Monday, 13 August 2018

Real -Time vs Historical Chart Data

Dear Traders,

I received a support requsest yesterday from a customer who'd signed up to the FX AlgoTrader real-time Index Analysis system. The customer couldn't understand why the Index Analyzer was indicating GBP strength when in fact GBP had been in a downtrend on most chart timeframes for some time.

As it happened GBP started the weeks trading showing strength from Weekly timeframes all the way down to H1. You can see the Index Data taken late on Sunday night on 12/08/18 in the screenshot below.


If you look at the GBPUSD chart below you can see the market gapped down on the open and subqsequently closed the gap with a a couple of bullish candles.

The really important factor to consider with Index Analysis is the real-time component. Index Analysis doesn't give an indication of trend - it gives an indication of real-time strength and weakness. I pointed out to the client that taking any trading directions from Index data right at the start of the trading week wasn't a terribly good idea. It's much better to wait for a few hours until you get a more comprehensive set of data analysis.

The screeshot below shows the Index Data taken at 08:18 GMT on 13/08/18. Here we can see a different picture as more Index Data has been processed. On the higher timeframes (H4,D1,W1) we can see EUR strength and CHF weakness with no mention of GBP.


Traders can perform their own chart analysis of the EURCHF pair but in summary EURCHF has been in an uptrend on the weekly charts but suffered a significant correction since early May. The strong index readings for EUR and the weak  Index readings for CHF may point to a retracement back into trend ie a long EURCHF position. Certainly from a very quick look at the charts EURCHF does look like quite an attractive buying opportunity after quite a significant sell off.

Really the purpose of this commentary is to highlight the difference between real-time index data analysis and long term trend based analysis. The Index Analyzer won't give you an assessment of trend but it will give you an immediate insight into what the market is doing right now and which currencies are strong or weak. In the context of EURCHF it allowed me to immediately see a potential retracement opportunity which would require a little more analysis before taking a position. Nonetheless, the Index Analysis approach provides a unique way of looking at what the market is doing right now and allows the trader to position themeselves more closely with flow. It's important to let the Index data build and populate at the beginning of the trading week though as the above example shows.

Traders can subscribe to the FX AlgoTrader Real-Time Index Analysis service for just £9.95 GBP/month with no contract lock in so they can cancel the subscription any time they like.

Wednesday, 9 May 2018

FX AlgoTrader - New Website Design

We're really pleased to release our new website site design. The new site is fully responsive and compatible with mobile devices. We hope you like it :)

Monday, 4 December 2017

Cryptocurrency Dip Buying Alert System Released

Crypto Detective (webpage)

Hot new product release from FX AlgoTrader. Crypto Detective allows traders to set user defined percentage change alerts based on trading timeframe and graphical percentage change threshold detection.

Video Overview

Thursday, 5 October 2017

New Product Release - Market Detective % (Delta) Alert Service with MT4 Auto Trade Plug In

Hi Traders,


We're delighted to announce the release of our latest platform independent analysis/alert service called Market Detective. 

The new service is a game changer in price based alerts - Market Detective is based on percentage change analysis rather than an absolute price based alert service. Traders can analyse real time percentage change data for forex majors and then set threshold levels to alert them when price changes by more than a specific percentage. 

The service runs over 9 timeframes in synch with MetaTrader 4 chart timeframes. Essentially the service is a spike monitoring and alert service with a MetaTrader auto-trade plug in if required. 

During our testing period on short timeframe M1 charts we ran the system in a 'fade' mode where the system auto trade any abnormal price spikes (a high percentage change compared to normal)... Even during our testing period we found the position moved into profit scenarios very quickly which was extremely encouraging bearing in mind we didn't align our trades with underlying trends etc. 

The auto-trading plug in can be used in two modes which are 'fade' and 'follow' where 'fade' trades trade in the opposite direction of the price spike and 'follow' trades trade in the same direction as the price spike. We think follow trades are best deployed during economic news releases and 'fade' trades during thin market conditions such as the Asian overnight session and also during times where price action is NOT being driven by news or geopolitical events. 

Traders can subscribe to just the alert service if they chose to which delivers email based alerts. The MetaTrader MT4 plug-in is a separate subscription where a client side EA (Expert Advisor) is also supplied to auto-trade the signals generated by the Market Detective Service. 

For more details please visit the Market Detective product webpage.

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