Trading with PotenzaFX 2


This page is the starting point for all the people interested in trading with PotenzaFX. Using this page you can easily go through the articles and understand how to use PotenzaFX in the most effective way.

We’d like PotenzaFX to be a clear paradigm for every trader in order to drastically improve their trading business. For this reason PotenzaFX is not a black box. On the contrary we want to present it in a way so that everyone can virtually use these concepts without even relying on our indicators at all. If you have good programming skills and you are willing to put time and effort into coding, then you can come up with your own indicators that exploit the concept of currencies’ strength/weakness. Of course we encourage you to be part of our “family” and use the indicators we developed during the last months. In this way you can avoid all the complexities of coding and at the same time be part of a group of like-minded traders who share their views and strategies about this solid and reliable way of approaching the markets.

The post New Home Page, New Approach introduces the concept of Currencies’ Strength and Weakness. This is not a novel concept, but it is very powerful when applied correctly and when the indicators are carefully coded in order to visualize the “Powerlines” during a period of time. We take into account the 8 major currencies (EUR, USD, GBP, JPY, NZD, CAD, AUD, CHF) and are able to display their Powerlines on any given timeframe.

The post Currencies Strength-Weakness (related to PotenzaFX) explains exactly how we calculate the “currency score” that shows strength/weakness of each currency, using 28 different pairs. The post also introduces the concept of currencies’ correlation.

The post Currencies Correlations (related to PotenzaFX) delves into the mathematical concept of correlation and how it can be applied to currencies’ scores. The correlation score is computed using two data series, and it is a number that can go from -100 to +100. The higher the score, the more related the two data series are, meaning that they tend to “move” in the same direction. Applying this calculation to currencies’ scores we are able to divide the major currencies into “groups” or “families”.

The post Friday Trades With Currency Strength/Weakness/Correlations (related to PotenzaFX) shows PotenzaFX in action on a 1 minute chart. Personally I prefer using PotenzaFX on larger timeframes (4H and Daily), but a skilled trader can use PotenzaFX also on smaller timeframes, if he wants to. Taking into account the correlation is especially important in this kind of scalp trades.

The post Basket Trading (related to PaniereFX) introduces a trading strategy that uses a basket of currency pairs all together. In particular the post shows a USD based basket of currencies that can be traded based on the strength/weakness of a sort of USD index.

The post Feel The Power Of Forex With PotenzaFX (related to PotenzaFX) explains how the “PotenzaFX” Indicators Package (“potenza” means “power” in Italian) is structured. PotenzaFX is made up of 3 separate indicators: the PotenzaFX “Powerlines”, the PotenzaFX “Correlations”, and the PotenzaFX “Dynamic Lot Sizing”. These 3 indicators together form an incredibly powerful trading system by itself, but they can also be used side by side with your preferred trading systems and style.

The post My Live Trades On The Daily Timeframe With PotenzaFX (related to PotenzaFX) shows how to use the DLS (Dynamic Lot Sizing) algorithm when using PotenzaFX on the daily charts of 9 major currency pairs. The DLS easily allows to scale in/scale out positions in order to follow day after day the strength/weakness of each currency. This can be a very relaxed and profitable way to trade.

The post How To Choose Best Pairs To Trade Based On Correlation (related to PotenzaFX) explains how the concept of correlation is very helpful in selecting the best pair to trade using PotenzaFX. In particular you’ll discover that AUD/USD and NZD/USD are absolutely the best pairs to trade with PotenzaFX, for the joy of all our Australian friends 😉

The post Great NFP Trading with PotenzaFX (related to PotenzaFX) shows an example of trading the after-news volatility in a NFP day with the help of PotenzaFX. A M5 EURUSD chart with PotenzaFX gave us the perfect sell signal for pocketing more than 100 pips. This post also reveals a powerful reversal technique that is worth taking in mind when trading after-news volatility.

The post How To Optimize Profits and Anticipate Entries (related to PotenzaFX) suggests a novel approach to PotenzaFX. This is an “anticipation” technique that seems quite effective on the daily charts od AUDUSD, AUDJPY, NZDUSD and NZDJPY. We believe it is definitely worth understanding and testing this approach. The number of won pips could be drastically increased using this technique.

The post PotenzaFX Testimonials(related to PotenzaFX) is a collection of comments from customers who have already successfully used PotenzaFX. You can probably find some interesting hints and tricks in this post too.

