today we have some pretty good news for all FuturoFX customers. Good news #1: we are releasing a free update on next Monday with a new important feature called “multi-period”. Good news #2: it is a couple of weeks now that we are testing an EA based on this feature and it is churning pips like a little monster.
Let me explain first what this “multi-period” feature means. In the current version of FuturoFX we have a single “look_back” period input parameter. If look_back=120 (this is the default value) then FuturoFX explores each and every block of 120 bars in the history looking for decent correlation scores with the most recent 120 bars. If you open 4 charts of the same pair and attach FuturoFX indicator to each of them, specifying different “look_bak” periods you will notice that the “Best Projection” and “Average Projection” can be pretty different from chart to chart.
This makes perfectly sense, because each time we select a different “look_back” period we are exploring the fractal nature of price action with a different “lens”. How to make the most sensible trading decision then? The idea I had a couple of weeks ago is that when multiple look_back periods agree on the same sort of outcome for the future, then we have a reliable trade setup to work with.
Therefore I considered the average of “long target” and “short target” of all the charts opened with FuturoFX (same pair and same timeframe, of course). The result is a horizontal “channel”, with the upper line meaning an average long target, and the lower line meaning an average short target. When price gets close to the upper line that means multiple FuturoFX instances with different look_back periods agree on the fact that there is still a good potential for the price to go down, while there is a negligible potential for the price to go up. Viceversa when price gets close to the lower line we have a good setup for a long trade.
On next Monday you’ll be able to display this “channel” with FuturoFX and to start looking at these very reliable trade setups for yourself. This is not just our “feeling” that they are reliable. We have coded this very same logic into an EA that works on EURUSD M1 chart and it has been producing some pretty amazing trades since the beginning. Honestly it is the best scalper EA we have seen working in our career as Forex traders and MT4 developers. It has produced from 20 to 100 pips per day each and every day. We believe the quality of trades it executes is a clear proof that all this “Theory of Correlation” FuturoFX is based upon actually WORKS. It really gives you a sensible edge for trading the markets.
These are the +45 pips it already banked in the first few hours this morning after the London opening:
You can notice this EA does not try to follow the trend after it started, it actually anticipates the next trend! This is exactly what we had in mind when developing FuturoFX
Yesterday morning we setup our first official testing environment for this EA and it has done a pretty good job in the first 30 hours This is not big surprise for us since we have been seeing trades like these ones for a couple of weeks now.
We really hope you can use the upcoming new version of FuturoFX indicator to make some great trades too 😉