New PotenzaFX Trading System: Entries (Part 2) 2

Hi everyone,

in the previous post I gave you a general overview of the new PotenzaFX strategy.

Today I want to start detailing the entry rules and settings.

The first thing to set is the PotenzaFX indicator.

As you know, PotenzaFX can use many different algorithms to determine the strength/weakness of each currency. For this trading system I’m using Algo 4 that is the one based on the “BB Percent R”.

For those who don’t know the BB%R, it’s a range indicator for the Bollinger Bands. We have a value of 100 (%) when the price is at the upper BB, a value of 0 (%) when it is at the bottom BB, a value of 50% when it is at the middle MA. When the price breaks the upper band we have values above 100 and vice versa, when it price breaks the lower BB we have vales below 0.

Using PontezaFX with Algo 4 we can have values above +100 and below -100. And those two values are our “trigger” levels.

SHORT ENTRY

  1. The currency must close with a value above the +100
  2. When the currency comes back and closes below the +100 we SELL that currency.

We have to wait a close ABOVE the +100 and a close BELOW the +100. The come back close below the +100 doesn’t need to be immediately after the close above it but it may take one or more bars to come back. It doesn’t matter.

LONG ENTRY

  1. The currency must close with a value below the -100
  2. When the currency comes back and closes above the -100 we BUY that currency.

We have to wait a close BELOW the -100 and a close ABOVE the -100. The come back close above the -100 doesn’t need to be immediately after the close below it but it may take one or more bars to come back.

What does it meant to SELL/BUY a currency?

It means that we SELL/BUY it against all the other 7 currencies.

For example. USD goes above the +100 and then it comes back below +100. It means that we have to SELL USD against AUD, CAD, CHF, EUR, GBP, JPY and NZD.

How does it convert?

  • We BUY AUDUSD
  • We SELL USDCAD
  • We SELL USDCHF
  • We BUY EURUSD
  • We BUY GBPUSD
  • We SELL USDJPY
  • We BUY NZDUSD

So if USD is the first currency of the pair, we sell that pair (if we have to sell). If it’s the second we buy the pair (if we have to sell USD).

This ways, each entry signal generates 7 trades. Next time I’ll explain more in details how to EXIT each trade and then how to filter trades to avoid opening too many trades and working only with the trades with the higher potential.

I want to remember you that Summer Sales coupons are still valid and that you can get ANY of our indicators and EAs with up to 50% discount.

50% Discount Coupon (only 5 left!)
PIMP-NK26-SUMM

40% Discount Coupon (only for the first 20)
PIMP-NNCS-SUMM

30% Discount Coupon (only for the first 25)
PIMP-D0F0-SUMM

You better hurry before they are all gone.

Have a great profitable summer!

Andrea


New PotenzaFX Based Trading System: Overview (Part 1) 2

Hi everyone,

Yesterday we send everyone an email anticipating the performances of a new trading system based on our PotenzaFX indicator set.

PotenzaFX

Today I want to start describing it.

For those of you that still don’t know how PotenzaFX works I suggest you to give a read to the dedicated page here:
http://pimpmyea.com/potenzafx

and for more details to the 101 section dedicated to it:
http://wordpressmu-6488-83229-230746.cloudwaysapps.com/trading-with-potenzafx-explained/

In short, PotenzaFX calculates the strength and weakness of each single currency (for the major 8 currencies) based on how they are performing versus the other 7.

So it give us a score usually between -100 (very weak) and +100 (very strong). The score range depends on the algorithm utilized in our PotenzaFX. We can choose between many of them.

So far we traded PotenzaFX by looking at the crosses between the currencies scores. For example, if the EUR curve goes above the USD it means that we have to buy EURUSD as EUR is becoming stronger than USD. And vice versa, if USD crosses the EUR curve, we should sell EURUSD as USD is becoming stronger than EUR.

But there can be another approach to trading with it and it’s what I’ve been trading to have the above performances.

The idea is simple but it’s a little tricky to trade and that’s why I’ll divide the strategy description in 2 or 3 posts.