The post PaniereFX… Basket Trading, The Easy Way (related to PaniereFX) introduces the concept of “Basket trading” that can be one of the most profitable ways of trading Forex. The idea is to trade a set of “correlated” currency pairs based on a sort of “index” of them. Of course PaniereFX indicators can help you visualize on chart and trade this strategy.

The post Which Side Is Pound On? (related to PotenzaFX) shows a practical application of the PotenzaFX Correlation indicator. Basically the Correlation helps us divide currencies into 3 groups: the first one directly correlated to the stock market (EUR, GBP, AUD, NZD), the second one inversely correlated to the stock market (USD and JPY), and a third directly correlated to commodities (CHF with Gold and CAD with Oil). The changes in correlations’ values reveal that lately GBP is moving from Group 1 to Group 2.

The post +2295 Pips In 4 Days With “2PFX” Strategy (related to PotenzaFX and PaniereFX) explains a novel strategy that is an “in between” approach between PotenzaFX and PaniereFX. Its name is “2PFX” since the first P comes from Potenza and the second P from Paniere. This post shows that the profit potential of this strategy on a daily timeframe is really huge.

The post 30 Pips with “1 Hour Forex” and PotenzaFX (related to PotenzaFX) is another example of the versatility of PotenzaFX Indicators. A manual trading system (Jason Sweezwey’s 1 Hour Forex) is used along with PotenzaFX for entering a cool scalp trade. The beauty of PotenzaFX is that it can be used as confirmation for virtually any trading system.

The post +400 Pips per Month with a Simple “2PFX” Strategy (related to PotenzaFX Groups) illustrates a simple trading strategy on EURUSD with fixed SL and TP levels based on PotenzaFX Groups indicator. The strategy was backtested from September 2011 to December 2011 and resulted in an average +400 pips gain per month.

The post 2011 Currency Power Analysis (related to PotenzaFX) is an overview of strenght and weakness of the 8 major currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD) during the year 2011. The PotenzaFX Powerlines indicator applied to a daily chart gives a superb analysis of each currency.

The post New Features, Bug Fixes And Automation For PotenzaFX (related to PotenzaFX and PotenzaFX DLS Trader EA) introduces the “PotenzaFX DLS Trader EA” which is an Expert Advisor for the MT4 platform based on the PotenzaFX indicators. The EA allows to automate the entire trading process related to PotenzaFX.

The post How To Use Our Indicators In Your EAs (mainly related to PotenzaFX) is useful for anyone who wants to code scripts or EAs for the MT4 platform using PotenzaFX indicators. This article provides examples on how to call “PotenzaFX Powerlines” within MQL4 code, but you can easily do the same with other custom indicators.

The post Analyzing the Edge of PotenzaFX Groups (related to PotenzaFX Groups) is an edge ratio-analysis of PotenzaFX Groups performed on the daily chart of 8 pairs during the entire year 2011. The analysis shows that Groups provides an profit potential of about 3 thousands pips per pair on average in 1 year.

The post Improvement To The Dyamic Lot Size Strategy (related to PotenzaFX DLS Trader EA) describes a new algorithm for closing positions within the PotenzaFX DLS Trader EA. This new approach should improve performances by locking in potential profits in a more timely manner.

The post A 357 Pips Ride with DuettoFX (related to PotenzaFX) shows how both PotenzaFX and DuettoFX turned out as great trading tools for taking advantage of the EURUSD downfall in the first week of March 2012.

The post Correlation 101 describes how to use the PotenzaFX Matrix Indicator for spotting the best currency pairs to be traded with PotenzaFX. The correlation scores displayed in this matrix highlight the most inversely correlated currencies,and pairs composed by such currencies have the potential to develop strong trends.


List of PotenzaFX related posts (in chronological order):

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2 thoughts on “Trading with PotenzaFX

  • mosah

    Hi Andrea & Paolo,
    I have 2 PotenzaFX DLS Trader EA (v1.0 & v1.2) runing:
    – In 2 differents PC in LAN.
    _Same default setting
    -Same broker (FXCM)
    -Same TF (1H)
    -Same recommended Pairs (8)

    But the v1.0 open lot of trades and perform well better than v1.2.
    For exemple for today v1.2 opened only 1 trade (EURUSD) conversly v1.0 opened lot of trades (i don’t know how to attach file here. If you want it, i can send it to you by mail).
    I’d like to know why.
    Regards

    • Paolo Post author

      Hi Mosah, thanks for reporting that. Can you please send an email with set files and trading statements of both accounts? Thanks.