject : RE: FX Trader - Impr. Suggestion
Posted : 6/30/2017 4:28 PM
Post #41205 - In reply to #41204

Hi John and all:

Nirvana has a Pair Trader plugin, you may want to review to get the results you searching for. In meantime, here are some websites to check out:

https://www.mataf.net/en/forex/tools/correlation

https://www.oanda.com/forex-trading/analysis/currency-correlation

https://www.oanda.com/forex-trading/analysis/currency-heatmap

I too have been trying to find a co-integrated tool (not correlation), and would be nice to include in next Pair Trader plugin.

- salim

...................

Here is WHY these tools are important taken from my trade notes:

I really have to understand the nuances across everything: yen, bonds, equities, forex correlations, and the US dollar. Because it can be confusing to see if the correlations are lagging or leading indicators, focus instead of understanding what is causing each of those respective instruments to move. If for example I see both yen strengthening and bonds strengthening, and there's a lot of geopolitical risk brewing but the equities haven't moved (maybe because it's overnight), then there's a good chance that equities will drop. And even if equities do not drop, I should at least be aware of the possibility based upon where everyone else is starting to park their money.

WHY: Why should I care about the news and currency forecasts? Because forex markets are driven firstly by the fundamentals. The fundamentals are the news, and news drives the market sentiment. Sentiment is a measure of how the market perceives its exuberance, or disdain for what is going on economically and politically. The market is the buyers and sellers, along with the banks and institutions exchanging value for value. Because the news (fundamentals) affects our daily trading - EMOTIONS...

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John J

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Subject : RE: FX Trader - Impr. Suggestion
Posted : 6/30/2017 4:49 PM
Post #41206 - In reply to #41204

Hi Salim,

I do have the PairTrader plugin, but I can't see how it can be used for these purposes?

What we are looking for here is to detect a certain correlation (or inverse correlation) between two pairs, and then trade a third pair as per the table. Perhaps Nirv can make a special FX version of it where the entire table can be analysed and produce signals accordingly?
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LearnerGuru

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Subject : RE: FX Trader - Impr. Suggestion
Posted : 6/30/2017 7:32 PM
Post #41207 - In reply to #41204

Here are some more examples...







[Edited by LearnerGuru on 6/30/2017 7:41 PM]

Attached file : Correlations01.PNG (142KB - 99 downloads)
Attached file : Correlations02.PNG (1158KB - 120 downloads)
Attached file : Correlations03.PNG (404KB - 112 downloads)

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