PowerBarsFX 21


In the last months of development and trading we found out how much timing has a huge importance in trading and can make the difference between a winning trade and a loosing one.

The problem is that most of the trading strategies rely on one timeframe, or at least one timeframe at a time.

So far we’ve been able to do a multi currency analysis but we have done a step further: multi-currency and multi-timeframe.

PowerBarsFX is the name of  set of indicators that has the best of everything we learned and know so far, in it.

That’s why we think it’s really the best indicator we’ve seen so far. At least our best indicator :)

PowerbarsFX indicators are aimed at giving a graphical representation of how single currencies are “moving” in all timeframes, from the faster ones to the slower ones.

Here’s a picture of “PowerbarsFX Currency” heatmap:

For each of the 8 major currencies it shows you the “powerscore” for 5 different timeframes. In the example above from M15 to D1 but you can apply it to any timeframe you like. The greener the bar, the stronger the currency. The redder the bar the weaker the currency. The white color means the currency is neither strong nor weak. The black lines show the boundary between trading days, so in the image above you are watching how the currencies behaved in the last 5 days of trading. Of course you can zoom in and out as you want.

This is a really powerful view!

But to put things together we developed an indicator averaging the score in 5 timeframes (by default from the 15M to the 1D). This gives a very good overview of the currency strength/weakness. By giving the same weight (importance) to each of the timeframes we have reached our goal of timed signals.

Here’s what the “PowerBarsFX MTF Currency” looks like if you put the indicator on the same chart showing the average powerscore for each of the 8 major currencies:

Perfect overview of the Forex market conditions.

But for trading what we need more is to know the “spread” between the MTF scores. The “PowerBarsFX Spread” is what we need for trading. It calculates the difference between the MTF scores of the two currencies involved in a currency pair. When you apply this indicator to any currency pair it shows what’s behind the moves the pair is doing and so it can give you information about when to enter, eventually when to increase/decrease your position size and possibly when to close and reverse the open positions.

Here’s how the “PowerlinesFX Spread” looks like:

In order to prove that the signals coming from the “PowerBarsFX Spread” indicator are actually good we put it under a stress test on 10 major currency pairs to see how the most basic trading strategy (a classic “always in the market” stop&reverse strategy) performs under these strict conditions. Honestly the results are nothing short of exceptional:

The backtests were performed from the 9th of April 2012 to the 24th of July 2012 (roughly 3 months and a half), since we checked the full availability of data in this range. The vast majority of months were profitable for these pairs. We applied a fixed typical spread for each pair when computing these results.

And here is the trading strategy we used: “buy when PowerBarsFX Spread >= 20; stop&reverse when PowerBarsFX Spread <= -20″. Obviously a strategy so simple can only work if the underlying indicator is really smart. And PowerBarsFX – being both multi-currency and multi-timeframe – is undoubtedly smart 😀 The picture below illustrates the typical trades executed with this strategy:

This is only the tip of the iceberg of course, but if we apply this basic strategy to the 4 best pairs we end up with a pretty cool system delivering an average 2090 pips per month with an impressive 4.35 profit factor:

At this point you may agree with us that PowerBarsFX IS the best indicator ever 😀

If we look at the following pictures we can realize the backtests had to face pretty different price action scenarios and they came up with positive pips each month nonetheless. This is surely a proof that PowerBarsFX is a pretty solid indicator with lots of profit potential.

We also performed a classic “edge ratio analysis” on PowerBarsFX Spread, by evaluating how much price moves in favor of a trade (MFE = maximum favorable excursion) and how much it moves against the trade (MAE = maximum adverse excursion) when the indicator signals a new entry. After a trade is opened I measured MFE and MAE (as number of pips) until the next trade in the opposite direction is signalled. This analysis shows that even trades ending up as losers (according with the basic stop&reverse strategy) often have a considerable profit potential (MFE greater than MAE or similar to MAE), therefore they may be actually converted into winning trades when using a different (more sophisticated) exit strategy. The pictures below illustrates the actual trades under analysis for EURUSD, AUDUSD, GBPUSD, and EURJPY:

What You Get

  • The PowerBarsFX Currency indicator
  • The “PowerBarsFX MTF Currency” indicator
  • The “PowerbarsFX Spread” indicator
  • A set of 9 templates to apply them
  • Three online manuals with instructions

Ready To Buy?

If you are interested in the SintesiFX you can buy them from here.

PowerBarsFX Indicators (MT4) – $99,99PowerBarsFX Indicators (MT4). The indicators work on every MT4 platform and can be applied to any major currency pair and to any timeframe. It can be used on maximum 3 PCs.
***** This is the only version of PowerbarsFX supported by ForteFX (algo=3) *****

BUY IT

PowerBarsFX Indicators HullMA Version (MT4) – $99,99PowerBarsFX Indicators (MT4). The indicators work on every MT4 platform and can be applied to any major currency pair and to any timeframe. It can be used on maximum 3 PCs.

The indicators are smoothed using the HullMA algorithm.

BUY IT

UPGRADE to PowerBarsFX Indicators HullMA Version (MT4) – $14,99PowerBarsFX Indicators (MT4). The indicators work on every MT4 platform and can be applied to any major currency pair and to any timeframe. It can be used on maximum 3 PCs.