We now look for “overbought/oversold” areas.

If a currency reaches goes above a specific level and then comes back from it, then it is time to SELL that currency versus all the other 7. Vice versa if the currency goes below a specific level and then comes up above it, then it’s time to BUY it against all the other 7.

This is the general rule but we can add “filters” to it, mainly to the currencies we take into account to open a trade with. I’ll be more specific in the next post about it.

PotenzaFX_OBOS

In the above example picture we had two signal yesterday: sell NZD (red line) and also sell CAD (purple line). The day before to sell EUR (green line), buy GBP (yellow line) and buy CHF (blue line).

Let’s say that EUR goes above our trigger level and then it comes back. It means that we have to sell EUR vs the other currencies. And so we sell: EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD and EURUSD.

When do we close?

When the curve of the EUR crosses the one of the other currency. So in our example, when EUR crosses (goes below) the cure of the AUD we close the short EURAUD. When EUR goes below the USD, we close the EURUSD and so on. In our previous approach we use to open a trade here and not close 😉

That’s the strategy in brief.

It’s quite simple but requires attention as it may lead to opening a good amount of positions that’s why you may decide to limit the number of currencies you want to open orders with.

I want to remember you that you can still get the PotenzaFX indicator set as well as ANY of our indicators and EAs with up to a 50% discount, thanks to our Summer Sales coupons:

50% Discount Coupon (only 12 left!)
PIMP-NK26-SUMM

40% Discount Coupon (only for the first 20)
PIMP-NNCS-SUMM

30% Discount Coupon (only for the first 25)
PIMP-D0F0-SUMM

You better hurry before they are all gone.

Have a great profitable summer!

Andrea


MT4 Build 840 And ConcertoFX 3

Hi everyone,

I spent the last few days testing almost every EA and indicator we developed under MT4 Build 830/840.

It seems that everything runs as expected.

I still have doubts about the HART EA as it’s been reported that it seems it’s not opening any trades. I’ll do more tests on Renko based EAs (HART and Forte4Renko) later today.

While testing, I realized that our ConcertoFX demo was stuck.

The scoring on most of the pairs was missing a timeframe. So the sum of long and short trend score was 5 instead of the expected 6. That means that the EA wasn’t able to open new trades on those pairs.

I still don’t know if that happened in the passage to MT4 Build 8XX, but a timeframe (in my specific case it was the Weekly one) didn’t had enough historical bars to calculate the whole score.

Once the situation was “unlocked” ConcertoFX made 3% in less than one day!

I’m addressing that in the coming update so that the EA will always check that the total score is correct to avoid such problems.

In the meanwhile please check that your ConcertoFX has data for all the timeframes it needs to trade.

As said, I spent all the week testing for the new build and the awaited ConcertoFX updated shifted again.

Please send us an email or report below any issue you’re having with the new build so that we can verify it and eventually solve the problem.

Thanks everyone and have a good day,

Andrea


MT4 Build 800+ Important News 2

Hi everyone,

About a year ago MT4 did an upgrade which impacted most Expert Advisors. Most required changes and it took at least a month for the Forex industry to recover.

The latest MT4 800+ upgrade this week is starting to show the same type of problems. This is an industry wide challenge which makes the connections to Brokers unreliable and is causing windows error messages and servers to crash.

Based on feedback in the Forex industry forums etc on this MT4 build 800+ it is better off not to update to it at all, it is buggy big time, kills servers, makes MT4 connection to broker’s server unreliable etc…

If you have a chance then try to block the update to this 800, 825 and 830 builds – pretty much anything build number 800 or higher.

PimpMyEA is dealing with the problem as there are potentially serious issues with the MT4 platforms out there, the EAs being used.

So please do not update your MT4 platform at all. If you encounter problems with your EA and are getting window and unusual error messages consider closing all EAs down until we have more news.

Eventually try making the installations “portable” as we described in this post as this should minimize the impact of those problems.

Please visit the blog regularly (or even better, subscribe to it) for more information and to ask questions and to get updates on the situation.

Have a great weekend,
Andrea