Thanks Joe. The thresholds are absolute values for each currency - i.e. 0.4 is the currency strength itself. This really doesn't matter if we are using "trade by difference" as we are looking for a difference in strength - we really don't care whether one currency has been <0.3 or >-0.3 (in the "ranging area") as all we are concerned about is the relative strength of the currencies of the charted pair - so if the strength difference is say < 0.4 we can call that the "ranging area/threshold" and we want to trade when the strength difference is > 0.8 we don't care if one currency has stayed at +1.0 the whole time and the other has moved from +0.8 to 0 OR whether one currency has moved from 0 to +0.4 and the other from +0.6 to -0.4 - the actual difference is still 0.8 and has increased from < 0.4 and we should trade it imo.quanttraderjoe wrote:
Spotdespot,
about the thresholds, i think Paul mentioned that they remain valid even when we trade by difference. the thing is on the d1 timeframe, sometimes if we set the threshold at 0.3, we might not get trades for a long period so when i set up the ea for last friday , i disabled the threshold function.
i believe when the trades fired last friday, the diff for most of the triggered pairs was btw 0.8 to 1.0,
so i guess if the difference is ard that value, the trend shld work out nicely. perhaps when we trade by difference we can set the threshold to 0.5? may get more trades on the d1.
joe
I hope that makes more sense.