The indicators are smoothed using the HullMA algorithm.

The upgrade is possible only for those already owning the “regular” PowerbarsFX indicators set.

BUY IT

Please review our Refund Policy


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21 thoughts on “PowerBarsFX

    • Andrea Post author

      Yes, probably by the end of August/beginning of September. We still don’t know how much it’ll cost. We decide it as the very last thing.

  • Mick

    Hi Andrea & Paolo

    Can I just check if I’ve got this straight? If I want to trade the PowerbarsFX strategy automatically on the 15M timeframe as an EA, can I buy the PotenzaFX DLS trader EA now, & then get the free upgrade to include the PowerbarsFX indicator strategy when it’s released?

    I think the Potenza EA is about the only one of your indicators/EAs I haven’t got yet! Great work.

    • Andrea Post author

      Hi Mick,

      the PowerbarsFX Indicator is and will always be stand alone.

      So if you want to buy better do it before the end of August as you got a 30% discount using the coupon.

      It’ll be integrated in the next update of PotenzaFX EA but that means that the algo will be part of the EA, not that the indicator will be part of the EA package. Also with the upgrade, PotenzaFX EA will surely be increased.

      I hope this clears how thing are about to evolve :) A little complicated but we are trying to have a separation between indicators and EAs.

      Thanks for your for your trust so far!

  • Михаил

    .Hello! Whether tell, please, surely to establish all indicators and templates on MT4 or enough for trade only “PowerbarsFX Spread” indicator? Whether it will work one? Thanks!

    • Paolo

      Hi, you can run the “PowerbarsFX Spread” only if you wish too. The others PowerbarsFX indicators and templates don’t need to be running on your platform at the same time.

  • Peter

    Hi Andrea/Paolo,

    Are “PowerbarsFX” indicators Guardian free? Also you mentioned in the last comment on “PotenaFX” that you were looking at making them Guardian free “shortly”….which is now over a month ago…..how do you define shortly ;-)?

    Keep up the excellent work!

    • Paolo

      Yes they are :-) We are testing a third party solution for getting rid of Guardian (finally) on our other products but it still requires some refinements in our opinion. Sorry for this delay. And thanks for your support 😉

    • Paolo

      Hi Jason, thanks for your interest. The current version of this indicator does not repaint itself. Some websites may sell it cheaper for two reasons: 1) they sell a pirated copy violating our copyright; 2) they are RegNow affiliates who are willing to forgo part of their commission and give that as a discount for customers. You should buy our software only through the merchant RegNow. If the discount is more than 20% there is definitely something wrong with the seller….

  • Ashley

    I have just bought this indicator yesterday and plan to use it exactly as described (stop and reverse at the 20 and -20 levels). The trading examples given on this page were obviously back tests and I don’t mind that at all. My only fear is that those back tests were using your previous version which repainted? So can those results have any reliability now that the latest indicator (which I have just purchased) does not repaint?

    I have been trading Forex for 6 years and I now want a strategy I can “finally” trust and trade with confidence. I don’t care about occasional losses along the way as that’s trading! But I would like to know if this latest non-painting version will give results close-to-or-better than the backtested results on this page?

    • Paolo

      Hi Ashley, we are in the process of backtesting PowerbarsFX on another platform (JForex) with an Historical Tester which supports multiple currencies at the same time. Of course we’ll keep you updated about any findings. I expect that the stop&reverse strategy will not be extremely profitable (although still a winner), but on the other hand we have now the opportunity to test a more elaborate algorithm than can make the most out of PowerbarsFX. Thanks for your patience.

  • Ashley

    Thank you Paolo. From my own back tests just on EUR/JPY and only for September and to date for October, I get 301 pips up for September and 498 pips up for October to today. This is manual trade-by-trade results so how reliable (not sure). But that’s my own findings just as a manual lookback test. If those results are to be trusted then it still would indeed be a winning strategy. We will all await your own official tests in any case. Thank you.

  • Joe

    Ciao,

    I have a question regarding back-testing. I noticed that when data is reloaded on a chart that the PowerbarsFX values change. Is visually back-testing accurate? I am using the 15 minute bars and would like to know if when I visually back-test I am getting accurate and reliable results.

    Grazie mille,

    Joe

    • Paolo

      Hi Joe, for visual backtests I suggest you leave your M15 chart open on a VPS. When the indicator is reloaded the data computed is not 100% reliable because of intrinsic limitations of the MT4 platform.

  • Mariano

    Hi, recently I have been experimenting some issues with the PowerBarSpread Indi… On the opening of monday trading session (or sunday for EST time) the indicator stops giving values for several bars. Apparently, and is just an observation, when the opening price would cause a change in direction in the indicator (for example from +ve values to -ve values). If I delete the indicator from the chart and attach it again, all the missing values are now present.

    Do you know what would be causing this behavior?

    Thanks in advance

    Mariano

    • Paolo

      Hi Mariano, thanks for reporting. I’m afraid this is just an intrinsic limitation of the MT4 platform. We have experienced similar problems with all the indicators which rely on multiple currency pairs.

  • simon Mancini

    Hello ,

    i love your indicator its great but i am missing a email function to be alerted when a certain level is reached . will it possible on the next update .

    SImon